Indian wine group Sula Vineyards has insisted it is not in "serious discussions" to sell up or join forces with another company.

Sula, India's second-largest wine producer, had been linked with a potential partnership with Diageo but yesterday (31 October) the company's founder and MD, Rajeev Samant, played down reports of talks with the UK drinks giant.

Samant said Sula, which sells 850,000 cases a year in India's fledgling wine industry, has received a number of approaches from potential partners or buyers.

Sula claims the lead in India's premium wine segment, where wines sell for over INR300 (US$6.70) a bottle.

The company, based in India's largest grape-growing region of Nashik, north-east of Mumbai, has planted 500 acres of vineyards this year, taking the total acreage to 1,200 acres.