Sula Vineyards Acquires LVMH’s Indian Winery in Landmark Nashik Deal

LVMH ends local production in India as Sula Vineyards acquires the Chandon winery in Nashik for 200 million rupees to boost wine tourism.

By: AXL Media

Published: Apr 11, 2026, 12:14 PM EDT

Source: The Drinks Business

The Strategic Exit of Moët Hennessy

Moët Hennessy, the wine and spirits arm of LVMH, established its Nashik-based winery in 2014, joining a global network of Chandon estates in Argentina, California, Brazil, Australia, and China. Despite successfully positioning Chandon as a premium domestic sparkling brand available in over 20 major Indian cities, LVMH has opted to cease local manufacturing. While the physical estate will change hands when the deal concludes in early 2026, the Chandon brand will remain active in the Indian market. This divestment suggests a pivot in LVMH’s regional strategy, potentially focusing on high-end imports rather than the complexities of local agricultural management.

Sula Vineyards and the Wine Tourism Boom

For Sula Vineyards, the acquisition of the 19-acre Dindori estate is a tactical expansion of its dominant "wine tourism" business model. Already operating one of the world’s most-visited vineyards—attracting over 300,000 visitors annually near Gangapur Lake—Sula plans to transform the Chandon site into a secondary landmark destination. The facility currently produces 450,000 litres of wine but has the technical infrastructure to scale up to 1.3 million litres. Sula's CEO, Rajeev Samant, noted that the estate’s existing visitor center and banqueting facilities are perfectly aligned with the next phase of the company's growth in hospitality.

Transformative Analysis: The Resilience of Domestic "Indian" Branding

This acquisition highlights a broader trend where domestic Indian producers are successfully outcompeting or absorbing international satellite operations. Sula Vineyards, a pioneer that introduced international varieties like Chenin Blanc and Sauvignon Blanc to the Nashik region, has built a brand identity that resonates strongly with the emerging middle class. By acquiring the Chandon facility, Sula is not just buying capacity; it is removing a primary competitor in the "premium local" segment. This move suggests that for global luxury houses like LVMH, the challenges of Indian bureaucracy and supply chain management may be less attractive than simply maintaining a brand presence through strategic distribution and imports.