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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