Sula Wines to put Rs 25 cr in expansion

Nashik-based Sula Wines, a premium grape wine producer in the country, is planning to invest Rs 25 crore by March 2010 to increase its joint production capacity from the current 17.50 lakh litre to 35 lakh litre per year.

Speaking to Business Standard, Pradeep Pachpatil, general manager, Sula Wines, said, "As part of our expansion plan, Sula Wines recently bought the Jaulke-based (in Dindori tehsil, Nashik district) cooperative winery, Pimpen Co-op India Ltd, for Rs 5.51 crore." The installed capacity of this winery is 2 lakh litre per year.

By January 2007, we are enhancing the production capacity of this new winery (Pimpen) from the current 2 lakh litre to 5 lakh litre per year at an investment of Rs 5 crore. Pimpen, Sula's fourth winery, will produce 3.5 lakh liter of wine in 2007 harvest. We are also planning to enhance Sula's joint wine production up to 35 lakh litre per year by March 2010, at an investment of Rs 25 crore, he said.

To keep up with increasing demand, a second winery with three times the capacity of the first was completed in 2004, reaching a total joint production of up to 7.50 lakh litre per year.

Besides, Sula has just constructed its third winery at its vineyard, which is ready for production with the capacity of 10 lakh litre per year. With the takeover of the Pimpen Co-op India Ltd, Sula's joint grape wine production has reached up to 19.50 lakh litre per year.

"We have set the sales target of 15 lakh bottles (one bottle is 750 ml) of grape wine for the current fiscal year (2006-07) and eyeing a sale of 25 lakh litre of grape wine in the next fiscal year 2007-08,? Pachpatil added.

Plantation of wine grapes by Sula, which was on 30 acres of family-owned land in the beginning, is now over 300 acres. Sula sources 20 per cent wine grapes from its own vineyard, while the rest through contract farming.