ACHARYA INSTITUTE OF MANAGEMENT & SCIENCES

REPORT ON INDUSTRIAL TOUR

TO

MCDOWELL’S NO. 1 …MERA No.1

DATE: 2013, August 14

SUBMITED TO:

PROF: MAMATHA R

SUBMITED BY: (HR TEAM)

CHETHANA G, MANISHA, ROSHNI V, POOJA, JAYPRASAD, AB DEEPAK,

PAVAN P, SOMNATH SARKAR, SHASHIKANTH, GAURAB.

OVERVIEW

Introduction

Heritage & history

Types of product

Products recycle

McDowell’s no.1 celebration

Awards

What we learnt…

HR TEAM

2013, August 14

INTRODUCTION

Business Type: Trading Company

Product/Service (We Sell):alcoholic beverages, Spirits, Bottled water, Soda

Owner: United Spirits Limited (USL)

Tagline: Mera No.1 (My No.1)

McDowell’s No.1, the iconic brand from United Spirits Limited (USL), has clocked

retail sales worth Rs 20,504 crore ($3.8 billion) in 2012-13. The sales came from nearly half

a billion 750 ML bottles of itsWhisky, Rum and Brandy franchise.

McDowell's No.1 is an Indian brand of spirits manufactured by United Spirits

Limited (USL), a subsidiary of the United Breweries Group. It is USL's flagship brand and

the largest umbrella spirits brand in the world, comprising three categories -

whisky, brandy and rum. The brand also has bottled and soda. The brand began with the

launch of McDowell's No.1 Brandy in 1963-64. The brand's slogan is Mera No.1 (My No.1).

HERITAGE &

HISTORY

United Spirits Limited's (USL) history arcs through the space-time-continuum,

leaping backwards to the British Raj of the 19th Century, trotting through the license Raj of

an Independent and Socialist India - through the 50s, 60s, 70s and 80s, coming into its own at

the cusp of the new millennium and now in the Info Age, the clear Numero Uno in the world

alcohol beverages market.

In 1826…

McDowell and Co is established as a trading company with its Headquarters in

Madras, by an enterprising Scotsman, Angus McDowell.

History has it, that McDowell's rapidly became the preferred purveyors of fine

imported liquors and cigars that gratified the palates of Maharajahs and British Commandants

alike.

In 1898…

New York City is created. Hong Kong comes under the British Crown. Radium is

discovered. And in India, "McDowell & Company Limited" is incorporated.

In 1963 - 64…

Following the termination of the import contract for No.1 Bisquit Brandy,

McDowell's launches its own McDowell's No.1 Brandy, creating the template for the No.1

brands that followed.

In 1968…

McDowell's No. 1 Whisky launched and proves to be an instant success. Today,

McDowell's No. 1 Whisky is the definitive flagship brand of United Spirits Limited.

WHISKY

McDowell's No.1 Reserve Whisky was launched in 1968, and is a blend of imported

scotch and Indian malt whiskies McDowell's No.1 whisky is sold in several countries apart

from India, including Africa, Canada, the Far East, Japan, the Middle East and the United

Arab Emirates.

McDowell's No.1 Diet Mate, which the company claims is the world's first diet

whisky, is a variant of McDowell's No.1 whisky. McDowell's No.1 Diet Mate was launched

in 2006. The product is aimed at calorie conscious customers. According to Ashok Capoor,

chief operating officer of UB Spirits Division, the whisky contains Garcinia, a herb which has

the ability to burn excess fat and control cholesterol levels in the human body. It is sold in

pint, nip, quartz, and 750 ml bottles, at a cost 5% higher than McDowell's No.1 whisky. The

product was initially launched in Mumbaiand Thane in the first phase, but later expanded to

other markets. Debashish Shyam, then General Manager (Marketing) of UB Group Spirits.

Division stated that "Diet Mate is not a low-calorie whisky but has ingredients that increase

metabolism."

McDowell's No.1 Platinum Whisky, a 100% grain-based blend, developed by

the Scottish master blender Richard Paterson was launched in March 2010. It sold over 30

million bottles in its maiden year.

RUM

McDowell's No.1 Rum was

launched in Celebration (Dark) and

Caribbean (White) variants in 1990-91. It is

sold in 13 countries. USL claims that it is

the second largest selling dark rum in the

world and the largest selling rum in India,

with a domestic market share of 45%.

BRANDY

McDowell's No.1 Brandy was launched in 1963-64,

and was the first McDowell's No.1 branded product. The

brand created the template for the many "No. 1" brands that

the company would launch later. It is the largest selling

brandy in the world by volume. It sold 4.6 million cases in

2004 and 13.7 million cases in 2009.

2012 cognac / brandy brand champion: Courvoisier

VISSION

The company aims to double its volume in the next 5-6 years.

Aggressive plans are drawn up.

Continued innovation, expansion into Emerging markets, building digital marketing

capabilities, supply side investments, building trade marketing capabilities and strengthening

trade relationships will be key drivers in order to achieve the 200 million goals.

USD ten billion set as a target for market capitalization. For the UB Group

MISSION STATEMENT

To be the most admired global leader in the spirits industry by creating unique high-

quality brands for consumers, driven by highly motivated employees and supported by best-

in-class processes and continued innovations. United Spirits is and will continue to be

responsible towards its stakeholders and the society.

SALES

McDowell's No.1 is largest selling umbrella spirits brand in the world. It sold over

13.5 million cases in 2003-04, 6.07 million cases in 2005, and 8.65 million cases in

2006. The McDowell's No.1 brand had sales of 27.5 million cases in 2007-08, McDowell's

No.1 sold 14.3 million cases of whisky, 13.8 million cases of rum and 11.7 million of brandy

in 2010.

McDowell's No.1 sold over 31.5 million cases in the 2008-09 fiscal. McDowell's No.1

Celebration Rum sold over 10 million cases becoming the world's third largest rum, while

McDowell's No.1 Brandy remained the world's largest-selling brandy with sales of nearly S

million cases. McDowell's No.1 also displaced Amul as the largest FMCG brand in terms of

retail value. McDowell's No 1 valued at US$ 1595 million features in the world listing of the

top 100 distilled spirits brands by retail value. The McDowell's No.1 brand achieved retail

sales worth $3.8 billion in 2012-13, selling nearly half a billion 750 ml bottles of its whisky,

rum and brandy, making the brand the largest alcoholic beverage franchise in India by

volume and value.

The following table shows the annual sales of McDowell's No.1:

Year

Sales (in million cases)

Whisky Rum Brandy

2001-02 3.8

2002-03 4

2003-04 5.5

2005 6.1

2004

4.6

2006 8.7 6.2

2007 11.5 7.6

2008 13.4 9.7

2009 13.5 11.2 13.7

2010 14.3 13.9

2011 16.1 15.6

2012 19.5 14 17.8

MARKETING

McDowell's No.1 is mainly advertised through Bollywood and cricket, as well as

sports and music events. The brand has associated itself with Bollywood films such

as Devdas, Road, Kaanteand Stumped, through its "Mera No 1 Entertainment" banner.

On 21 August 2009, McDowell's No 1 announced a tie-up with Shillong Lajong F.C.,

the first team to qualify for the I-League 2009-2010 from North-East India. McDowell's No.1

signedMahendra Singh Dhoni for a three-year endorsement deal, worth

26 crore (US$4.1 million), for McDowell's No 1 soda.

McDowell's No.1 whisky releases special packs to

commemorate Holi, Diwali and New Year. Since 2002, it has also released special packs for

regional festivals like Baisakhi in Punjab, Carnival in Goa, and the Pujas in West Bengal. A

Special Edition Cricket World Cup pack, a gold pack emblazoned with flags of all the 14

participating nations and a calendar of tournament fixtures, was released to commemorate the

2003 Cricket World Cup. A limited edition of McDowell's No. 1 whisky featuring a glittering

monocarton with hues of gold, burgundy and festive sparkles, specially created for Diwali

was sold in Mumbai during the months of September and October 2009.

McDowell's No.1 has sponsored several music concerts in India featuring artists such

as Mark Knopfler, Enrique Iglesias, Elton John, Shankar–Ehsaan–Loy, Vishal Dadlani and

Shekhar Rajviani, and Rabbi Shergill, Strings, Bombay Vikings, Shibani Kashyap, Abhijeet

Sawant, Kailash Kher and Mika.

PRODUCT RECYCLE

Convert (waste) into reusable material or return (material) to a previous stage in a

cyclic process or use again.

Reuse

Despite efforts to reduce the amount of waste generated, consumers and businesses

still create substantial waste. The U.S. Environmental Protection Agency estimates that each

American generated 4.3 pounds of waste daily in 2009. Much of this waste can immediately

be reused to minimize the strain on the environment and municipal waste management. For

example, consumers can refill a purchased bottle of water with water from home to minimize

the number of plastic bottles being discarded. Consumers have a financial incentive here as

well, as municipal water is far cheaper than bottled water.

Recycle

When waste is eventually discarded, segregating items for recycling from other waste

is important. Recyclables include glass, newspaper, aluminium, cardboard and a surprising

array of other materials. Lead, for example, has one of the highest recycling rates because of

laws requiring the recycling of lead-acid batteries. According to the U.S. Geological Survey,

recycled lead accounts for almost 90 % of the lead used in manufacturing today.

BOTTELS

Recycled for repeated bottle manufacturing, PET pellets are the asked-for material on

the market. The process developed by Buhler serves a worldwide growing market. The

increase in PET packaging in the beverage industry poses major challenges to companies. In

more and more countries, packaging is being reclaimed and recycled. Manufacturing new

products from recycled PET is a business-savvy way to minimize purchasing costs and help

the environment by recycling used bottles. With its bottle-to-bottle process, Buhler provides

the ideal basis for manufacturing top-quality PET pellets from used bottles.

Not only world leading brand owners, but local manufacturers of beverages and food

are also using recycled material for their packaging. The demand for bottle-to bottle recycled

PET is constantly growing, not only because it helps manufacturers improve product quality

and costs, but it is also a political and public relations tool.

SUPER CAP IS A SNAP FIT

TYPE

The super cap is a snap fit type all-plastic closure, which seals on the bottle with

application of top pressure by interlocking special teeth inside the cap with engineered

bottleneck.

No 1 Reserve whisky 375 ml with smart cap. The bottle has a neck finish that has

been uniquely designed in order to accommodate this tamper evident super cap. The neck

ring has been specially designed to hold this cap. The super cap is a snap fit type all-plastic

closure, which seals on the bottle with application of top pressure by interlocking special

teeth inside the cap with engineered bottleneck.

MCDOWELL'S NO.1 CELEBRATION

McDowell's No.1 Celebration Rum is the fastest growing rum brand in the world.

Celebration was launched in 1991 with a modest beginning of a hundred thousand cases.

Today McDowell's No.1 Celebration Rum sells in excess of 14 million cases with a reach

across 13 countries that, makes Celebration the 2nd largest selling dark rum in the world. Part

of the McDowell's franchise with the highest FMCG retail value of Rs 8300 crores (PASH

Beverage Report, Impact International, Nov 2008), Celebration Rum is the largest selling

rum in India, with a market share of 45% and growing. The proud recipient of several

prestigious awards, Celebration Rum owes it success largely to the high quality standards that

McDowell's No.1 Celebration Rum provides its consumers and this has been recognized at

the highest International level.

AWARDS

McDowell's No.1 Celebration Rum has won the following awards for its blend

Silver from the Beverage Tasting Institute, Chicago, USA, in 2008

Bronze at the Monde Selection 2006

2 Stars at the ITQI Awards 2006

Silver at the IWSC 2005

What We Learnt…

We came to know that,

How practically the things work in the company and how a product will be well

recognised in the market.

Aim of the company.

Understood the basic relationship between employer and employee.

In what way the company will help our social-economy.

Company will manufacture the products according to the customer needs.

Employ satisfaction and also there precautions are taken by the company.

There are different departments for different section.

. There is ample difference in what we study and what we saw practically in the

company / organisation. The industrial visit made us to experience the actual corporate world

and learn its ways of functioning and also facilitated us to know the actual functioning of

different departments in an organization. Also inter-departmental relationship and its

significance practically understood during this visit. The employees of McDowell's provided

us excellent support by viewing their work to us. The McDowell's employ guided us in every

step with all necessary information for doing the organization study. This has made us to

learn that people in organization are accommodative in Human Relations, without their

support it would have been highly difficult to complete the task. Throughout the industrial

visit of McDowell's we have understood that the company is efficient in maintaining the

quality and has overall commitment to sell the best to the clients.