Sula Vineyards eyes double-digit revenue growth in next five years

The company has filed its draft prospectus with Sebi and is awaiting approval for its IPO

Sula Vineyards, the leader in wines in the Indian market, expects strong double-digit revenue growth over the next five years.

“The number of drinkers has grown in strong double digits over the last couple of years and there has been a big boom in retail sales,” said Rajeev Samant, MD & CEO, Sula Vineyards. He added that research company Technopak Advisors expects the Indian wine market to grow at a compounded annual growth rate (CAGR) of over 20 per cent till 2025.

In FY22, Sula's revenue from operations was up 8.6 per cent to Rs 453.91 crore from Rs 417.95 crore in FY21. In FY20, its revenue stood at Rs 521.6 crore. The company saw its net profit at Rs 52.1 crore in FY22 compared to Rs 3 crore in FY21. In FY20, it reported a loss of Rs 15.9 crore.

According to the report, the Indian wine market stood at Rs 1,550 crore in FY21 and is expected to touch Rs 3,200 crore by FY25.

Maharashtra is the biggest market for Sula, where it also has its vineyard. The firm expects the state to continue to be its No. 1 market over the next decade as well, Samant said.

The company held a share of 52.6 per cent by value in FY21 in the Indian wine market. “We are already in a very strong position in terms of market share growth,” Samant said.

“We also have very strong market share in Haryana,” Samant said. He added that India is drinking much more wine now than ever before.

Sula also ships wine to over 20 countries and Samant said that its exports are growing well. However, he pointed out that exports are not easy. “You're going up against a lot of traditional wine companies and therefore there are challenges. But definitely more and more people across the world are enjoying a bottle of good Indian wine.”

At its vineyard in Nashik, it did 85,000 unique individual tastings and expects to surpass last year’s numbers.

“This year we are on track to do substantially more than that,” Samant said.

The company has filed its draft red herring prospectus with Sebi and is awaiting approval for its initial public offering.