• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai , Oct. 2

SULA Vineyards has announced that private equity fund GEM India Advisors (GIA) has invested an amount of Rs 15 crore ($3.5 million) for a minority stake in the company.

This transaction is the first of its kind in India, with an international private equity firm taking a stake in an Indian wine company. GIA shall invest through a preferential allotment of optionally convertible participating preference shares.

The Samant family will continue to retain majority control. GIA will appoint two directors, Mr Alok Sama and Mr Deepak Shahdadpuri, on the board of Sula.

Sula Vineyards has emerged in recent years as India's leading premium wine brand.

The fast-growing Nashik-based company, which sold its first bottle in 2000, will sell over a million bottles of wine this year, making it the second largest wine company in India, with a 20 per cent share of the market.

Apart from the premium Sula Vineyards label, the company also produces the popular Madera range of table wines. It has also leveraged its nationwide sales and marketing network to import and distribute leading wine brands from around the world, including Hardys, Ruffino and Two Oceans.

Sula now covers all the country's major wine markets, and exports its wines to the US, UK, France and Italy.

Commenting on the transaction Mr Rajeev Samant, CEO of Sula Vineyards said, "Sula is today one of a handful of Indian alcoholic beverage brands that is perceived as a premium brand. Our intense focus on quality and branding is now reaping rewards.

"We are uniquely placed to capitalise on the wine boom that is taking place in India, as well as the tremendous export potential for Indian wine. We aim to place Sula and India firmly on the global wine map. Our efforts in this direction are further strengthened by this investment by GIA, who share our vision."

The company will use the funds to build a third winery in Nashik with a 1-million litre capacity, and to repay existing debt.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
GEM India picks up stake in Sula Vineyards

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line