Wine Is Happening; No Wonder Private Equity Wants To Taste Them
Wed, 11/23/2005 - 05:46 — Sahad P VIndian wine industry is booming. Which is why private equity players have been looking at this space keenly now.
India’s wine market is estimated at five million bottles a year – equivalent to around 200 people sharing one bottle – and, at 2.75 billion rupees makes up less than 1 per cent of India’s US$1.8 billion alcoholic drinks market. But the wine market is growing at 25 per cent to 30 per cent a year, nearly three times as fast as beer, whisky or rum, which together make up 45 per cent of the total. Exports currently make up about 10 per cent to 15 per cent of total output.
Apparently, about 20 wineries have sprung up around Nashik and Pune only. (Via Reuters)
Related:
Private Equity Companies Drawing To Indian Wine Industry
Grover Vineyards Looking To Raise $3.3 Million From Private Equity Firms
After Sula Vineyards, GEM India Picks Up 26% In Mark Pi Chain
Comments
I am the Managing Director of GIA. We recently acquired a 33% stake in Sula. To summarize, our investment thesis:
Market:
* significant growth in the consuming middle class
* per capita wine consumption is lowest in the world (10 times lower than China)
* climate and soil conditions which are very favorable for the growth of wine varietals
* aspirations of the new consumer - wine is sophisticated
* a must for the portolio of any spirits major
* favourable govt policies
Company
* Best in class product
* Best in class management team
* Taking the lead in educating the market
* Understands and appreciates what value added investors bring to the table
* Listens!!
Rgds Deepak
November 23, 2005
Deepak,
Thanks very much for the additional details on your investment. Sula is a great company. You have invested in a leader.
Sahad P V