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Our Bureau

Bangalore, Nov. 12 The UB Group-owned French wine company, Bouvet-Ladubay will invest €10 million to more than double its capacity as it plans to give a major thrust to its exports.

The Bouvet-Ladubay President and Director-General, Mr Patrice Monmousseau, told Business Line that the company will also use the network of another UB Group company, the recently-acquired Whyte & Mackay, to sell its products in the UK. The UB Group bought Bouvet–Ladubay from the Taittinger Group for €15 million last year. “We have a small presence in the UK and Whyte & Mackay’s strong sales force will help us to increase our presence there,” he said.

Currently, Bouvet-Ladubay sells about 1 lakh bottles in the UK market which it expects to increase to about 5 lakh bottles soon.

Mr Monmousseau said the wine maker will raise €10 million from banks in France instead of seeking funds from its parent, the UB Group. It will however, defer payment of dividend to the parent for five years. The new funds will be used to double the capacity to 8 million bottles per annum in five years. The wine manufacturer expects to triple its earnings to about €3 million in another five years and increase its sales 65 per cent to €25 million during the same period. “We are tiny but we are profitable,” Mr Monmousseau said.

He said the company plans to increase its exports to 75 per cent during the same period while the rest would be for the domestic market.

Bouvet-Ladubay also expects to sell about half-a-million bottles of its products in India in another five years. India is witnessing an increase in wine consumption and in volume terms its market size is about 1.2 million cases (of 12 bottles of 750 ml each) and is growing annually between 30 per cent and 35 per cent.

Bouvet Ladubay has already launched its range of premium Loire Valley French wines in India. The 750 ml bottles of wines retail at prices ranging between Rs 1,500 and Rs 2,500.

Mr Monmousseau said Bouvet-Ladubay will also help wine brands from the UB Group to be sold in France and other markets through its network. At present, Bouvet-Ladubay sells its products in 36 countries.

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UB Group’s Bouvet-Ladubay to invest €10 m to double capacity

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