Sula Wines Presentation Group 7

7/17/2019 Sula Wines Presentation Group 7

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SULA Wines

A CASE STUDYPRESENTATION ON

Presented by:

Group 7- Akshay Kr. Gupta – 4

Ashirwad - Kavita - Rakesh Arora -3 Sa!hin Arora -3"

Shiv Kr Sin#h -4



From California to Nashi

Su$a wines was the %rain !hi$d o& Ra'eevSa(ant who was %orn and %rou#ht up in)u(%ai.

A&ter *+th he went to Stan&ord University in,a$i&ornia where he !o(p$eted his #raduationin e!ono(i!s and then !han#ed his tra!k todo a (asters in industria$ en#ineerin#

n * Ra'eev 'oined ORAC!E and %e!o(e youn#est /nan!e

(ana#er at !o(pany 01 within a year ti(e.

n *+ he "#it his 'o% at 2RA,L to venture out on his own dueto ndian Govt. e!ision to ease trade %arriers with the rest o& thewor$d5s.



,ontd 6

he Sa(ant &a(i$y owned 3 a!res pat!h on the %anks o& theGodavari river and Ra'eev wanted to do so(ethin# on that $and to$ feel of O%nershi& that dri'es yo# to%ard s#((ess)

n *3 he e8perien!e /rst a#ri!u$tura$ harvestin# %y #rowin#A$phonso (an#oes &o$$owed %y ho(pson Seed$ess Grapes.

As 9asik was $ar#est a%$e #rape #rowin# re#ion Ra'eev de!idedto #row #rapes used &or wine and thou#ht o& venturin# into %ine*#siness.

0e &or(ed a &a(i$y !orporation: S#la +ineyards a&ter his(others na(e Su$a%ha.

0e went %a!k to ,a$i&ornia and tea(up with Kerry a(skey a!onsu$tant dea$s in winery startup and desi#nin# wine produ!tion

setup sin!e 3 de!ades.



e and Grapes; ntrodu!tory Sta#e <

he =ineyard shou$d idea$$y %e

$o!ated in a p$a!e with &erti$e soi$:!$i(ate with #ood variation%etween ni#ht and dayte(peratures: dry weather and!ontro$$ed rain&a$$

he /rst harvest is never used &or(akin# wine and !rop is prunedaway &or the /rst &ew years toenhan!e the >ua$ity o& entire !ropand %e!o(e avai$a%$e in!o((er!ia$ 1uantity.

2n!e (atured #rapes are readyto harvest: thou#h it !an %e donethrou#h (a!hines %ut pre(iu(wine(akers #o &or (anua$



Steps invo$ved in wine(akin#

?or red wines the #rapes are !rushed to %reak

open and then they are &er(ented in tanks

@ri(ary &er(entation where su#ar and yeastare added at spe!i/! te(peratures

he &er(ented (esh is pressed to separatethe skin and pu$p &ro( 'ui!e

0eat and !o$d sta%i$iation pro!esses ai(ed at#ettin# rid o& sedi(ents

?urther wine is stored in oak %arre$s &or

se!ondary pro!ess o& sedi(entation



he Start

Ra'eev and Kerry de!ided on t%o %hite %ine +arieties,theSa#'i-non *lan( whi!hs a !$assi! &ro( Bordeau8 re#ion o& ?ran!e and Chenin *lan( whi!h isa !$assi! &ro(Loire =a$$ey a$so in ?ran!e

0e started with nterestin# e!ision o& ,ontra!t ?ar(in# due to !apita$intensive nature o& %usiness.

ar#et (arket was lo(al %ut >ua$ity standard were %orld (lass.

Wine (akin# is a (hallen-in- blend of Art . S(ien(e. A !o(p$i!atepro!ess &ro( Growin# row (ateria$: to pro!essin#: pa!ka#in# :(arketin# C ?inan!in#.

here was a pro%$e( with the !$i(ate as weather was dusty and dry insu((er

With a (onsoon %etween Dune and Septe(%er:: so it was de!ided that#rapes



ar$y ,ha$$en#es he #overn(ent had not a$$owed any new wineries to !o(e up in

)aharashtra

?or *E years and it took )r. Ra'eev two years and a /$e a%out two &eetthi!k C a$(ost + si#natures to @ersuade the #overn(ent to $et hi( setup the winery

0idden ,ost o& oin# Business in ndia i.e. Baksheesh FBri%e whi!h wasnot the !ase o& eve$oped nation &ro( where Ra'eev !onsu$tant %e$on#s.

9o %anker was wi$$in# to $end &or su!h a risky =enture %ut a&ter a $ot o&persuasion

A %ank a#reed on$y a&ter se!uritiin# the $oan %y (ort#a#in# a$(osteverythin#

?ro( typi!a$ !usto(er rea!tion-why shou$d pay so (u!h &or an ndianwineH

@atient$y: Ra'eev was a%$e to !han#e the (indset and his ndian!usto(er takes

@ride in !onsu(in# a >ua$ity ndian @rodu!t



Su$a had positioned itse$& as an ndi#enous wine (ade to

internationa$ standards With internationa$ te!hni>ues and knowhow.

A nu(%er o& !onsu(a%$es are pro!ured overseas and a$soadopted to the su%-tropi!a$ ndian !onditions.

he wines: Ra'eev !hose to produ!e were we$$ !hosen &orndia: White wines are a 9atura$ (at!h &or ndia5s /ery !uisine.

Su$a !e$e%rated the harvest season o& +E %y openin# a *st

wine tastin# roo( in ndia in its 9ashik winery atop a hi$$ #ivin#*I de#ree views

he winery and vineyards are open to pu%$i! &or edu!ationa$tours a$so thereJBeyond5: a +3 roo( resort with a %eauti&u$ view o& Gan#apurLake

Su$a had invested a $ot in desi#nin# and then pro(otin# its

Brand Bui$din#



!ess; eve$op(ent Sta#e <

Su$a has rapid$y esta%$ished itse$& as India1s !eadin- Premi#m %inebrand.

Su$a wines has he$ped spark a wine revo$ution in ndia that has seen

(ons#m&tion -ro% at o'er /45 ann#ally 6

n 9ove(%er ++: Wine Spectetor : whi!h is a!!$ai(ed as the wor$d5s

$eadin# wine (a#aine: did a f#ll len-th feat#re on su$a wines.

n +3: Su$a @rodu!ed India1s 7st 8infandel Rose wineFvariety o& red

#rape .

n +E: Su$a re$eased Dindori Reser'e Shira9: as we$$ as India1s 7stdessert %ine: the Late 0arvest ,henin Ba$n!.

•

he !o(pany do#bled its -ra&e &rod#(tion &ro( 7 tones to *3tones.



By +": it was a ti(e &or the 3rd winery to start operations: whi!h washavin# a hu#e !apa!ity o& (i$$ion $itters.

,o(pany is havin# severa$ awards in its port&o$io o& su!!ess.

• &ro( the Brands o& it: + %rands Cabernet Shira9 -ot /nd and indori

Reserve shira #ot 4th &ositions on the $ist o& the -reatest #ality

%ines in the wine Asia report 2007.

By +I: the &our wineries o& su$a have a !o(%ined !apa!ity o& over E(i$$ion $iters.

• ,o(pany has e8panded its area &ro( 3 a!res to a%out *+ a!res.

With a$$ these su!!ess eorts: su$a vineyards is now ndia5s n#mber 7&remi#m %ine (om&any: with sa$es #oin# over + (i$$ion %ott$es in +7-Iand over a$$ /nd lar-est &rod#(er of %ines in India6

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rowth Sta#e <

Wine (akin# is a (a&ital intensi'e b#siness and even Su$a5spheno(ena$ sa$es have not %een enou#h to &und their #rowth.

Demand has (ontin#ed to -ro% and to satis&y this de(and Ra'eev

had borro%ed hea'ily to start his 'ent#re and the idea o&%orrowin# (ore was (akin# hi( &ee$ un!o(&orta%$e

G) ndia Advisors owned ;;5 stae in S#la for Rs6 74 (rore in+E.



ts (ain !o(petitors were ,hateau nda#e and Grover: %oth o& whi!hwere pri(ari$y %ased in )aharashtra: !$ose to Su$a5s operations

here are a%out <4 %ineries in India: the (a'or !o(petitive threat$oo(in# over wine (akers is that posed %y the entry o& $ar#e $i>uor

(om&anies lie U*, Sea-rams and Dia-eo Sea-rams re$eased ran#e o& wines with => ?I!!S1 $a%e$

U*1s =i'ay )a$$ya tied up with Union )inister: Sharad @awar &a(i$y to$aun!h their ran#e o& wines JFo#r Season J

Su$a wines $aun!hed Jva$ue5 wines pri!ed at Rs. +4 to Rs. 4

,o(petition



By +*E the wine produ!tion (ay in!rease to <0 lah(ases

o pro(ote wine drinkin# as a ha%it Su$a pro!ures andpresents an i(pressive array o& internationa$ wines &or thendian !usto(er %y i(portin# the( &ro( Austra$ia: ta$y

:9ew ea$and: ,hi$e and ?ran!e

Su$a5s indi#enous produ!tion has %een a!!epted a%road :itis avai$a%$e in (any $eadin# wine !onsu(in# nations o& thewor$d in!$udin# ta$y: ?ran!e and ta$y

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Stren-ths ndian wine !onsu(ption has

#rown +E-3 annua$$y over a Eyear period.

Good !$i(ate &or #rape #rowin# Ur%an popu$ation is in!reasin#. Mouth are !ravin# an a$ternative

to hard $i>uors and deve$opin# a(ore re/ned taste.

Wine is %e!o(in# (ore

a!!epta%$e to wo(en and youth.

3eanesses• Wine re(ains an e$ite taste.• Wine is diN!u$t to store in ndia

due to $a!k o& !e$$ars and

re&ri#eration.• Less than E per!ent o& the

popu$ation is• $e#a$$y o$d enou#h to drink F+E

yrs. o$d.• 4 (i$$ion persons are *I years

o$d or youn#er.• @oor awareness o& wine and

in&rastru!ture.

O&&ort#nities• * (i$$ion persons wi$$ %e

$e#a$$y a$$owed to drink a$!oho$F+E yrs. o$d in the ne8t E years.

• Super(arkets are e(er#in# tosupport wine distri%utionin&rastru!ture.

• o(esti! (arket with in!reasin#disposa%$e in!o(e.

Threats• he ndian !onstitution

dis!oura#es a$!oho$!onsu(ption.

• Wine viewed as a OsinP %y so(e.• ndians sti$$ pre&er whisky.• Advertisin# &or a$!oho$i!

%evera#es is• %anned.



1uestions C Answers



1uestion *1. 3hat are the ad'anta-es and disad'anta-es of -ro%in- thro#-h

Contra(t @odel Ans.

Advanta#es

* ,ontra!t &ar(in# provides &ar(ers with produ!tion inputs Fsu!h as seedsand &erti$iers: >ua$ity !ontro$: and advi!e on new produ!tion (ethods

+ ?or investors and !ontra!tors: !ontra!t &ar(in# over!o(es $and!onstraints: >ua$ity is !ontro$$ed %y the investor and !rop risks are sharedwith the &ar(ers

3 Redu!ed transa!tion !osts &orFi ,oordination due to a#reed arran#e(ents &or re#u$ar and sta%$e

supp$ies

Fii @ro!ure(ent owin# to s!a$e e!ono(ies: hi#her produ!tivity



isadvanta#es

* he ter( o& !ontra!t is (u!h $on#er typi!a$$y the !ontra!t period is

&or over E years

+ ?ar(ers (ake a $on#-ter( invest(ent: &or e8a(p$e %y %ui$din# aspe!ia$ draina#e syste(: over a short ter( !ontra!t ear$yter(ination o& the !ontra!t %y the !ontra!tor wi$$ trans$ate into a

$oss

3 & the !rop is $ost: the risk &a$$s on the &ar(er and o&ten no!o(pensation is provided

4 nvest(ents in trainin# and know-how: &ar(er dis!ontent anddisputes: are risks to %e supported %y the !ontra!tor



1uestion +

1. What are the e$e(ents o& Su$a5s %randin# strate#y H Wi$$ it he$p the(in the e(er#in# !o(petitive s!enario in the ndian Wine ndustry H

Ans.

Su$a has positioned itse$& as an indi#enous wine (ade to internationa$te!hni>ues and know how

,onsu(a%$es $ike – Barre$s &ro( ?ran!e: !orks &ro( @ortu#a$: yeast&ro( Austra$ia and &oi$ &ro( Spain

ts distin!tive so$ar $o#o is now >uite we$$ re!o#nied %y !onsu(ersthrou#hout the !ountry



White wines were produ!ed whi!h were a natura$ (at!h &or ndia5s spi!y!uisine

n +I: So$a introdu!ed Jva$ue5 wines pri!ed at Rs. +E to Rs. 4 andthese wines were doin# we$$

,$ever %randin# o& Su$a throu#h wine touris(: Su$a ?est and its wine %ar:=inote!a

) t has a$so set up a wine i(port division due to the ons$au#ht o& &orei#nwines

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n'oy MourWine6.

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Sula Wines Presentation Group 7

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