India's First Wine, Food and Hospitality Website, INDIAN WINE ACADEMY, Specialists in Food & Wine Programmes. Food Importers in Ten Cities Across India. Publishers of delWine, India’s First Wine.
Skip Navigation Links
About Us
Indian Market
Wine & Health
Wine Events
Retail News
Contact Us
Skip Navigation Links
Wine Tourism
Book Review
Photo Gallery
Readers' Comments
Video Wall
Media Partners
Ask Wineguyindia
Wine & Food
Wine Guru
Gerry Dawes
Harvest Reports
Mumbai Reports
Advertise With Us
US Report on Indian Market Released
Top Ten Importers List 2015-16
On Facebook
On Twitter
Delhi Wine Club

Posted: Friday, February 26 2010. 18:03

Sula to Raise Equity to Expand

Building on its booming sales, Sula is planning to expand its capacity further by entering the tier II cities and for this purpose it is planning to raise funds through private equity, according to media reports.

Nashik Vintners Pvt. Ltd., owner of the Sula wines will raise the private equity capital through the issue of new shares, says Rajeev Samant the founder CEO.

“Talks are on and a decision will be taken soon,” said Rajeev Samant, managing director. The equity divested will amount to a minority stake, he said according to Live Mint.

The company currently owns about 20% of the market share with the last year’s revenue of Rs.560 million. The total Indian wine market is estimated at Rs 2.5-4 billion. Its Sula brand is priced at Rs 450 and above, with the super premium wine Dindori selling as high as Rs.800 a bottled. The low end Samara brand does not use the Sula name on the label starts at only Rs 150 a bottle.

The strategy propped up the top line from Rs. 507 million in 2007-08 to Rs. 540 million last year but the profits before taxes dropped from Rs 90 million to Rs.18.5 million in 2008-09.

After a flat year 2009-2010 in which the volume sales growth was only around 10%, the company is expecting a growth of 45% this year with the target of 280,000 cases well within the reach of the company. Sula also plans to expand through acquisitions which ‘will be on the cards two years from now,’ according to Rajeev.

Whereas the sale of its premium brands was rather flat last fiscal year, the low end Samara introduced over a  year ago helped the company increase the volumes and became the largest producer last year, overtaking the erstwhile leader Indage Vintners.

“We now plan to penetrate tier II cities with Samara,” said Samant who, indulging in some rhetoric, reportedly plans to open around 700 wine-tasting clubs across the country in places such as Punjab, Bihar and Assam. “These are places where people have no access to our wines.” delWine Could not reach Rajeev for his confirmation.


Want to Comment ?
Please enter your comments in the space provided below. If there is a problem, please write directly to Thank you.

Generate a new image

Type letters from the image:

Please note that it may take some time to get your comment published...Editor

Wine In India, Indian Wine, International Wine, Asian Wine Academy, Beer, Champagne, World Wine Academy, World Wine, World Wines, Retail, Hotel


Copyright©indianwineacademy, 2003-2020 |All Rights Reserved
Developed & Designed by Sadilak SoftNet