### **Overview** Fratelli Vineyards Ltd. is one of India’s leading and fastest-growing wine producers, commanding approximately **one-third of the domestic wine market**—making it the **second-largest wine company in India** and a dominant player in the premium and luxury segments. Built on a foundation of **15 years of integrated viticulture and oenology expertise**, the company has evolved into a **vertically integrated, family-driven yet professionally managed enterprise**, with end-to-end control from “vineyard to bottling.” Formerly known as Tinna Trade Limited, the company underwent a **strategic transformation in 2024–25**, fully exiting its agri-commodity trading business to become a **pure-play wine and lifestyle brand**, operating under the new corporate identity *Fratelli Vineyards Ltd.* following a share swap with Fratelli Wines Pvt. Ltd. --- ### **Core Business Model** - **Vertically Integrated Operations**: Controls the entire value chain—from grape cultivation to bottling—ensuring quality consistency and supply security. - **Vineyard Footprint**: - **400 acres of company-owned vineyards**, primarily in Akluj (Maharashtra) and Jambhali. - **~1,000–1,400 acres under long-term contract farming**, enabling scalable and traceable sourcing. - Key locations: Maharashtra and Karnataka, within a 100 km radius of wineries for logistical efficiency. - **Winery Capacity**: - Installed capacity expanded to **5.4 million liters** (up from 4.5 million), with plans to reach **5.6 million liters** soon. - Strategic infrastructure investments include new canning lines in **Akluj (Maharashtra)** and **Bijapur (Karnataka)**. --- ### **Winemaking & Innovation** - **Indigenous Grape Clones**: Imported **12 premium varietals from top French and Italian regions** (e.g., via Guillaume, a 120-year-old nursery) and grafted them onto Indian rootstock to create **12 proprietary clones**, including Chardonnay, Cabernet Sauvignon, Merlot, Sauvignon Blanc, Shiraz, Sangiovese, and rare varieties like Müller Thurgau and Mercelan. - **Ideal Terroir**: Vineyards benefit from: - Optimal climate: **13–30°C temperature range** - Virgin, high-minerality, alluvial soils that enhance grape concentration and flavor intensity - Semi-arid conditions in Jambhali offering climate resilience - **Award-Winning Wines**: Over **250 international awards** to date. Flagship brands include: - **Sette**: India’s first luxury wine, inspired by Opus One; won multiple gold and double gold medals. - **J’NOON**: A luxury label developed with French winemaker **Jean-Charles Boisset** to showcase Indian terroir internationally. - **Gran Cuvée Brut**: India’s only **zero-dosage sparkling wine**, made using *méthode traditionnelle*. - **Master Selection**: Crafted by renowned experts **Piero Masi** and **Steven Spurrier**, emphasizing varietal purity and terroir expression. --- ### **Product Portfolio & Brand Strategy** Fratelli offers a diverse, multi-tiered portfolio catering to every segment and occasion: | Segment | Key Brands | Positioning | |--------|-----------|-----------| | **Luxury** (>₹2,000) | Sette, J’NOON, Double Magnum | Premium craftsmanship, gifting, connoisseurs | | **Super Premium** (₹1,200–2,000) | Master Selection, Gran Cuvée Brut | High-end consumers, fine dining | | **Premium** (₹600–1,200) | Single varietals (Pinot Noir, Sangiovese, etc.) | Aspirational drinkers, expanding base | | **Value** (₹250–550) | Ziva, Mosso Peach Wine | Accessible, everyday consumption | | **Ready-to-Drink (RTD)** | **TiLT**, **Shotgun**, Wine-in-a-Can | Youth-centric, casual, on-the-go | - **Premium Focus**: Over **70% of revenue** comes from **premium and above categories**, with higher net realization (10–15% above industry average). - **New Launches in FY25**: - **Pinot Noir** (first commercial vintage), launched in over 1,450 outlets. - **Master Selection Late Harvest**. - **Double Magnum (6L) Sette**, introduced at a vertical tasting in Bengaluru. --- ### **Growth Drivers & Strategic Initiatives** #### 1. **Ready-to-Drink (RTD) Expansion** - **Shotgun** (launched Feb 2025): - 100% wine-based, 11% ABV, in 330ml cans. - Captured **6% market share** within 6 months, available at **6,000+ outlets** across **11 states**. - Targets Gen Z and millennials; positioned as a **higher-quality alternative to Bro Code**. - Plans to add **1,500 new retail touchpoints**. - **TiLT**: Market leader in wine-in-a-can, India’s only **vegan and gluten-free canned wine**, with variants like Bubbly Rosé and Noi Spritzer. - RTD Segment: - Valued at **₹500 crore**, growing at **15–20% annually**. - Shotgun aims to **double in size YOY**; early repeaters indicate strong traction. #### 2. **Distribution & Market Penetration** - **National Reach**: Presence in **29 states and UTs**, with robust distribution in: - **Defense (CSD/Army Canteens)** - **Delhi, Kerala, Odisha, Andhra Pradesh**, and growing in **UP (double-digit growth)**. - **25,000+ Sales Touchpoints** (retail, HoReCa, modern trade). - Targeting **Tier II and III cities** through expanded distribution and localized marketing. - **Balanced Regional Sales**: South, West, and North each contribute **25–30%** of revenue, reducing regional dependency. #### 3. **Experiential & D2C Growth** - **Pour Room** (Launched Feb–May 2025): - India’s **first wine-and-coffee experiential bar**, co-developed with **Blue Tokai Coffee** in Koramangala, Bengaluru. - Features **barrel-aged coffee**, wine tastings, and co-branded merchandise. - Serves as a direct-to-consumer (D2C) hub, building loyalty and lifestyle engagement. - Plans to expand across Bengaluru and other metro cities. - **Vineyard Tourism & Hospitality**: - Developing **India’s first luxury vineyard resort** on a **170-acre estate in Akluj**, featuring: - 40-key ultra-luxury property (launch expected by FY27) - Weddings, stays, F&B, wine shop, experience center, museum - **Benefits**: Higher-margin D2C sales, brand deepening, diversified revenue streams. - **CAPEX Allocation**: **~70% of ₹100 crore total planned investment** over next 2–3 years. #### 4. **Exports & International Presence** - Exports to **10 countries**, including UK, US, Italy, Japan, Dubai, and Australia. - Made history by becoming the **first Indian wine brand to export TiLT Wine-in-a-Can to Europe**. - Participates in global events: **Vinexpo, Prowein**. - Export growth target: **~20% YoY**. --- ### **Investments & Future Roadmap** - **₹100 Crore CAPEX (Next 2–3 Years)**: - **70%**: Luxury vineyard resort and hospitality - **30%**: Brand building for RTD products (Shotgun, TiLT) - **Capacity Expansion**: - Ongoing vineyard development: **+100 acres in Jambhali** (40 acres in H2 FY25, balance by Q2 FY26). - New 50,000 sq ft winery operational to boost premium wine output. - **Sustainability Initiatives**: - **520 KW solar power** at Akluj winery (~40% energy needs met). - **Cost savings**: >₹10 million/year from solar. - **Technology & Ops Excellence**: - Investments in **Salesforce, Tableau** for real-time tracking across sales, inventory, and distribution. - Focus on temperature-controlled logistics to maintain wine quality. --- ### **Management & Governance** - **Leadership**: - **Chairman & MD**: Gaurav Sekhri (29+ years in commodities, now steering pure-play wine business) - **Executive Directors**: Aditya Brij Sekhri, Puja Sekhri - **Winemaking**: Led by **Piero Masi (Tuscany)**, blending Italian tradition with Indian terroir. - **Ownership**: Born from Indo-Italian collaboration (“Fratelli” = “brothers”), uniting Sekhri, Mohite-Patil, and Secci families. - **Corporate Restructuring**: Transitioned from commodity trading to wine-focused entity via strategic acquisition and share swap.