A little-known trader of farm commodities is transforming into India's No. 2 winemaker.Tinna Trade Ltd., a BSE-listed company with a market cap of Rs 69 crore, will acquire Fratelli Wines Pvt., the maker of J'NOON range, to become the second largest maker of wines in the country in a share-swap deal. The transaction between the two companies with at least one common promoter would make Fratelli a wholly owned subsidiary of Tinna Trade.Tinna Trade, which already owns 3% in the wine company, will acquire 97% for Rs 221 crore by issuing new shares to Fratelli shareholders at Rs 72 per share, a 9% discount from prevailing market rates. After the transaction, which values the winemaker at a little over Rs 227 crore, Fratelli promoters will become the majority owners of Tinna Trade.And the combined entity will be renamed Fratelli Vineyards Ltd. or Fratelli Beverages Ltd., according to the disclosures.Shareholders And Businesses Tinna Trades deals in wheat and lentils to soyabean. The company, with Gaurav Sekhri as its promoter-director, also trades in steel abrasives. Fratelli was started by Gaurav Sekhri, late Kapil Sekhri, and their foreign partners, the Secci Brothers and Piero Masi in 2007. It has over 240 acres under cultivation located in Sholapur, Maharashtra. In FY21, its installed capacity was 1.4 million litres with distribution across over 9,000 retail and over 5,000 hotels, restaurants and caterers.Sula Vineyards, Fratelli Wines, and Grover Zampa Vineyards are the top three domestic wine makers.Fratelli grew at an annual growth rate of 31% between FY15-20, according to Sula Vineyard RHP. Fratelli's wine brands include J'NOON Wines, JCB, MS, Noi Sparkling NV and TILT, priced in the range of Rs 400 to Rs 2,200 per bottle.ValuationsIn terms of valuations for Fratelli, investors will treat Sula Vineyards Ltd. as the benchmark. Sula trades at an enterprise value-to-Ebitda ratio of 29.8 times and 56 times its earnings.