|
When you meet Kapil Grover, owner Director of Grover
Vineyards you find him a relaxed, laid back person with
a C'est La Vie outlook to life. Perhaps, because
he drinks his La Reserve or perhaps he is more in the
French wine producers mould, where he is charging ahead
with enviable exports.
But make no mistake. He is very upbeat and clear about
the expansive years ahead. Sales have gone up 47% during
the last 6 months even after increasing the price of
La Reserve by Rs. 100 a bottle, he says. The sales in
the US are about to double to about 4000 cases a year.
UK market is expanding from 2500 cases a year to the
targeted 5000 during the next 18 months or so. He has
just tied up with a new vineyard with Australian expertise
near Bangalore with a 26% stake, which will help him
more than double his production in 2010 with even better
quality wines. Clearly, Kapil is on a roll.
So what has caused the change
‘The re-structuring we did earlier this year
has certainly made us realize and helped us in improving
our targets. Brindco took a 20% stake and with Jerry
Rao’s 15% and the passive 14% from Veuve- Clicquot-
Ponsardin of France, the family keeps the majority but
has a strategic alliance. ‘Earlier, we were concentrating
more on the quality with Michel Rolland being by our
side but marketing and finance were not our forte. With
Aman Dhall taking up a 20% stake and the domestic marketing
responsibility from April this year our marketing efforts
got re-inforced.
The quality of their la Reserve has been their forte.
A couple of weeks ago I met Seteven Spurrier in London.
One of the editors of Decanter who had declared it the
best New World Red last year, he was all praise for
it. When I visited Gordon’s, the first and the
oldest wine bars in London, I found the Sommelier chirping
about it too. Apparently, the market penetration was
not deep enough and with Brindco concentrating on marketing
, the results are gratifying.
‘We sent a new person to London to help our UK
Distributor in London, Shailen Patel. With a container
in October and already a demand for another one in December
means we are moving in the double sales territory,’
says Kapil.
And how is Sante doing? ‘Well the feedback from
Bangalore and Goa is very encouraging. Mumbai is doing
fine. We are about to launch it in Delhi soon. It is
a new product and it does take some time to find its
feet on the ground,’ he informed delWine.
Current Structure:
‘We own 51% majority in the company and that
is going to remain for ever,’ he emphasizes. The
2.5% owned by Rolland, of course is included in this
as ‘we consider him a part of the family,’
says Kapil with a smile. Any chance you may further
dilute your equity? I ask. ‘Absolutely Not,’
was his instant reply.
Has the equity from Brindco and Jerry come into the
company? ‘No, not yet,’ says Kapil. ‘The
problem is that all three of us are traveling so much
that we hardly find time to be together. Anyway, by
December 1, it will be in place and the equity shares
will be allotted to them,’ he adds.
Sales Targets
We hope to achieve 125 million bottles this fiscal
(about 100,000 cases). Last year they had done 60,000
cases.
The sales growth is expected uniformly from all corners
of the markets. Exports will continue to be targeted
towards France, UK and the US markets, confirms Kapil.
So what is the new grape project coming up
Kapil plans to invest 26% in a new vineyard project
coming up near Bangalore. ‘ About 15 kms from
our vineyards, as the crow flies, this new company called
Draakshi has bought 100 acres of land in Hindupur. With
a climate similar to ours, it is easy to buy land there.
The vines will be planted in January and we expect the
fruit for crushing available in 2010.’
The company owned by one D.D. Saxena a banker in the
Australia will have Saxena, Kapil and a friend of Saxena,
Rahul Tandon as founding Directors. There will be a
few HNI investors unknown to Kapil but friends of friends.
Kapil met Saxena through Simon, a viticulturist in Australia
who has been coming to India frequently. He had earlier
set up some vineyard projects with financial help from
Saxena’s bank in Australia. Knowing the market
trends in India for wine, Simon knew that the market
expansion will depend upon the grape quality and Saxena
was in touch with Kapil for a year.
It becomes a win-win situation for both as Saxena finds
a ready and captive buyer in Grover and Grover finds
good quality grapes with a commitment. His 26% stake
will help the bonding further. The company plans to
acquire 1000 acres during the next couple of years,
thus tripling the grape availability for Grovers and
ensuring high quality too with viticulture help from
Australia.
With the sales on the rise, company on strong footing
and on an expansive mode Kapil is smiling up his sleeves.
Subhash Arora
November 8, 2007
|
