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Company Profile

Incorporated in 2003, Sula Vineyards Limited is the India's largest wine producer and seller as of March 31, 2022. The company also distribute wines under a bouquet of popular brands including RASA, Dindori, The source, Satori, Madera & Dia with its flagship brand "Sula" being the "category creator" of wine in India. The company's business is broadly classified under two categories (i) the production of wine, the import of wines and spirits, and the distribution of wines and spirits (the "Wine Business"); and (ii) the sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms (the "Wine Tourism Business") Currently, the company produces 56 different labels of wine at four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka.

Business Highlights & Services

Sula Vineyards is the India’s largest wine producer and seller as of March 31, 2022 . They have been a consistent market leader in the Indian wine industry in terms of sales volume and value (on the basis of the total revenue from operations) since Fiscal 2009 crossing 50 per cent. market share by value in the domestic 100 per cent. grapes wine market in Fiscal 2012 . They have consistently gained market share (on the basis of their total revenue from operations) from 33 per cent in Fiscal 2009 in 100 per cent grapes wine category to 52 per cent in value in Fiscal 2022. Furthermore, they are the market leader across all four price segments, being Elite (INR 950+), Premium (INR 700- 950), Economy (INR 400- 700) and Popular (< ? 400) with a higher share of approximately 61 per cent by value in the Elite and Premium categories in Fiscal 2022, as compared to their overall market share of 52 per cent in the Indian wine industry.

Furthermore, they are also 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 gross billings of Sula Shiraz Cabernet amounted to ?918.26 million, ?475.64 million and ?319.73 million in Fiscal 2022 and for the six months period ended September 30, 2021 and September 30, 2022, respectively.

Their business broadly classified under two categories (i) the production of wine, the import of wines and spirits, and the distribution of wines and spirits (the Wine Business); and (ii) the sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms (the Wine Tourism Business). However, since the Wine Tourism Business is incidental and complements the overall Wine Business, the Company’s chief operating decision makers (which includes their CEO, CFO, COO and members of the board) monitor and review the operating result of the Group as a single operating segment of manufacture, purchase and sale of alcoholic wines and spirits.

Sula distribute wines under a bouquet of popular brands. In addition to the flagship brand Sula, popular brands include RASA, Dindori, The source, Satori, Madera & Dia with its flagship brand Sula being the category creator of wine in India. Currently, sula produce 56 different labels of wine at four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka. Furthermore, they are among the top ten most followed vineyards in the world, with a large following on social media of approximately 118,000 followers on Instagram, approximately 123,000 likes on Facebook and approximately 14,000 followers on Twitter as on September 30, 2022.

Furthermore, sula wines are available at various price points between ?250 to ?1,895 per 750 ml bottle in Maharashtra, making them accessible for consumers with different budgets appealing to mass markets as well as having a premium product strategy. In particular, their wines are classified under four broad categories, namely the Elite category with 21 labels, followed by the Premium category with 13 labels, and the Economy category with 13 labels, and the Popular category offering 9 labels. Sula wines have been segment leaders under each of these four categories in the last six years from Fiscal 2017 to Fiscal 2022.

Sula consumer proposition focuses on offering their consumers extensive varieties of wine at varying price points, with 56 labels to choose from a portfolio of 13 distinct brands as of September 30, 2022. Furthermore, their wines are available at various price points between ?250 to ?1,895 per 750 ml bottle in Maharashtra, making them accessible for consumers with different budgets appealing to mass markets as well as having a premium product strategy. In particular, sula wines are classified under four broad categories, namely the Elite category with 21 labels, followed by the Premium category with 13 labels, and the Economy category with 13 labels, and the Popular category offering 9 labels. Sula wines have been segment leaders under each of these four categories in the last six years from Fiscal 2017 to Fiscal 2022. Their D2C sales were ?157.53 million, ?72.81 million and ?242.01 million during the six months period ended September 30, 2022 and September 30, 2021, and the Financial Year ended March 31, 2022, respectively. Sula is one of the fastest growing alcoholic beverage companies in India as of March 31, 2021, with a CAGR of 13.3 per cent. between Fiscals 2011 and 2022. They have emerged stronger in the aftermath of the COVID-19 pandemic, gaining additional market share and accelerating their profitability. In Fiscal 2022, it revenue from operations was ?4,539.16 million with a net sales margin1 of 69.83 per cent, and profit after tax of ?521.39 million in the same period. For the six months period ended September 30, 2022 and September 30, 2021, their revenue from operations was ?2,240.68 million and ?1,591.50 million, with a net sales margin1 of 74.32 per cent. and 70.39 per cent., and profit/(loss) after tax of ?305.06 million and ?45.31 million in the same periods, respectively.

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