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Based in Bangalore, it is a conglomerate of different companies with a major focus on the brewery (beer) and alcoholic beverages industry. 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. It is also present in the sporting industry by the way of buying a team in the Indian Premier League (cricket) from their hometown i.e. Bangalore by the name of Bangalore Royal Challengers. The group has also made India’s first team entry into Formula One by being the joint owner team Force One (India’s first-ever Formula One Team) with the Netherlands based Mol Family. United Breweries is India's largest producer of beer with a market share of around 48% by volume. The group is a multi-faceted conglomerate with business interests in Beverage Alcohol,
After India adopted economic liberalization in 1991. and Infrastructure Development. After Vittal Mallya's death in 1983.Pharmaceuticals. Media. The paints business was divested for significant value in 1996. In 1988. Today. Within a short time the airlines has captured an impressive market share and has established . the UB Group decided to retain interests in only those businesses that were globally competitive and did not depend upon fiscal tariff protection. Vijay Mallya inducted professional management and consolidating the Group into individual operating divisions. his son Vijay Mallya assumed the mantle of the group. In 2005. UB Group acquired the global Berger Paints Group with operating companies across four continents. UB Group is the third largest manufacturer of Spirits products in the world. Aviation. Fertilizer. the Group entered aviation sector with the launch of Kingfisher Airlines Limited. Research & Development. International Trading.
McDowell's No. The group owns the Mendocino Brewing Company in the United States. Isle of Jura. and Whyte & Mackay Scotch under its portfolio. Business Interests of UB Group Beverage Alcohol: The UB Group is 3rd largest spirits marketer in the world.350 crore) This would brought the brands of W&M like The Dalmore.1 Brandy and McDowell's Celebration Rum.a niche identity for itself. Some of the famous brands of the UB Group are: Bagpiper Whisky. The company offers 140 brands at varying price points. Glayva. Fettercairn. Vladivar Vodka. with overall sales of 60 million cases. McDowell's No.It has also acquired Glasgow-based distillers Whyte & Mackay for nearly £500 million (Rs 4.1 Whisky. Director's Special Whisky. Pharmaceuticals: The group's company Aventis Pharma Limited is the second largest .
17. the company that owns and manages daily newspaper. a lifestyle television channel . the group made a first-ofits-kind media alliance for the promotion of NDTV Good Times. Leather Footwear and Processed Foods. It develops and markets branded prescription drug and vaccines. The Asian Age. Media: The UB Group also has a shareholding in Asian Age Holdings Ltd. Research & Development: Vittal Mallya Scientific Research Foundation (VMSRF) was . International Trading: The Group's company UB Global Limited is a recognized export house engaged in the export of Beer.pharmaceutical multinational in India. The Company also exports Pharmaceutical Products and customized perfumeries. Spirits. 800 MT of Ammonia and 3. It has a manufacturing capacity of 2.In August 2007.80.000 MT of Urea. Fertilizer: Mangalore Chemicals & Fertilizers Limited is under UB Group's management.
Gopinath became its Vice-Chairman. while G. The merger became effective April 2008. On 19 December 2007. R. The foundation is it is recognized by the Departments of Scientific & Industrial Research (DSIR).established in 1987 with the objective of developing newer and novel technologies that will have substantial application in industry and health care. Govt. Engineering: UB Engineering Limited is the group's engineering business arm. it was announced that Air Deccan would merge with Kingfisher Airlines. Kingfisher Airlines has captured an impressive market share and has established a niche identity for itself. Council for Scientific and Industrial Research (CSIR) and the Ministry of Finance. Aviation: UB Group entered aviation sector in 2005 with the launch of Kingfisher Airlines Limited. It undertakes . of India. Dept. of Biotechnology (DBT). with Vijay Mallya becoming the Chairman and CEO of the new company.
IT consulting: The group entrance to the IT sector had also been marked by the formation of UBICS. The company provides IT consulting. On-site fabrication of structures.EPC Projects. Petrochemical and Desalination Projects. Refineries. Inc. Infrastructure. Installation. United Breweries is India's largest producer of beer with a market . United Breweries now has greater than a 40% share of the Indian brewing market. for large Industrial projects such as Power. services and professional IT products to business companies. UB financed a takeover of the spirits business of the rival Shaw-Wallace company giving it a majority share of India's spirits business. Testing and Commissioning of Electrical and Mechanical Equipments. Piping etc. Fertilizer. Steel. Cement. The company was initially established as Western India Erectors in 1963 and came under the UB Group in 1988.
share of around 48% by volume. Africa and Asian countries are growing rapidly.has also assumed undisputed market leadership with a national market share in excess of 50%. The UB Group’s Brewing Entity . UK. The market share of the Spirits Division in India is currently 60% and exports to the Middle East. UBL is one of only three in the world to own seven millionaire brands and at least five brands rated by Drinks International. an airline service in India. only after Diageo PLC and Pernod Ricard. with international flights operating recently. .called United Breweries Limited (UBL) . The Group is the third largest manufacturer of spirits products in the world. to be amongst the ten fastest growing brands in the world in their respective categories. The company markets most of its beer under the Kingfisher brand and has also launched Kingfisher Airlines.
Kingfisher Airlines and the sports business for the UB group Competitors: The competitors like Seagrams. Johnie Walker offer stiff competition to Kingfisher.Through a process of aggressive acquisition and market penetration. This is because of its investment . Fosters. In rivalry competitors try to grab each other’s market share by introducing price wars. In this report we would be trying to understand the strategy of United Breweries. Kingfisher is now sold in over 52 countries worldwide having received many accolades for its quality. Currently United breweries are the market leader in beer segment which places it ahead of its competitors. advertising battles and new product introductions. Sales of the UB Spirits Division have crossed 90 million cases (9 litres each) during the fiscal year 2008-09. The UB Group today controls 60% of the total manufacturing capacity for Beer in India. The flagship brand.
These trends are inviting . It has been present in India for many decades which give it an advantage of strong brand loyalty and also a strong brand image. Threat of new entrants: There are many other emerging brands which are coming up in India. As the lifestyle in urban areas is increasing the per capita liquor consumption is also increasing.in the Research and Development sector in liquor industry which enables it to introduce new brands rapidly.
Substitutes: In India the primary segments are beer and whiskey. So when more and more brands enter the marketthe customer goes for the cheapest brand in the same volume and alcohol limit bracket. Suppliers: The UB group is dependent upon barley producer for their beer production. So there is a threat from other substitutes like Vodka. Several foreign brands have made brand associations and are marketing their brands aggressively through various point-of-sale promotions throughout their distribution networks. Any change in barley prices affects the price of beer . Inalcohol industry the brand loyalty is not there.a lot of new foreign companies who willing to expand in the growing Indian market. If the competitors decide to make these segments more popular then there is a threat for the dominant market share of UB group in the liquor segment. Buyers: As the liquor consumption in India increases the customers also see their power increasing. Wine and Rum.
6.Market share of 59 % in spirits segment.SWOT ANALYSIS Strengths: 1.Over leveraged position leading to short term cash flow problems. 2. Aggressive advertising.Strong brand image in India. .Global presence of the brand. 5.Known for quality and innovation. 2.Financial backing from UB group. 4. 3. 7.Market share of 48 % in beer segment.Dominant single brand Kingfisher. Weakness: 1.
5.Expensive brand maintenance. High taxes.Static market growth rate.Negative perception of alcohol in India.Growth in substitutes. 2. STRATEGY . 6.Entry of foreign liquor brands.Long development cycles. 7. 3. 3. Opportunities: 1.3.Advertising and market restrictions.Growing beer market. 4. 2.Cloning of successful brands. Threats: 1.Any deregulation in the excise policies with reference to taxation and duty on beer which could drastically push up the demand for beer. 4. 4. Economic downturn. 5. 5.Demand for better quality.Low per capita beer consumption.Increase in disposable income.
They should also continue to innovate new liquor brands to strengthen their grip on the market share in normal priced brands.The UB group should increase the profitability of their breweries unit in line with the FMCG industry.They should be aiming to increase their exports. So it offers high return on investment plus it also strengthens the global brand image of the company. .They should make their wine segment more popular in India and abroad. They have already making inroads into Europe and USA by manufacturing and exporting grain based whisky. This can be done by increasing the market share in high price liquor brands in scotch and whisky segments. There is a large market potential in African countries. 3. This will make their brand more global in nature.1. 2. Wine is both abundantly consumed in Europe and is also costly.
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