Upload
vishal-behani
View
356
Download
3
Embed Size (px)
DESCRIPTION
Citation preview
The Power of Leadership
UB Group
The Power of Leadership
PRESENTATION SUMMARY
• INTRODUCTION
• ORGANISATION AND PRODUCTS
• STRATEGIES
• INDUSTRY AND MARKETS
• STRATEGY AND COMPETITORS
• CONCLUSION
The Power of Leadership
Introduction•The UB Group was founded by Scottish gentleman Thomas Leishman in 1915.
•The group started manufacturing beer from South Indian based British breweries and elected its first Indian director, Mr. Vittal Mallya in 1947.
•Kingfisher, the most visible and modest brand, made its entry in 1960.
The Power of Leadership
Contd…
• During the 1960’s they added McDowell as a subsidiary which helped them to extend its portfolio in to wine & spirits business.
• Later on Mr. Vittal Mallya acquired UB Group and after his untimely death in 1983, Mr. Vijay Mallya became the chairman of UB Group.
The Power of Leadership
Mission & Vision• We are focused on assuming leadership in all our target
markets.
• We seek to be the most preferred employer wherever we operate.
• We recognize that our organization is built around people who 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 allow each business to develop within our stated values.
• We will be a major contributor to our National Economy and take full advantage of our strong resource base.
The Power of Leadership
Group Business
• Breweries
• Airlines
• Fertilizers
• Engineering
The Power of Leadership
UB GROUPA Group in the process of
Transformation
Spirits 29%
Beer8%
Pharma25%
Engineering18%
Others 7%
Petrochemicals6%
Paints 7%
1990
The Power of Leadership
The Power of Leadership
UB Group – One of India’s leading wealth creators
Market Cap : August 2006•Five Core listed companies have a market cap of
USD 1.7 billion •Market cap has grown 10 times in last 5 years
•Some of the large funds who have invested in McDowell 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
The Power of Leadership
Group Holding Structure
(UB City Project)Investments Real Estate
Spirits Business
United Spirits
Shaw Wallace Ltd
BeerBusiness
United Breweries
Millenium Alcobev
Aviation Others
Kingfisher
Airlines Ltd.
Aventis Pharma
Mangalore Chemicals &
Fertilizers
UB Engineering
UB (Holdings) Ltd.
(36.54%)(37.50%)
(50%)
(100%)
(10.28%)
(30.44%)
(34.74%)
(55%)
( Erstwhile McDowell & Co Ltd)
(75%)
The Power of Leadership
UB Group Unique 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 50 Spirits Brands World wide list of Impact International.
Beer : 50% market share nationally Sold in over 52 countries India’s 1st global consumer brand – Kingfisher
Both Beer and Spirits
share a common
distribution channel
The Power of Leadership
• Strongest brands• Significant
upgradation
• Least vulnerable to policy volatility due to large spread Branding
Local Sourcing
Value Chain
ownership
Segment-Market
Presence
Manufacturing Technology
Beverage Business
Beverage Business
• Optimal, as almost completely locally sourced
• Largest manufacturing base• Maximum capacity utilisation
• Initiatives planned for integration into retailing
The UB Group’s competitive advantage
Management Team
• Professionally managed• Seasoned professionals with
significant industry experience
The Power of Leadership
Grand Strategies
• Expansion Strategies
Diversification Cooperation (M&A, JV/Foreign
Collaboration)
The Power of Leadership
Acquisition of Air Deccan
•The choice is simple.
The Power of Leadership
Market Share Mar 06
Brand Market Share Mar 06
Indian Beer Market
UBL 2
The Power of Leadership
SWOT ANALYSIS
Strengths
Threats
Weaknesses
Opportunities
Market LeaderStrong Brand ImageGlobal PresenceAggressive AdvertisingQuality & Innovation
Long Development CyclesRelatively Static Market GrowthExpensive Brand Maintenance
Demographic ChangesChanging Societal AttitudesConsumer Brand PreferenceDemand for High Quality
New CompetitorsCloning of Successful brandsIncreasing Buyer PowerGrowth in SubstitutesEconomic Downturn
The Power of Leadership
MARKET POSITIONING Airlines
Price
Quality
Jetlite + Jet Airways
Kingfisher
Air India
SpiceJet, Indigo, GoAir
Deccan
The Power of Leadership
PORTER’S FIVE FORCES MODEL
Industry Competitors
Strong image, Brand Loyalty, and Innovative R&D.
Potential EntrantsBarrier to entry - customer loyalty, high set-up costs.
BuyersRetailers power
increasing.
SubstitutesRailways for airlines.
SuppliersGlobal
economies of scale keep
suppliers priceslow.
Source: Porter, 1978
The Power of Leadership
Thank You