Sula Vineyards, India’s biggest wine producer, is now looking beyond wines and eyeing the premium spirits market. According to sources, the company is in talks to acquire two to three smaller whisky, scotch, and vodka brands to mark its entry into the segment.
The strategy is aimed at boosting margins by leveraging Sula’s strong distribution network, which covers 25,000 retail points across 23 states and 7 union territories.
Financially, Sula remains on a strong footing, with its debt levels well under control. While the management has not confirmed the acquisition talks, it said that it regularly reviews opportunities to grow revenue and deliver better value to shareholders.
Meanwhile, Sula’s latest quarterly results showed a mixed picture. Revenue for Q1 FY2025 fell nearly 8% to ₹118.3 crore, mainly due to a slowdown in its own-brand wine sales, which dropped 10.8% to ₹102.3 crore. Weak urban demand and changes in Maharashtra’s excise trade cycle contributed to the decline.
On the positive side, wine tourism was a strong performer. Revenues from this segment jumped 21.8% year-on-year to ₹13.7 crore, helped by record resort occupancy, higher visitor spending, and improved connectivity from the new Samruddhi Highway. Premium wines like The Source and RASA also saw good demand, and the company recently launched Sula Muscat Blanc, India’s first low-alcohol Muscat wine.
Following the news of its possible entry into spirits, Sula’s stock surged up to 8% during the day on August 20, before closing 2.5% higher at ₹257 on the NSE.
