Sula Vineyards IPO
sula Limited
Minimum investment
Sula Vineyards IPO Details
Bidding date
12 Dec - 14 Dec 2022
Price range
—
Minimum quantity
42
Minimum investment
₹14,280
Issue size
—
Listing exchange
NSE/BSE
Sula Vineyards IPO Dates & Timeline
About Sula Vineyards IPO: Company Overview
Sula is India’s largest wine producer and seller (FY’21). They are consistent market leaders in Indian wine industry with over 50% market share across all price segments, Elite, Premium, Economy and Popular.
The business operates in: 2) production, import and distribution of wines and b) operating wine tourism, resorts and tasting centres. The co offers a range of popular wine brands other than flagship Sula brand; RASA, Dindori, Madera, Dia. The brand ‘Sula’ is a category creator in Indian wine market.
They produce 56 different labels of wine at four owned and two leased production facilities at Maharashtra and Karnataka.
Indian alco-beverage sector size is estimated at INR 2.5 lakh Crore in FY 2020, one of the biggest in the world. Per capita consumption has grown from 1.3 litres in 2005 to 2.7 litres in 2010.
For wine the per capita consumption of wine in India is less than 100 ml, just 1% of overall alcohol consumption while the world average is to 13%.
Positive demographic factors make India one of the most attractive markets for alcoholic beverages.
Indian Wine Market is expected to grow at a CAGR of 14% in terms of volume from FY ‘21 to ‘25 with domestic players dominating volumes. By value, it is expected to reach INR 3,200 Crore by FY ‘25 at a CAGR of 20%
Strengths & Risks of Sula Vineyards IPO
High barriers to entry: : The wine industry is highly capital, time and inventory intensive business with a long value chain process, high import duties making it difficult for new players to penetrate.
Established market leader and brand:: Sula is an established brand, category creator and leader across variants with strong networks in key markets.
Largest Distribution Network:: Sula is present in 25 states, 7 UTs and over 20 countries incl. Europe, Japan, UK, US. They sell through 23,000 POS outlets, 9000 restaurants and a sales force of 130 employees.
Secured raw material supplies: : Sula owns 2,600 acres of vineyards, much higher than their Indian competitor with 460 acres. They have long-term supply arrangements covering 90% of their annual supply of grapes.
Wine tourism pioneer:: Sula pioneered wine tourism in India with a strong D2C presence. They own the most visited vineyard in India creating a unique and growing wine culture.
Govt Regulations: : Wine industry is subject to a licensing and excise regime with changing laws, rules and regulations and legal uncertainties e.g. taxation.
Import Duty Protection: : Sula benefits from high import duties on international wines in India, but these duties could be reduced or eliminated in the future, adversely affecting their business.
Climatic Conditions: : Adverse climatic conditions like unseasonal rain, drastic temperatures may impact the quality of key raw material wine grapes.
Consumer Preferences:: Indian wine industry is evolving and consumers taste preferences are difficult to predict posing threat to market share from competitors and other alco-beverages.
How to Apply for Sula Vineyards IPO: Step-by-Step Guide
- Research the IPO:Review the prospectus and company details.
- Open accounts:Ensure you have a demat and trading account.
- Check dates:Note the IPO opening and closing dates.
- Apply online:Log in to your brokerage account and complete the IPO application form.
- Make payment:Pay through your linked bank account.
- Submit application:Confirm and submit your application.
- Track status:Monitor the allotment status and check for shares in your demat account upon listing.
FAQs: Sula Vineyards IPO
