### **Overview** Sula Vineyards Limited is India's largest wine producer and market leader, commanding over **50% of the domestic wine market** and more than **60% share in the Elite & Premium wine segment**. Founded in 1996 by Rajeev Samant, the company has revolutionized the Indian wine industry through innovation, premiumization, and the creation of India’s first wine tourism ecosystem. As of November 2025, Sula operates one of **Asia’s top five wineries** by capacity (18.2 million liters) and maintains a dominant presence across production, distribution, and experiential hospitality. --- ### **Core Business Segments** 1. **Wine Business** - Production and distribution of over **69 award-winning wine labels** across value segments: Elite, Premium, Popular, and Economy. - Flagship brands: *Sula Shiraz Cabernet* (India’s best-selling wine), *The Source*, *RASA*, and *Dindori Reserve*. - Own Brands contribute **~88% of total revenue**, with a strong focus on premiumization. 2. **Wine Tourism Business** - A high-margin, direct-to-consumer (D2C) platform driving brand engagement and sales. - Operates **three luxury vineyard resorts** (*The Source*, *Beyond*, and *The Haven*) and **four wine tourism centers** in Maharashtra and Karnataka. - Attracts **over 330,000 visitors annually**, making Sula one of the **most visited vineyards globally**. --- ### **Recent Strategic Developments (Q4 FY26 & Forward-Looking)** #### **1. Product Innovation & Portfolio Expansion** - **Launched Sula Muscat Blanc (7.5% ABV)** – India’s first **low-alcohol still Muscat wine**, priced at INR 875. Early market response is strong, following the success of *The Source Moscato*, which became Sula’s fastest-selling wine to reach 10,000 cases. - **Monopoly in Muscat Varietals**: Sula is the only commercial producer of Muscat-based wines in India, reinforcing its **innovation-driven differentiation**. - **Three new wine launches planned for FY26**, including further extensions in Muscat and premium red varietals. - **Expansion of vineyards** dedicated to Muscat grapes to meet rising demand for Muscat Blanc and The Source Moscato. #### **2. Distribution & Market Penetration** - **Pan-India Reach**: Distributes across **23 states and 7 Union Territories**, supported by: - 51 distributors - 12 corporations - 14 licensed resellers - 6 company depots - 3 defense units - Reaches **~25,000 points of sale**, the **widest distribution network** in India. - **CSD Expansion**: Increased Canteen Stores Department listings from 5 to 9 labels (including Dindori Reserve Shiraz and The Source Grenache Rosé), tapping into the high-growth defense canteen segment. - **National Expansion of 'The Source'**: Recently launched in Haryana, preparing for Delhi rollout; plans to expand into Andhra Pradesh (a greenfield market). #### **3. Export & Imported Wine Strategy** - Exports to **29 countries**, including the US, UK, Canada, Australia, and Singapore. - Strategically exiting the imported wine distribution business over past 5 years but now **planning a relaunch** due to: - Expected **import duty reductions** via ongoing **India-EU Free Trade Agreement (FTA)** negotiations. - Competitive advantage from existing national distribution network. - Currently distributes only **Le Grand Noir (France)** and **Trapiche (Argentina)**; Le Grand Noir is now the **#1 French wine brand in India**. #### **4. Wine Tourism & Hospitality Expansion** - **Launched *The Haven by Sula*** – A 30-room luxury resort near York Winery in Nashik (Oct 2025), featuring a **modern convention center**. - **Expansion Plans**: - Add **20 more rooms to The Haven** by March 2026 (total capacity to **154 rooms**, a **~45% increase** from FY25). - New **panoramic tasting room and expanded restaurant** at **Domaine Sula, Karnataka** (expected Q3 FY26). - **Resort Occupancy**: Reached **78% average** in FY25, with average room rates **exceeding INR 10,000**. - **Wine Tourism Revenue**: - Grew **8% YoY in Q2 FY26**, driven by record occupancy, higher footfalls, and increased guest spend. - Expected to end FY26 with **50% more room keys** than at FY26 start. - **No new resort expansions planned for FY27**, but facility upgrades will continue. #### **5. Operational Expansion & Efficiency** - **Production Capacity Expansion**: Increasing capacity by **1 million liters**, reaching **19.2 million liters/year by end-FY26**, at **33% lower capex** due to improved execution. - **Grape Sourcing Security**: - Access to **over 2,800 acres** of grape farms (>90% of annual supply). - Long-term contracts with farmers (up to 12 years) with **price escalation clauses**. - 5th consecutive high-quality harvest in 2025, ensuring stable supply. - **Sustainable Operations**: Over **60% of energy from solar power**; plans to install **2 MW battery storage by Q3 FY26** (first Asian winery with IWCA Gold Certification). --- ### **Financial & Strategic Highlights (FY25 – Nov 2025)** - **Own Brands Revenue (FY25)**: **INR 546.2 crore**, growing 2.2% YoY despite election disruptions and regulatory challenges. - **Elite & Premium Segment Growth**: - Now accounts for **78% of Own Brand sales** (77.1% in FY25). - CAGR of **21% from FY21–FY25**. - *The Source* and *RASA* brands grew at **40–50% CAGR** over 6–7 years. - **Wine Tourism Performance**: - Record **INR 60.3 crore revenue in FY25** (+10% YoY). - **3.8 lakh annual visitors**, with over **1.55 lakh tastings** conducted. - Achieved **all-time high market share in Maharashtra** despite offering fewer discounts. - **SulaFest Revival**: Music festival successfully relaunched in 2025 with **12,000 attendees**; now institutionalized as **annual event** to drive brand visibility. --- ### **Strategic Growth Strategy (FY25–FY28)** Sula’s roadmap for accelerated earnings growth focuses on: 1. **Premiumization**: Expand *The Source* and *RASA* nationally; target affluent, wine-curious consumers. 2. **Capital Efficiency**: Deliver **capacity expansions at lower capex**; optimize working capital and asset-light models (e.g., The Haven resort via lease agreement). 3. **Pan-India Expansion**: - Target **Tier I and Tier II cities** (e.g., Agra, Chandigarh, Andhra Pradesh). - Strengthen on-trade presence via premium hotel partnerships (Hyatt, Umaid Bhawan, Astor Goa). 4. **D2C & Retail Innovation**: - Launched Dindori Tasting Room and Bottle Shop; new facilities planned at ND Wines and Domaine Sula. - Direct sales grew **11% YoY to INR 9 crore**. 5. **Brand Building**: - **SulaFest**, **pan-India tastings** (>250,000 in FY25), and partnerships (e.g., with **IndiGo** to serve canned wines on flights). 6. **M&A & Synergistic Growth**: - Open to **strategic acquisitions** in the alcoholic beverages (AlcoBev) sector. - Exploring deals beyond wine, leveraging its national distribution strength.