India’s largest wine importer Brindco is about to acquire 20% stake in premium domestic wine maker Grover Vineyards. Grover is a Bangalore-based company. The deal is estimated to be at an EV of Rs. 80-100 crores. Brindco will take over the marketing and distribution of the Grover Vineyard brands as well.
This is a second such investment in Grover, the first being made by Mphasis founder Jerry Rao to pick up 15% stake in the vintner. The deal with Brindco is considered to be strategic in nature as it unlocks the untapped distribution potential of Grover wines. Grover recently unveiled its economy-priced portfolio under the Sante range and is set to appoint a resident French wine maker, touted as a first in the domestic wine industry.
Brindco’s move into wine making is significant as it comes at a time when the tariffs on imported wine are poised to fall in the coming months. Sources said the Centre was expected to slash duties and remove countervailing levies on imported wines, which is likely to usher in a larger play in the country’s international wine business. Further, the domestic wine consumption (over 9 mn bottles annually), which is growing at 30% year-on-year, has seen the entry of the big players like the Vijay Mallya-led United Breweries Group and Seagram with their play expected to gather steam in the next 12-18 months.
Read The Economic Times article.
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