LVMH Sells Chandon India Winery to Sula Vineyards for $2.16 Million

LVMH’s wine and spirits division, Moët Hennessy, is ending its local wine production in India after more than ten years of making Chandon sparkling wine in the country. The company has agreed to sell its Chandon India winery to Sula Vineyards, a leading Indian wine producer, for 200 million rupees, which is about US$2.16 million. The deal is expected to close early next year.

The Chandon India winery is located in Dindori, Nashik, a region known for its vineyards. The estate covers 19 acres and currently produces around 450,000 liters of wine annually, with the capacity to expand production up to 1.3 million liters. The property also includes a visitor center and facilities for banquets, making it suitable for wine tourism.

Chandon entered the Indian market as a locally produced premium sparkling wine brand and has been distributed in more than 20 major cities across the country. Moët Hennessy India also launched Chandon Aurva, a premium still wine produced domestically. With this sale, LVMH will shift away from local production in India but will retain the “Chandon” brand name in the country.

Sula Vineyards plans to convert the winery’s production to its own brands once the acquisition is complete. Rajeev Samant, founder and CEO of Sula Vineyards, said that the company sees strong potential to develop another destination wine resort at the Dindori estate. Sula already operates a flagship wine tourism destination near Gangapur Lake in Nashik, which attracts over 300,000 visitors each year and is considered one of the most visited vineyards globally.

The acquisition aligns with Sula’s strategy to expand its presence in wine tourism. The company has played a significant role in developing India’s modern wine industry by introducing international grape varieties such as Chenin Blanc, Sauvignon Blanc, and Riesling. Sula’s portfolio now includes red, white, rosé, and sparkling wines.

LVMH’s decision marks a shift from previous efforts by global drinks companies to establish local production in India. In recent years, international brands have sought to appeal to a growing segment of Indian consumers interested in quality domestic products. However, changing market dynamics and strategic priorities have led LVMH to exit local production while maintaining its brand presence through imports.

The sale of the Chandon India winery reflects both the challenges and opportunities in India’s evolving wine market. As Sula Vineyards takes over the estate, it aims to build on its reputation as an industry pioneer and further develop wine tourism as a key part of its business model.