Bs Assignment

BS ASSIGNMENT
COMPANY: UNITED SPIRITS
http://www.sebi.gov.in/dp/ublfinal.pdf
http://www.etstrategicmarketing.com/Smmarch-april04/art3.html
http://www.nku.edu/~fordmw/mgt490projectbeer.pdf
MISSION OF THE ORGANIZATION:-
United Spirits Limited (USL) is the largest spirits company in India and among the top 3 spirits
companies in the world. An enviable portfolio of alcoholic beverages makes USL one of the
most popular brands in the world.
The company has 17 millionaire brands (selling more than a million cases a year) in its portfolio
and enjoys a strong 59% market share for its first line brands in India.
Premium brands like Whyte & Mackay and Bouvet Ladubay are 100% subsidiaries of USL.
United Spirits' brands have won the most prestigious awards for flavors including Mondial,
International Wine and Spirit Competition (IWSC) and International Taste and Quality Institute
(ITQI). The Company has been recognized in the industry as an innovator with several firsts to
its credit like the first pre-mixed gin, the first Tetrapack in the spirits industry in India, the first
single malt manufactured in Asia and the first diet versions of whisky and vodka in India.
USL has a well-established global network with exports to over 59 countries. It has a sizeable
presence in India with distilleries and sales offices all across and a dedicated team of over 7500
people simplemindedly committed to fulfilling the company's objective of becoming a world
leader. It has established manufacturing and bottling plants in every state of India. To deliver its
products to customers located anywhere in India, USL has also established a robust distribution
network across the country.
USL’s Wine Business in India operates through two companies – United Vintners Limited and Four
Seasons Wines Limited. UVL imports wines from all over the world to offer a portfolio of wines of
different origin, varietals, styles and price points. The current portfolio comprises a selection of some
exquisite ‘New world’ & ‘Old world’ wines from New Zealand, Australia, Portugal, South Africa and
France.
The company has also commissioned a green field project, coming up in Baramati, which will be India’s
best and biggest winery. 6 different ranges will be produced during the first year of operation and 8
more brands will be added over the next 3 years, including manufacturing of premium wines that will go
through French oak barrels. Plans to manufacture sparkling wines using traditional French method
(methode champagnoise) and under the technical guidance of Bouvet-Ladubay are also in the pipeline.
The wines are marketed under the brand names - ZINZI & FOUR SEASONS.
For its annual production requirement, the company has already entered into long term contractual
agreement with local farmers for 500 acres and will enter into contractual agreements for a further
2000 acres of vineyards. Besides, the company will also share its technical expertise with the local
farmers of Baramati and help in viticulture. This project will act as a catalyst to the socio-economic
development of the local community by generating approximately 2000 direct and indirect job
opportunities for the people of Baramati. Simultaneously, it will also promote wine tourism at its winery
& vineyards.
The UB Group led by Dr. Vijay Mallya, is one of India’s leading branded consumer group
• The Group has dominated the market in three main consumer driven segments: alcoholic beverages,
spirits and aviation which are its main lines of business; andalso has interests in the areas of
engineering, fertilizers, and biotechnology
• The Group turnover touched US$ 2.6 bn for the financial year ended Mar’08 and the Group market
capitalization as on Dec’08 was US$ 3.2 bn
• The UB Group comprises of United Breweries Holding Limited (UBHL), the holding company which in
turn owns controlling stakes in other Group companies including United Spirits Limited , Kingfisher
Airlines Limited and United Breweries Limited
• Group has grown in past through both inorganic (Deccan Aviation, Whyte & Mackay, Shaw Wallace)
as well as organic mode and continues to do so
• All the major companies of the group are publicly listed and follow the highest standards of
corporate governance and international best practices
United Spirits (USL), the flagship company of the Vijay Mallya-promoted UB Group, said on Wednesday
that it had crossed sales volume of 100 million cases in 2009-10, making it the world's No 2 spirits
company in volume terms.
Mallya said USL had dislodged Paris-headquartered Pernod Ricard from that position. Diageo, the No 1
spirits company, is now only about 9 million cases ahead of USL, and Mallya expressed confidence that
given the difference in growth rates between the two companies, USL could overtake the London-based
company in another year.
USL is said to have seen a CAGR (compounded annual growth rate) of over 15% in the three years
between 2005-06 and 2008-09, while the same for Diageo and Pernod Ricard is said to have been about
2%.
However, in value terms, USL would be lower down the global order because it sells primarily in the
Indian market, where alcoholic beverage prices are substantially lower than in developed markets. The
company said its turnover last year was about Rs 6,500 crore (18% higher than the Rs 5,500 crore in
2008-09) or about $1.4 billion. Diageo had revenue of 12 billion in 2009 and Pernod Ricard had revenue
of over 7 billion euro last year, though for both companies, those figures are for their entire portfolio,
not just spirits. TOI could not get the standalone figures for their spirits business.
In the Indian market too, USL said it had extended its lead over rivals by recording an incremental
volume increase last year of 12 million cases, as against Pernod Ricard India's 3 million cases and Radico
Khaitan's 1.5 million.
The company said it was moving up the value chain for premium spirits consumption. "With more than
100 million potential customers entering the legal drinking age in the next five years in India, the
opportunity for growth is tremendous," USL said.

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COMPANY: UNITED SPIRITS

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