by Subhash Arora
Sula Vineyards has announced the acquisition of India's first sparkling wine company. Based in a small village near Nashik, the wine capital of Maharashtra, Pimpane Co-operative India Ltd was one of the first Indian wine projects a co-operative formed with financial assistance from the government. It had failed miserably and the facility has been lying closed with unsold stocks under the charge of the lending banks.
Mr. Rajeev Samant, the founder and managing director of Sula Vineyards announced that the installations will be renovated within the next 3 months to prepare for the 2007 crop, which is to be harvested from February to the end to April. Sula Vineyards is, behind Indage, the second largest wine producer in India in terms of volume, with total wine capacity of 1.75 million litres, but the market leader for premium wines at € 5 and higher. Its signature wine Sauvignon Blanc 2006 received a four star rating in La Revue du Vin de France, the leading French magazine on wines.
The new acquisition will increase the company\'s production capacity to two million litres. Sula Vineyards plans to further invest over 2 million Euros, including € 1 million over the next three years in a 150 acre nursery in Nashik, which will be set up with French collaboration. Samant says that this is essential to ensure that all new vines are virus-free and consistent in yield in order to enhance the quality of his wines.
This year, 90,000 cases have already been sold and exports are up 100%. It has acquired an additional 500 acres (200 hectares) of vines this year, so total vineyard area under ownership or contract has increased from 700 to 1,200 acres (480 hectares). Only 2 years ago, it had merely 300 acres under vines. Recently there had been rumours that the company was divesting 26% of its shareholding to Diageo. Wine Business International broke the story of their denial, which was later confirmed by Rajeev Samant at a press conference.
