UK supplier warns others against Indage Vintners

Indage Vintners has been staring at financial losses for a long time and is not able to pay its suppliers and service providers. Now, CRP, its supplier of ‘bag in box’ packaging, has issued a warning to other suppliers not to have any dealings with Indage.

Complaints from investors and suppliers don’t seem to end for Indage Vintners; this time the problems of India’s oldest and biggest wine-maker are emanating from the UK-based CRP Print & Packaging Ltd which has warned other suppliers against dealing with Indage after it failed to honour its purchase contracts.

“Calls on the guarantee provided by Indage to CRP have not met with open dialogue, but instead a closed shop of silence. Those seeking to trade with Indage going forward or placing their critical supplies at the behest of this entity should beware,” CRP said in an email.

Officials from Indage were not available for comment.

CRP is the sole supplier of ‘bag in box’ packaging and technical expertise to Indage. CRP said it had sought an assurance from Indage to enable its continued support and partnering of the business.

Santosh Verma, managing director of Indage Vintners Ltd, had offered a parent guarantee to CRP to cover a line of credit which was provided on the clear understanding that the guarantee would be upheld if the business fails or the terms of credit are violated, CRP said. Indage’s chief financial officer, Rajesh Chalke had provided “honourable assurances that the covenant of Indage was strong and should the eventuality arise, Indage would never walk away from its responsibilities,” it added.

Indage UK has now traded insolvently for 18 months on monies borrowed under false promises from its UK and worldwide suppliers, CRP alleged in its mail.

“Management sight a number of factors, but the traits of its predecessor’s failed businesses are evident once again; no in-house financial controls or credible reporting function and no financial disclosures (FD) despite a number of appointed officials; no local management to control or run the business day to day and no working-capital facilities to support the operation,” CRP said in the mail.

CRP said the UK entity of Indage has now entered a period of voluntary arrangement supported by the UK Revenue authorities and its own group entities and creditors are “again left in a limbo and clinging to a plan that is predicated on the same honourable promises given in 2008.”

In October, Indage UK had let go of around a 100 employees; and in 2008, around 250 employees left the company after not being paid. Indage has not been making payments to its suppliers and service providers since the beginning of 2009. Soon afterwards, it stopped paying its employees, forcing some of them to approach the police.

According to an ex-employee, there is a lack of communication between Indage Vintners and its sister companies and also a lack of financial accountability. “The company lacks vision, plus it doesn’t do any market segmentation for its wines,” he said.

According to company sources, recently a lot of senior employees from the marketing and sales departments have also quit.
 

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    COMMENTS

    Rengaswami

    1 decade ago

    Indage, both the parent and the subsidiaries are horribly managed and are on ventilator support for well over 18 months. The matter is well documented and chronicled in newspapers, edits, blogs across the world. The top honchos of the company have failed to stick to any assurances to any supplier, partners, government, or employees. They owe over US$200 Mln and the assets left in the company is nil. Their wine stock is vinegar, there is no crushing, no sales is taking place, the distributors have stopped selling, the regional offices are closed, the corporate office is closed, with only a few employees loitering meandering in the premises. Rajesh Chalke and his ilk do not have any real say in the matters. The only thing keeping the company going is the immense political clout and personal wealth of first family of INDAGE. Using this clout they block suppliers from getting their legitimate dues, getting away with issuing dud cheques to employees (unbelievable 60 odd cheques bounce and the directors are still not behind bars, it happens only in India). Only God knows when the suppliers both in India and elsewhere will get their money. SAYONARA

    Fay

    1 decade ago


    Indage know they are trading insolvently
    CRP supplied under good faith as they had dealt with Corby Bottlers for a lonfg period and with Indage filling for Fosters this was used asa guarantee so Indage are to blame and please everyone take note of their warning do not supply

    Les

    1 decade ago

    Hi Aaron
    I have to agree with Ravinda. CRP seem to want to lay all the blame on Indage for the failures of their own credit control. The UK creditors seem to want to give Indage the chance to trade out of their cash crisis, why can't CRP? Do they have an ulterior motive such as their support for a competitor? Well done to Indage, they could have turned their backs on the creditors and most importantly the employees and let the business fold. Give them a chance, they obviously believe there is a future!!!!
    For the record, 100 UK employees were not 'let go' as reported, they were laid off with full pay due to lack of work.

    yogesh

    1 decade ago

    Ravinder,
    Believe us, we tried all ways to contact the officials from Indage, but couldn't elicit any response from them.
    It appears that you to know more about the developments. Why don't you share it with us, do send a mail to [email protected]

    Ravinder

    1 decade ago

    Hi Aaron

    You failed to exercise care before publishing this article which are based on mere allegations, CRP should check if the purpoted document is a Guarantee in the first place, the reason why I am questioning is if as they claim it is a valid guirante then the recourse lies in the courts and not Papers like yours, the allegations on a plain reading seem personal and at the behest of the ex-employee. Thought I should also mention that when you publish artciles like these you have to take account of the larger interests I.e; have you considered the effect it might have on the company and employees in particular.
    Aaron I am sure you have responsibilities which you chose to Ignore

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