Presentation on UB Group

8/7/2019 Presentation on UB Group

1/43

Introduction

The UB Group was founded by a Scottish gentleman ThomasThe UB Group was founded by a Scottish gentleman ThomasLeishmanLeishman in 1915. The company used to manufacture beer atin 1915. The company used to manufacture beer atthat time and took its initial lessons in manufacturing beer fromthat time and took its initial lessons in manufacturing beer fromSouth Indian based British breweries. In August 1947,South Indian based British breweries. In August 1947, VittalVittalMallyaMallya became the company's first Indian director. A year laterbecame the company's first Indian director. A year laterhe became the Chairman of the Group. United Breweries camehe became the Chairman of the Group. United Breweries came

into limelight by manufacturing bulk beer for the British troops,into limelight by manufacturing bulk beer for the British troops,which was transported in huge barrels. In 1950s and 60s, thewhich was transported in huge barrels. In 1950s and 60s, thegroup expanded rapidly andgroup expanded rapidly and mademade several acquisitions.several acquisitions.McDowell was added as one of the Group subsidiaries. ThisMcDowell was added as one of the Group subsidiaries. Thishelped UB Group to venture into wines and spirits business.helped UB Group to venture into wines and spirits business.

Kingfisher, the Group's most visible and profitable brand, madeKingfisher, the Group's most visible and profitable brand, madeits entry in the sixties. Thereafter, the Group moved into agroits entry in the sixties. Thereafter, the Group moved into agro--based industries and medicines when it acquiredbased industries and medicines when it acquired KissanKissanProducts and formed a longProducts and formed a long--term relationship with Hoechst AGterm relationship with Hoechst AGof Germany to promote Aventisof Germany to promote Aventis PharmaPharma..


2/43

MANAGEMENT TEAM


3/43

Business Interests of UB Group:Beverage Alcohol:Beverage Alcohol: The UB Group is 3rd largest spirits marketer inthe world, with overall sales of 60 million cases. The company offers140 brands at varying price points. Some of the famous brands of theUB Group are: Bagpiper Whisky, McDowell's No.1 Whisky,Director's Special Whisky, McDowell's No.1 Brandy and McDowell'sCelebration Rum.

Pharmaceuticals:Pharmaceuticals: The group's company Aventis Pharma Limited isthe second largest pharmaceutical multinational in India. It developsand markets branded prescription drugs and vaccines.

MediaMedia: The UB Group also has a shareholding in Asian Age HoldingsLtd, the company that owns and manages daily newspaper, The Asian

Age.

InternationalInternational Trading: The Group's company UB Global Limited isa recognized export house engaged in the export of Beer, Spirits,Leather Footwear and Processed Foods. The Company also exportsPharmaceutical Products and customized perfumeries.

.


4/43

Fertilizer:Fertilizer: Mangalore Chemicals & Fertilizers Limited isunder UB Group's management. It has a manufacturingcapacity of 2,17, 800 MT of Ammonia and 3,80,000 MT of

Urea

Research & Development:Research & Development: Vittal Mallya Scientific ResearchFoundation (VMSRF) was established in 1987 with theobjective of developing newer and novel technologies that will

have substantial application in industry and health care. Thefoundation is it is recognized by the Departments of Scientific& Industrial Research (DSIR), Dept. of Biotechnology (DBT),Council for Scientific and Industrial Research (CSIR) and theMinistry of Finance, Govt. of India.

Aviation:Aviation: UB Group entered aviation sector in 2005 with thelaunch of Kingfisher Airlines Limited. Kingfisher Airlines hascaptured an impressive market share and has established aniche identity for itself. The airlines recently acquired 25%stake in Deccan Airlines


5/43


6/43

UB Group Strategies

Acquistions Aumast Du the expansion have been very successful

for the group

Acquired Mac Dowells,Shaw,Wallace,etc

Acquired Air-Deccan Airplane

Expansion

Group expanded by acquisitions,innovations in

products and entering new market Entered Africa and Europe market


7/43


8/43

Diversifications

Concentric diversification is one of the major

strategies of group.E.g. beer n whisky,etc Longlomerate diversification is not a part of their

practise presentaly

The group has moved into airlines and many sporting

events like royallike royal challenger,Banglorechallenger,Banglore

Other Strategies

Commmon distribution channel

Dominance at point of purchase


9/43

UB Group in INDIAThe youngest of three children,The youngest of three children, VittalVittal MallyaMallya was born in Dhaka, now inwas born in Dhaka, now in

Bangladesh, on February 8, 1924. He was born in an army family to Mrs. DeviBangladesh, on February 8, 1924. He was born in an army family to Mrs. DeviMallyaMallya and Lt. Col.and Lt. Col. BantwalBantwal GanapathiGanapathi MallyaMallya (a Medical Doctor with an(a Medical Doctor with an

FRCS degree).FRCS degree). VittalVittal MallyaMallya grew up to be a smart young man to graduate at agrew up to be a smart young man to graduate at a

very young age. He received several double promotions during his academicvery young age. He received several double promotions during his academic

career for outstanding performance and this demonstrated his exceptionalcareer for outstanding performance and this demonstrated his exceptional

calibrecalibre and sharp intellect..and sharp intellect..VittalVittal MallyaMallya saw an opportunity in 1946saw an opportunity in 1946--47 and started acquiring the shares of47 and started acquiring the shares of

United Breweries Limited, of which he became the Chairman. His foresightUnited Breweries Limited, of which he became the Chairman. His foresight

and business acumen led to the aggressive expansion of the United Breweriesand business acumen led to the aggressive expansion of the United Breweries

Group. Meanwhile, the acquisition of control over McDowell & CompanyGroup. Meanwhile, the acquisition of control over McDowell & Company

Limited marked the Groups entry into the Wines and Spirits business. TheLimited marked the Groups entry into the Wines and Spirits business. TheGroup took a further stride with the acquisition ofGroup took a further stride with the acquisition of KissanKissan Products Limited inProducts Limited in

19501950--60. It also began its association, about this time, with Hoechst AG of60. It also began its association, about this time, with Hoechst AG of

Germany while coGermany while co--promoting Hoechst Pharmaceuticals Limited, now knownpromoting Hoechst Pharmaceuticals Limited, now known

as Aventisas Aventis PharmaPharma India.India.


10/43

Dr. Vijay Mallya(Chairman)Dr. Mallya, was elected by shareholders as Chairman of UB in 1983,

at the age of 28. He previously assisted his father, the former

Chairman, who passed away in the same year. Prior to being entrustedwith the responsibilities of a classical Indian corporate conglomerate,

Dr. Mallya worked for the American Hoechst Corporation (now

Sanofi-Aventis) in the USA and with Jenson & Nicholson in the U.K.

Since 1980, he assisted his father, the then Chairman of The UB

Group, in managing the important Brewing and Spirits Divisions and

in re-launching the Kingfisher Brand of Beer. In 1983, the sales

volume of the UB Spirits division was approximately 2.85 million

cases and UBs beer business trailed behind that of Golden Eagle from

Mohan Meakins. Also included in the Group were activities such aspharmaceuticals, agrochemicals, paints, petrochemicals and plastics,

the manufacture of electro-mechanical batteries, the manufacture of

food products and carbonated beverages, a fast-food pizza chain and

several medium and small scale industrial units.


11/43

In 1988 Dr. Mallya, in a leveraged buyout, acquired theglobal Berger Paints Group with operating companies

across four continents. Dr. Mallya also founded a software company in the USA

in 1993 which was subsequently listed on the NASDAQin 1996 and which provides a considerable window ofopportunity to the vast US market.

In 2007, United Spirits Limited, the flagship of The UBGroup, acquired a hundred percent of premium scotchdistillers Whyte & Mackay and Liquidity Inc, a UnitedStates-based maker of specialty vodkas.

Kingfisher, one of the flagship brands of The UB Group,

has partnered with NDTV, Indias leading broadcastgroup in a first-of-its-kind media alliance for the

promotion of NDTV Good Times.


12/43

The UB Groups Kingfisher Airlines is today the undisputedmarket leader in Indias aviation market

Dr. Mallya is the first Indian ever to become the owner of a

Formula One Team.Dr. Mallya has received several professional awards both in India

and overseas. He was conferred a Doctorate of Philosophy inBusiness Administration, by the Southern CaliforniaUniversity, Irvine. He has also been nominated as a Global

Leader for Tomorrow by the World Economic Forum. He wasconferred Frances highest civilian honour Officier de lalegion d Honneur for his exceptional career as businessmanheading a multinational with diversified interests. he hascontributed generously to various Charities and Foundations inseveral countries in addition to establishing The Mallya

Hospital, The Mallya-Aditi School and the Vittal MallyaScientific Research Foundation in Bangalore, India


13/43

AwardsAwards


14/43

UNITEDUNITED

BREWERRIESBREWERRIESHOLDING LTDHOLDING LTD


15/43

UNITED BREWERRIES HOLDING LTD Single window to invest in the growing Indian consumer story

Owns controlling stakes in UB Groups market leading companies:USL, UBL, KFA

Each of the principal investments is dominant leader in its space

Each investee company is in a fast growing segment catering tocurrent and emergingconsumer trends

Apart from the above key investments, other group investments intoengineering, pharmaceuticals, fertilizers are also through UBHL

Promoters interests are aligned with UBHL

Transparent shareholding structure and ultimate economic benefit ofholding in each of the investments flows to UBHL


16/43

UBUBGLOBALGLOBAL


17/43

UB Global

International Business Division of the UB Group,in exports of :-

Beverage Alcohol

Processed Foods

Leather Footwear Apparel

Largest Indian exporter of alcoholic beverages

Exports to over 75 countries

Govt of India recognized Export House and winnerof coveted APEDA award for export excellence forthe last 8 years


18/43

UBUB

EngineeringEngineeringLtd.Ltd.


19/43

UB ENGINEERING LTDUB Engineering Limited is the flagship Company of UB Groups

Engineering Business.UB Engineering Limited commenced its operations in 1963 as a

partnership firm (then known as Western India Erectors) startedby two foresighted technocrats and went public in the year 1972.The Company came under the UB Umbrella in 1988.The sphere of UB Engineerings activities encompasses EPCProjects, Infrastructure, On-site fabrication of structures,Installation, Testing and Commissioning of Electrical andMechanical Equipments, Piping etc. for large Industrial projectssuch as Power, Refineries, Steel, Cement, Fertilizer,Petrochemical and Desalination Projects. The Company enjoys

pre-qualification credentials in Electrical Sub-station projects upto400 KV in India. The Company also undertakes Overhauling andMaintenance of Operating Plants in varied Industries, both inIndia and Abroad.


20/43

To provide quality service to customers, UB

Engineering operates through following strategic

business Units :

ERECTION DIVISION

EPC DIVISION - MECHANICAL

EPC DIVISION - ELECTRICAL

OVERHAULING AND MAINTENANCE

DIVISION


21/43


22/43

KINGFISHER AIRLINES Kingfisher airline is a private airline based in Bangalore, India. The airline is

owned by Vijay Mallya of united beverages group. Kingfisher airline was started

its operation on May 9th

2005 with a fleet of four airbus A320 aircrafts. The airlinecurrently operated on a short span of time. Kingfisher airline has earned a nichefor itself. The airline offers several unique services to the customers.

STRATEGIES FOR KINGFISHER AIRLINESSTRATEGIES FOR KINGFISHER AIRLINES

Marketing Penetration Strategy:(1st quarter)

Encouraging existing customer to buy more showing benefits

Try to look for foreign entrantsProduct Development (2nd quarter):

Seek additional distribution channel.

New product development

Market Development Strategy(3rd quarter):

Try to find out new customer groupSpecial offering for the first time fliers

Diversification (4th quarter):

May go for other services like international flights etc

May go for arrangement for fashion shows


23/43

Strategies of Kingfisher Airlines

Corporate level

strategy

A corporate level kingfisher takes specialcare of the thrust area of the organisationsuch as resource mobilisation, efective use ofresources,Mergers and Acquisition.

Business levelstrategy

A business level strategy in kingfisherconcentrates on strategic business unit of the

group which includes airlines, researchtraining, fertilizers.


24/43

STRENGTH AND WEAKNESSES

Large fleet Experiance staff

Dedicated depature terminal at Delhi

Adequate infrastructure and network

People are loyal towards national careerStrength

High overheads and huge work forceresulting in lower output

Attitude of the staff Aging work force(cabin crew)

Inaccessibility of the staff over phoneWeakness


25/43

UnitedUnited

SpiritSpiritCompanyCompany


26/43

United Spirits Company

United Spirits Limited (USL) is the largest spirits company in India

and second largest spirit company in the world.

Besides Whyte & Mackay and Bouvet Ladubay being 100%

subsidiaries of USL, the company has 20 millionaire brands (selling

more than a million cases a year) in its portfolio and enjoys a strong

59% market share for its first line brands in India. United Spirits'brands have won the most prestigious awards for flavors, ranging

from Mondial to International Wine and Spirit Competition (IWSC) to

International Taste & Quality Institute (ITQI); more than 108 awards

& certificates.

The Company is known to be an innovator in the industry and hasseveral firsts to its credit like the first pre-mixed gin, the first

Tetrapack in the spirits industry in India, first single malt

manufactured in Asia and the first diet versions of whisky and vodka

in India.


27/43


28/43

United Spirits Ltd.,

No. 1 Spirits Company

in India

2nd largest spirits company in the world and largest spirits

company in India with a market share in excess of 55% in

first line brands

Key brands are Dalmore, Jura, Whyte & Mackay, Black Dog,

Antiquity, Signature, Royal Challenge, McDowell's No.1,Celebration Rum, Romanov and White Mischief

Undisputed leader of the Indian beer industry with over 50%

market share

Key brands are Kingfisher Blue, Kingfisher Strong,Kingfisher Premium, Kingfisher Ultra, Kingfisher Draught,

London Pilsner, UB Premium Ice, Kalyani Black Label

Premium and Kalyani Black Label

United Breweries

Ltd.,

No. 1 Beer Company

in India

Best Airline in India and Central Asia, Best Economy ClassSeats and Staff Service Excellence Award for airlines inIndia and Central Asia in World Airline Awards (May, 2010)

India's only 5 Star airline, rated by Skytrax and 6th airline inthe world for 3rd consecutive year (May, 2010)

Kingfisher Airlines

Ltd.,

No. 1 standalone

Airline in India


29/43

UnitedUnited

SpiritsSpiritsCompanyCompany


30/43

United Spirits Limited (USL)

USL is the Indias largest and world second largest

spirit company.

USL has a portfolio of more than 140 brands of

which 19 are millionaire brands and enjoy a strong59% market share for its first line brand in India

USL has global footprints with export to over 37

countries.

USL has 79 manufacturing and bottling units across

the country.


31/43

USL Brands

Whisky

Bagpiper

McDowells No.1

Directors Special Old Tavern

Haywards

McDowells Green Label

Gold Riband Royal Challenge

DSP Black

Signature


32/43

Brandy

McDowells No.1

Honey Bee John Ex-Shaw

Rum

Celebration Rum Old Cask Rum

Old Adventurer Rum

Vodka & Gin

White Mischief

Romanov

Blue Riband


33/43

USLS Wine Business in India

USLS wine business in India operates through two

companies

USL Wine Bussinessin India

United Vintnerslimited

Four season WineLimited


34/43


35/43

Four Season Wine limited

UBL is also referred to as the Beer Division of the

UB Group which is led by Kalyan Ganguly, President

and managing director , it has 48% market share in

the country. The bear business has gone on to become the

undisputed King in the Indian beer market.

In India innovative, creative, and aggressive

marketing is complemented by a strong distribution

network.


36/43

UBL today boosts an impressive spread of owned and

contract manufacturing facilities throughout the

country. Quality and hygiene are the key elements of the

United Breweries manufacturing philosophy.

The Central Scientific Laboratory (CSL)

headquarter at Bangalore set standards for all its for

all its breweries.

The CSL analyses the companys beer take off the

market shelves all over the world, the competitorsbeer across the world.

Its flagship brand Kingfisher has achieved

international recognition consistently.


37/43

FertilizersFertilizers


38/43

Mangalore Chemicals & Fertilizers

Limited Mangalore Chemicals and Fertilizers Limited (MCF),

with a turnover of over Rs.2,470 Crore (FY 2008-

2009), is the only manufacturer of chemical fertilizers

in the state of Karnataka. The factory is strategicallylocated at Panambur, 9 km north of Mangalore City,

on the banks of the Gurpur River, in front of the New

Mangalore Port. The plant is well connected, both by

rail and road. The West Coast National Highway(NH-l7) from Kochi to Mumbai separates MCF from

the New Mangalore Port.


39/43

The Company is a part of the UB Group with Group

shareholding of 30.44%. Dr. Vijay Mallya isChairman of the Board of Directors. The operations

are managed by a team of highly dedicated and

experienced professionals.

The New Mangalore Port is an all-weather port

capable of handling ships up to 30 feet draft.

Naphtha, Fuel Oil, Ammonia and Phosphoric Acid -

the main raw material are obtained through the port.The plant site is well linked, both by rail and road.


40/43


41/43

The Phosphatic plant is designed and engineered by

Toyo Engineering Corporation, Japan. PDIL and

Furnace Fabrica the Indian firms were involved in theconstruction of ABC and SAP respectively.

The construction work started with the first pile

driven on October 15, 1972 by the then ChiefMinister, Shri D. Devaraj Urs.

The Ammonia/Urea plants were commissioned in

March 15, 1976.

1976-Ammonia & Urea production commenced

1982-60 tons per hour auxiliary boiler installed

Ammonium Bi-carbonate plant commissioned


42/43

1984-Purge gas recovery unit installed

1985-Captive power plant commissioned

1986-Di-ammonium phosphate plant went on

stream

1993-2.5 Million Gallons reservoir

constructed

1999-Marketing of Granulated Fertilizers


43/43

Presentation on UB Group

Documents

Transcript of Presentation on UB Group