Fratelli Wines, a key player in the Indian wine industry, aims to double its production of 5,00,000 cases to become a million-case-a-year business. The company’s managing director, Gaurav Sekhri, also announced its plans to increase its focus on the hospitality segment by building a luxury property on its vineyard by the end of 2026.
With an investment of ₹55-60 crore, the 40-key high-end resort is expected to be operational by the end of said year and will be part of the 200-acre vineyard the company owns.
According to the company, its 300-acre wine estate in Akluj, Solapur district, Maharashtra, is India’s largest privately owned wine estate. Fratelli intends to launch a luxury resort on its property in Akluj, which will facilitate direct wine sales to consumers for higher profit margins.
“Fratelli as a business started in 2007 when our family and a family from Italy decided to make high-quality wines in India. We first planted the vineyards, waited three years for the harvest, and eventually launched our wines in 2010. We’ve been in the market for about 14 years and are the second-largest Indian wine company,” Sekhri told businessline.
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In 2024, Fratelli became a 100 per cent subsidiary of Tinna Trade when the latter acquired the former, allowing it to be listed on the Bombay Stock Exchange as Fratelli Vineyards Ltd. It reported a net revenue of ₹215.6 crore and an EBITDA margin of 12 per cent at ₹28.6 crore for the year ending March 31, 2024.
The company’s growth rate over the past four years (2020-24) has been 25 per cent against an average industry growth rate of 15 per cent. The existing product portfolio is projected to grow at a CAGR of 25 per cent between FY25-28. Fratelli aims to become a ₹650 crore by FY28 with a focus on luxury, super-premium, and premium wines.
Fratelli holds 30 per cent of the domestic market share and 70 per cent of its revenues are derived from its premium offerings. The brand retails from 23,000 touch points in India and is exported to over 10 countries across the globe. However, exports account for under 2 per cent of business, with much of it happening domestically.
“We continue to be focused and aware of the opportunity overseas, but our priority lies in India,” he said, adding 65 per cent of the sales from retail and the balance from on-trade. “We are stronger in on-trade and are in many markets. The opportunity to brand build an alcobev business lies in on-trade where you can interact with customers when they try your product. If they like it, they might buy it from retail outlets. Fratelli has traditionally invested heavily and has focused on on-trade sales,” the MD explained.
In 2023, by adding 134 acres of agricultural operations in Jambhali, Maharashtra, Fratelli will manage and operate over 1,100 acres of active farming. It has a capacity of 4.7 million litres across 300 acres of land, which will be increased to 5.6 million litres by December 2024.
The company operates four wineries in Maharashtra and Karnataka, one of which is owned by the company, and the rest are leased.
The company’s 58,000-sq.ft winery houses winemaking equipment from Europe, including bottling and labelling lines from Gai, Italy, over 70 multi-capacity fermentation tanks imported from Velo, Italy, and French and American oak barrels.
In 2021, Fratelli partnered with Chennai-based Artisanal Cheesemaker KÄSE to introduce Fratelli Cheese. It comes in five varieties - Gusto, Sunburst, Cheddar, Feta, and Provolone.
At the vineyards, 95 per cent of employees are women, and over 90 per cent of the employees in the winery are from neighbouring villages. After the development of fertile vineyards, more than 350 women have been employed by Fratelli. The company employs members from more than 700 families.