Company Profile.

UNITED BREWERIES LIMITED
PART-3
COMPANY PROFILE
3.1 HISTORY OF UB AND RECENT DEVELOPMENTS For the UB GROUP, brewing was where it all begun and the history of the Group is synonymous with the history of beer in India. The UB Group (United Breweries) Group is a multi-faceted conglomerate with business interests in Beverage Alcohol, Pharmaceuticals, Media, International Trading, Aviation, Fertilizer, Research & Development, and Infrastructure Development. The UB Group was founded by a Scottish gentleman Thomas Leishman in 1915. The company used to manufacture beer at that time and took its initial lessons in manufacturing beer from South Indian based British breweries. In August 1947, Vittal Mallya became the company's first Indian director. A year later he became the Chairman of the Group. United Breweries came into limelight by manufacturing bulk beer for the British troops, which was transported in huge barrels. In 1950s and 60s, the group expanded rapidly and made several acquisitions. McDowell was added as one of the Group subsidiaries. This helped UB Group to venture into wines and spirits business. Kingfisher, the Group's most visible and profitable brand, made its entry in the sixties. Thereafter, the Group moved into agro-based industries and medicines when it acquired Kissan Products and formed a long-term relationship with Hoechst AG of Germany to promote Aventis Pharma.
After Vittal Mallya's death in 1983, his son Vijay Mallya assumed the mantle of the group. Vijay Mallya inducted professional management and consolidating the Group into individual operating divisions. In 1988, UB Group acquired the global Berger Paints Group with operating companies across four continents. The paints business was divested for significant value in 1996. After India adopted economic liberalization in 1991, the UB Group decided to retain interests in only those businesses that were globally GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 14
UNITED BREWERIES LIMITED competitive and did not depend upon fiscal tariff protection. Today, UB Group is the third largest manufacturer of Spirits products in the world. In 2005, the Group entered aviation sector with the launch of Kingfisher Airlines Limited. Within a short time the airlines has captured an impressive market share and has established a niche identity for itself. Today, the UB Group stands as a giant conglomerate operating world-wide. Vijay Mallya is the Group Chairman.
There business are in the fields of: Brewing Distilling Life Sciences Fertilizers Engineering Exports Information Technology Resorts Airlines
BREWERIES DIVISION Breweries Division: The second largest division of the Group, United
Breweries and its associate Companies command a turnover of Rs.13701 million and a market share of approximately 50% of the total beer market. The market capitalization of United Breweries Limited has crossed the 1 Bn USD mark. With 24 breweries operating to supply the ever increasing demand for United Breweries range of beers, has made the company into Indias largest beer manufacturer. UB beers are acclaimed as the best in India which obvious from the fact that three of Indias five largest selling Beer Brands belong to the Group.
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BACKGROUND AND INCEPTION OF THE COMPANY KBDL was established on Jan 21st 1986 by acquiring a sick unit and an IMFL unit located in 9th mile peenya industrial estate. It had a share capital of Rs 15cr divided into 15,00,000 equity shares. Its registered Head Office was located at 9th mile Tumkur Road by additional funds it started reputed brands like MC Dowell, DSP in the country. The company set up a most modern brewery in south Asia at 20th mile, Tumkur Road, Bangalore unit 1994 the concern was restricted to hot drinks only. In 1994 when UB group took bottling unit on lease for Kingfisher beer the capacity of the plant was 3,00,000-3,50,000 cases/month. Now its panning to produce one million bottles/month.
UB group has taken over K.B.D.L pant in Jan 2007 from Mr.Adikeshaw and after amalgamation in April 2007, brewery section name is retained as Karnataka breweries and Distilleries Pvt. limited whereas IMFL section is called KBD sugars and Distilleries Pvt. limited.
This acquisition of KBDL funded from the cash raised through the strategic alliance with Scottish and Newcastle Plc., UK and Citibank also approved unanimously was the special resolution on the issuance of 3,779,522 equity shares of Rs 10 each to Scottish and Newcastle India Ltd (SNIL), constituting 17.5% of the post issue equity share capital. In addition, the company was also authorized to issue Warrants convertible into a maximum of 5,109,198 equity shares at Rs 575/share within a period a 18 months from the date of issue. Pursuant to SNIL agreeing to subscribe to these equity shares, SNIL would make an open offer to public to acquire up to 20% of the total post issue paid up equity share capital.
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United Breweries Limited (UBL) Upon demerger of the beer business from the erstwhile United Breweries Limited, the newly constituted UBL has become the main brewing company of the UB Group. The latter has now been renamed as United Breweries (Holdings) Limited. UBL has been associated with brewing for over five decades and commands a domestic market share in excess of 50%. Its leading brands readily bring cheer all over India and abroad - that include Kingfisher, UB Export, London Pilsner, Premium Ice and Kalyani Black Label.
The Kingfisher towers over every beer brand not only in India but on foreign shores too. While Kingfisher Premium has raced to sales of 18.8 million cases, Kingfisher Strong became the fastest growing brand. Its sales crossed the 10 million cases mark within 5 years of introduction. The brand has also comfortably outpaced the industry average growth- notching up 29 % growth as against 3% for the industry.
To build upon its leadership position, UBL has broken new grounds with a multi-faceted strategic alliance with Scottish & Newcastle Plc. (S&N). While allowing UBL to market S&N's international brands in India, it will also leverage S&N's global network while further globalizing the Kingfisher brand. Commands a domestic market share of over 75% Kingfisher to bring in "international good times" with S & N's brands. And Kingfisher will also bring cheer abroad.
ALLIANCE WITH HEINEKEN N.V. Heineken Group (Heineken), holds 37.5% equity shares in United Breweries Ltd.The alliance will offer consumers the best portfolio of national and international brands in India, including Kingfisher, the number one Indian brand, and Heineken, the largest global beer brand.
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shareholding pattern
37.5 25 FLS and Public vijay mallya 37.5 heineken
Key events Year Major Events

1999 Incorporation of our Company under the name UB Infrastructure Projects Limited 2001 Change of name from UB Infrastructure Projects Limited to UB Beer Limited 2002 Demerger of the brewery business of erstwhile United Breweries Limited into our Company 2002 Change of name from UB Beer Limited to its present name United Breweries Limited 2004 Issue of 2,13,84,724 Redeemable Optionally Convertible Preference Shares (ROCPS) of Rs.100/- each at par to the equity shareholders on rights basis in the ration of 6 ROCPS for every 5 equity shares Issue of 2,46,90,000 Cumulative Redeemable Preference Shares to Scottish & Newcastle India Limited and redemption of ROCPS 2005 Strategic alliance with Scottish & Newcastle Plc. and acquisition of 37.5% equity stake of our Company by Scottish & Newcastle India Limited 2006 Demerger of brewery business of Associated Breweries and Distilleries Limited and merger of Mangalore Breweries & Distilleries Limited into our Company 2006 Subdivision of equity shares having face value of Rs.10 each into 10 equity shares of face value Re.1 each 2007 Merger of Karnataka Breweries and Distilleries Private Limited, London Pilsner Breweries Private Limited and London Draft Pubs Private Limited into our Company
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2008 Entry of Heineken in UB by taking over on S& N.
Details of awards, recognitions won by Our Company ear Award/Certification Issued by

2002 Gold Award to Kingfisher Premium Lager Beer under International Section- Packaged Beer, Class- Lager issued by Awards 2002 Bronze Award to Kingfisher Strong Premium Beer under International Section- Packaged Beer, Class- Lager issued by Australian International Beer 2002 Bronze Award to Kingfisher Premium Lager under International Section Lager issued by New Zealand Hop Marketing Board 2003 Bronze Award to Kingfisher Strong under International SectionPackaged Beer, Class- Lager issued by Australian International Awards 2003 Bronze Award to Kingfisher Premium Lager under International SectionPackaged Beer, Class- Lager issued by Australian International Awards 2007 Environment Award for Pallakad Unit of our Company State of Kerala United Breweries Limited Year Award/Certification Issued by 2007 Recognized in Top 25 Companies in the ICSI National Award for excellence in Corporate Governance ICSI. 2008 Recognized in Top 25 Companies in the ICSI National Award for excellence in Corporate Governance ICSI Australian International Beer
NATURE OF BUSINESS CARRIED OUT
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UNITED BREWERIES LIMITED Business Interests of UB Group: Beverage Alcohol: The UB Group is 3rd largest spirits marketer in the world, with overall sales of 60 million cases. The company offers 140 brands at varying price points. Some of the famous brands of the UB Group are: Bagpiper Whisky, McDowell's No.1 Whisky, Director's Special Whisky, McDowell's No.1 Brandy and McDowell's Celebration Rum.
Pharmaceuticals: The group's company Aventis Pharma Limited is the second largest pharmaceutical multinational in India. It develops and markets branded prescription drugs and vaccines.
Media: The UB Group also has a shareholding in Asian Age Holdings Ltd, the company that owns and manages daily newspaper, The Asian Age.
International Trading: 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.
Fertilizer: Mangalore Chemicals & Fertilizers Limited is under UB Group's management. It has a manufacturing capacity of 2,17,800 MT of Ammonia and 3,80,000 MT of Urea.
Research & Development: 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.
Aviation: UB Group entered aviation sector in 2005 with the launch of Kingfisher Airlines Limited. Kingfisher Airlines has captured an impressive
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UNITED BREWERIES LIMITED market share and has established a niche identity for itself. The airlines recently acquired 25% stake in Deccan Airlines.
BUSINESS CARRIED OUT AT KBDL: KBDL is a ISO 9001 2000 and ISO 14000 certified company. They are one of the leading producers of UB groups flag ship brands of beer. It is one of the largest plant in India which has further capacity for expansion up to 10.1 Lakhs cases/month. The Groups principal activity is the production and sale of beer.
COMPANY HIERARCHY Vision To create one force i.e, to build an integrated, committed, competent team of work force to perform and there by retain the leadership position in the business by meeting the consumer expectations
Mission We constitute a large, global group based in India. We associate with world leaders in order to adopt technologies and processes that will enable a leadership position in a large spectrum of activities. We are focused on assuming leadership in all our target markets. We seek to be the most preferred employer wherever we operate. We recognize that our organization is built around people who are our most valuable asset. We will always be the partner of choice for customers, suppliers and other creators of innovative concepts. We will continually increase the long-term value of our Group for the benefit of our shareholders. We will operate as a decentralized organization and allow each business to develop within our stated values.
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UNITED BREWERIES LIMITED We will be a major contributor to our National Economy and take full advantage of our strong resource base.
PHILOSOPHY United Breweries Ltd. believes in the Japanese 5s Philosophy. They are SEIRI SEITON SEISO SEIKETSU SITSHUKE SORTING SYSTEMATIZING CLEANING STANDARDISING SELF DISCIPLINE
Manufacturing Process
Beer is made from natural ingredients like barley malt, cane sugar, water and aromatic flowers (hops). Special preservatives help this natural process even the alcohol in beer evolves naturally from the starch and sugars in the raw ingredients. Brewing can be defined as the production of beer from malted barley, hops, yeast and water, with or without the addition of other carbohydrate materials.
There are some major steps in the production of beer. Mashing GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 22
UNITED BREWERIES LIMITED This malt is first milled into a fine powder referred to as grist and fed into a large vessel called the mash tun where it is mixed with hot water at around 650C to form slurry or mash during which the slurry is stirred with a set of paddles provided in the vessel. At the end of this time, the saccharified mash is transferred into another vessel called the
Lauter tun (lauter in German means to clarify), which is equipped with a perforated base much like a coffee percolator. This retains the spent mash and allows the clear extract (wort) to filter through this wort is then collected in another vessel traditionally referred to as the wort kettle. The mash tun lauter tun and wort kettle are typically housed adjacent to each other in a section of the brewery known as brewhouse. Boiling Along with hops, which provides the bitterness in a beer recipe, the extract or wort in the kettle is boiled with either direct steam or steam coils. At the end of this, the hops are separated from the wort through a strainer or a hop back. They may also be separated in a whirlpool separator, so called because the wort is led into the vessel in a tangential flow that creates a whirlpool effect. The hops pile up in the centre of the vortex and the wort is then decanted off. Fermentation The hopped wort is subsequently cooled to fermentation temperatures, which is generally between 7-150C depending on the type of beer to be produced. It is aerated with compressed air to provide oxygen for fermentation, pitched or mixed with the chosen yeast and then transferred into large fermentation tanks for the yeast to act. The process of fermentation generally takes 6-10 days during which the yeast multiplies and vigorously ferments the wort sugars to produce ethyl alcohol and carbon dioxide. At the end of fermentation, the yeast either rises to the top in the case of ales, or settles to the bottom as in the case of lager beers, and gas production slows down. The yeast is then separated either by skimming GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 23
UNITED BREWERIES LIMITED off or by drawing off from the bottom as the case might be and the fermented wort or beer, as it is now called, is transferred into a conditioning or maturation tank. Maturation This is the step where ales and lagers are differentiated. Ales are traditionally conditioned in wooden casks. But it is now also being carried out in stainless steel tanks where the residual yeast is induced to carry out secondary fermentation by priming the beer with sugar. This secondary fermentation is generally carried out at 150C for a period of 7 10 days by which time it generates more carbonation after which it is sent for filtration.
Filtration At the end of conditioning or maturation, the beer is subjected to a process of filtration to produce clear amber liquid. This is generally carried out in two steps: a coarse filtration to remove the suspended yeast cells, and a fine filtration to remove all particulate matter. Typically, brewers use diatomoceous earth or Kieselgurh as the filtration medium. This is a special porous earth composed of siliceous marine fossils largely found on the South African shoreline. The filtration equipment used for the purpose is varied and ranges from plate and frame filters to leaf or candle filters.
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UNITED BREWERIES LIMITED Modern brewing technology use membrane filters and synthetic yeast clarifiers.
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Labeling and Packaging
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UNITED BREWERIES LIMITED Most beers packaged in bottles and cans are heated to 60 degree Celsius, a process called pasteurization in order to kill all surviving micro-organisms. Kegged or draught beers in India are often unpasteurized if consumed locally but bulk pasteurized if a few days transportation and handling are involved. The brewed beer is bottled and labeled depending on the orders/permits and quantity required for each brand of beer. These labels are affixed by automatic labeling machines. After labeling, it is packed in cartons of 12 bottles of 650ml each or 24 bottles/cans of 330ml (in some states 12 bottles of 330 ml) or 24 cans of 500ml each or packed in kegs of 20 / 30 / 50 liters each and dispatched as per Orders. Dispatch Based on the orders/permits placed either by Government Corporations or Wholesale dealers, as the case may be in each state, the dispatch is carried out and finished goods are transported to Government Depots or the Bonded Warehouse of the distributors who in turn supply to the Wholesalers/retailers. In case of supply to the State Government Corporations (e.g. Karnataka, Tamil Nadir, Kerala, Andhra Pradesh etc.,) the Government Corporations distribute it to retail as per the requirement. In case of supply to certain Open markets (e.g., Goa, West Bengal, Punjab etc.,) the Brewery supplies to the Distributor who in-turn supplies to the Wholesaler and who supplies to the retailers. In case of certain other Open Markets (e.g., Maharashtra, Daman etc.,) the Brewery supplies to the Distributor who in-turn supplies to the Retailer directly.
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Manufacturing facilities
Owned Manufacturing Capacity:
Production - Plants around India Here's a showcase of the vast footprints of the production capabilities through owned and contracted facilities of United Breweries Ltd., across the length and breadth of India.
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UNITED BREWERIES LIMITED The present aggregate installed and production capacity of all the units of our Company is 6,025,000 HL per annum. As per the licenses issued by the respective excise departments, our Company would not be in a position to manufacture beer in excess of the 5,233,260 HL per annum. Breweries owned by Company:
FINISHED PRODUCTS
Finished Products
Product Name Beer Technical Knowhow & Franchises Goods Traded Malt Unit
---------------------- in Rs. Cr. -------------------Installed Capacity Hectolitres 1,21,15,500 NA Production Quantity 77,87,868.00 NA
Mar 2011
Sales Sales Quantity Value 78,11,961.00 4,263.95 NA 136.36
NA NA
NA NA
1,79,910.00 11,279.00
136.15 20.67 4557.13
Total
Source : Asian CERC
Source, http://www.moneycontrol.com/stocks/company_info/print_main.php
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Location of the project

Our Company has acquired 73.85 acres of land at Mallepally Village, Kondapur, Medak District in the state of Andhra Pradesh for the Green Field Brewery Project. The total cost of the land is Rs. 612.77 Lakhs. For further details, please refer to the section titled Objects of the issue on page 26 of the Letter of Offer. Our Company is in the process of acquiring land for expansion of its manufacturing facilities at Taloja, Maharashtra and Mangalore, Karnataka. Except for this, no additional land requirement is envisaged at other locations.
Product Portfolio and Marketing Strategy

Our Companys core business is the manufacturing, marketing and distribution of beer. The flagship brand, Kingfisher, is the largest beer brand in India as measured by Euromonitor International. Sales of beers in the Kingfisher family represented 45 million cases for fiscal 2007 or 35% of the total cases in the Indian beer market; and represented approximately 83% and 76.3% of our total sales volume for the fiscal year 2007 and for the nine months ended December 31, 2007, respectively. Beer in India is characterized into mild beer (less than 5% alcohol), strong beer (5 to 8% alcohol), and draught beer, as fresh keg beer. Kingfisher Lager is the clear leader in the low alcohol beer segment and Kingfisher Strong is the largest player in the strong beer segment, according to Euromonitor International.
Mild Beer
Our Companys key mild beer brand is Kingfisher Lager. The number of cases of Kingfisher Lager sold was 23.9 million and 13.4 million cases for year ended March 31, 2007 and during the six months ended September 30, 2007, respectively. Sales of Kingfisher Lager represented approximately 36.1%, and 44.27%, of our total sales volume from mild beers for the year ended March 31, 2007, and for the nine months ended December 31, 2007,
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UNITED BREWERIES LIMITED respectively. Some of our products in the mild beer segment are Kingfisher Premium, Kingfisher Lag r, UB Export Lager, Kalyani Black Label Premium, London Pilsner, Sand Piper Premium and Guru Lager.
Strong Beer Our Companys key strong beer brand is Kingfisher Strong. The number of cases of Kingfisher Strong sold was 26.1 million and 16.4 million cases for year ended March 31, 2007 and during the six months ended September 30, 2007, respectively. Sales of Kingfisher Strong represented approximately 39.4% and 54.99% of our total sales volume from strong beers for the year ended March 31, 2007 and for the nine months ended December 31, 2007, respectively. Some of our products in the strong beer segment are Kingfisher Strong, Kalyani Black, Label Strong, Kingfisher Strong Draught, Bullet Super Strong, Zingaro Super Strong, Charger Extra Strong, London No.1 Strong and UB Premium Ice. Draught Beer Our Companys key strong draught brand is Kingfisher Draught. This brand represented approximately 8.2% and 0.75% of our total sales volume from draught beers for the year ended March 31, 2007 and for the six months ended December 31, 2007, respectively. Some of our products in the draught beer segment are Kingfisher Premium Draught Beer, UB Export Draught Beer and Kingfisher Strong Draught Beer.
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UNITED BREWERIES LIMITED PRODUCT PROFILES 1. Kingfisher premium Kingfisher is one of the oldest, most widely recognized and respected brands in India. Ever since its inception, the brand has not only succeeded in guarding its numero uno status, but has also been able to evolve into one of the most contemporary and aspirational youth icons of today. It is the only brand in the category to successfully straddle the mild and the strong beer category of the country, together selling in excess of 68 mn cases.
2 .Kingfisher Strong Premium Kingfisher Strong Premium Beer comes from the house of United Breweries Limited. The brand was launched in 1999 to cater to the growing Strong Beer segment in the country. It has been the fastest growing beer brand in the country and has been instrumental in taking the volumes and profitability on the upsurge for the Kingfisher family & UB. Today Kingfisher Strong is Indias largest selling beer brand
3. Kingfisher Strong Kingfisher Strong, Indias largest selling beer, brings to you Kingfisher Strong FRESH Same Taste. Same Dum. Now even more Fresh! Kingfisher Strong Fresh is the first ever strong draught beer available in the Indian market. It gives you the crisp taste of freshly brewed beer conveniently packed in a 500ml can. The can design connotes freshness & strength. The bright red & yellow colors stand out in the clutter of brands at the retail outlet.
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4. Kingfisher Draught For the first time in India, and being one of its kind, Kingfisher launched Draught in a Can in a convenient 500 ml can. This completely unique concept, was specifically developed for people who think there is nothing better than beer on tap. It is no surprise that the crisp taste of the freshest thing in a can is loved by the Kingfisher Draught fans. The convenient 500 ml size makes it easier to guzzle on the go.
5. Kingfisher ULTRA As a market leader, Kingfisher has dominated the segment for years and continues to provide its consumers with the best of products. Keeping this in mind, United Breweries launched Kingfisher ULTRA in Q3 of 2009, a premium extension of its larger than life brand Kingfisher. Kingfisher ULTRA is a super premium beer launched in this newly emerging and potentially promising segment. Kingfisher ULTRA is a beer that is distinctive in taste and comes in a unique new packaging that the consumer can actually touch to feel the difference.
6. KINGFISHER BLUE Kingfisher for decades has been the brand that has captured the consumers imagination and has now added another premium beer to its portfolio. The promise of Kingfisher of bringing in the good times to life resonates with this latest brand KINGFISHER BLUE. With a truly distinct and absolutely refreshing taste, Blue is brewed to thrill.
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7. Kingfisher Red
Kingfisher Red, a Premium Gravity beer, is specially brewed to give you a distinctive taste with an oaky woody flavor, which tastes great when chilled and even better when not chilled. It is an artistically crafted beer inspired by the traditional brewing practices of medieval European monks. The monks followed a typical process for making their beer & then matured it in oak barrels.
8. Kingfisher Bohemia A taste nurtured in Cape Floral Kingdom, South Africa, one of the worlds oldest, most eco-friendly wine growing regions, Kingfisher Bohemia is enriched by a 500-million year old soil and the unique climate typical of that area. The resulting flavour is fruity, delectable and goes well with any food or occasion. Kingfisher Bohemia is the result of a partnership between Kingfisher and The Company of Wine People (COWP), a key player in the South African wine industry, both locally and abroad.
9. Zingaro Super Strong Zingaro Super Strong was launched in the year 2000, when the Indian Beer Industry was experiencing a major salience shift from Lager to Strong. Zingaro was then owned by MABL, which was formed to be the growth engine for the UB Group. While UB Group focused on making Kingfisher Strong a national brand, MABL launched Zingaro as a flanker to take on regional brands.
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10. UB Export UB Export is Karnatakas home grown brand and for decades now people of Karnataka have loved and respected this brand as one of their own. UB after being appreciated in its earlier look has now been revamped and is now in a Hosa avatar.
11. UB Export Strong
UB Export Strong, a 'strong' avatar of Karnataka's much loved and iconic beer brand UB Export was launched across Karnataka in June/July 2009. Owing to changes in the excise policy of Karnataka, the prices of beer went up, thus making beer expensive for the masses and resulting in a decline in the beer industry volumes. Being market leaders, United Breweries Ltd. took upon itself the task of reviving the beer industry in Karnataka and launched UB Export Strong at an affordable price at Rs.58 for the 650ml bottle and Rs.28 for the 330ml bottle.
13. London Pilsner Premium Strong London Pilsner Premium Strong is the 'strong' avatar of Maharashtra's home grown brand London Pilsner. For decades, the people of Maharashtra have loved & respected this brand as one of their own.
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UNITED BREWERIES LIMITED 14. Kalyani Black Label Strong Kalyani Black Label Strong, an 'iconic' brand has a long history which begins with its origin in West Bengal. Kalyani Black Strong today is an established brand and has its foot prints across East and certain markets in the South.KBLS combines the unique taste and quality of Kalyani Black Label in a strong beer and is positioned on the similar platform as the mother brand.
15. Bullet
Bullet has been a favorite of people of Rajasthan ever since its launch, decades ago. Bullet with its name and positioning has always had a rustic and son of the soil appeal, making the brand endearing to its target audience.Bullet comes with the stamp of a high quality product from a trusted company and at a very attractive price. Its recent bold strategy of consumer friendly pricing has made the brand an undisputed leader in Rajasthan. To reinforce the brands appeal with the Rajasthani consumer, a new campaign was launched to complement this strategy.
Customers
Our Companys principal target customer base for beers are individuals of legal drinking age in India, those who are 21 years and above. We believe that the reasons for the increase in sales of beer products were caused by a shift in patterns of spending, away from saving and investment and toward consumption and spending on lifestyle and products and services, such as eating out and entertainment. Additionally, the general attitude towards drinking is gradually changing in India so that it is now more socially
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UNITED BREWERIES LIMITED acceptable for both men and women to drink. We believe that these societal changes will help boost the demand for its products.
Distribution Network Based on the involvement of the government in the distribution and pricing of beer in each state the market can be broadly classified into three types:
1. Government Market
In a government market, the respective state government is the wholesale distributor of beer and acquires beer directly from manufacturers based on an annual tender system, via its own agencies. Thus, the government controls the price at which beer is procured from the manufacturer. The beer could then be retailed through private vends (e.g., Karnataka, Rajasthan, Tamil Nadir, Andhra Pradesh) or a combination of Government and private vends (e.g., Kerala, Delhi)
2. Auction Market
In auction markets, the state is bifurcated into smaller areas. The government, at regular intervals (typically annually), auctions the right to distribute and retail beer and liquor in these areas during a specified period, to private parties. This auction is based on the minimum guaranteed tariff payment to the government over the specified period. Wholesale operations and retail outlets are owned/ operated only by those parties that win the auction for that particular area. These private parties that win the auction negotiate with beer manufacturers to acquire beer at competitive prices.
Open Market
In this market, there is little or no government intervention in the pricing and distribution of beer. The manufacturers sell beer to the
wholesaler/distributor who in turn sells it to the retail outlets. Pricing is free and is determined by market forces. The government issues wholesale/
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UNITED BREWERIES LIMITED retail licenses for a fee. However, in certain markets, new licenses are not freely available.
Exports
Our Companys products are exported indirectly through UB Global, an export division of UBHL. Our Company currently does not have any export obligations; however its tie-up with S&N, which has a long established track record of distribution of third party brands, will be employed for the international distribution of KINGFISHER. Our Company has entered into a Licensing and Distribution Agreement on May 24, 2004 with Independent Liquor (NZ) Limited. In terms of the said agreement, the licensee has an exclusive license to manufacture and package the products Kingfisher Premium and Kingfisher Strong and to market, distribute and sell the product within the territory of Australia and New Zealand for a period of five years.
Imports
Major imported components include raw materials and spares, details of the same for the last three years are presented below (on CIF Basis):
Raw Materials
Major raw material is barley malt. Barley being an agricultural product, procured by the supplier of malt in season and they ensure supplies all through the year. The major suppliers are Barmalt (India) Private Limited, the Malt Company (India) Limited, Maltex Malsters Limited, Rahul Malt and Malsters & Blenders Private Limited. In order to meet the requirements of large quantities of malt for the purpose of brewing its beers, our Company had entered into a Lease Agreement with Maltex Malsters Limited on April 1, 1998 and was revised on January 29, 2003 for a period of 10 years. Other major raw materials are hops, sugar and maize flakes. While hops are imported, other materials are available locally and are being procured by the breweries wherever they are located at judicious prices.
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Details of sourcing of major packing/raw materials/imported materials: -
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RAW MATERIALS
United Breweries Raw Materials ------------------- in Rs. Cr. -----------------Product Name Malt Unit Metric Tonnes Brewing Materials Other Materials Metric Tonnes Not Reported 396.23 NA 31.27 66,454 151.17 Quantity 97,388 Value 213.79 Mar 2011
Total
Source : Asian CERC
Every Director and Covered Employee shall annually confirm on or before April 15 compliance of the Code in the prescribed form given in the Annexure.
Manufacturing Process Beer is made from natural ingredients like barley malt, cane sugar, water and aromatic flowers (hops). Special preservatives help this natural process even the alcohol in beer evolves naturally from the starch and sugars in the raw ingredients. Brewing can be defined
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UNITED BREWERIES LIMITED as the production of beer from malted barley, hops, yeast and water, with or without the addition of other carbohydrate materials.
There are some major steps in the production of beer. Mashing This malt is first milled into a fine powder referred to as grist and fed into a large vessel called the mash tun where it is mixed with hot water at around 65 0C to form slurry or mash during which the slurry is stirred with a set of paddles provided in the vessel. At the end of this time, the saccharified mash is transferred into another vessel called the
Lauter tun (lauter in German means to clarify), which is equipped with a perforated base much like a coffee percolator. This retains the spent mash and allows the clear extract (wort) to filter through this wort is then collected in another vessel traditionally referred to as the wort kettle. The mash tun lauter tun and wort kettle are typically housed adjacent to each other in a section of the brewery known as brewhouse. Boiling Along with hops, which provides the bitterness in a beer recipe, the extract or wort in the kettle is boiled with either direct steam or steam coils. At the end of this, the hops are separated from the wort through a strainer or a hop back. They may also be separated in a whirlpool separator, so called because the wort is led into the vessel in a tangential flow that creates a whirlpool effect. The hops pile up in the centre of the vortex and the wort is then decanted off. Fermentation The hopped wort is subsequently cooled to fermentation temperatures, which is generally between 7-150C depending on the type of beer to be produced. It is aerated with GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 41
UNITED BREWERIES LIMITED compressed air to provide oxygen for fermentation, pitched or mixed with the chosen yeast and then transferred into large fermentation tanks for the yeast to act. The process of fermentation generally takes 6-10 days during which the yeast multiplies and vigorously ferments the wort sugars to produce ethyl alcohol and carbon dioxide. At the end of fermentation, the yeast either rises to the top in the case of ales, or settles to the bottom as in the case of lager beers, and gas production slows down. The yeast is then separated either by skimming off or by drawing off from the bottom as the case might be and the fermented wort or beer, as it is now called, is transferred into a conditioning or maturation tank. Maturation This is the step where ales and lagers are differentiated. Ales are traditionally conditioned in wooden casks. But it is now also being carried out in stainless steel tanks where the residual yeast is induced to carry out secondary fermentation by priming the beer with sugar. This secondary fermentation is generally carried out at 150C for a period of 7 10 days by which time it generates more carbonation after which it is sent for filtration.
Filtration At the end of conditioning or maturation, the beer is subjected to a process of filtration to produce clear amber liquid. This is generally carried out in two steps: a coarse filtration to remove the suspended yeast cells, and a fine filtration to remove all particulate matter. Typically, brewers use diatomoceous earth or Kieselgurh as the filtration medium. This is a
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UNITED BREWERIES LIMITED special porous earth composed of siliceous marine fossils largely found on the South African shoreline. The filtration equipment used for the purpose is varied and ranges from plate and frame filters to leaf or candle filters. Modern brewing technology use membrane filters and synthetic yeast clarifiers.
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UNITED BREWERIES LIMITED Labeling and Packaging Most beers packaged in bottles and cans are heated to 60 degree Celsius, a process called pasteurization in order to kill all surviving micro-organisms. Kegged or draught beers in India are often unpasteurized if consumed locally but bulk pasteurized if a few days transportation and handling are involved. The brewed beer is bottled and labeled depending on the orders/permits and quantity required for each brand of beer. These labels are affixed by automatic labeling machines. After labeling, it is packed in cartons of 12 bottles of 650ml each or 24 bottles/cans of 330ml (in some states 12 bottles of 330 ml) or 24 cans of 500ml each or packed in kegs of 20 / 30 / 50 liters each and dispatched as per Orders. Dispatch Based on the orders/permits placed either by Government Corporations or Wholesale dealers, as the case may be in each state, the dispatch is carried out and finished goods are transported to Government Depots or the Bonded Warehouse of the distributors who in turn supply to the Wholesalers/retailers. In case of supply to the State Government Corporations (e.g. Karnataka, Tamil Nadir, Kerala, Andhra Pradesh etc.,) the Government Corporations distribute it to retail as per the requirement. In case of supply to certain Open markets (e.g., Goa, West Bengal, Punjab etc.,) the Brewery supplies to the Distributor who in-turn supplies to the Wholesaler and who supplies to the retailers. In case of certain other Open Markets (e.g., Maharashtra, Daman etc.,) the Brewery supplies to the Distributor who in-turn supplies to the Retailer directly.
Manufacturing facilities Owned Manufacturing Capacity:
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UNITED BREWERIES LIMITED The present aggregate installed and production capacity of all the units of our Company is 6,025,000 HL per annum. As per the licenses issued by the respective excise departments, our Company would not be in a position to manufacture beer in excess of the 5,233,260 HL per annum. Breweries owned by Company:
FINISHED PRODUCTS Finished Products ---------------------- in Rs. Cr. -------------------Product Name Unit Installed Capacity Beer Technical Knowhow & Franchises Hectolitres Production Quantity Sales Quantity
Mar 2011
Sales Value
12,115,500 7,787,868.00 7,811,961.00 4,263.95 NA NA NA 136.36
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Goods Traded Malt Total Source : Asian CERC NA NA NA NA 179,910.00 11,279.00 136.15 20.67 4557.13
Source, http://www.moneycontrol.com/stocks/company_info/print_main.php Location of the project Our Company has acquired 73.85 acres of land at Mallepally Village, Kondapur, Medak District in the state of Andhra Pradesh for the Green Field Brewery Project. The total cost of the land is Rs. 612.77 Lakhs. For further details, please refer to the section titled Objects of the issue on page 26 of the Letter of Offer. Our Company is in the process of acquiring land for expansion of its manufacturing facilities at Taloja, Maharashtra and Mangalore, Karnataka. Except for this, no additional land requirement is envisaged at other locations. Product Portfolio and Marketing Strategy Our Companys core business is the manufacturing, marketing and distribution of beer. The flagship brand, Kingfisher, is the largest beer brand in India as measured by Euromonitor International. Sales of beers in the Kingfisher family represented 45 million cases for fiscal 2007 or 35% of the total cases in the Indian beer market; and represented approximately 83% and 76.3% of our total sales volume for the fiscal year 2007 and for the nine months ended December 31, 2007, respectively. Beer in India is characterized into mild beer (less than 5% alcohol), strong beer (5 to 8% alcohol), and draught beer, as fresh keg beer. Kingfisher Lager is the clear leader in the low alcohol beer segment and Kingfisher Strong is the largest player in the strong beer segment, according to Euromonitor International. Mild Beer Our Companys key mild beer brand is Kingfisher Lager. The number of cases of Kingfisher Lager sold was 23.9 million and 13.4 million cases for year ended March 31, 2007 and during the six months ended September 30, 2007, respectively. Sales of Kingfisher Lager represented approximately 36.1%, and 44.27%, of our total sales volume from mild beers for the year ended March 31, 2007, and for the nine months ended December 31, 2007, GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 47
UNITED BREWERIES LIMITED respectively. Some of our products in the mild beer segment are Kingfisher Premium, Kingfisher Lag r, UB Export Lager, Kalyani Black Label Premium, London Pilsner, Sand Piper Premium and Guru Lager. Strong Beer Our Companys key strong beer brand is Kingfisher Strong. The number of cases of Kingfisher Strong sold was 26.1 million and 16.4 million cases for year ended March 31, 2007 and during the six months ended September 30, 2007, respectively. Sales of Kingfisher Strong represented approximately 39.4% and 54.99% of our total sales volume from strong beers for the year ended March 31, 2007 and for the nine months ended December 31, 2007, respectively. Some of our products in the strong beer segment are Kingfisher Strong, Kalyani Black, Label Strong, Kingfisher Strong Draught, Bullet Super Strong, Zingaro Super Strong, Charger Extra Strong, London No.1 Strong and UB Premium Ice. Draught Beer Our Companys key strong draught brand is Kingfisher Draught. This brand represented approximately 8.2% and 0.75% of our total sales volume from draught beers for the year ended March 31, 2007 and for the six months ended December 31, 2007, respectively. Some of our products in the draught beer segment are Kingfisher Premium Draught Beer, UB Export Draught Beer and Kingfisher Strong Draught Beer.
PRODUCT PROFILES 1. Kingfisher premium Kingfisher is one of the oldest, most widely recognized and respected brands in India. Ever since its inception, the brand has not only succeeded in guarding its numero uno status, but has also been able to evolve into one of the most contemporary and aspirational youth icons of today. It is the only brand in the category to successfully straddle the mild and the strong beer category of the country, together selling in excess of 68 mn cases. 2 .Kingfisher Strong Premium Kingfisher Strong Premium Beer comes from the house GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 48 of United Breweries Limited. The brand was launched in 1999 to cater to the growing Strong Beer segment in the country. It has been the fastest growing beer brand in the country and has been instrumental in
3. Kingfisher Strong Kingfisher Strong, Indias largest selling beer, brings to you Kingfisher Strong FRESH Same Taste. Same Dum. Now even more Fresh! Kingfisher Strong Fresh is the first ever strong draught beer available in the Indian market. It gives you the crisp taste of freshly brewed beer conveniently packed in a 500ml can. The can design connotes freshness & strength. The bright red & yellow colors stand out in the clutter of brands at the retail outlet.
4. Kingfisher Draught For the first time in India, and being one of its kind, Kingfisher launched Draught in a Can in a convenient 500 ml can. This completely unique concept, was specifically developed for people who think there is nothing better than beer on tap. It is no surprise that the crisp taste of the freshest thing in a can is loved by the Kingfisher Draught fans. The convenient 500 ml size makes it easier to guzzle on the go.
5. Kingfisher ULTRA As a market leader, Kingfisher has dominated the segment for years and continues to provide its GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 49 consumers with the best of products. Keeping this in mind, United Breweries launched Kingfisher ULTRA in Q3 of 2009, a premium extension of its
6. KINGFISHER BLUE Kingfisher for decades has been the brand that has captured the consumers imagination and has now added another premium beer to its portfolio. The promise of Kingfisher of bringing in the good times to life resonates with this latest brand KINGFISHER BLUE. With a truly distinct and absolutely refreshing taste, Blue is brewed to thrill.
7. Kingfisher Red
Kingfisher Red, a Premium Gravity beer, is specially brewed to give you a distinctive taste with an oaky woody flavor, which tastes great when chilled and even better when not chilled. It is an artistically crafted beer inspired by the traditional brewing practices of medieval European monks. The monks followed a typical process for making their beer & then matured it in oak barrels.
8. Kingfisher Bohemia A taste nurtured in Cape Floral Kingdom, South Africa, one of the worlds oldest, most eco-friendly GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 50 wine growing regions, Kingfisher Bohemia is enriched by a 500-million year old soil and the unique climate typical of that area. The resulting flavour is fruity, delectable and goes well with any
9. Zingaro Super Strong Zingaro Super Strong was launched in the year 2000, when the Indian Beer Industry was experiencing a major salience shift from Lager to Strong. Zingaro was then owned by MABL, which was formed to be the growth engine for the UB Group. While UB Group focused on making Kingfisher Strong a national brand, MABL launched Zingaro as a flanker to take on regional brands.
10. UB Export UB Export is Karnatakas home grown brand and for decades now people of Karnataka have loved and respected this brand as one of their own. UB after being appreciated in its earlier look has now been revamped and is now in a Hosa avatar.
UB Export Strong, a 'strong' avatar of Karnataka's much loved and iconic beer brand UB Export was launched across Karnataka in June/July 2009. Owing to changes in the STUDIES AND RESEARCH GT INSTITUTE OF MANAGEMENTexcise policy of Karnataka, the prices of beer went 51 up, thus making beer expensive for the masses and resulting in a decline in the beer industry volumes. Being market leaders, United Breweries Ltd. took upon itself
11. UB Export Strong
13. London Pilsner Premium Strong London Pilsner Premium Strong is the 'strong' avatar of Maharashtra's home grown brand London Pilsner. For decades, the people of Maharashtra have loved & respected this brand as one of their own.
14. Kalyani Black Label Strong
Kalyani Black Label Strong, an 'iconic' brand has a long history which begins with its origin in West Bengal. Kalyani Black Strong today is an established brand and has its foot prints across East and certain markets in the South.KBLS combines the unique taste and quality of Kalyani Black Label in a strong beer and is positioned on the similar platform as the mother brand.
15. Bullet
Bullet has been a favorite of people of Rajasthan ever since its launch, decades ago. Bullet with its name and positioning has always had a rustic and son of the soil appeal, making the brand endearing to its target audience.Bullet comes with the stamp of a high quality product from a trusted company and at a very attractive price. Its recent bold strategy of consumer friendly pricing has made the brand an undisputed leader in Rajasthan. To reinforce the brands appeal with the Rajasthani consumer, a new campaign was launched to complement this strategy.
Customers
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UNITED BREWERIES LIMITED Our Companys principal target customer base for beers are individuals of legal drinking age in India, those who are 21 years and above. We believe that the reasons for the increase in sales of beer products were caused by a shift in patterns of spending, away from saving and investment and toward consumption and spending on lifestyle and products and services, such as eating out and entertainment. Additionally, the general attitude towards drinking is gradually changing in India so that it is now more socially acceptable for both men and women to drink. We believe that these societal changes will help boost the demand for its products.
Distribution Network
Based on the involvement of the government in the distribution and pricing of beer in each state the market can be broadly classified into three types:
1. Government Market
In a government market, the respective state government is the wholesale distributor of beer and acquires beer directly from manufacturers based on an annual tender system, via its own agencies. Thus, the government controls the price at which beer is procured from the manufacturer. The beer could then be retailed through private vends (e.g., Karnataka, Rajasthan, Tamil Nadir, Andhra Pradesh) or a combination of Government and private vends (e.g., Kerala, Delhi)
2. Auction Market
In auction markets, the state is bifurcated into smaller areas. The government, at regular intervals (typically annually), auctions the right to distribute and retail beer and liquor in these areas during a specified period, to private parties. This auction is based on the minimum guaranteed tariff payment to the government over the specified period. Wholesale operations and retail outlets are owned/ operated only by those parties that win the auction for that particular area. These private parties that win the auction negotiate with beer manufacturers to acquire beer at competitive prices.
Open Market
In this market, there is little or no government intervention in the pricing and distribution of beer. The manufacturers sell beer to the wholesaler/distributor who in turn sells it to the
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UNITED BREWERIES LIMITED retail outlets. Pricing is free and is determined by market forces. The government issues wholesale/ retail licenses for a fee. However, in certain markets, new licenses are not freely available.
Exports
Our Companys products are exported indirectly through UB Global, an export division of UBHL. Our Company currently does not have any export obligations; however its tie-up with S&N, which has a long established track record of distribution of third party brands, will be employed for the international distribution of KINGFISHER. Our Company has entered into a Licensing and Distribution Agreement on May 24, 2004 with Independent Liquor (NZ) Limited. In terms of the said agreement, the licensee has an exclusive license to manufacture and package the products Kingfisher Premium and Kingfisher Strong and to market, distribute and sell the product within the territory of Australia and New Zealand for a period of five years.
Imports
Major imported components include raw materials and spares, details of the same for the last three years are presented below (on CIF Basis):
Raw Materials
Major raw material is barley malt. Barley being an agricultural product, procured by the supplier of malt in season and they ensure supplies all through the year. The major suppliers are Barmalt (India) Private Limited, the Malt Company (India) Limited, Maltex Malsters Limited, Rahul Malt and Malsters & Blenders Private Limited. In order to meet the requirements of large quantities of malt for the purpose of brewing its beers, our Company had entered into a Lease Agreement with Maltex Malsters Limited on April 1, 1998 and was revised on January 29, 2003 for a period of 10 years. Other major raw materials are hops, sugar and maize flakes. While hops are imported, other materials are available locally and are being procured by the breweries wherever they are located at judicious prices.
Details of sourcing of major packing/raw materials/imported materials: -
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RAW MATERIALS
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UNITED BREWERIES LIMITED United Breweries ------------------- in Rs. Cr. -Raw Materials Product Name Malt ----------------Unit Metric Tonnes Brewing Materials Other Materials Metric Tonnes Not Reported NA 31.27 66,454 151.17 Quantity 97,388 Mar 2011 Value 213.79
Total Source : Asian CERC
396.23
Power & Water: The details of the sources of power and water for the
existing manufacturing locations are as per the list below: The required power supply for the UBL, Nelamangala, is 1950 KVA, and the water source is the bore wells.
Manpower
The company employs the full-time, casual and contract workers based on the contractual needs.The back up of the employees:
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Environmental Aspects
Our Company adheres to its commitment towards protecting the environment and renewing scarce resources wherever possible. Our Company adheres to corporate Environment, Health and Safety (EHS) policies to promote accident free work at our manufacturing locations and avoid damage to surroundings. We provide healthy, safe and environmental friendly atmosphere at our manufacturing locations with due regards to save human life and to avoid property damage. We have, therefore, committed to protect and safeguard our employees, equipments and environment against possible ill effects arising from our business operations.
Effluent Treatment Facilities

The brewery waste water (effluent) discharged from various sections contains a large number of organic components and nutrient salts, which leads to consumption of dissolved oxygen and the eutrophication of the water. The effluent water is characterized by its BOD (Biological Oxygen Demand), COD (Chemical Oxygen Demand) & TSS (Total Suspended Solid) levels. Extensive waste water treatment process has been designed & operated to ensure the stringent requirements of pollution control boards. Biological waste water treatment is the core process of the brewery effluent treatment.
Business Strategy
Our strategic objective is to continue to improve and consolidate our position in the brewery market and we aim to achieve this by implementing the following strategies: To continue to grow ahead of the domestic brewery market and increase our market share from the present 39% in the Indian beer market to over 50% in the next 3 years. Setting up of green field breweries and brewery GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH 57
UNITED BREWERIES LIMITED acquisitions are part of our overall growth strategy. To focus on increasing captive capacity at owned manufacturing facilities and reduce the dependence on the contract brewing arrangements. To continue investment behind brands particularly, the Kingfisher brand and to introduce new brands over the next 24 months to cater to the emerging market segment
Management Organisation Structure
FINANCIAL INFORMATION Working Capital Our Company has working capital facilities of Rs. 200,000 Lakhs with a consortium of banks consisting of the following banks: Citibank Standard Chartered Bank Federal Bank
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UNITED BREWERIES LIMITED State Bank of Travancore State Bank Of India Axis Bank Yes Bank
Main Objects of Company
The objects as contained in the Memorandum of Association include: 1. (a) To carry on the business of Brewers and Malsters in all its branches and to consolidate all brewery related activities. To carry on all or any of the business of hop merchants and growers, timber merchants and growers, malt factors, corn merchants, wine and spirit merchants, either as exporters or importers and distillers, coopers and bottlers, bottle makers, bottle stopper makers, potters, manufacturers of and dealers in aerated mineral waters and other drinks licensed vicutallers, beer house keepers, yeast dealers, grain and produce growers, sellers and driers, isinglass merchants and printers. (b) primarily and without prejudice to the generality of the other objects of the Company, to purchase or otherwise acquire and take over as going concerns the businesses of Brewers and otherwise heretofore carried on. 2. To purchase and take over, manage, control, undertake or otherwise acquire any business, either in part or in entirety, carried on by any individual, firm, joint family or company which is in accordance with the objects mentioned herein and in particular to purchase or otherwise acquire from such business right, properties and assets including plants, machinery, lands, buildings, goodwill, liabilities and obligations to pay the vendors in suitable manner. 3. To trade and carry on business as manufacturers of and dealers in all kinds of beer, ales and the like: to trade and carry on the business in the like manner as brewers, malsters and hop growers; ale, stout and porter
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UNITED BREWERIES LIMITED merchants, agents and distributors; barley and general raisers, importers, driers and merchants;manufacturers of and dealers in yeast, finings, isinglass and other drawers, requisites.
Profit & Loss - United Breweries Ltd.Print Mar'11 12 Months INCOME: Sales Turnover Excise Duty NET SALES Other Income TOTAL INCOME EXPENDITURE: Manufacturing Expenses Material Consumed Personal Expenses Selling Expenses Administrative Expenses Expenses Capitalised Provisions Made TOTAL EXPENDITURE 2,657.27 1,766.58 1,471.01 1,195.03 905.07 0 0 0 0 0 0 0 0 0 0 127.79 100.23 84.48 90.74 60.67 858.23 559.24 428.83 323.91 250.82 144.12 98.92 87.07 77.44 66.83 1,408.79 946.4 803.17 636.55 467.73 118.33 61.78 67.46 66.39 59.02 4,557.12 1,547.69 3,009.43 0 3,086.98 2,957.93 971.65 1,986.28 0 2,044.55 2,462.58 770.83 1,691.75 0 1,733.65 1,983.44 612.97 1,370.47 0 1,390.44 1,481.80 435.56 1,046.24 0 1,065.58 Mar'10 12 Months Mar'09 12 Months Mar'08 12 Months Mar'07 12 Months
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Operating Profit EBITDA Depreciation Other Writeoffs EBIT Interest EBT Taxes Profit and Loss for the Year Non Recurring Items Other Non Cash Adjustments Other Adjustments REPORTED PAT KEY ITEMS Preference Dividend Equity Dividend Equity Dividend (%) Shares in Issue (Lakhs) EPS Annualised (Rs) 5.79 4.04 2.6 2.89 3.01 2,545.45 2,400.48 2,400.48 2,160.43 2,160.43 15.82 62.15 8.64 35.99 7.2 29.99 0 0 6.22 28.78 7.41 7.41 7.41 7.41 8.45 147.29 96.97 62.49 62.47 65.09 0 0 0 0 0 5.13 5.47 5.11 2.44 1.3 0.02 11.46 -14.17 -1.68 -0.2 299.2 78.13 221.07 78.93 142.14 189.7 55.5 134.2 54.16 80.04 186.42 75.69 110.74 39.18 71.56 134.19 41.74 92.45 30.74 61.71 121.97 27.98 93.99 29.9 64.09 429.71 130.51 0 277.97 88.27 0 262.64 76.22 0 195.42 61.23 0 160.51 38.54 0 352.17 219.7 220.74 175.44 141.17
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UNITED BREWERIES LIMITED Source; http://economictimes.indiatimes.com/united-breweriesltd/profitandlose/companyid-1367.cms
SHARE HOLDING
category of Sharehold er No. of Shareholder s Total NO. of Shares Total No. of Shares held in Dematerialize d Form Total Shareholdin g as a % of total No. of Shares As a % of (A+B) As a % of (A+B+C) (A) Shareholding of Promoter and Promoter Group (1) Indian Individuals / Hindu Undivided Family Bodies Corporate Sub Total 14 106,984,23 0 (2) Foreign Bodies Corporate Sub Total Total shareholding of Promoter and Promoter Group (A) 3 17 90,850,440 197,834,67 0 90,850,440 197,834,67 0 34.36 74.82 34.36 74.82 19,984,14 2 10.1 0 3 90,850,440 90,850,440 34.36 34.36 106,984,23 0 40.46 40.46 10 85,630,610 85,630,610 32.39 32.39 19,984,14 2 19,984,14 2 23.3 4 18.6 8 4 21,353,620 21,353,620 8.08 8.08 Shares pledged or otherwise encumbered Number of shares As a % of Total No. of Shares
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(B) Public Shareholding (1) Institutions Mutual Funds / UTI Financial Institutions / Banks Central Government / State Government( s) Insurance Companies Foreign Institutional Investors Sub Total (2) NonInstitutions Bodies Corporate Individuals Individual shareholders holding nominal share capital up to Rs. 1 lakh Individual shareholders 3 709,673 377,553 0.27 0.27 40,765 11,586,867 7,231,774 4.38 4.38 488 4,839,513 4,755,810 1.83 1.83 99 48,460,021 48,436,169 18.33 18.33 73 46,524,776 46,524,376 17.60 17.60 2 1,702,907 1,702,907 0.64 0.64 1 660 8 28,380 22,820 0.01 0.01 15 203,298 186,066 0.08 0.08 -
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holding nominal share capital in excess of Rs. 1 lakh Any Others (Specify) Trusts Non Resident Indians Clearing Members Overseas Corporate Bodies Sub Total Total Public shareholding (B) Total (A)+(B) 42,789 264,405,14 9 (C) Shares held by Custodians and against which Depository Receipts have been issued-m (1) Promoter and Promoter 259,305,34 8 100.00 100.00 19,984,14 2 7.56 42,673 42,772 18,110,458 66,570,479 13,034,509 61,470,678 6.85 25.18 6.85 25.18 3 4,680 257 64,542 64,542 0.02 0.02 3 1,154 248,761 656,422 248,761 356,069 0.09 0.25 0.09 0.25 1,417 974,405 669,372 0.37 0.37 -
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Group (2) Public Sub Total Total (A)+(B)+(C) 42,789 264,405,14 9 259,305,34 8 100.00 19,984,14 2 7.56
Source, http://www.moneycontrol.com/companyfacts/unitedbreweries/shareholding-pattern/UB02#UB02
Performance Chart
OWNERSHIP PATTREN
Soure, http://beta.bseindia.com/bseplus/StockReach/StockQuote/Equity/United%20Breweries%20Ltd/UNITEDBREW/ 532478/BreweriesDistilleries
EPS PAID
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Source, http://beta.bseindia.com/bseplus/StockReach/StockQuote/Equity/United%20Breweries%20Ltd/UNITEDBREW/532478/Bre
in Cr.)
Jun-12
Mar12
FY11-12
Revenue Net Profit EPS Cash EPS OPM % NPM %
1,225.82 98.64
954.85 7.28
3,627.69 126.44
3.71 5.15
0.25 --
4.68 --
16.65 8.05
11.92 0.76
12.83 3.49
weriesDistilleries
DEVELOPMENTAL PLANS OF UB LTD. Investment Plans of UB Group :

UB Group is investing Rs. 1,000 crore in three years to hike its brewing capacity by about 20% The UB Group has a capital expenditure plan of Rs. 488 crore for the current financial year. This part of a capacity expansion programme, which commenced in April 2006 and involves a total expenditure of around Rs. 1000 crore over three years The expansion would be partly funded by the recently concluded rights issue of Rs. 425 crore and the remaining through a combination of internal accruals and debt The UB Group has a brewing capacity of 60.25 lakh hector litres per annum in the next two years UB is setting up a facility in AndraPradesh. This will have an annual production capacity 60 lakh cases per annum to begin with and 120 lakh cases eventually.
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The company also plans to have a Greenfield plant in Karnataka with a capacity of 30 lakh cases a year.1
Competitors Information:
South African Breweries Limited (5th largest in world)- knock-out, Continental and Three lions. Shaw Wallace Royal Challenge premium lager, Lal Toofan, Hi-Five, Haywards 2000 premium Larger and Haywards 5000 super Strong. Australian Fosters Beer. Other Local Brands in the country Golden eagle, carling Black label, maharaja premium lager etc.
Current market Position in India and Karnataka, World:
INDIA KARNATAKA WORLD :
52 (Approximately) 73% (Approximately)
6 Bottles are sold/ Second
LOCATION OR INFRAUSTUCTURAL FACILITIES:
Head office (Marketing & Finance Department) in Bangalore Plant is located near Highway (National Highway 4) Layout, total area measurement 42 acres. Well maintained temple, Garden & plantation. High speed intranet facility called Navision (Microsoft). Free transport facility for employees
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UNITED BREWERIES LIMITED Canteen facility for the workers Company is paying Rs. 500 a month for food facilities to employees & executives. First aid facility, medical council. R & D facility. State of arts automated plant. Capacity of plant 9.6 lakh cases/month. Automated bottling and packaging facility. Large ware house facility. Utilities Boilers-16T/hr, refrigeration unit-600TR, etc.
ORGANISATIONAL STRUCTURE OF UB LTD, NELAMANGALA, BANGALORE.
EVP - MFG
DVP- MFG.
AVP -MFG
Process
Production
Commercial
HR & ADMN
Quality
Finance
Maintenance & Utilities
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UNITED BREWERIES LIMITED

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UNITED BREWERIES LIMITED

Key events Year Major Events

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Details of awards, recognitions won by Our Company ear Award/Certification Issued by

NATURE OF BUSINESS CARRIED OUT

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Labeling and Packaging

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Sales Sales Quantity Value 78,11,961.00 4,263.95 NA 136.36

136.15 20.67 4557.13

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UNITED BREWERIES LIMITED

Location of the project

Product Portfolio and Marketing Strategy

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GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

UNITED BREWERIES LIMITED

GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

UNITED BREWERIES LIMITED

11. UB Export Strong

GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

UNITED BREWERIES LIMITED

Details of sourcing of major packing/raw materials/imported materials: -

GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

UNITED BREWERIES LIMITED

GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

UNITED BREWERIES LIMITED

GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

Manufacturing facilities Owned Manufacturing Capacity:

GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

12,115,500 7,787,868.00 7,811,961.00 4,263.95 NA NA NA 136.36

GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

UNITED BREWERIES LIMITED

UNITED BREWERIES LIMITED

UNITED BREWERIES LIMITED

UNITED BREWERIES LIMITED

11. UB Export Strong

UNITED BREWERIES LIMITED

14. Kalyani Black Label Strong

GT INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH