Sula Vineyards IPO | ₹14,280 /42 shares

Sula Vineyards IPO Details

Description

Sula Vineyards Limited is India’s largest wine producer and seller as of March 31, 2022. It has been a consistent market leader in the Indian wine industry in terms of sales volume and value. Sula is also recognized as the market leader across wine variants, including red, white, and sparkling wines. Sula’s business can be broadly classified under two categories: Wine Business: the production of wine, the import of wines and spirits, and the distribution of wines and spirits Wine Tourism: the sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms Currently, it produces 56 different labels of wine at four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka. Sula is the pioneer of wine tourism in India with many firsts to its credit, such as the first wine tasting room in India, the first vineyard resort, the first wine music festival and the first winery tours at its facility in Nashik, Maharashtra.

Qualities

• Controlled competition as a result of strong entrance barriers
• With the top brand “Sula,” an established market leader in the Indian wine business
• India’s largest wine producer, with a wide range of inventive products and a productive production process.
• Largest wine sales and distribution presence
• Secured raw material supply with long-term contracts that are unique to Sula
• Leader and innovator in India’s wine tourism industry
• Early uptake and sustainability-focused approach
• Board with experience and top management with qualifications

Risks

• The industry is governed by a licence and excise structure that includes shifting laws, rules, and regulations as well as legal ambiguities such the unfair application of corporation and tax laws.
• India’s lowering or abolition of import taxes on foreign wines
• Adverse environmental circumstances affecting the wine grapes’ quality
• Any alterations to the raw materials supply
• Failure to modify product offers to reflect shifting consumer interests, preferences, and purchasing patterns