Breweries Limited (UBL) was founded on March 15, 1915, in
Madras by Thomas Leishman, a Scotsman, also its first Managing
It all began with 5 breweries in South India , sold in bullock carts.
The company was bought by late Mr. Vittal Mallya in 1947.
The Dhaka-born Mallya invested heavily in the shares of United
Breweries in the late 40s with an eye on its eventual acquisition.
Vittal Mallya was elected to the Board of Directors of UBL in 1947 at
the age of 22 and a year later became its Chairman.
Vittal Mallya was succeded by Dr. Vijay Mallya, was elected by
shareholders as Chairman of UB in 1983, at the age of 28.
Dr.Mallya is till date the chairman of the company.
During the time of Vittal Mallya, the sight of bullock carts carrying
huge barrels called “ hogsheads “ containing beer became a household
These carts wheeled their way to the customers, including British
troops, living in and around Madras, Bangalore and the Nilgiris.
We constitute a large, global group based in India. We associate with
world leaders in order to adopt technologies and processes that will
enable a leadership position in a large spectrum of activities.
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 continually increase the long-term value of our Group for the
benefit of our shareholders.
Quality leadership is vital to the long-term success of the UB Group in
an increasingly competitive marketplace.
Building quality into our workplace, products and service is essential
to a successful future for our customers, employees, supplier’s
communities and shareholders.
The UB Group will work to provide products and services that always
meet or exceed expectations.
Management will commit resources and create an environment in
which each employee can contribute skills, talents and ideas to a neverending process of improvement and innovation in all aspects of our
The Group expanded by acquisition, innovation in products and
entering new markets.
Currently, it is more focused on introducing more products in the
existing markets and through Globalization it entered Europe, Africa.
Started Kingfisher airlines in 2003, which became an international
airline in 2008.
Almost all acquisitions have been very successful for the Group.
Alcoholic Drinks: McDowell, Shaw-Wallace, Whyte and MacKay, etc.
Airplane: Air Deccan
They have moved into sporting events like Force India and
Royal Challengers Bangalore.
Also started up with an entertainment channel NDTV GOOD TIMES
Launched the Kingfisher Calendar in 2003, which mostly acted as a
promotional instrument for Kingfisher as a Brand.
Overall industry rating:
Threat of new entrants.
Bargaining power of buyers.
Threat of substitutes.
Bargaining power of suppliers.
Intensity of rivalry among
Threat of new entrants is towards lower side.
Economies of scale in manufacturing, distributing, and marketing
create high barriers to the national and global markets.
The capital needed to build beer manufacturing facilities and the
costs associated with operating business on a national scale are
The costs associated with this highly controversial industry seek high
levels of sales, thus making the industry more and more prohibitive for
Barraging power of buyers is high.
The quantity of alcoholic beverages that a nation consumes tends to
be unaffected through recession and prosperity while the quality of the
products purchased is directly related to the disposable income.
A decline in disposable income shifts consumer preferences away
from premium-priced brand-name products in favor of lower-priced
brands i.e switching cost is low.
Threat of substitutes is low.
Customer loyalty through brand awareness.
The advertising restrictions placed on alcoholic beverage industry in
recent years make it harder to achieve brand loyalty.
Supplier Power is low.
Products used to brew beer are inexpensive and suppliers are
Rise in legal and regulatory burdens, leads many manufacturers to
merge in order to lower competition. Acting as oligopolies, they ensure
high profit margins, cash flows, and investment returns.
Though the competition is tough, The Kingfisher brand is the one of
the largest supplier of beer, & the third largest producer of distilled
• Strongest Worldwide Distribution System.
• Huge Finances backing from UB Group.
• Oldest & Largest Player In India
• Worldwide known Brand
• Beer consumption is increasing
• Reduction in Taxes
• Brand Extension Benefits
• Different Brands under Same Company
• High Concentration on Strong Beer Market
• High Taxes & Regulations
• Prohibition on Advertising
• Indian Culture is a Major Hindrance
• Many International Player Entering In