Vintage Wines plans capacity expansion

Vintage Wines Pvt Ltd, makers of the Reveilo brand of still wines, is planning to increase its wine bottling capacity from 1.5 lakh litres now to one million litres.

The plan to increase capacity is in response to the increase in demand for the products, Yatin Patil, Director, said. Patil said the product has been approved by a numbers five-star hotel chains including Taj, Meridien, Marriot and The Leela.

The company presently makes Chardonay, Syrah, Chenin Blanc and Cabernet Sauvignon wines in both regular and reserve categories.

The company has registered itself in Maharashtra and Karnataka states and soon plans to extend its presence to Delhi and Goa markets too, Patil said. He said that the present approvals the company has received implies that its entire production in the 2008 season (December 2007- March 2008) is fully sold.

Vintage Wines has set up a winery at Niphad in the Pune-Nashik wine region with a capital investment of Rs 50 million, Patil said. "We have a provision to increase the capacity to one million litres without much of additional investment," he said.

The company has installed bottling machines with a capacity to fill 2,500 bottles per hour, he informed. Patil said that the company has been successful in maintaining the quality of its wines as it procures its grapes from the 200-acre farm owned by the promoter family.

According to him the Maharashtra government's policy of allowing the sale of wine and beer through retail stores will give an impetus to the wine industry as the consumer will get to understand the product and probably get it cheaper as compared with the liquor shops.

"The difference in the distribution pattern will involve a saving of about 28 per cent, a part of which can be passed on to the consumer," he explained. Patil said that during the company's first full year of operation the estimated sales turnover is Rs 4 crore.

The company is planning to set up a wine lounge under its initiatives for wine tourism and is looking at tie-up arrangement with travel organisations.

The package will include a visit to the grape farm, the winery and wine tasting, he said, adding that there will be a limited residential facility with a mini-golf course.

"These activities are meant to promote Indian wines though they may not add significantly to the company's topline," he clarified.