With India Inc on a global shopping spree, it?s now the turn of the Indian wine-makers to raise a toast to overseas buys. Wine major Chateau Indage and the country?s largest spirit maker United Spirits Ltd are scouting for foreign brands to expand their foothold.
The Indian wine industry is growing at a CAGR of 35-40% in the last few years, but lower volumes are inducing them to venture overseas. The total consumption of wine in India is merely 1 million cases.
Interestingly, global spirit majors Diageo and Seagram are aggressively eyeing the Indian wine market.
According to industry sources, Chateau Indage is looking to acquire companies in France and South Africa.
?Chateau would acquire at least two companies this fiscal and has lined up Rs 100 crore for this. It is in an advanced stage of acquiring a French company and the deal may be formalised within a month.?
While Chateau Indage Ranjit Chougule managing director did not confirm development, he said, ?International expansion is part of our growth strategy. We want to grow both organically and inorganically, but the latter path is always faster.?
Overseas acquisitions will help Chateau make further inroads into the US, Europe, Africa and Australia. The company already exports its wine in 49 countries.
United Spirits, which acquired French wine major Bouvet Ladubay last year, is also scouting for companies abroad. Senior vice-president and chief wine-maker Abhay Kewadkar had said the company was in talks with manufacturers in the US, South Africa and Australia. United Spirits has already launched its range of Bouvet Ladubay brands and is expected to launch Four Seasons wine by November.
