Champagne Indage to buy Aussie wine firm

Deal expected to triple its capacity

MUMBAI: Making its second acquisition in Australia, Champagne Indage, India’s largest wine manufacturer, on Wednesday said it has identified another wine maker in Australia, which could more than triple its total capacity to 14 million cases a year.

Although it didn’t identify the company or disclose the acquisition price, reports suggested that Loxton Winery was the target company, to be acquired for about $60 million.

Loxton operates a 40,000 tonne winery.

Early last year, Champagne Indage paid about $10 million to acquire Tandou Wines, which has a capacity to produce 3 million cases annually.

The deal added A$55 million to its revenues.

Champagne Indage’s domestic capacity is one million cases.

Champagne Indage has been quite active on the mergers and acquisitions front.

Prior to the Tandou acquisition, it has bought distribution business (U.K.-based wholesale wine distributor McKinley Vintners) and also Scotch whiskey brand (Kingdom of Fife).

Managing director Ranjit Chougule said the company was planning to launch a step down brand of Kingdom of Fife, which would be bottled in India.  The company is also readying the launch of its Vodka brand in May. The product would be sourced from its Sweden’s distillery.

g_rabin@dnaindia.net