Moët Hennessy is exiting local wine production in India after more than a decade, selling its Chandon India winery assets to Sula Vineyards in a move that underscores the challenges global drinks groups face in navigating the country’s complex alcohol market.
Sula Vineyards said it will acquire Moët Hennessy’s Chandon India winery for 200 million rupees (approximately US$2.16 million) to strengthen its wine tourism expansion strategy.
According to a company statement, Sula Vineyards has signed a definitive agreement with Moët Hennessy India to purchase the Chandon India winery assets located in Dindori, Nashik. The property spans about 19 acres and includes winemaking facilities and related real estate.
The winery is equipped with advanced production infrastructure, with a current annual capacity of around 450,000 litres, expandable to 1.3 million litres. In addition to production facilities, the estate includes a visitor centre, banquet facilities, and about five acres of vineyards, forming an integrated platform combining winemaking and premium wine tourism experiences.
Sula Vineyards founder and CEO Rajeev Samant said: “Building on the success of our flagship wine tourism destination near Gangapur Lake in Nashik, the most visited vineyard globally, attracting over 300,000 visitors annually, we see strong potential to develop another landmark destination wine resort in Dindori. Leveraging its strategic location and picturesque setting, we believe this estate will play a key role in the next phase of growth for our wine tourism business.”
The transaction is expected to close by the end of the first quarter of fiscal year 2027, subject to regulatory approvals.
Headquartered in Mumbai, Sula Vineyards is one of India’s largest wine producers. Founded in 1999 by entrepreneur Rajeev Samant, its core winemaking operations are based in Nashik, Maharashtra. The company is widely regarded as a pioneer of India’s modern wine industry, having introduced international grape varieties such as Chenin Blanc, Sauvignon Blanc, and Riesling, and built a diversified portfolio spanning red, white, rosé, and sparkling wines. It has also expanded into wine tourism, hospitality, and tasting experiences to broaden consumer engagement.
The acquisition also signals Moët Hennessy’s exit from local wine production in India.
Since 2014, Moët Hennessy has operated the Chandon India winery in Nashik as part of its global Chandon network, including a winery, visitor centre, and contract grape-growing system. In India, Chandon has been positioned as a locally produced premium sparkling wine brand, distributed across retail and on-trade channels in more than 20 major cities. Beyond sparkling wines, Moët Hennessy India also launched Chandon Aurva, a premium still wine produced domestically.
Following the deal, the winery’s production will be operated under Sula Vineyards’ own brands, and the “Chandon” name will no longer be used in the market.
The transaction marks a turning point for a localisation effort once driven by a global luxury drinks group, while reinforcing Sula’s long-term push into India’s premium wine segment.
Moët Hennessy’s exit also comes amid intensifying regulatory and structural pressures in one of the world’s most complex alcohol markets. Pernod Ricard, one of India’s largest spirits players, is currently under antitrust investigation over allegations it colluded with retailers to favour its brands.
Meanwhile, global drinks companies continue to grapple with state-by-state taxation, distribution constraints and shifting consumer demand, factors that have made scaling capital-intensive operations in India increasingly difficult.
However, the acquisition is not without risks. Assets that previously relied on international brand equity may face pressure in maintaining a premium positioning under a domestic label. At the same time, India’s fragmented regulatory environment continues to weigh on alcohol consumption, with premiumisation in the wine category still at an early stage.
For Sula Vineyards, success will depend on post-acquisition integration, brand building and its ability to navigate regional policy complexities.
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