UB group Overview

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Transcript of UB group Overview

Presented bySobhan Sengupta, Pratik Bannerjee,Tabasoom Sultana, Rohit k Gupta, Mukta Jain, Sayan Nandi,SubhamHazra, Somnath Chatterjee,Soumya Nandi,Shubhabrata Roy, Subhra Das, Subir Ghosh

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• Started and expanded into beer and spirits business mainly through acquisition

• Acquired Shaw Wallace,

• Brought in Scottish New Castle in UBL

• Acquired 100% stake in Whyte and Mackay, worlds 4th largest scotch company

BUILT BRANDS LIKE KINGFISHER, BAGPIPER, BLACK DOG

• Legal Merger of Shaw Wallace completed;

• UBL and Heineken strike a deal: brings APB / Heineken brands

• Organised Spirits business under USL and Beer business under UBL

• Launched Kingfisher Airlines

• Dr. Vijay Mallya took over the reins of the Group at a tender age of 28

• Completed

merger of Deccan and Kingfisher to form the largest pvt. airline

No. 1 Beer in India

No. 1 Spirits in India

No. 1 Airline in India

1983–2002 2003 20051950–1982 2007 2008 2009

The brewery was previously owned by the famous Bengali actor Mr. Chhobi Biswas.

This unit, which became a part of UB group in 1964, has been recently awarded the ISO 9002 certification. The plant was set up in collaboration with Skoda of Croatia (formerly known as Czechoslovakia).

History of UBL as given by Mr GS Lodh

Business Interests of UB group

Brewery Spirits Aviation Chemicals & Fertilizers Pharmaceuticals Media IPL – RCB F1- Force India

UB group has at present 16 breweries and 7 subsidiary breweries In India.

Last year production 101 million cases.

At Kalyani , they produce 5.5 – 6Lac cases per month(18000 bottles per hr production but target is 24000 bottles per hr ).

Target is 10 Lac cases within 2 years.

Operating cycle is 13 days.

Around70 per cent of the total production capacity of the Kalyani unit is dedicated for Kalyani Black Label and the rest is mainly for Kalyani Black Label Strong and Kingfisher.

The lean period is between November and February each year& this stock is sold in the peak season between March and October.

Kalyani brewery caters to the Bihar, West Bengal , Meghalaya , Assam.

Andhra Pradesh constitutes most part of the sales of UB group. Exports in more than 125 countries.

Located in Bangalore. A new product is distributed in north

India which is for the winter season. Another product for women is soon to

hit the markets.

R & D

in INR Crs Q1 FY2010 Q1 FY2009 Growth(%)

Revenues 776 557 37%

Cost of Sales 377 280 34%

Gross profit 399 285 40%

EBITDA 155 90 72%

PAT 76 35 114%

EBITDA(Q1)

Financials….

PAT(Q1)

Strengths

Market Leader in East Strong distribution network Brand Image

Weakness Labour problems Dependence on weather conditions

Opportunities

Tapping the To increase market share.

domestic market

Threats Double digit rates of

inflation Strong competition

from Hayward's

SWOT Analysis of Kalyani Brewery

We think it will because:

India is one of the most exciting beer markets

◦Beer consumption is very low in India.◦An expanding middle class, and increasing

income levels have huge potential to propel domestic demand.

The industry is projected to grow 10 – 15% volumes in the near term, and UBL will take its share.

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UBL is expected to benefit from economies of scale arising from capacity growth both strategically and financially.

UBL is focusing on the emerging premium segment through offerings such as Kingfisher Ultra and Heineken.

UB ltd runs a primary school for the blind in Kalyani around 3 Km away from the brewery.

They have a annual budget of CSR 4 lac At present the School comprise of 32

students and 5 teachers. In some cases Financial support is also

given after primary education.

In Primary school they teach candle making , chair canning, musical instruments, in association with Government they provide Braille computers and textile printers.

Doctors see patients for free in the area.

They associate with world leaders in order to adopt technologies and processes .

Focused on assuming leadership in all their target markets .

To be the most preferred employer .

People who are most valuable asset.

Operate as a decentralized organization.

Will be a major contributor to our National Economy.

Quality leadership.