by Subhash Arora
Rajeev Samant , majority owner and executive director of Sula Wines in Nashik has strongly denied any truth to the speculation in the press about Diageo acquiring a significant stake in his
winery. Samant, back yesterday after a long stint in the States, said clearly: I have been to many places, but believe me, not to Diageo s board room! He clarified that Diageo had approach him and that they had met, but there was no question of his selling any stake. He owns a simple majority and has no intention of letting go of that. A 26% stake would mean virtually handing over the company and I have no intention of spending the rest of my days on a beach, especially when the real fun in wine is just starting. Multiple sources, however, confirm that a couple of rounds of negotiations did take place. No Comment from Diageo also implies that the issue is perhaps not yet dead.
The Indian wine market is in a state of boom, with annual growth of 30-35%. Sula, with a 90,000 cases sold last year, is outperforming the market and plans to sell 125,000 cases in the fiscal year 2007. The fastest growing wine producer, second only to Chateau Indage, is confident that it can finance the working capital requirements from internal sources and is not looking for any strategic alliances. Singapore based Global Emerging Markets private equity funds already hold a minority share through its Indian branch.
