Grover Zampa Vineyards Ltd, the country’s second-largest wine producer after Sula Vineyards, has raised Rs 60 crore ($8.2 million at current exchange rates) in fresh funding led by Singapore-based wine investor Ravi Viswanathan.
Citing a top company executive, Mint reported that the infusion is part of a total commitment of Rs 130 crore from Vishwanathan, the diversified AVT Group and Quintela.
Grover Zampa chief executive Vivek Chandramohan said the firm will use the money to launch new wines and redesign its wine tourism properties in Bengaluru and Nashik.
In 2012, when Grover Zampa and Nashik-based winery Vallée de Vin were merged, Viswanathan had taken 18% stake in the combined entity along with Reliance Capital.
Visvires Capital and Reliance Capital together hold around 32% stake in Grover Zampa, while the Grover family owns 24% stake.
French winemaker Labruyère Eberlé had also invested in the company previously.
The firm was launched in 1988 by Kanwal Grover. It was known as Grover Vineyards before merging with Vallée de Vin in 2012 to form Grover Zampa. It now has a vineyard each in Nandi Hills in Karnataka and Nashik in Maharashtra and claims to be selling over 2 lakh cases a year.
Chandramohan was quoted as saying that the company plans to increase this number to 5 lakh in the next five years.
Earlier this year, Grover Zampa acquired a stake in Chateau d’Etroyes in Mercurey, France.
Apart from Sula and Grover Zampa, other players in the space include Fratelli Wines,York Wines, John Distilleries, Pernod Ricard Indiam and United Spirits Ltd,
According to a report by Research and Markets, the Indian wine industry has grown at a compounded annual growth rate (CAGR) of more than 25% over the past five years as Indian consumers have started exploring other variants of wines apart from just red wines.
Deals in the alcoholic beverages sector
A number of companies in the alcoholic beverages segment have raised funding over the past year.
In July, IIFL Asset Management Ltd invested in craft-beer maker White Owl Brewery Pvt Ltd, marking the mid-market private equity firm’s debut deal in the alcoholic beverages space.
Venture capital firms Saama Capital and DSG Consumer Partners recently backed craft beer maker Goa Brewcrafts Pvt. Ltd. This was the second bet by Saama Capital on an alcoholic beverage company; it had previously invested in winemaker Sula Vineyards Pvt. Ltd.
In May, B9 Beverages Pvt. Ltd, which makes craft beer under the brand Bira 91, raised Rs 335 crore ($50 million) in a round led by Belgium-based investment firm Sofina.