Sula Vineyards buys Moët Hennessy wine estate in India

Core Viewpoint - Sula Vineyards has signed a deal to acquire wine production assets from Moët Hennessy, specifically the Chandon wine production facility in Nashik, Maharashtra, which includes land, buildings, and winemaking infrastructure, but excludes brand-related assets [1][3] Group 1: Acquisition Details - The acquisition includes a 19-acre estate with a winery capacity of 450,000 litres per year, which can be expanded to 1.3 million litres, along with a visitor center and five acres of vineyards [2] - The deal is expected to close by the end of the first quarter of Sula Vineyards' 2027 financial year, which began in March [4] Group 2: Impact on Operations - Following the acquisition, Chandon will cease wine production in India, and Sula Vineyards will sell the wine produced at the estate under its own labels, including Rasa, The Source, and Dindori Reserve [3] - The acquisition is seen as a strategic move to strengthen Sula Vineyards' presence in Dindori, known for its high-quality wine grapes, and to enhance its wine tourism business [4] Group 3: Financial Performance - Sula Vineyards reported a 9.7% decline in revenue from operations to Rs1.96 billion ($21.6 million) in the third quarter of fiscal 2026, attributed to tactical destocking amid weaker demand in Karnataka [5] - Net income for the period fell by 67.6% to Rs91 million, and EBITDA decreased by 39.8% to Rs320 million, with the earnings margin dropping 816 basis points to 16.3% [6]