Everstone set to sell stake in Sula Vineyards

Everstone Capital, a private equity (PE) firm with assets worth $1.7 billion (Rs 9,310 crore) under management, is exiting its investment in Nashik Vinters, the holding company of Sula Vineyards, which sells leading Indian brand Sula Wines.

According to people in the know, Avendus Capital has been hired to find potential investors. Everstone is looking to sell its 10 per cent stake to strategic investors. Details of the valuation are not known.

In 2010, Verlinvest SA, a Belgian investment holding company, had purchased about 15 per cent stake in Nashik Vintners for $15 million (Rs 82 crore today). Through the deal, Verlinvest had acquired part-stake owned by GEM India Advisors, Sula’s earliest investors.

Mails sent to Everstone Capital spokesperson and Rajeev Samant, founder-chief executive officer of Sula Vineyards, did not elicit any response till the time of going to press.

Since the launch of the company’s first wines in 2000, Sula has pioneered many classic grape varietals in India like Sauvignon and Chenin Blanc in 2000, Zinfandel in 2003 and Riesling in 2008. In 2005, Sula launched its first reserve wine, the Dindori Reserve Shiraz, as well as India’s first dessert wine, the Late Harvest Chenin Blanc.

The Indian wine industry is dominated by three companies — Sula, Grover Zampa and United Spirits.

Sula sells about 500,000 cases (nine bottles of 750 ml each) in the country’s wine market. Last year, Bangalore-based Grover Vineyards had merged with Vallee de Vin, started by Ravi Jain and Deepak Roy to take on Sula and United Spirits.

The Indian wine market is growing annually at about 30 per cent with revenues of about Rs 800 crore. The country’s wine production stands at about 1.7 million cases a year, while another 300,000 cases are imported annually.

Sula is also a leading wine importer under the umbrella of Sula Selections, with a portfolio of brands from leading producers like Remy Cointreau, Hardys, William Grant and Sons, Ruffino and Asahi Beer. Sula also exports its brands to Asia, Europe, Canada and the US.