United Breweries Group or UB Group, based in Bangalore, is a conglomerate of different companies with a major focus on the brewery (beer) and alcoholic beverages industry. The group is headed by Dr.Vijay Mallya who is also a member of the Indian Parliament. United Breweries now has greater than a 40% share of the Indian brewing market. Recently UB financed a takeover of the spirits business of the rival Shaw-Wallace company giving it a majority share of India's spirits business. The group owns the Mendocino Brewing Company in the United States.
United Breweries is India's largest producer of beer with a market share of around 48% by volume. The company markets most of its beer under the Kingfisher brand and has also launched Kingfisher Airlines, an airline service in India, with international flights operating recently. The Group is the third largest manufacturer of spirits products in the world, only after Diageo PLC and Pernod Recardo. In addition, USL is one of only three in the world to own seven millionaire brands and at least five brands rated by Drinks International, UK, to be amongst the ten fastest growing brands in the world in their respective categories. The market share of the Spirits Division in India is currently 60% and exports to the Middle East, Africa and Asian countries are growing rapidly. The UB Group’s Brewing Enity - called United Breweries Limited (UBL) - has also assumed undisputed market leadership with a national market share in excess of 50%. Through a process of aggressive acquisition and market penetration, The UB Group today controls 60% of the total manufacturing capacity for Beer in India. The flagship brand, Kingfisher is now sold in over 52 countries worldwide having received many accolades for its quality. With plans to becoming a global player United Spirits Ltd. (USL), the flagship of the UB group, purchased the Scottish distiller Whyte and Mackay in May 2007 for £595 million (Rs. 4,800 crore). This would bring the brands of W&M like The Dalmore, Isle of Jura,Glayva, Fettercairn,Vladivar Vodka, and Whyte & Mackay Scotch under its portfolio.
The group company Mangalore Chemicals and Fertilizers ( MCF ) has factory at Paramburin Dakshin Kannada district of Karnataka. It has a manufacturing capacity of 2,17, 800 MT of Ammonia and 3,80,000 MT of Urea.
UB Engineering Limited is the group's engineering business arm. It undertakes EPC Projects, Infrastructure, On-site fabrication of structures, Installation, Testing and Commissioning of Electrical and Mechanical Equipments, Piping etc. for large Industrial projects such as Power, Refineries, Steel, Cement, Fertilizer, Petrochemical and Desalination Projects. The company was initially established as Western India Erectors in 1963 and came under the UB Group in 1988.
The Group's company UB Global Limited is a recognized export house engaged in the export of Beer, Spirits, Leather Footwear and Processed Foods. The Company also exports Pharmaceutical Products and customized perfumeries.
The group entrance to the IT sector had also been marked by the formation of UBICS, Inc. The company provides IT consulting, services and professional IT products to business companies.
In August 2007, the group made a first-of-its-kind media alliance for the promotion of NDTV Good Times, a lifestyle television channel run by NDTV. The UB Group also has a shareholding in Asian Age Holdings Ltd, the company that owns and manages daily newspaper, The Asian Age.
The group's company Aventis Pharma Limited is the second largest pharmaceutical multinational in India. It develops and markets branded prescription drugs and vaccines.
Vittal Mallya Scientific Research Foundation (VMSRF) was established in 1987 with the objective of developing newer and novel technologies that will have substantial application in industry and health care. The foundation is it is recognized by the Departments of Scientific & Industrial Research (DSIR), Dept. of Biotechnology (DBT), Council for Scientific and Industrial Research (CSIR) and the Ministry of Finance, Govt. of India.
United Spirits Limited has 144 brands under its umbrella, including White Mischief Vodka, the market leading brand in India.
HISTORY
The UB Group was founded by a Scotsman, Leishman in 1857. The Group took its initial lessons in manufacturing beer from South India based British breweries. At the age of 22, Vittal Mallya was elected as the company's first Indian director in 1947. After a year, he replaced RGN Price as the chairman of the company. United Breweries made its initial impact by manufacturing bulk beer for the British troops, which was transported in huge barrels or "Hogsheads". Kingfisher, the Group's most visible and profitable brand, made a modest entry in the sixties. During the 1950's and 60's, the company expanded greatly by acquiring other breweries. First was the addition of McDowell as one of the Group subsidiaries, a move which helped United Breweries to extend its portfolio to wines and spirits business. Strategically, the Group moved into agro-based industries and medicines when Mallya acquired Kissan Products and formed a long-term relationship with Hoechst AG of Germany to create the Indian pharmaceutical company now known as AventisPharma , the Indian subsidiary of the global Pharma major Sanofi-Aventis.
FINANCIALS
In July 2007, United Breweries Limited reported volume growth of 16.3% compared to the previous year, which is a huge task in the economy low down period.
AUTHORISED CAPITAL – 30 CRORES INR
ISSUED CAPITAL – 21.6 CRORES INR
PAID UP SHARES (NOS.) – 216043430
PAID UP FACE VALUE – 1.00 INR
INVESTORS RETURNS – 1:9
OPERATING INCOME (MARCH ‘09) – 1691.75 CRORES INR
OPERATING PROFIT – 220.74 CRORES INR
ADJUSTED PAT – 71.56 CRORES INR
REPORTED NET PROFIT – 62.49 CRORES INR
KEY PEOPLE
Dr. VIJAY MALLYA (CHAIRMAN)
MR. KALYAN GANGULY (MANAGING DIRECTOR)
MR. GOVIND IYENGAR (CO. SECRETARY AND COMPL. OFFICER)
DIVISIONS
UNITED BREWERIES LTD., UNITED SPIRITS LTD., KINGFISHER AIRLINES, MANGALORE CHEMICALS AND FERTILISERS LTD., UB GLOBAL (TRADING COMPANY), UBICS INC., UB ENGINEERING LTD.
- We humbly thank Mr. Debdut Pramanick for taking out time and contributing this write-up. We will be grateful to him for his gesture.
The information stated above are subject to change please visit the official web-site to keep yourself updated: www.theubgroup.com
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