GROUP 4

Indian Beer Industry Steady growth of 7-9% per year over the last ten years.

The rate of growth has remained steady in recent years, with volumes passing 100m cases during the last few years.

The industry dominated by the Vijay Mallaya controlled United Spirits and the Manu Chabbria controlled Shaw Wallace.

Entry of SABMiller in India, Acquired small breweries in the south

Acquired Shaw Wallace’s beer portfolio for a reported US$132m in 2003.

The SABMiller acquisition of Shaw Wallace gave the company a good position in the strong beer sector which is the fastest-growing segment in the market.

SABMiller’s Haywards 5000 is the biggest-selling strong beer brand ,UB’s Kingfisher is the largest-selling beer brand overall in the market.

BACKGROUND

SABMiller India is a subsidiary of SABMiller plc, one of the world’s largest brewers.

SABMiller has a brewing presence in over 40 countries across four continents and a portfolio of over 150 brands.

It employs over 38,000 people worldwide in 81 breweries and 27 bottling plants.

Outside the USA, SABMiller plc is one of the largest bottlers of Coca-Cola products in the world. SABMiller plc is listed on the London and Johannesburg stock exchanges.

SABMiller has operated in India since October 2000, when it acquired Narang Breweries, followed by Mysore Breweries Limited and Rochees Breweries Ltd in 2002.

In May 2003 it entered into a joint venture with Shaw Wallace & Company to form Shaw Wallace Breweries Limited. The management control rested with SABMiller.

In May 2005, SABMiller bought over the remaining 50% stake of Shaw Wallace & Co, to control 99% of the company.

SABMiller Plc –Company History

Incorporated: 1895 as The South African Breweries Limited

SABMiller plc ranks as the world's second largest brewer in terms of volume, trailing only Anheuser-Busch Companies, Inc.

Based in London, the company owns no breweries in the United Kingdom.

Its true home country is South Africa, where The South African Breweries Limited (SAB) was founded in 1895 and where SABMiller today holds an impressive 98 percent share of the beer market.

Key Dates

1895: The South African Breweries Limited (SAB) is incorporated in London, with a listing on the London Stock Exchange and ownership of Castle Brewery in Johannesburg, South Africa.

1897: SAB becomes the first industrial company to be listed on the Johannesburg Stock Exchange.

1898: Company begins producing Castle lager, which becomes a phenomenal success.

1925: Company diversifies into soft drinks, buying a stake in the Schweppes Company.

1979: SAB acquires the beer interests of the Rembrandt Group--giving it nearly 99 percent of the South African market.

1993: International expansion into emerging markets begins with the purchase of majority control of Dreher Breweries, the largest brewer in Hungary.

1994: SAB enters the Chinese beer market

2000: Company buys its first brewery in India.

2001: SAB enters Central American market through purchase of Honduran beverage company

2002: SAB acquires Miller Brewing Company, the number two U.S. beer maker, from Philip Morris Companies Inc. for $3.48 billion in stock; company renames itself SABMiller plc.

2003: Company makes its first major investment in Western Europe, purchasing a 60 percent stake in Birra Peroni S.p.A., Italy's number two brewer.

SABMiller India

SABMiller’s India sojourn began in 2000

Cornered nearly one third of the Indian beer market with brands such as Haywards 5000, Haywards 2000, Haywards Black, Knock Out, Royal Challenge, Castle Lager and Fosters.

With ten world-class breweries strategically located across India, SABMiller is well positioned to easily access and efficiently service the beer markets.

Invested over Rs. 125 crore in the last two years to upgrade breweries in line with global standards.

The company invests in bottles, which are returnable in nature and are accounted for as fixed assets in its books. The company pays to its customers/agents for returning the empty bottles at the prevailing market prices. The company urges its customers/agents to return the empty bottles to the company for which the company will reimburse them at prevailing market prices.

Management

Jean-Marc Delpon de VauxManaging Director

Anand ShuklaDirector Strategic Initiatives

Dave JohnstoneDirector - Technical

Hari KrishnaDirector - Human Resources

Kevin HeydenrychDirector - Finance

Shalabh SethRegional Director South

Sundeep KumarDirector - Corporate Affairs & Communication

. J. Venkateshwaran

Director- Channel Development

India- Presence

Indian Presence

SABMiller India is structured into three core operational regions which enables it to understand the nuances of markets.

Mumbai is the hub for the West and East regions. Operations of the sales teams at these locations and the breweries function under the Operations Director, Central.

The North Operations of the sales force and the breweries are under the Operations Director, North operating from the regional office located in Gurgaon.

Bangalore houses the regional office for the South region. The sales team and the breweries report to

the Operations Director, South.

Foster's

Foster's® Lager is a uniquely Australian beer, brewed with the finest sun-dried malted barley and the purest water

Foster's® has always been at the forefront of brewing technology and the Foster's® Lager brewed today is the result of over a century of attention of the brewing art.

Quality has been the strength of Foster's® since its earliest days and remains a paramount concern at every stage of the beer's journey from brewery to consumer. Foster's® crisp, clean flavour won it immediate international acclaim when it was first brewed in Melbourne in 1888. Today, more than one hundred years later, it is still recognized as one of the world's best beers. SABMiller India now brews & markets Foster's® in various parts of the country.

Royal Challenge Launched in the year 1993, Royal Challenge Premium Lager is the second

largest selling mild beer in India. Royal Challenge is brewed with the choicest 6 malt barley. Its long brew duration provides it with a distinct, smooth taste and rich flavour. It has all the hall marks of a great beer - Color that is golden honey, taste that is smooth and crisp, lace that sticks to the wall of the glass. This is the beer for the discerning who have the confidence to make their choices based on their superior taste and knowledge rather than follow the crowd.

The brand has moved from strength to strength since its relaunch by SABMiller in 2004, and has set itself on a growth momentum that is well ahead of the mild beer industry.

It is now become the largest selling mild beer brand in many large beer markets, including Andhra Pradesh, Uttar Pradesh and Orissa. Besides being available across most states in India, Royal Challenge Premium Lager is also exported to USA, Europe, Middle East, Australia and Hong Kong.

Brewed from select malts and imported hops, on a specially developed recipe by the brewmasters from SABMiller, one of world’s largest brewers with over a hundred years of heritage, Royal Challenge symbolizes a perfect harmony between the high art of brewing and the assurance of modern technology.

Royal Challenge Premium Lager offers a difference with an edge. Besides its international class packaging, premium image and path breaking advertising, what sets the brand apart is the long brew cycle which lends it a distinctly smooth and easy flowing taste.

Haywards 5000

Haywards 5000 is India's largest selling strong beer brand, which perfectly combines strength with quality credentials that meet the high expectations of today’s demanding consumers.

Launched in the year 1983, Haywards 5000 is synonymous with strong beer in India. Haywards 5000 is brewed with the choicest of malts and hops lending itself to a unique flavour profile to suit the Indian taste and preference. Haywards 5000 is the hallmark of original and authentic strong beer which other beer brands aspire for. With such credentials, it is not surprising to see men get together over Haywards 5000. It is the language of friendship amongst men who are proud of their masculinity and look forward to a great time with their friends and peers .

Vision, Mission and Values

Our vision is to be amongst the 3 most admired beverage companies in India. Our mission is to own and nurture local and international beer brands that are the first

choice of the consumer. Our values and group behaviours: Our people are our enduring advantage

the calibre and commitment of our people set us apart we value and encourage diversity we select and develop people for the long term performance is what counts

Accountability is clear and personal we favour decentralised management and a practical maximum of local autonomy goals and objectives are aligned and clearly articulated we prize both intellectual rigour and emotional engagement we are honest about performance we require and enable self-management

We work and win in teams we actively develop and share knowledge within the group we consciously balance local and group interests we foster trust and integrity in internal relations we encourage camaraderie and sense of fun We understand and respect our customers and consumers we are endlessly concerned with our customers’ needs and perceptions we build lasting relationships, based on trust we aspire to offer the preferred choices of product and service we innovate and lead in a changing world Our reputation is indivisible our reputation relies on the actions and statements of

every employee we build our reputation for the long term we are fair and ethical in all our dealings we benefit the local communities in which we operate

Key SABMiller Financials

Fiscal Year-End March 2007 Sales (mil.) $18,620.0

Employees 66,949 Rankings

#266 in FT Global 500

FTSE 100

Year Revenue Gross Profit

Operating Income

Total Net Income

Diluted EPS (Net Income)

Mar 07 18,620.0 -- 3,027.0 1,883.0 --

Mar 06 15,307.0 -- 2,575.0 1,674.0 --

Mar 05 12,901.0 6,744.0 2,361.0 1,141.0

Annual Income StatementAll amounts in millions of US Dollars

Top SABMiller Competitors

In World :Anheuser – Busch -Largest Brewing company in the US , known for brands such as Budweiser, Busch and Michelob families, Bud Light, and Natural Light

HeinekenInBev On July 13,2008 Sunday, InBev agreed to buy Anheuser – Busch for a total value of $52 billion, which would create a new company to be named Anheuser-Busch InBev.The deal is still pending requiring approval by shareholders and regulatory agencies

In India –UB Group