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Sula Vineyards Ltd IPO opens today: Should you subscribe?

The company’s market leadership position in the Indian wine market and high entry barriers makes it a strong proposition for investment but the offer being a complete OFS can act as a deterrent

December 12, 2022 / 06:49 IST
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Sula Vineyards Ltd (SVL) is India’s largest wine producer and seller as of March 31, 2022 (Source: Technopak Report). The company has been a consistent market leader in the Indian wine industry in terms of sales volume and value (based on the total revenue from operations) since FY09. The firm has consistently gained market share (in revenue terms) from 33 percent in FY09 in the 100 percent grapes wine category to 52 percent in value in FY22.

SVL is the market leader across all four price segments, ‘Elite’ (Rs 950+), ‘Premium’ (Rs 700-950), ‘Economy’ (Rs 400-700), and ‘Popular’ (<Rs 400). It had a higher share of 61 percent by value in the ‘Elite’ and ‘Premium’ categories in FY22. The company is also recognised as the market leader across wine variants including red, white, and sparkling wines.

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SVL 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

Features of the IPO