r-u-p-a-k-1196423864981470-3
TRANSCRIPT
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The Power of Leadership
Presentation onUB Group
Presented By:Rupak Choudhary 10
Nihar Nautiyal 29
Sweta Sharma 45Shakti Singh 47
Suraj Singh 48Puneet Soni 55
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The Power of Leadership
PRESENTATION SUMMARY
INTRODUCTION
ORGANISATION AND PRODUCTS
STRATEGIES
INDUSTRY AND MARKETS
STRATEGY AND COMPETITORS
CONCLUSIONS
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The Power of Leadership
Introduction
The UB Group was founded by Scottishgentleman Thomas Leishman in 1915.
The group started manufacturing beer from
south Indian based British breweries andelected its first Indian director, Mr. VittalMallya in 1947.
Kingfisher the most visible and modest brandmade its entry in 1960.
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The Power of Leadership
Contd
During the 60s they added Mc dowell as a
subsidiary which helped them to extend its portfolioin to wine & spirits business.
Latter on Mr. Vittal Mallya acquired UB Group and
after his untimely deth in 1983, Mr. Vijay Mallyabecame the chairman of UB Group.
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The Power of Leadership
Mission & Vision
We are focused on assuming leadership in all our targetmarkets.
We seek to be the most preferred employer wherever weoperate.
We recognize that our organization is built around peoplewho are our most valuable asset.
We will always be the partner of choice for customers,suppliers and other creators of innovative concepts.
We will operate as a decentralized organization and alloweach business to develop within our stated values.
We will be a major contributor to our National Economyand take full advantage of our strong resource base.
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The Power of Leadership
Group Business
Breweries
Airlines
Fertilizers
Engineering
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The Power of Leadership
UB GROUPA Group in the process of Transformation
Spirits29%
Beer
8%
Pharma
25%
Engineering
18%
Others
7%Petrochemic
als
6%
Paints
7%
FY 1990
FY 2006
Bee r , 17%
Spirits, 59%
Airlines ,6%
Engineerin
g , 3%
Fertilizers,
15%
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The Power of Leadership
UB Group- One of Indias leading wealth creators
Market Cap : August 2006
Five Core listed companies have a market cap ofUSD 1.7 billion
Market cap has grown 10 times in last 5 years
Some of the large funds who have invested inMcDowell
and United Breweries include-
McDowell & Company Ltd
Sloane Robinson LLPGoldman Sachs (Mauritius)Merril Lynch Capital MktsDB Funds (Mauritius)FID Funds (Mauritius)Platinum Asset Mgnt
United Breweries Ltd
Oppenheimer Fund IncCitigroup Global MktsGoldman Sachs (Mauritius)FID Funds (Mauritius)Arisaig Partner (Asia) PteHSBC Financial Services (ME
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The Power of Leadership
Group Holding Structure
(UB City Project)
Investments Real Estate
Spirits
Business
United Spirits
Shaw Wallace Ltd
Beer
Business
United Breweries
Millenium Alcobev
Aviation Others
Kingfisher
Airlines Ltd.
Aventis
Pharma
MangaloreChemicals &
Fertilizers
UB Engineering
UB (Holdings) Ltd.
(36.54%)(37.50%)
(50%)
(100%)
(10.28%)
(30.44%)
(34.74%)
(55%)
( Erstwhile McDowell &
Co Ltd)
(75%)
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The Power of Leadership
UB GroupUnique Leadership in both Beer and Spirits
Spirits : Controls about half the domestic market -
60% in first line brands
3rd largest player in the world
Has 5 brands which are in the Top 50Spirits Brands World wide list of ImpactInternational.
Beer :
50% market share nationally Sold in over 52 countries
Indias 1st global consumer brand
Kingfisher
Both Beerand Spirits
share acommon
distributionchannel
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The Power of Leadership
Strongest brands
Significant
upgradation
Least vulnerable
to policy
volatility due tolarge spread
Branding
Local
Sourcing
Value
Chainownership
Segment-
Market
Presence
ManufacturingTechnology
Beverage
Business
Optimal, asalmost
completely
locally sourced
Largest manufacturing base
Maximum capacity utilisation
Initiatives plannedfor integration into
retailing
The UB Groups competitive advantage
Management
Team
Professionally managed
Seasoned professionals with
significant industry experience
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The Power of Leadership
Grand Strategies
Expansion Strategies
Diversification
Cooperation (M&A, JV/Foreign Collaboration)
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The Power of Leadership
Acquisition of Shaw Wallace
Shaw Wallace was the 2nd largest player in spirits inIndia (MS - 15%).
UB Group acquired 75% stake for a consideration ofUSD 300 mio in July 2005
Consolidation Plan Action initiated to merge all the spirits entities into
McDowell to create United Spirits Limited.
USL 4
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The Power of LeadershipACQ 1
Largest producer of sparkling wine in Saumurregion.
Acquisition of Bouvet Ladubay
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The Power of Leadership
Acquisition of Air Deccan
The choice is simple.
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The Power of Leadership
UB
SAB
MM
Shiv'k
Fosters
Other
Market ShareMar 06
Kingfisher
(Mild+Strong)
H 5000
Knock-out
Royal Challenge
Zingaro
Others
Brand MarketShare Mar 06
Indian Beer Market
UBL 2
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The Power of Leadership
COMPANY SWOT ANALYSIS
Strengths
Threats
Weaknesses
Opportunities
Market LeaderStrong Brand ImageGlobal PresenceAggressive AdvertisingQuality & Innovation
Long DevelopmentCyclesRelatively Static MarketGrowthExpensive Brand
Maintenance
Demographic ChangesChanging SocietalAttitudes
Consumer BrandPreferenceDemand for High Quality
New CompetitorsCloning of Successfulbrands
Increasing Buyer PowerGrowth in Substitutes
Economic Downturn
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The Power of Leadership
MARKET POSITIONING Airlines
Price
Quality
Jet Lite+ Jet
kingfisher
Indian airlines
Spice jet, Go
Deccan
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The Power of Leadership
PORTERS FIVE FORCES MODEL
IndustryCompetitors
Strong image,
Brand Loyalty, and
Innovative R&D.
Potential Entrants
Barrier to entry - customer
loyalty, high set-up costs.
Buyers
Retailers power
increasing.
Substitutes
Railways for airlines.
Suppliers
Globaleconomies of
scale keep
suppliers prices
low.
Source: Porter, 1978
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The Power of Leadership
PRODUCT MARKET PORTFOLIO
RMS
MARKETGROW
TH(%)
1.0
Breweries
Airlines
15%
10%
18%
1.5 0.6
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The Power of Leadership
Thank You