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UNITED

BREWERIES
UB Group Investor Presentation

LIMITED

January 22rd 2008 , Copyright Protected


Introduction

§ Flagship company of United Breweries Group.


§ UBL was founded in 1915.
§ It has 48% Market Share in the country.
§ Available in 52 countries across the globe.
§ Rated as top 10 fastest growing brands in UK.
§ Multi-Faceted strategic alliance with Scottish and Newcastle plc (S&N)….an
international brewery.
§ Millennium Alcobev Pvt Ltd…(MABL), is a joint venture in which UB along with
its subsidiary and (S&N) have equal stake of 50%.
§ Management Team
q Dr. Vijay Mallya- Chairman.
q Mr. Kalyan Ganguly- President & Managing Director



Mission

§ To be the recognized leader in our target markets.

§ To be the preferred employer wherever they operate.

§ To recognize the values of human assets.

§ To be the partner of choice for customers, suppliers

 and other creators on innovative concepts.



Product Portfolio

UBL’s Products

§ Kingfisher Premium
§ Kingfisher Strong
§ UB export lager
§ London Pilsner
§ UB Premium Ice
MABL Products

§ Sandpiper Lager
§ Zingaro Beer
§ Kalyani Black Label
Kingfisher
§ Flagship brand of United Breweries Ltd.

§ The largest selling Beer in India.

§ 6 bottles of Kingfisher are sold every second in India.

§ Kingfisher Strong has become the No.1 Strong Beer in India.

§ Kingfisher Premium which continues to remain a leading brand in the mild


beer segment.
§ UBL commands a market share of around 40% with 67% of the market
share in the mild beer segment and 27% in the strong beer segment.

UBL: New Initiatives

§ Kingfisher Blue
q A new premium offering targeted at young, trendy consumers who seek zest and
excitement from life.
q Has been launched in select markets and will be extended across the country over
the next few months
q It has been extremely well received by the consumers and already outsells
international; new entrants
§
§ Kingfisher Bohemia
q ‘Anytime Anywhere' wines which complement any type of cuisine.
q South African wine available in a Red White and Rose variants. It is already the
market leader among the premium wines across the country
§
§ Kingfisher Ultra (KF Ultra)
q KF Ultra redefines premium beer segment in India.
q Launched in mid September 2009.
q Tagline “The Emperor of Good Times”.
Production
Mfg Network.
Global Market Scenario

•MARKET SIZE

vA 133 billion lt. Global Market
vGlobal Growth: An average 10%
• growth for last 10 yrs
vIndian contribution: 1.2% of Global Sales
vIndian Consumption: 3% of Global
Consumption
vIndia: 2 lt./capita consumption

v
•MARKET STRUCTURE

vHenieken, Carlsberg, Anheuser Busch,
InBev,
• Budweiser, Fosters, SAB, Kingfisher(UBG)
v
v

Indian Market Scenario

Market Size

§ A 140 million cases annual consumption market


§ South and west zones account for bulk (> 75 %) of
this market
§ Major beer consuming centers – Mumbai;
Bangalore; Chennai
§ The per capita consumption stands at a low 0.5 ltr.
per annum, compared to the Chinese average of
20 ltr and the US and German average of 100 ltr.
§ Andhra Pradesh enjoys the highest consumption of
Beer, followed by Maharashtra and tailed by Tamil
Nadu.


v
Market Structure

§ The beer market is estimated to grow over 70 million


cases a year.
§ In the last three years, the market has grown at 8-
10% per annum.
§ Major beer brands (manufacturers) – Kingfisher,
SAB Miller, Carlsberg, Fosters
§ Foreign brands – SAB Miller, Carlsberg, Fosters,
Budweiser

UB Group Acquisitions
Market Share

§ UB Group’s Kingfisher Beer


enjoys a Leading Market Share
in India of over 49%.
§ SAB Miller breweries, has grown
to gain almost 43% of the
Market segment.
§ Carlsberg’s Tuborg and
Anheuser-Busch’s Budweiser
and Heinken have a combined
market share of less than 7%.
§ Regional Players enjoy a
negligible market share of
almost 1%.

P&L Statement

(R
s.C
rore
)

S
ales
S
alesGrowth

Expenses 
Balance Sheet Statement

(Rs. Crore)
SOURCESOFFUNDS 
Owner'sFund 
EquityShareCapital 
ShareApplicationMone
Cash Flow Statement

(Rs. Crore)

Fund Flow from Op


Revenue Analysis
Loan Funds
Owner’s Fund
Financial Analysis



Current Ratio
Debt to Capital
Interest Coverage Ratio
Inventory Turnover Ratio
Debtor Turnover Ratio
Fixed Asset Turnover Ratio
EPS
DPS
RONW
Stock Performance in the past
Breweries Industry & Government
Policies
§ Until 1989, licensing policies were restricted
§ In June 2007, 100% of FDI investment was allowed.
§ Post 2007, liquor manufacturing no longer needs a
licenses.
§ State specific Manufacturing Licenses: Mandatory
§ State specific Sales: Cross Sales prohibited by law
§ Obtaining Licenses: Lengthy& expensive
§ Different State-wise structure:
o Excise Duty
o Import and Export Levies
§
§
§
Challenges

§ Predominantly a spirits market


§ Entry of international Players
§ Global markets experiencing low / stagnating
growth in recent years
§ Plagued with a myriad of taxes & levies
§
Future Outlook

§ Domestic production of beer is on the rise


§ International premium lager is growing
steadily.
§ Rising demand in domestic Market.
§ Expected deregulation in the Indian beer.
§ Uniform tax regime for beer in all states.
§ Beer sector can contribute immensely to the
agricultural sector.


Cheers………

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