Bengaluru: Grover Zampa Vineyards Ltd, India’s second-largest wine maker, plans to raise around ₹ 130 crore from Singapore-based wine investor Ravi Viswanathan, Quintela and AVT Group.
Around ₹ 60 crore of the planned investment has already been pumped in, according to Grover Zampa and its filings with the Registrar of Companies (RoC). The company will use the proceeds to launch new wines and redesign its wine tourism properties in Bengaluru and Nasik, even as it partners with other wineries to strengthen its portfolio.
This comes barely a few months after Sula Vineyards Pvt. Ltd, the country’s largest winemaker, became the first Indian firm to cross the 1 million case mark in annual sales. Grover Zampa is far behind Sula in terms of volume, though it is the second-largest wine maker. In April, the company said it sells around 220,000 cases per year.
“We plan to reach half a million cases in the next five years by reinforcing experiential marketing, increasing exports, and ensuring deeper penetration in existing markets. The company will also become more marketing-driven instead of sales-driven to connect with existing consumers as well as target millennials," said Vivek Chandramohan, Grover Zampa’s CEO.
Grover Vineyards was founded by Kanwal Grover, the father of current chairman Kapil, in 1988 at Doddaballapur near Bengaluru. It merged with Vallée de Vin in 2012 to form Grover Zampa.
Viswanathan’s Visvires Capital and Reliance Capital together hold around 32% stake in Grover Zampa, while the Grover family held 24% stake as of April. Viswanathan and Reliance also hold roughly 30% stake in Sula.
It plans to launch a premium sparkling wine under its La Reserve portfolio by end-November. Premium wines account for around 40% of volume and that ratio will continue to hold, the company estimates. It also plans to add new reserve wines to the La Reserve and Chene ranges.
Reserve wines are generally considered to be of higher quality as these are wines that companies have saved over time from their best vintages and are aged for a longer period.
Stakeholders in Grover Zampa have acquired a vineyard in Burgundy called Château d ‘Etroyes. Grover Zampa plans to make its La reserve portfolio at Château d ‘Etroyes and distribute it through existing sales channels in export markets. It is also in talks to partner with Charosa Vineyards in Nasik to take the Charosa brand pan-India.
When it comes to wine sales, attracting customers through tourism is crucial. Grover Zampa has been lagging behind Sula even in that regard. However, the company now plans to invest in an entire redesign of its La Reserve Lounge in Bengaluru. It will also add a restaurant and start to construct eco-friendly cottages at its Nasik winery to make its tourism properties more attractive.