Brindco set to pick up 20 percent stake in Grover Vineyards
By siliconindia   |   Tuesday, 02 January 2007, 18:30 IST
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BANGALORE: Following the dip in import tariffs and the big boys’ entry (read Vijay Mallya) into the market, M&As has been set rolling in the still nascent Indian wine industry. Brindco, the country’s largest wine importer, is close to acquiring 20 percent stake in the Bangalore based Grover Vineyards. The deal with the premium domestic wine maker was pegged at Rs 80/100 crore. The deal will facilitate Aman Dhall managed Brindco takeover the marketing and distribution of the Grover Vineyard brands as well. In the wake of the transaction, Grover Vineyards is also setting up a new winery in Maharashtra, which is expected to boost the company’s depletions. Maharashtra, the largest wine producer and consumer, has imposed steep additional levies on brands coming in from neighbouring markets, which worked against the interests of Grover till now. “We have not yet signed a deal,” said Kapil Grover, founder & director of Grover Vineyards, when contacted. The Economic Times reported this today. The publication also stated that this will be the second tranche of equity placement by Grover Vineyards as the former Citibanker and IT entrepreneur, Jerry Rao, has struck an agreement to pick up 15 percent stake in the vintner estimated to sell nearly one million bottles in FY07. The deal with Brindco, however, is strategic in nature as it unlocks the untapped distribution potential of Grover wines.

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