Indian wine group Sula Vineyards has signed a deal to buy wine production assets in the country from Moët Hennessy.
The financial terms of the deal were not disclosed.
In a filing to Bombay Stock Exchange, publicly listed Sula Vineyards said it agreed to buy the Chandon wine production facility and estate in Nashik in the northern state of Maharashtra.
The deal includes the land, buildings and winemaking infrastructure, “while excluding all brand-related assets” of Chandon, according to the filing.
Rajeev Samant, the founder and CEO of Sula Vineyards, said: “This is a once in a lifetime opportunity to acquire a truly world-class estate.”
Located in Dindori in Maharashtra’s Nashik district, the estate spans 19 acres. The winery has capacity of 450,000 litres per year, with scope to expand to 1.3 million litres. The site also includes a visitor centre and five acres of vineyards.
In a statement to Just Drinks, Moët Hennessy, the wines and spirits division of the luxury group LVMH, said "Chandon and its products remain part of the group’s portfolio".
It added: "Distribution and marketing in India will continue to be operated by Moët Hennessy’s Indian entity. Moët Hennessy remains committed to supporting its partners and customers in India throughout this transition.”
Once the deal is completed, Chandon will stop producing wine in India. Wine made at the estate will be sold by Sula Vineyards under its own labels. Its portfolio includes Rasa, The Source and Dindori Reserve.
The transaction is expected to close by the end of the first quarter of Sula Vineyards' 2027 financial year, which started in March.
Samant added: “Dindori is widely regarded as the home of India’s finest wine grapes, and this acquisition strengthens our presence here. Leveraging its strategic location and picturesque setting, we believe this estate will play a key role in the next phase of growth for our wine tourism business.”
The deal follows a near-10% decline in Sula Vineyards’ third-quarter revenue, which the company attributed to “tactical destocking” amid weaker demand in Karnataka.
Disclosing its results on 6 February, the group said it recorded a 9.7% decline in revenue from operations to Rs1.96bn ($21.6m) in its fiscal 2026 third quarter.
The hit to revenue was driven by “one-time tactical destocking in Karnataka to correct channel inventory and conserve working capital amid subdued demand in the region”, Sula Vineyards said.
Net income in the period slid 67.6% to Rs91m. The company’s EBITDA declined 39.8% to Rs320m in the most recent quarter. Its earnings margin dropped 816 basis points to 16.3%.
