Sula grows as young India takes to wine
In 17 years, Sula Vineyards has a come a long way to becoming the largest winemaker in India with a market share of over 60% and a turnover of ₹400 crore.Updated: Oct 10, 2016 11:42 IST
In 17 years, Sula Vineyards has a come a long way to becoming the largest winemaker in India with a market share of over 60% and a turnover of ₹400 crore.
And the company has big plans for the future. We aim to double our turnover to ₹1,000 crore in the next decade, says Rajeev Samant, the CEO of Sula Vineyards.
“We made 48,000 bottles of wine in our first full year of operations. This year (2016-17), we will produce 11 million bottles (about 1 million cases),” Samant told HT in an interview.
Currently, a person in India consumes 15 ml wine in a year, compared to 1 litre in China and 15 litres in the UK. “Wine consumption in India can easily go up to 100ml as the market is growing at an annual rate of 15-20%,” said Samant.
The wine market in India is estimated to be around 18 million litres and the growth is being driven by increasing demand from the youth. Sales are also booming in military’s canteens.
While Mumbai, the National Capital Region and Bengaluru remain the large wine markets, sales are also picking up in Chennai, Hyderabad and Kolkata.
Sula, which set up its first winery in Nashik, currently has a capacity to produce about 10 million litres of wine. In 2016, Sula will crush more than 13,000 tonnes of grapes, up 20% from last year.
Given the rise in demand, the company will expand its vineyards. “Last year, we got 500 acres of new vineyards planted. This year, the target is to add 400 acres more,” said Samant. The capital expenditure will be ₹50 crore.
Sula’s wines have also found markets overseas, these are exported to 30 countries. However, exports still remain less than 10% of the company’s total sales, and Samant maintains the focus is on India.