Champagne Indage to acquire Loxton winery for $60 mnMarch 21st, 2008 - 7:22 pm ICT by admin
Mumbai, March 21 (IANS) Champagne Indage Ltd (CIL), one of the leading wine companies in India, will acquire Australian Vintage’s Loxton winery for $60 million (Rs.2.4 billion) in an all cash transaction. The deal would be completed in the next six months. The acquisition of the winery will increase the total production capacity of CIL from the existing 32 million litres (3.5 million cases) to 122 million litres (13.5 million cases) per year.
It will also allow the company to enter wider price points within Australia as well as major markets of Australian wine such as the UK, Europe, the US and India.
Loxton, situated in Riverland, south Australia, is the fifth largest winery in Australia. It has an annual crushing capacity of over 80,000 tons and an annual capacity of 90 million litres and is configured to handle smaller batches of more premium fruit, sourced predominantly from the Riverland vineyards.
Ranjit S. Chougule, managing director of CIL said: “This powerful acquisition will drive greater value to key stakeholders including end consumers, and partners of CIL. With an existing market share of 75 percent, the purchase of Loxton is meant to be part of a larger strategy of going global”.
The company had made a similar Australian acquisition by buying out Thachi wines a year ago.
With vineyards spread over 2,500 acres, CIL has its facilities in Narayangaon, Nasik in Mahatrashtra and Himachal Pradesh with 20 varieties under commercial plantation and over 137 varieties under nursery cultivation.
It has also recently launched a domestically produced vodka brand called ‘Just’ and ‘Carrera xxx’ rum.
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