India’s largest winemaker, Champagne Indage is all set to buy Australian Vintage Limited's Loxton winery through its wholly based subsidiary, Indage Holdings for 60 million Australian dollars (US$ 54.6 million).

The 90,000-litre facility in the state of South Australia's Riverland is the country's fifth-largest winery.

The Settlement is expected to occur within the next three to six months, subject to Indage undertaking and satisfying due diligence requirements within the next four weeks, and the signing of a wine and contract processing agreement.

Early last year, Champagne Indage paid about $10 million to acquire Tandou Wines, which has a capacity to produce 3 million cases annually.

Sham Chougale, Chairman, Champagne Indage said, “The company was very excited about the purchase of Loxton, which will allow Indage the additional capacity to meet increasing demand in India and other countries for quality wine.”

The company has reported 85% increase in net profit at Rs 5.24 crore for the quarter to September 2007. Its sales increased by 35% to Rs 29.61 crore.