The Hindu Business Line : Kyndal forays into domestic wine business

The company has the option of taking majority stake in the wine company. "We are buying the entire production at Flamingo, so it will basically serve as a captive unit for us. We have the option of taking equity in the firm, however, we will look at doing that only after a year or so," Mr Siddharth Banerji, Director, Kyndal India, said.

Interestingly, Kyndal India has set up a separate 100 per cent subsidiary, Mojaveh Beverages, for its foray into the domestic wine business. The company has already rolled out two wine brands — 30 Latt (priced at Rs 450 plus) and Flamingo — in smaller markets (such as the North-East) and plans to go pan-India from March next year. Both the brands will have around 3-4 variants.

According to Mr Banerji, the company expects to sell 25,000 cases in the first year. "We are talking to retailers such as Reliance for our products. We expect this segment to generate significant demand in the future," he added.

The fast growth in the domestic wine market has caught the attention of a number of domestic and international firms. Liquor major Seagram has most recently entered the locally produced wine segment, while the nascent industry has also seen an increase in private equity interest this year.

Kyndal is also launching Argentinean wines in the country and will be marketing/distributing the products of French firm Dulong in India.

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