Sula Vineyards Expands into Premium Spirits Market

1 min read     Updated on 20 Aug 2025, 01:46 PM
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Reviewed by
Riya DeyBy ScanX News Team
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Overview

Sula Vineyards, India's leading wine producer, is diversifying its business by entering the premium spirits sector. This strategic move aims to capitalize on the growing demand for premium spirits in India and strengthen Sula's position in the alcoholic beverage market. The company plans to leverage its strong brand recognition and established distribution network to make a significant impact in this new category. This expansion represents a major diversification for Sula, which has primarily focused on wine production and distribution until now.

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Sula Vineyards , India's leading wine producer, is set to broaden its horizons by venturing into the premium spirits sector. This strategic move marks a significant diversification for the company, which has primarily focused on wine production and distribution.

Diversification Strategy

The Nashik-based company, known for its wide range of wines, is now looking to capitalize on the growing demand for premium spirits in India. This expansion is part of Sula's broader growth strategy, aimed at strengthening its position in the alcoholic beverage market.

Beyond Wine

While Sula Vineyards has built its reputation on its extensive wine portfolio, the company now sees potential in the premium spirits category. This move could potentially open up new revenue streams and market opportunities for the wine maker.

Market Implications

The entry of Sula Vineyards into the premium spirits segment could alter existing market dynamics. With its strong brand recognition and established distribution network, Sula is well-positioned to make a significant impact in this new category.

Looking Ahead

As Sula Vineyards prepares to enter the premium spirits market, industry observers will be keenly watching how the company leverages its expertise in the alcoholic beverage industry to create a niche for itself in this new segment. The success of this diversification could set a precedent for other players in the Indian wine industry.

This expansion into premium spirits represents a bold step for Sula Vineyards, potentially paving the way for a new chapter in the company's growth story.

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Sula Vineyards Q1: Revenue Flat at INR 118 Crores Amid Urban Demand Softness and Maharashtra Wine Placement Disruption

2 min read     Updated on 14 Aug 2025, 02:10 PM
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Reviewed by
Shriram ShekharBy ScanX News Team
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Overview

Sula Vineyards, India's leading wine producer, reported flat Q1 revenue of INR 118.00 crores, adjusting for a one-time gain. Elite and premium wines grew 1% year-on-year, now 75% of own brand revenue. Wine tourism business grew over 20%, with resort occupancy rising to 82%. The company faced profitability challenges due to increased cost of goods sold but expects margin improvement in H2. Sula launched new products, expanded its CSD portfolio, and plans to open a new resort. Despite overall tepid urban demand, several key states showed healthy growth.

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*this image is generated using AI for illustrative purposes only.

Sula Vineyards , India's leading wine producer, reported a flat revenue of INR 118.00 crores for Q1, after adjusting for a one-time WIPS gain of INR 10.40 crores from the previous year. The company's performance was impacted by continued softness in urban demand and temporary disruption in wine placement in Maharashtra during June following an excise duty hike announcement on spirits.

Elite and Premium Wines Show Resilience

Despite challenging market conditions, Sula's Elite and premium wines grew modestly by 1% year-on-year. These segments now constitute 75% of own brand revenue, up from 71% in Q1 last year. The Source brand, in particular, delivered strong double-digit growth and now contributes nearly 10% to own brand revenue.

Wine Tourism Business Thrives

Sula's wine tourism business grew over 20% in Q1, with resort occupancy rising to 82% from 70% in the previous year. The company is set to open a new 30-room resort, Haven by Sula, near York winery before the festive season. This expansion will increase Sula's room capacity by around 30% to 134 keys and include convention facilities.

Profitability Challenges and Outlook

Operating performance was affected by a 20% increase in cost of goods sold due to a change in wine sourcing model for the tourism business. However, the company expects operating margin improvement of a couple of hundred basis points in the second half of the financial year.

New Product Launches and Market Expansion

Sula launched a new wine, Muscat Blanc, priced at INR 875.00 per bottle in Maharashtra. The company also expanded its Canteen Stores Department (CST) portfolio to 9 labels, strengthening its presence in this channel.

Geographical Performance

Despite overall tepid urban demand, several key states, including West Bengal, Goa, Uttar Pradesh, and Rajasthan, posted healthy double-digit growth.

Financial Highlights

Metric Q1 Current Q1 Previous (Adjusted) YoY Change
Revenue INR 118.00 crores INR 118.00 crores Flat
Elite & Premium Share 75% 71% +400 bps
Resort Occupancy 82% 70% +1200 bps
Wine Tourism Growth >20% - -

Management Commentary

Rajeev Samant, Founder and CEO of Sula Vineyards, commented on the quarter's performance: "Despite near-term headwinds, Sula gained market share in the last fiscal year, and we expect to have gained market share in Q1 this year as well, going by the early industry data that has come in for some of the key corporation markets."

Abhishek Kapoor, CFO, added: "We are taking decisive steps to improve profitability, grow wine tourism, and enhance shareholder value while staying true to our long-term vision of delivering sustainable and profitable growth."

Looking ahead, Sula Vineyards remains optimistic about the growth trajectory of wine tourism and expects to see positive impacts from recent initiatives to lower raw material costs and improve manufacturing efficiencies in the coming quarters.

Historical Stock Returns for Sula Vineyards

1 Day5 Days1 Month6 Months1 Year5 Years
+3.07%+6.98%-9.34%-4.21%-44.69%-19.29%
Sula Vineyards
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