Latest news with #RajeevSamant
Time of India
22-06-2025
- Business
- Time of India
Wine industry expects a boost in FY26 after last year's consumption slowdown
The wine industry projects a normalised domestic macro environment to boost growth in FY26 after having suffered a setback in 2024-25. The previous financial year saw slowdown in urban consumption growth taking a "temporary pause", according to the annual report of Sula Vineyards Ltd. The impact on urban consumption slowdown was more evident on the wine segment when compared with other AlcoBev categories, as it is a predominantly urban drink, according to the report. Demand for wine was also impacted because of multiple temporary regulatory and other market disruptions, including general elections and state elections in key markets such as Maharashtra, Sula Vineyards Founder and CEO Rajeev Samant said in the report. "After 3 years of strong growth, FY25 was more a year of demand reset for the Indian wine industry," he said, adding, "But the good news is that these setbacks are now behind us as we look forward to a more normalised domestic macro environment going into FY26." Despite the challenges, Sula reported its highest ever revenue from operations at Rs 619.4 crore in FY25. "We continued to consolidate our leadership position, being by far and ahead the largest wine brand in the country," said Samant while addressing his shareholders. According to Samant, the worst has passed and there is "optimism of seeing better traction and growth in FY26 with positive triggers and expansion plans in our Own Brands and Wine Tourism businesses further supported by the normalisation of the macro environment expected soon." The company aims for accelerating earnings Growth over the next 3 years (FY25-FY28) with improved EBITDA margins and capital efficiency. This will be achieved through initiatives such as product development, expansion of its capacity, market Penetration, Wine Tourism and D2C Business. Sula is on track to expand Cellar capacity by 1 million litres to total capacity of 19.2 million litres per annum by the end of FY26. Samant also pointed out that the wine culture is evolving and spreading across the nation, outside its top two markets, which is encouraging. "Our domestic Own Brand sales, excluding Maharashtra and Karnataka, grew by 8 per cent YoY, powered by a total of 11 states registering healthy double-digit growth. This fits in well with our endeavour of creating a truly pan-India penetration," said Samant. India's wine market is valued at approximately $150-200 million (including both domestic and imported wines), with more than 3 million cases being sold annually. "Wine is still in a nascent stage in India, accounting for "Going forward, the Indian wine market is expected to grow at 15 per cent CAGR over CY 2023-2028 led by the increasing prosperity and disposable income, rapid urbanisation, evolving consumer preferences and increase in the number of working women and women drinkers," the company said. Moreover, Sula is also witnessing double-digit growth from its wine tourism business. It has two luxury resorts in Nashik - 'The Source at Sula' and 'Beyond by Sula', with a total of 104 keys. It has a new 30-key resort coming up near its York Winery, near Nashik and is expanding Wine Tourism Facility at Domaine Sula, Karnataka. "In FY25, our wine tourism revenue grew by 10.2 per cent YoY to Rs 60.3 crore, driven by a very successful SulaFest'25, coupled with the strong performance of our resorts. Our resort occupancy improved by 400 bps from 74 per cent in FY24 to 78 per cent in FY25 on the back of a strong festive and wedding season," he said.
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Business Standard
22-06-2025
- Business
- Business Standard
Wine industry expects rebound in FY26 after consumption slowdown last year
The impact of urban consumption slowdown was more 'stark' on the wine segment versus other AlcoBev categories, as it is a predominantly urban drink, according to the report Press Trust of India New Delhi The wine industry expects a normalised domestic macro environment to come as a boost in the current fiscal after suffering setbacks in 2024-25, which saw urban consumption slowdown and growth taking a "temporary pause", according to the annual report of Sula Vineyards Ltd. The impact of urban consumption slowdown was more 'stark' on the wine segment versus other AlcoBev categories, as it is a predominantly urban drink, according to the report. The wine demand was also impacted by multiple temporary regulatory and other market disruptions, including general elections and state elections in key markets such as Maharashtra, Sula Vineyards Founder and CEO Rajeev Samant said in the report. "After 3 years of strong growth, FY25 was more a year of demand reset for the Indian wine industry," he said, adding, "But the good news is that these setbacks are now behind us as we look forward to a more normalised domestic macro environment going into FY26." However, despite challenging market conditions for the wine industry, Sula reported its highest ever revenue from operations at Rs 619.4 crore in FY25. "We continued to consolidate our leadership position, being by far and ahead the largest wine brand in the country," said Samant while addressing his shareholders. According to Samant, "now the worst is behind us" and "optimistic of seeing better traction and growth in FY26 with positive triggers and expansion plans in our Own Brands and Wine Tourism businesses further supported by the normalisation of the macro environment expected soon." The company aims for "accelerating earnings Growth over the next 3 years (FY25-FY28) with improved Ebitda margins and capital efficiency". This will be helped through initiatives such as product development, expansion of its capacity, market Penetration, Wine Tourism and D2C Business. It is "on-track to expand Cellar capacity by 1 Mn Litres to total capacity of 19.2 Mn Litres per annum by the end of FY26". Samant also pointed out that the wine culture is evolving and spreading across India outside its top two markets, which is encouraging. "Our domestic Own Brand sales, excluding Maharashtra and Karnataka, grew by 8 per cent YoY, powered by a total of 11 states registering healthy double-digit growth. This fits in well with our endeavour of creating a truly pan-India penetration," said Samant. India's wine market is valued at approximately $150-200 million (including both domestic and imported wines), with more than 3 million cases being sold annually. "Wine is still in a nascent stage in India, accounting for <1% of the Indian AlcoBev market and the per capita consumption of wine in India too is less than 50 ml as compared to the world average of 5.5 litres," the report said. Therefore, there is a vast scope for the wine sector to grow and expand in India. "Going forward, the Indian wine market is expected to grow at 15 per cent CAGR over CY 2023-2028 led by the increasing prosperity and disposable income, rapid urbanisation, evolving consumer preferences and increase in the number of working women and women drinkers," the company said. Besides the wine business, Sula is also witnessing double-digit growth from its wine tourism business. It has two luxury resorts in Nashik - The Source at Sula' and Beyond by Sula', with a total of 104 keys. It has a new 30-key resort coming up near its York Winery, near Nashik and is expanding Wine Tourism Facility at Domaine Sula, Karnataka. "In FY25, our wine tourism revenue grew by 10.2 per cent YoY to Rs 60.3 crore, driven by a very successful SulaFest'25, coupled with the strong performance of our resorts. Our resort occupancy improved by 400 bps from 74 per cent in FY24 to 78 per cent in FY25 on the back of a strong festive and wedding season," he said.
Time of India
22-06-2025
- Business
- Time of India
Wine industry expects a boost in FY26 after last year's consumption slowdown
The wine industry projects a normalised domestic macro environment to boost growth in FY26 after having suffered a setback in 2024-25. The previous financial year saw slowdown in urban consumption growth taking a "temporary pause", according to the annual report of Sula Vineyards Ltd. The impact on urban consumption slowdown was more evident on the wine segment when compared with other AlcoBev categories, as it is a predominantly urban drink, according to the report. Demand for wine was also impacted because of multiple temporary regulatory and other market disruptions, including general elections and state elections in key markets such as Maharashtra, Sula Vineyards Founder and CEO Rajeev Samant said in the report. "After 3 years of strong growth, FY25 was more a year of demand reset for the Indian wine industry," he said, adding, "But the good news is that these setbacks are now behind us as we look forward to a more normalised domestic macro environment going into FY26." Live Events Despite the challenges, Sula reported its highest ever revenue from operations at Rs 619.4 crore in FY25. "We continued to consolidate our leadership position, being by far and ahead the largest wine brand in the country," said Samant while addressing his shareholders. According to Samant, the worst has passed and there is "optimism of seeing better traction and growth in FY26 with positive triggers and expansion plans in our Own Brands and Wine Tourism businesses further supported by the normalisation of the macro environment expected soon." The company aims for accelerating earnings Growth over the next 3 years (FY25-FY28) with improved EBITDA margins and capital efficiency. This will be achieved through initiatives such as product development, expansion of its capacity, market Penetration, Wine Tourism and D2C Business. Sula is on track to expand Cellar capacity by 1 million litres to total capacity of 19.2 million litres per annum by the end of FY26. Samant also pointed out that the wine culture is evolving and spreading across the nation, outside its top two markets, which is encouraging. "Our domestic Own Brand sales, excluding Maharashtra and Karnataka, grew by 8 per cent YoY, powered by a total of 11 states registering healthy double-digit growth. This fits in well with our endeavour of creating a truly pan-India penetration," said Samant. India's wine market is valued at approximately $150-200 million (including both domestic and imported wines), with more than 3 million cases being sold annually. "Wine is still in a nascent stage in India, accounting for <1% of the Indian AlcoBev market and the per capita consumption of wine in India too is less than 50 ml as compared to the world average of 5.5 litres," the report said. "Going forward, the Indian wine market is expected to grow at 15 per cent CAGR over CY 2023-2028 led by the increasing prosperity and disposable income, rapid urbanisation, evolving consumer preferences and increase in the number of working women and women drinkers," the company said. Moreover, Sula is also witnessing double-digit growth from its wine tourism business. It has two luxury resorts in Nashik - 'The Source at Sula' and 'Beyond by Sula', with a total of 104 keys. It has a new 30-key resort coming up near its York Winery, near Nashik and is expanding Wine Tourism Facility at Domaine Sula, Karnataka. "In FY25, our wine tourism revenue grew by 10.2 per cent YoY to Rs 60.3 crore, driven by a very successful SulaFest'25, coupled with the strong performance of our resorts. Our resort occupancy improved by 400 bps from 74 per cent in FY24 to 78 per cent in FY25 on the back of a strong festive and wedding season," he said. Economic Times WhatsApp channel )
Mint
13-05-2025
- Lifestyle
- Mint
India's Gen Z is drinking less, but drinking better
New Delhi: Young Indians are rethinking how they drink. A rising number of Gen Z consumers are cutting back on alcohol or trading quantity for quality, in line with a global shift towards health and wellness. Data indicates that Gen Z drinkers in India are more inclined to reduce their alcohol consumption compared to millennials, who continue to be the primary consumers of alcohol in India. 'There is a clear decline in alcobev consumption globally, and India is not immune to this trend," said Rajeev Samant, founder and CEO of Sula Vineyards. 'Even when we consider the demographic dividend, we still see people on Instagram advocating for a more alcohol-free lifestyle. Things have definitely changed. Alcohol consumption may not be evolving in the way we once expected." Traditionally, the under-30 age group has never been a major wine-consuming segment, he said. 'That said, this cohort in India today likely consumes more wine, relative to previous generations." According to data from IWSR, a global tracker of the alcoholic beverage industry, the attitude of Gen Z (those over the legal drinking age) towards alcohol in India differs significantly from millennials. 'In our latest Bevtrac report on consumer sentiment in India—Gen Z drinkers who choose to drink less outnumber those choosing to drink more by 5%," said Jason Holway, IWSR senior consultant. In a recent survey of full-strength drinkers, 25% of Gen Z drinkers have never chosen to abstain from alcohol for lifestyle reasons, while 41% have chosen to be away from alcohol for one month or more for lifestyle reasons. "In India, boomers, Gen X, and Gen Z are more likely to choose to drink less rather than drink more (millennials are the exception and continue to drive alcohol consumption)," said Holway. As per IWSR, millennials are the generation in India least likely to choose moderation. Millennials who choose to drink more outnumber those choosing to drink less by 8%. Around 28% of millennials have never chosen to abstain from alcohol for lifestyle reasons, while 36% have chosen to abstain from alcohol for a month or more for lifestyle reasons. While older consumers continue with established drinking patterns, younger legal-age drinkers are actively reshaping norms, he said. This doesn't mean Gen Z is abstaining entirely. With increased exposure to bars, pubs, and live events, younger consumers still drink—but with more restraint and a conscious approach. Take New Delhi-based Kanika Dua, for instance. The 28-year-old has cut down from three to four drinks a night to a maximum of two or three. 'It shows up the next day, and with work starting early, I cannot afford a mid-week binge," she said. The era of guzzling is over, said Alok Gupta, managing director at liquor company Allied Blenders and Distillers (ABD). 'There is a need to consume better—so instead of three large drinks consumers may opt for two nice cocktails. Consumers want to prioritise morning workouts or early morning work commitments," he said. Also Read: Delhi's beer shelves are full—but where are the big brands? Booze break Gupta said growing awareness around health and fitness is influencing beverage choices. "The lens through which they consume F&B (food and beverages) has changed," he explained. "The fitness piece brings focus on better consumption, considering factors like calorie count and protein-carb balance, which extends to both foods and beverages. The concern isn't just about drinking less, but also drinking better, leading to premiumization," he added. Consumers are drinking better quality gin or tequila and even trading up to better whiskey or scotch. There are early signs of the "sober curious" trend among Gen Z, though its impact in India is still marginal compared to countries like the US, Vikram Achanta, founder of Tulleeho, a Delhi-based drinks consultancy said. 'There's talk of younger consumers drinking less, but it's not yet meaningful from a volume perspective. India is insulated from some of the shifts we're seeing in the West," he said. Still, they're more conscious of alcohol content. "A Spritz (with 8-10% alcohol content) might appeal more than a Martini (with 20-35% alcohol content)," he said. Mint earlier reported that a growing number of urban Indians were embracing sobriety or moderation—not necessarily due to heavy drinking but because of health concerns tied to their lifestyles. This rising "sober curious" sentiment is fuelling demand for non- and low-alcohol alternatives. This gave rise to a number of new-age startups, brands like Catwalk Botanics, Sober, Copenhagen Sparkling Tea and others that are focused on either creating or importing products from different markets. Though the category remains under 1% of the broader alcobev market, it is slowly gaining traction in metro cities. Global giants like Heineken and Beefeater have also entered this space. Despite growing moderation trends, alcohol consumption in India is growing. The country, with its large population, remains a large market for alcoholic beverages. The compound annual growth rate (CAGR) of total alcohol beverage industry in India from 2018 to 2023 was over 2%. Also Read: Beer brewers, after two tepid years, raise a toast to a longer, meaner summer According to Gupta of ABD, more legal drinkers are entering the market annually, and evolving social norms have led to greater acceptance of social drinking and increased alcohol consumption among women. Volume growth may slow, but consumer numbers are rising, and they're drinking better, Gupta said. India had 18-19 million first-time voters in the 2024 general election and an estimated 65 million Indians will be of legal drinking age (depending on the region) over the next five years. For brands, the message is clear: engaging with this evolving consumer base is critical. Samant of Sula said, "At festivals like SulaFest, 90% of the audience is Gen Z. So, we're doing our part by introducing more people to at least entry-level wines."
Business Standard
09-05-2025
- Business
- Business Standard
Sula Vineyards Q4 PAT declines 4% YoY to Rs 13 crore; declares dividend of Rs 3.60/sh
The wine producer reported consolidated net profit fell 3.84% to Rs 13.03 crore in Q4 FY25 as against Rs 13.55 crore posted in Q4 FY24. Revenue from operations (excluding excise duty) rose 2.6% YoY to Rs 125.71 crore during the quarter. However, profit before tax (PBT) fell 27.56% to ₹13.56 crore from Rs 18.72 crore in Q4 FY24. EBITDA stood at Rs 28.5 crore, down 3.4% from Rs 29.5 crore in the year-ago period. The EBITDA margin contracted to 21.4% from 22.4% in Q4 FY24. The companys own brand sales stood at Rs 109.6 crore as of 31 March 2025, registering a de-growth of 2.9% on a YoY basis. The wine tourism segment performed strongly, with revenue rising 24.6% YoY to Rs 20.4 crore in Q4 FY25. The growth was supported by the successful SulaFest 2025, improved resort occupancy, and increased guest spending. The companys Elite and Premium brands drove a 5% YoY growth in overall sales. The elite category alone rose 17%, led by demand for The Source and RASA. These segments contributed a record 77.1% to total wine sales in FY25 and 75.5% in Q4 FY25. For the full year, Sulas net profit declined 24.77% to Rs 70.20 crore, despite a 2.01% increase in revenue to Rs 579.15 crore in FY25 compared to FY24. Rajeev Samant, CEO of Sula, said, We are pleased to report our highest-ever revenue from operations in both Q4 and FY25. However, Own Brands sales were relatively subdued in Q4, impacted by urban consumption slowdown, lower WIPS credit, export contraction, and temporary retailer destocking in Uttar Pradesh and Uttarakhand. Despite these challenges, several markets, including Haryana, Rajasthan, Chandigarh, and Assam, along with CSD, delivered strong double-digit growth, supporting our pan-India brand vision. The Source range also posted robust double-digit growth in Q4 and FY25, strengthening our Elite portfolio. Our wine tourism segment saw 25% YoY growth in Q4, driven by SulaFest25 and strong resort performance. Profitability remained stable, supported by continued focus on overhead optimization. Meanwhile, the board has recommended a final dividend of Rs 3.60 per equity share (face value Rs 2) for FY25, subject to shareholder approval at the upcoming Annual General Meeting. The record date for determining eligible shareholders is May 23. Sula Vineyards is principally engaged in the business of the manufacture, purchase, and sale of premium wine and other alcoholic beverages. Shares of Sula Vineyards rose 0.98% to Rs 273.35 on the BSE.
