Champagne Ind buys Australian winery

Mumbai, March 23, 2008 - India's largest wine maker Champagne Indage has acquired Australian Vintage’s Loxton winery for Rs 225 crore. The acquisition of the winery would increase Champagne Indage’s total production capacity from 32 million litres (3.5 million cases) to 122 million litres (13.5 million cases) per year. The deal will also allow the company to enter wider price points within Australia as well as major markets of Australian wine such as the UK, Europe, US and India.

Ranjit S Chougule, managing director, Champagne Indage said, “The acquisition will drive greater value to key stakeholders including end consumers, and partners of Champagne Indage. With an existing market share of 75%, the purchase of Loxton is meant to be a part of our larger strategy of going global.”

Shares of Champagne Indage declined by 6.8%, to close at Rs 540 on Thursday at the Bombay Stock Exchange.
Loxton winery, located in Riverland, South Australia is the fifth-largest and a modern winery in Australia. It has an annual crushing capacity of over 80,000 tonne and an annual capacity of 90 million litres.

The Indian wine industry has witnessed a compounded annual growth rate (CAGR) of over 25% in the past three years in the premium wine segment mainly fuelled by the strong growth in the domestic wine consumption. Key raw materials such as grapes, bottles, and corks account for approximately 20% of the total costs and are higher than the international norms.

Source – The Economic Times