Why did USL choose Baramati as the base of operations?
Well, to start it we wanted to be in Maharashtra because of the terroir. The grapes have been grown here for a long time. But we also wanted to have a different identity. Today, everyone is rushing to Nashik. Baramati also has been making wine grapes for the last 6-7 years. In fact, Baramati grapes were being supplied to Champagne Indage too.
Baramati soil is also light with gravel and soul. There is a lot of porosity, good drainage. It is also not fertile, which as you know, is good for grape growing. Besides the area has good irrigation system. Sugar crops which require a lot of irrigation are here already in a big way. The climate is dry and not too humid. Baramati has less rain than Nashik. Nights can be quite cool and so is the difference of day-night temperature attractive for flavour.
Baramati is also closer to us in Bangalore than Nashik.
Wasn't Bosca involved with UB Group earlier
Yes, Bosca was being produced with Italian collaboration by the Baramati Grapes Industries Ltd and did for 30-35 years. I knew it would spoil the name of our wines too. So the fist thing we did on my joining USL was to terminate the agreement with the Italian company and stopped the production.
So what is the structure of the new wine making company
Firstly, the USL- United Spirits Ltd. It's the wine and liquor arm of the UB group. United Breweries is another arm which makes beer. Kingfisher Airlines is another division of the UB Group. All wines, including Bouvet Ladubey, will be handled by the wine division of USL.
Who are the outside partners in the company.
It is a joint venture of UB with the Pawar family who along with the farmers of the Baramati will own 49% shares. The controlling majority will remain with our group. The equity will not be in the form of their land. We shall buy all the grapes they produce at pre-fixed prices. The JV will buy 300 acres of land and the rest will be through contract farming within the area.
Primarily, it would be the Pawars only? Who is in the Board
We are not concerned with who they bring in for the equity part, though our understanding is that many small growers will be the shareholders. The 9-member Board has 5 from our side- Mr. Vijay Mallya, Mr. Vijay Rekhi, Mr. Sami Lalla, Murli –the CFO and me. Pratap Pawar, Ranjit Pawar (nephew of Agriculture Minister, Sharat Pawar and son of the elder brother Appa Saheb, the main man behind Baramati Grapes), Sadanand Sule who is the US educated son-in-law of Sharat Pawar) will be included in the Board from our partners' side.
You were considered the right hand man of Kapil. Why did you leave Grover
Parting ways with Grover was painful as I was with them for 16 years, starting from acquiring the land to making the Grover wines known internationally. It was emotionally disturbing for me. But I had started feeling a lack of fulfilment.
I believe you wanted to be on the Board of Grover which did not materialise
Yes, that too. After toiling for years, I expected to have some equity and also be on the Board. We talked about it many times. But nothing concrete materialised. Then this offer came from the United Group who had decided to enter wines in a big way, and were looking for someone to head the division.
But why UB- a beer and liquor company
You know the consumer base in India for wine is very small at present, being less than 1% of the total. Globally, it is about 30%. Therefore, the growth potential is immense. China had a per capita consumption 7mL- same as in India now, merely 10 years ago. Today, it is 5 litres!
Somebody like UB had to get in, with substantial reach, marketing strength, vision and approach. Whatever they do, they do it big. They are professional and are trendsetters. Wine industry has been lacking in this area. I knew this was the right company for me and I decided to join them.
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