Sales and profits have collapsed for Indage

Sales and profits have collapsed for Indage

Indage Vintners has said it will appeal a winding up order issued against the company by a court in India.

A case brought against Indage Vintners by several creditors last week led the High Court in Mumbai to order that the wine group be wound up.

Indage is one of India's leading wine companies, with more than 40 brands, but has seen sales and profits collapse in its current fiscal year.

The firm said yesterday (22 March) that it plans to appeal against the High Court ruling. "It is not expedient to wind up the business at this stage," it said.

The group's net debt has not been disclosed, but Indage said that it is "ready and willing" to submit a plan "to restructure its outstanding liabilities".

Indage Vintners sank to net losses of INR483.7m in the first nine months of its fiscal year, to the end of December 2009. It reported profits of INR183m in the same period of the previous year.

An interest charge of INR360m constituted the majority of the losses, according to accounts filed by the company on 28 January. Losses for the nine-month period before tax and interest charges were almost INR130m, compared to equivalent profits of INR410m in the prior year.

Net sales for the nine months collapsed to INR138m, against INR1.4bn a year earlier.