Great Reasoning to share.
I am a newbie in investing. However, I also believe that tax imposed if applied wont impact business longevity. Management has also shared in Con call that they have strong case in their favour.
However, There is one thing that bugs me. The reason why Sula is enjoying 60% market share is because of the fact that as compared to imported wine they are able to provide better quality for the same price.
Imported wine that sells for Rs. 2,000 is any day of lower quality than the Rs. 2,000 wine of Sula. Reason- Because good chunk of the price the customer is paying for imported wine is going towards taxes, whereas for Sula because of the subsidy that price is going towards Quality.
With the possibility of Maha govt removing the subsidy and easing the import duty through India-Aus trade agreement, Wont this affect the business of Sula?
I guess it will make the playfield more competitive for both domestic and foreign players. Sula needs to tracked if they are able to maintain their market share.
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