Integra Essentia Ltd purchases assets of CHATEAU INDAGE Winery for Rs. 400 millions

Integra Essentia Limited has purchased assets of CHATEAU INDAGE Winery for Rs. 400 millions, as a part of its pre-defined long-term business growth strategy and to strengthen its presence in entire supply chain spectrum of consumable goods.

With the rise in disposable incomes, rapid urbanization, access to reasonably priced domestic wines, the perceived health benefits of consuming low alcohol beverages, and changing consumer attitudes have led to a significant increase in wine consumption. Industry sources indicate that the Indian wine sector has become the fastest-growing alcoholic beverage category in the past decade, thanks in particular to the rise of upper-middle-class urban consumers. Based on trade sources and available sales data, national wine consumption is over 30 million liters per year. Wine production in India is concentrated in the states of Maharashtra (90 percent) and Karnataka (7 percent), while the states Goa and Himachal Pradesh represent less than 3 percent of output combined.

These purchased assets situated in Narayangaon, Maharashtra, a strategic location having optimum climate for grape cultivation, known for its world-class high-quality grapes, comprises (a) Winery Land of 58,612 square metres (b) Winery Buildings of 16,629 square metres RCC, fully insulated, and (c) Winery Equipment including 60 lakh litres stainless steel storage, 4 bottling lines, 2 crushers/pressers, online cold stabilization and filtration etc. surrounded by thousands of acres of planted vineyards, which 'll enable Integra Essentia Limited to have easy access to quality grapes, perfectly ripened harvest to release the juices through crushing in its purchased processing units, winery to be run either individually or in a joint venture with some other industry player.

These facilities, supported by world class infrastructure and planted vineyards, were originally developed by an Indian Wine company established in '80s, pioneer in this business and once having market leadership for wines, and well known global international vintner having a broad portfolio of over 10 brands and have capabilities of 90 Tonnes of Crushing and Pressing per hour, filtration capacity of 12,500 litres per hours, Cold Stabilization capacity of 5,850 litres per hour with 63,40,820 litres tank storage and 27,08,000 litres finished and semi-finished wines in bottles.

Commenting on the development, Mr. Vishesh Gupta, Managing Director of the Integra Essentia said "Our goal is very clear; we want to significantly expand the company's business, its market reach, and obviously its profitability. To that end, we are making every effort to strategically align all the components of the supply chain for necessities of life, whether through an organic or an inorganic route, and this purchase of winery assets from Edelweiss Assets Reconstruction Co. Limited is one of such steps in right direction. We are initiating the process to identify and engaging necessary team of professionals, partners and strategic alliances to put these purchased assets in use at the earliest so that these assets start contributing significantly in company's revenue and bottom-line both without much delay."

Shares of Integra Essentia Limited was last trading in BSE at Rs. 6.90 as compared to the previous close of Rs. 7.00. The total number of shares traded during the day was 21295 in over 70 trades.

The stock hit an intraday high of Rs. 7.17 and intraday low of 6.70. The net turnover during the day was Rs. 146241.00.

Source : Equity Bulls

Keywords

IntegraEssentia INE418N01035 Infrastructure AssetPurchase CHATEAUINDAGEWinery