Sula Vineyards

A case analysis on “Sula Vineyards”

International American University

Kings College

Submitted to: Prof. Sushil Raj Kumar Sharma

Subject: Business Strategy

Submitted By: Santosh Shrestha

July 05, 2015

Company Profile

Before Sula Vineyards, India had been producing wines 50 centuries ago. But due to lack of good and quality wines, Indian wine could not meet the international standards and had no international market. Those wines were sold only at domestic level.

But Rajeev Samant, the founder and CEO of Sula Vineyard found that the lands in Nasik were fortunate to grow grapes in order to produce and sell wine. So, he used his family land which was 20-acers in order to farm grapes and produce wine. Thus, he established his own wine industry in October 1998 to produce wine. This was the first step of winery industry in India. He had gone through many ups and downs, many financial losses and other losses before he made Sula Vineyard an international brand. (htt11)

Major Findings in the case

The major findings in the case are as follows:

* Without and knowledge and idea, Rajeev Samant started farming grapes in order to produce an sell wine.

* The Sula Vineyard was formed at debt financed by family, friends and bank loans.

* During its introduction phase the company incurred negative cash flows.

* In spite of negative cash flows, the company also took longer period to sell its inventory.

* There was also the greater challenge to create the market place for Sula Vineyard because it was new brand in the market, but there were already French wines available in the market and which were popular too in both domestic and international market.

* But after some time, due to successful marketing Sula Vineyard started strengthening its income statement and balance sheet.

Major challenges Faced by Sula Vineyard

* Due to non-existence of wine industry in India. Sula Vineyard took more than two years to obtain necessary licence to...