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GROUP 4

Indian Beer Industry


 Steady growth of 7-9% per year over the last ten years.
The rate of growth has remained steady in recent
years, with volumes passing 100m cases during the
last few years.
 The industry dominated by the Vijay Mallaya controlled
United Spirits and the Manu Chabbria controlled Shaw
Wallace.
 Entry of SABMiller in India, Acquired small breweries in
the south
 Acquired Shaw Wallace’s beer portfolio for a reported
US$132m in 2003.
 The SABMiller acquisition of Shaw Wallace gave the
company a good position in the strong beer sector
which is the fastest-growing segment in the market.
 SABMiller’s Haywards 5000 is the biggest-selling strong
beer brand ,UB’s Kingfisher is the largest-selling beer
brand overall in the market.
BACKGROUND
 SABMiller India is a subsidiary of SABMiller plc, one of
the world’s largest brewers.
 SABMiller has a brewing presence in over 40 countries
across four continents and a portfolio of over 150
brands.
 It employs over 38,000 people worldwide in 81
breweries and 27 bottling plants.
 Outside the USA, SABMiller plc is one of the largest
bottlers of Coca-Cola products in the world. SABMiller
plc is listed on the London and Johannesburg stock
exchanges.
 SABMiller has operated in India since October 2000,
when it acquired Narang Breweries, followed by
Mysore Breweries Limited and Rochees Breweries Ltd
in 2002.
 In May 2003 it entered into a joint venture with Shaw
Wallace & Company to form Shaw Wallace Breweries
Limited. The management control rested with
SABMiller Plc –Company History
 Incorporated: 1895 as The South African Breweries
Limited
 SABMiller plc ranks as the world's second largest brewer
in terms of volume, trailing only Anheuser-Busch
Companies, Inc.
 Based in London, the company owns no breweries in the
United Kingdom.
 Its true home country is South Africa, where The South
African Breweries Limited (SAB) was founded in 1895
and where SABMiller today holds an impressive 98
percent share of the beer market.

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


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


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


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


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

 1994: SAB enters the Chinese beer market

 2000: Company buys its first brewery in India.

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

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

 2003: Company makes its first major investment in Western


Europe, purchasing a 60 percent stake in Birra Peroni
S.p.A., Italy's number two brewer.

SABMiller India

 SABMiller’s India sojourn began in 2000


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

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


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


Management

Jean - Marc Anand Shukla


Delpon de Vaux Director
Managing Director Strategic
Initiatives
Dave Hari Krishna
Johnstone Director - Human
Director - Resources
Technical

Kevin Shalabh Seth


Heydenrych Regional Director
Director - South
Finance

Sundeep Kumar . J.
Venkateshwaran
Director -
Corporate Director- Channel
Affairs & Development
Communication
India-
Presence
Indian Presence
 SABMiller India is structured into three core
operational regions which enables it to
understand the nuances of markets.
 Mumbai is the hub for the West and East regions.
Operations of the sales teams at these locations
and the breweries function under the Operations
Director, Central.
 The North Operations of the sales force and the
breweries are under the Operations Director,
North operating from the regional office located
in Gurgaon.
 Bangalore houses the regional office for the South
region. The sales team and the breweries report
to the Operations Director, South.

Foster's
 Foster's® Lager is a uniquely Australian beer,
brewed with the finest sun-dried malted
barley and the purest water
 Foster's® has always been at the forefront of
brewing technology and the Foster's®
Lager brewed today is the result of over a
century of attention of the brewing art.
 Quality has been the strength of Foster's®
since its earliest days and remains a
paramount concern at every stage of the
beer's journey from brewery to consumer.
Foster's® crisp, clean flavour won it
immediate international acclaim when it
was first brewed in Melbourne in 1888.
Today, more than one hundred years later,
it is still recognized as one of the world's
best beers. SABMiller India now brews &
markets Foster's® in various parts of the
country.

Royal Challenge
 Launched in the year 1993, Royal Challenge Premium Lager is the second
largest selling mild beer in India. Royal Challenge is brewed with the
choicest 6 malt barley. Its long brew duration provides it with a distinct,
smooth taste and rich flavour. It has all the hall marks of a great beer -
Color that is golden honey, taste that is smooth and crisp, lace that
sticks to the wall of the glass. This is the beer for the discerning who
have the confidence to make their choices based on their superior taste
and knowledge rather than follow the crowd.
 The brand has moved from strength to strength since its relaunch by
SABMiller in 2004, and has set itself on a growth momentum that is
well ahead of the mild beer industry.

It is now become the largest selling mild beer brand in many large beer
markets, including Andhra Pradesh, Uttar Pradesh and Orissa. Besides
being available across most states in India, Royal Challenge Premium
Lager is also exported to USA, Europe, Middle East, Australia and Hong
Kong.
 Brewed from select malts and imported hops, on a specially developed
recipe by the brewmasters from SABMiller, one of world’s largest
brewers with over a hundred years of heritage, Royal Challenge
symbolizes a perfect harmony between the high art of brewing and the
assurance of modern technology.
 Royal Challenge Premium Lager offers a difference with an edge. Besides its
international class packaging, premium image and path breaking
advertising, what sets the brand apart is the long brew cycle which
lends it a distinctly smooth and easy flowing taste.


Haywards 5000
 Haywards 5000 is India's largest selling
strong beer brand, which perfectly
combines strength with quality
credentials that meet the high
expectations of today’s demanding
consumers.
 Launched in the year 1983, Haywards
5000 is synonymous with strong beer
in India. Haywards 5000 is brewed
with the choicest of malts and hops
lending itself to a unique flavour
profile to suit the Indian taste and
preference. Haywards 5000 is the
hallmark of original and authentic
strong beer which other beer brands
aspire for. With such credentials, it is
not surprising to see men get
together over Haywards 5000. It is the
language of friendship amongst men
who are proud of their masculinity
and look forward to a great time with
their friends and peers .

Vision, Mission and Values

 Our vision is to be amongst the 3 most admired beverage companies in India.


 Our mission is to own and nurture local and international beer brands that are the first choice
of the consumer.
 Our values and group behaviours:
 Our people are our enduring advantage
the calibre and commitment of our people set us apart we value and encourage diversity
we select and develop people for the long term performance is what counts
 Accountability is clear and personal we favour decentralised management and a practical
maximum of local autonomy goals and objectives are aligned and clearly articulated we
prize both intellectual rigour and emotional engagement we are honest about
performance we require and enable self-management
 We work and win in teams
 we actively develop and share knowledge within the group
 we consciously balance local and group interests
 we foster trust and integrity in internal relations
 we encourage camaraderie and sense of fun
 We understand and respect our customers and consumers
 we are endlessly concerned with our customers’ needs and perceptions
 we build lasting relationships, based on trust
 we aspire to offer the preferred choices of product and service
 we innovate and lead in a changing world
 Our reputation is indivisible our reputation relies on the actions and statements of every
employee we build our reputation for the long term we are fair and ethical in all our
dealings we benefit the local communities in which we operate


Key SABMiller Financials
 Fiscal Year-End March 2007 Sales (mil.)
$18,620.0
 Employees 66,949
 Rankings
 #266 in FT Global 500
 FTSE 100
Annual  Income Statement
All amounts in millions of US Dollars

Year06
Mar 07 Revenue --
18,620.0
15,307.0 Gross Operating 1,674.0
3,027.0
2,575.0 Total Net --
1,883.0 Diluted
Mar 05 12,901.0 6,744.0
Profit 2,361.0
Income 1,141.0
Income EPS (Net
Income)
Top SABMiller Competitors

 In World :
 Anheuser – Busch -Largest Brewing
company in the US , known for brands such
as Budweiser, Busch and Michelob families,
Bud Light, and Natural Light
 Heineken
 InBev
 On July 13,2008 Sunday, InBev agreed to
buy Anheuser – Busch for a total value of $52
billion, which would create a new company to
be named Anheuser-Busch InBev.The deal is
still pending requiring approval by
shareholders and regulatory agencies

 In India –
 UB Group