Sula Vineyards Ltd - Stock Valuation and Financial Performance

The Company was incorporated as “Nashik Vintners Limited” as a public limited company under the Companies Act, 1956, pursuant to a certificate of incorporation issued by the Registrar of Companies, Maharashtra at Mumbai (“RoC”) on February 26, 2003. The Company was granted the certificate for commencement of business on March 6, 2003 by the RoC. The name of the Company was changed to “Nashik Vintners Private Limited”, pursuant to a fresh certificate of incorporation consequent on change of name issued by the RoC on January 24, 2006. Subsequently, the name of the Company was changed to “Sula Vineyards Private Limited”, pursuant to a certificate of incorporation pursuant to change of name issued by the RoC on August 11, 2014. On the conversion of the Company to a public limited company, pursuant to a resolution passed by the company’s Shareholders on December 27, 2021, its name was changed to “Sula Vineyards Limited” and a fresh certificate of incorporation was issued by the RoC on February 11, 2022. 

Sula Vineyards is India’s largest wine producer and seller. The company is the market leader across all four price segments, being ‘Elite’, ‘Premium’, ‘Economy’ and ‘Popular’. Furthermore, the company is also recognized as the market leader across wine variants, including red, white and sparkling wines.

Business area of the company

The company’s business can be broadly classified under two categories (i) the production of wine, the import of wines and spirits, and the distribution of wines and spirits (the “Wine Business”); and (ii) the sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms (the “Wine Tourism Business”). However, since the Wine Tourism Business is incidental and complements the overall Wine Business, the Company’s chief operating decision makers (which includes its CEO, CFO, COO and members of the board) monitor and review the operating result of the Group as a single operating segment of manufacture, purchase and sale of alcoholic wines and spirits.

The company distributes wines under a bouquet of popular brands. In addition to the flagship brand “Sula,” popular brands include “RASA,” “Dindori”, “The source,” “Satori”, “Madera” & “Dia” with its flagship brand “Sula” being the “category creator” of wine in India. Currently, the company produces 56 different labels of wine at four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka.

Key awards, accreditations and recognition

• 2016: ‘Best contribution to Wine and Spirits Tourism’ award at the Drinks Business Awards 2016.
  
• 2019: The Company’s wines were awarded 11 awards under the ‘Best in Show’, ‘Gold’ and ‘Silver’ categories at the 3rd edition of the India Wine Awards, 2019.
  
• 2020: The Company’s wines were awarded 10 awards under the ‘Silver’ and ‘Bronze’ categories at the Decanter World Wine Awards, 2020.
  
• 2020: ‘Most Innovative Use of HR Initiatives During the Pandemic’ award at the HRAI Awards, 2020 by the HR Association of India.
  
• 2021: ‘Great Workplace’ certificate issued by the Great Place to Work Institute, India.
  
• 2022: The Company’s wine, Sula Sparkling Brut Tropicale, was awarded a gold medal at the International Wine Challenge, 2022.
  
• 2022: The Company’s wines were awarded 9 awards under the ‘Silver’ and ‘Bronze’ categories at the Decanter World Wine Awards, 2022.
  
• 2022: The Company’s wine, RASA Cabernet Sauvignon was awarded a silver medal at The Global Cabernet Sauvignon Masters 2022.
  

Major events and milestones

• 2003: Incorporated as Nashik Vintners Limited.
  
• 2005: Launched India’s first wine tasting room at winery in Nashik, Maharashtra.
  
• 2008: Launched “SulaFest” – India’s first wine themed music festival at Nashik, Maharashtra facility Opened the country’s first vineyard resort.
  
• 2015: Acquired 50% of the share capital of Remy Sula India Private Limited (subsequently renamed as ASPL).
  
• 2015: ASPL became a wholly owned subsidiary of the Company.
  
• 2017: Acquired the winery unit business of Heritage Grape Winery Private Limited.
  
• 2018: Acquired 51.00 % of the paid-up share capital of PADPL.
  
• 2020: Launched ‘Dia’, India’s first wine-in-a-can.
  
• 2020: Most visited vineyard in India, with approximately 368,000 people visiting its vineyards in Fiscal 2020.
  
• 2021: The company’s Subsidiary, ASPL, acquired the winery unit business of York Winery Private Limited.
  
• 2021: Divested of entire stake from PADPL, aggregating to 51 % of its paid-up share capital.
  
• 2021: Largest distribution network among wine companies in India, with close to 13,000 retail touchpoints across the country in 2021.
  
• 2021: Highest number of D2C sales in the Indian wine industry in Fiscal 2021.
  
• 2022: Sula International Limited, the company’s erstwhile subsidiary (a company which was incorporated in U.K.) was voluntarily dissolved with effect from April 26, 2022.
  
• 2022: Offered 56 labels to choose from a portfolio of 13 distinct brands as of September 30, 2022.
  
• 2022: One of the top 10 most followed vineyards in the world, having a large following on social media.
  
• 2022: India’s largest wine producer and seller as of March 31, 2022.