Product Portfolio 2

8/8/2019 Product Portfolio 2

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Details & Analysis

of

UB Group ANKITA BHAWSINKA 05ARCHANA PANDURANGI 09

HARI SHARMA 18

NIMIT VISHNANI 30

ARJUN BALI 10

APRAJIT KATHURIA 08


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A Brief

United Breweries Group orUB Group, based

in Bangalore

a conglomerate of different companies

with a major focus on the brewery (beer) and

alcoholic beverages industry


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Divisions

United Breweries Ltd (48% m.s)

United Spirits Ltd (59% m.s)

Kingfisher Airlines (19% m.s)


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Mangalore Chemicals & Fertilizers Ltd

UB Global

Ub engineering (ub engg)

UB City


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Portfolio

Alcoholic Beverages

Leather products

InvestmentsAirlines

Property development

Maintenance Training

Others


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United Spirits

Whisky Brandy Rum Wines Vodka

Whisky Brandy Rum Wines Vodka

Bagpiper

McDowellsNo.1

Directors

Special

Old Tavern

Haywards

McDowellsGreen

Label

Gold Riband

Royal

Challenge

DSP Black

Signature

McDowells

No.1 Honey Bee

John Ex-

Shaw

Celebration

Rum Old Cask

Rum

Old

Adventurer

Rum

Bouvet

LadubayFour

Seasons

Bohemia

Romanov

White MischiefPinky


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United Breweries Ltd

Beers

Beers

Kingfisher Blue - Premium Beer

Kingfisher Red

Kingfisher Strong - Strong Beer

Kingfisher Premium Mild Beer

Kingfisher Ultra


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Airlines

Domestic

Kingfis

herFirst

KingfisherRed

KingfisherClass

International

Kingfis

herFirst

KingfisherClass


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2007-08 Revenue

2236.166;11%

577.711; 3%

345.263;2%

15084.919;78%

200; 1%

1.121; 0% 959.864; 5%a) Liquor

b) Leather shoes /sandals / uppers

c) Investments

d) Airlines

e) Property development

f) Maintenance

h) Others


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2007-08

SEGMENTS REVENUE PROFIT/LOSS % to REVENUE

a) Liquor 2236.166 76.609 3.42%

b) Leather shoes / sandals /

uppers 577.711 25.533 4.41%

c) Investments 345.263 486.894 141.02%

d) Airlines 15084.919 4893.088 32.43%

e) Property development 200 200 100%

f) Maintenance 1.121 0.539 48.08%

h) Others 959.864 297.858 31.03%


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2008-09 Revenue

2335.145; 7%

1009.093;3%

726.054; 2%

27362.063;83%

545.027; 2%

78.488; 0%39.487; 0%

1108.377; 3%a) Liquor

b) Leather shoes /sandals / uppers

c) Investments

d) Airlines

e) Propertydevelopment

f) Maintenance

h) Others


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2008-09


a) Liquor 2335.145 85.502 3.66%

b) Leather shoes / sandals

/ uppers 1009.093 42.454 4.20%

c) Investments 726.054 588.861 81.10%

d) Airlines 27362.063 7122.941 26.03%

e) Property development 545.027 545.027 100%

f) Maintenance 78.488 21.112 26.89%

h) Others 1108.377 734.878 66.30%


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2009-10 Revenue

3,276.62; 3%389.264; 0%

146.311; 0%

51,332.00; 45%

652; 1%

165.851; 0%65.261; 0%

602.621; 1%

56,629.93; 50%

a) Liquor

b) Leather shoes / sandals/ uppers

c) Investments

d) Airlines

e) Property development

f) Maintenance

h) Others

Total Revenue


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2009-10


a) Liquor 3,276.62 164.706 5.02%

b) Leather shoes / sandals

/ uppers 389.264 45.981 11.81%

c) Investments 146.311 111.854 76.44%

d) Airlines 51,332.00 15,504.46 30.20%

e) Property development 652 522.665 80.16%

f) Maintenance 165.851 21.634 13.04%

h) Others 602.621 80.443 13.34%


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Market Capital: Rs 51332 Mn

2009-2010

Kingfisher Airlines


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Airlines

77.74

82.41

90.64

81.76

77.50

94.19

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

2007 2008 2009

% Contribution to Revenue

% Contribution to Profit


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Aviation Industry

Passenger traffic for the Aviation Industry

increased in Q3 FY 10 (+30.5% over Q3 last year).

Industry saw an improvement in both premium &

economy segments.


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Kingfisher Airlines

Domestic revenue up 17% from Q210

Guests flown increased by 5% from Q2 10 despite

3% reduction in capacity

Capacity deployed decreased by 1.06 lac seatsfrom Q2 10 ; Guests flown increased by 1.14 lacs

Highest ever seat factor(passenger-kilometres /

available seat-kilometres) of 80.2% achieved

during December2009


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United Breweries Ltd

Market Capital : Rs 3,276.62 Mn


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Liquor

11.52

7.03

5.79

1.280.93 1.00

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

2007 2008 2009

% Contribution toRevenue

% Contribution toProfit


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Growth Opportunities

Excellent demographics, an expanding middle class, and

increasing income levels have huge potential to propel

domestic demand

y 70% of population below 30 years of age

y Middle class growing from 5% in 05 to 43% in 2025y Disposable income set to increase significantly on back of

sustained GDP growth

Positioning of Beer is developing very positively

y Rise in income makes beer affordable to more consumers

y Young urban consumers have a modern mindset towards

beer


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United Breweries Ltd Stats

UB growth is double of industry

y Volume Growth YTD

Highest market share ever

y Market share in Q3 has reached all-time high of 53%

Returns have increased significantly

y Revenue is up 17%

y EBITDA increase of 28%

y Net profit jumps 134%

UB 17%

Industry 7-9%


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Market Share ofUnited Spirits

55%

9%

8%

5%

5%

1% 5%

12%

Market Share (UBL) 2009-2010

United Spirits

Radico

Seagrams

BDA

JagatJit

DiageoMohan Meakin

Others


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Underpenetrated Alcoholic

Beverage Industry About 600mn Indians are currently below legal drinking age

and 100mn will come of that age over next 3-4years.

India accounts for nearly 9% of the global spirits market in by

volume and for 8.9% of the Asia-Pacific alcoholic drinksmarket's revenue.

70% prestige & 50% premium customers are b/w 21-24yrs


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United Spirit Advantage

USLs dominance ofWhisky (59%) / Rum (56%) gives it asignificant advantage to secure a disproportionate share ofIndustry Growth:

y Sources of growth: First timers .. Large youth

population comes of drinking agey 90% of first timers choosing spirits choose a brown

spirit (Whisky / Rum)

Only Indian Company with a full line portfolio that coversall flavors and price pointsy Best position to gain from upgrades as cheap whisky / rum vanish from

the market on account of cost push

y Best position to mitigate any adverse impact as a result of down-tradingin a recessionary environment


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Diversified Business

4.95

3.34

1.06

4.98

8.00

0.49

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

2007 2008 2009

% Contribution toRevenue

% Contribution toProfit


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Mangalore Chemicals &

Fertilizers Ltd

Only manufacturer of chemical fertilizers in

Karnataka

Produces a wide range of products thatinclude urea, di-ammonium

phosphate, granulated

fertilizers, micronutrients and soil conditioners

YTD FY10

y Total Income Rs.1,809.54 cr

y PAT Rs. Rs.46.60 (Rs.2.1cr)


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UB Engineering Ltd

Into EPC, O&M and Erection services for large

industrial projects such as

power, refineries, steel, cement, etc

YTD FY 10

y Total Income Rs. 317.53 cr

y EBIDTA Rs.31.27 cr (+25%)

y PAT Rs.20.65 cr (+19%)


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GE Matrix AnalysisBreweries Aviation Chemicals Infra Pharma

Market Attractiveness

- Market size + + + + +

- Market growth rate + + + + +

- Market profitability + - moderate + Moderate

- Pricing trends + - moderate moderate

- Competitive intensity / rivalry moderate - - - -

- Overall risk of returns in the industry moderate moderate moderate + moderate

- Entry barriers moderate + + - -

Industry Strengths

- Relative brand strength (marketing) + + moderate moderate moderate

- Market share + - moderate - -

- Market share growth + + + moderate moderate

- Customer loyalty + moderate moderate moderate +

- Production capacity + moderate - moderate -

- Technological or other innovation + + + - -

- Quality + + + + +


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Breweries Airlines

Infrastructure e icals

Aventis


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BCGMatrix

Aventis

Airlines

United

Breweries


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Conclusion

The group should keep on investing in the

Breweries division as the portfolio offers

promising future.

Aviation is in growth phase so needs focused

growth strategies.

It can divest from the Pharma business andconcentrate on the Infra division specially

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