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Strong demand for premium boosts biggest winery in India
Sula Vineyards, the largest wine producer in India, reported a 24.4% rise in first-quarter profits, boosted by strong demand for its premium wines and increased footfall at its vineyard, the company has reported.
Sula Vineyards said its consolidated net profit stood at 136.8 million rupees (£1.29 million), up from 110 million rupees a year earlier.
The Mumbai-based company reported a 21% rise in revenue from operations to 1.17 billion rupees. Sula’s premium labels — which include Rāsā and The Source — sit within the own brand portfolio, and account for approximately 89% of the topline, the company has said.
Sula Vineyards, which accounts for more than 50% of the domestic wine business, became India’s only listed winemaker in December last year. Its first grapes were planted in 1996 by CEO Rajeev Samant in Nashik, a region situated in the Western Ghats, at an altitude of 600 metres above sea level, in soil of volcanic origin.
Dindori, a sub-district of Nashik, is known for producing Sula’s premium red grapes like the Syrah, Zinfandel and Cabernet Sauvignon. Sula’s Rāsā Cabernet Sauvignon is hand-harvested from the Dindori estate. The Dindori collection by Sula includes three other wines — Dindori Reserve Viognier, Dindori Reserve Chardonnay and Dindori Reserve Shiraz.
Wine tourism was also responsible for boosting profits. Revenue from wine tourism increased 11% to 114 million rupees due to a 70% jump in visitors at its winery located outside the city of Bengaluru, according to Reuters.
The company’s tourism offering is focused around its Domaine Sula site, whose attractions include wine tasting sessions, tours and dining options.
Shares of Sula Vineyards settled 1.3% higher ahead of the results. The company gained 24.78% in the June quarter, and has risen 35.7%% since its market debut in December.