Sula Vineyards Limited IPO

Sula Vineyards is India’s largest wine producer and seller as of March 31, 2022, according to its red herring prospectus. The company has been a market leader in the Indian wine industry in terms of sales volume and value since fiscal 2009.

The company has consistently gained market share from 33% in Fiscal 2009 to 52.6% in Fiscal 2021. The company sells their wines in four price segments — Elite (Rs 950+), Premium (Rs 700-950), Economy (Rs 400-700) and Popular (< Rs 400). The company has 60% market share in terms of value in the ‘Elite’ and ‘Premium’ categories in fiscal 2021.

Further, the company is recognized as the market leader across wine variants, including red, white and sparkling wines. Sula Shiraz Cabernet is India’s largest selling wine by value in fiscal 2021

The company’s business can be broadly classified into two categories: (i) production of wine, import of wines and spirits, and distribution of wines and spirits; and (ii) sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms.

Sula Vineyards produces 56 different labels of wine at four owned and two leased production facilities located in Maharashtra and Karnataka. Their popular brands include “RASA,” “Dindori”, “The source,” “Satori”, “Madera” & “Dia” with its flagship brand “Sula” being the category creator of wine in India.

Sula Vineyards serviced abouit 8,000 hotels, restaurants and caterers, which made the company a leader in terms of footprint among wine players in India. The company witnessed a significant rise in their off-trade sales in the last three years with their off-trade sales contributing 72.25% of their secondary sales during fiscal 2022.