Champagne Indage acquires Loxton Winery for A$ 60mn

Champagne Indage Limited (CIL), India’s oldest and largest, pioneering wine making company today announced its plans to acquire Australian Vintage's Loxton winery in an all cash transaction for 60 million Australian dollars (Rs.225 crore). The deal is set to be completed over the next six months. The acquisition of the winery will increase the total production capacity from 32 million liters (3.5 million cases) to 122 million liters (13.5 million cases) per year.

Loxton winery, situated in Riverland, South Australia is the fifth largest and the most modern winery in Australia. It has an annual crushing capacity of over 80,000 tons and an annual capacity of 90 million liters and is configured to handle smaller batches of more premium fruit, sourced predominantly from the Riverland vineyards, enabling a greater degree of flexibility with cropping level and therefore wine styles. 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, US and India.

Ranjit S Chougule, Managing Director, Champagne Indage 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 a part of a larger strategy of going global".

The company made a similar Australian acquisition by buying out Thachi wines 12 months back which will earn the company 10 million Australian dollars in revenues and profits of 100,000 Australian dollars within the first year of operations. The Thachi brands include - Broken Earth, Red Skies and South Bay that are being rolled out across the globe including India.

Sourced From: Champagne Indage Ltd