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Strategic Management

“Beverages Alcohol business line strategy for UB Group”

Submitted by Kishore Gulhane

Institute for Technology and Management (ITM),


Executive Education Center
Kharghar, Navi-Mumbai

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Content

• UB Group Mantra
• About USL
• Leadership across categories
• Major Brands of USL
• Market Capitalization
• Group holding structure
• Market Share in Liquor Industry
• Financial result 2010
• Alcohol Consumption Trends
• Marketing Strategy
• Achievements
• Conclusion

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UB Group Mantras
• India’s Leading branded consumer group
• Dominate Domestic Market
Accelerated organic growth
Acquisitions
• Be Globally Significant
• Set Standards of governance and transparency

About USL
 United spirits Ltd., the Rs. 5500 spirits arm of multi-billion dollar UB Group.
 United Spirits Limited (USL) is the largest Spirits Company in India and
among the top three spirits companies in the world.
 USL has done India proud by crossing 90 million cases for year 2008-2009 in
terms of volume inspite of the economic meltdown.
 USL has global footprint with exports to over 18 countries.
 USL has a committed 7500 strong workforce spread across its offices and
distilleries in the country.
 The Company is known to be an innovator in the industry and has several
firsts to its credit such as the first premixed gin, the first Tetrapack in the
spirits industry in India and the first single maltmanufactured in Asia.
 USL was earlier McDowell and Company ,McDowell & Co. Ltd.(1951)
 Phipson Distillery Limited (1963 – national presence)
 Herbertsons limited (1973)
 Triumph Distilleries
 Vinters Private limited
 Baramati Grape industries Limited
 United Distillers India Limited
 McDowell International Brands Limited
 Liquidity Inc. (Specialty vodkas – Pinky vodkas)
 In 2007, USL announced the all-cash acquisition of scotch whisky maker
 Whyte & Mackay for approximately Rs. 6000 Crore
 Shaw Wallace Distilleries Limited (2007 – secure supply and reduce cost
 along with improving the margins significantly)
 Bouvet Ladubay (2006 – wine business entry which is France based co.)

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Leadership across categories
• Spirits
 Volumes -3rd Largest in the world
 Market Share – Largest in India with 55% share in value terms
 5brands in top 50 world wide spirits brands
 FY 2008 Sales -70million cases
• Breweries
 Largest in India with 45% market share
 India’s 1st global consumer brand –Kingfisher
 Sold in over 52 countries

FY 2009

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Major Brands

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Market Capitalization

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Group holding structure:-

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Market Share in Liquor Industry:

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Alcohol Consumption Trends:

Marketing Strategy:

• New Product Development


• Brand Positioning
• Packaging and Labeling
• Ads and promotions
• Representing brands through sponsorships
• Innovative ideas for bottling

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Achievements for UB Group:-
 90 Million cases in sales in the year 2008-09
 USL - 88.30 million
 W&M - 1.68 million
 Bouvet - 0.36 million
 Pinky - 0.01 million
 USL - 90.35 million

Conclusion:
Brand is having good Value for Money and Quality.

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