Sula Vineyards Buys Chandon's Nashik Estate for ₹20 Crore

Introduction to the Acquisition

Sula Vineyards, India's largest wine producer, announced on March 25, 2026, that it has signed a definitive agreement to acquire the Chandon wine estate in Dindori, Nashik. The deal with Moët Hennessy India Private Ltd is valued at ₹20 crore and is aimed at significantly expanding Sula's wine tourism operations and production capabilities. The acquisition underscores Sula's strategy to solidify its market leadership in the Indian wine industry.

Details of the Transaction

The agreement involves the purchase of a 19-acre property that includes a modern wine production facility with an annual capacity of 4.5 lakh litres, which can be scaled up to 13 lakh litres. The estate also features an ultra-premium visitor centre, a banquet facility, and approximately 5 acres of vineyards. The transaction is structured as an asset purchase agreement, covering land, buildings, and all winemaking infrastructure. Notably, the deal excludes all brand-related assets, meaning Sula will not use the 'Chandon' brand. The acquisition will be executed through Sula's wholly-owned subsidiary, Artisan Spirits Private Limited (ASPL), and funded via internal accruals.

Strategic Expansion in Wine Tourism

Rajeev Samant, Founder and CEO of Sula Vineyards, highlighted the acquisition as a key step in the company's growth. He stated, "Building on the success of our flagship wine tourism destination near Gangapur Lake in Nashik, the most visited vineyard globally, attracting over 3 lakh visitors annually, we see strong potential to develop another landmark destination wine resort in Dindori." The company plans to begin operations of the existing hospitality facilities and tasting room immediately upon handover to ensure business continuity. This move is expected to create a new premium wine tourism destination, leveraging the estate's picturesque setting and infrastructure.

Operational Synergies and Location Advantage

The acquired estate is strategically located just a 20-minute drive from Nashik Airport, which is expected to see increased traffic ahead of the upcoming Kumbh Mela. Its proximity to Sula’s existing wineries in the Dindori region is a significant advantage, allowing for seamless operational integration and efficient management of resources. Dindori is widely recognized as one of India's prime regions for growing high-quality wine grapes, and this acquisition strengthens Sula's presence in this key area.

Key Acquisition Details

Market Reaction and Financials

Following the announcement, the market responded positively. Shares of Sula Vineyards Ltd ended the trading day on March 25 at ₹152.50 on the BSE, marking an increase of ₹2.60, or 1.73%. The acquisition is seen as a strategic investment that aligns with Sula's long-term growth objectives, particularly in the high-margin wine tourism segment. The company's recent financial performance in Q3 FY26 showed a consolidated net profit of ₹9.10 crore on revenue of ₹180.39 crore.

The Road Ahead

The completion of the transaction is subject to the fulfillment of closing conditions and necessary regulatory approvals, which are expected by the end of the first quarter of fiscal year 2027. Once finalized, Moët Hennessy will cease its wine production operations in India. Sula Vineyards will then integrate the new facility into its operations and market all wines produced at the estate under its own brand portfolio. The focus will be on developing the property into a premier destination that complements its existing offerings.

Conclusion

Sula Vineyards' acquisition of the Chandon estate is a calculated move to enhance its production capabilities and further dominate India's wine tourism market. By securing a world-class facility in a prime location, Sula is well-positioned to capitalize on the growing demand for premium wine experiences in the country. The successful integration of this asset is expected to play a crucial role in the next phase of the company's growth.