Diageo has produced its first Indian wine - Nilaya, or ‘Blue Heaven’.

The range – which includes a Sauvignon Blanc, Chenin Blanc, Shiraz Rosé and a Shiraz Cabernet – is priced between INR395-500 (£4.85-6.15).

The grapes are grown, and the wine bottled in Nashik, Maharashtra at three wineries called Mountain View, Renaissance and Flamingo, all on contract to Diageo.

The wine was blended by Diageo blenders from Italy, Asif Adil, managing director of Diageo India told decanter.com.

In contrast to the exclusive, aspirational positioning of many wines marketed to Indian consumers, Nilaya is meant to be an everyday drinking brand, the company says.

Diageo has also launched Blossom Hill, Piat d’Or and Barton & Guestier in India this year.

Indian-owned drinks company United Breweries has also announced that it will launch a brand called Zinzy, priced at INR275 (£3.38). UB bought Loire winery Bouvet Ladubay in 2006, and sells the wine for up to INR3,000 (£36) per bottle.

It also plans to produce 1m bottles of sparkling wine from grapes grown in Baramati, Maharashtra.

The market for wine in India has been growing at over 25% per year, making it one of the fastest-growing wine markets.

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Written by Maggie Rosen