Y



 
 
   

PRESENTED BY:
HITESH VERMA (10)
     
u Founded by Thomas Leishman in1915.
u Indiaǯs largest brewery
u 140 brands in portfolio like Bagpiper whisky,
McDowell No.1, Directorǯs special whisky, McDowell
No.1 Brandy, Premium Ice, Kalyani Black Label etc..
u Domestic market share in excess of 50%
u For maintain leadership position they made
multifaceted strategic alliance with Scottish and
Newcastle
=   =

Y

u Increased scale Ȃ price increase from improved
negotiating power.
u Increased usage of single Completely Built Unit (CBU)
to improve throughput.
u Extra New Alcohol (ENA) procurement pattern and
spirit movement planning.
u Rationalization of terms of trade reduction in spends.
u Rationalizations of personnel and overheads.

  
u Founded by James Whyte and Charles Mackay in
Scotland
u 4th largest whisky maker in the world with turnover
of $283 mn
u Major brands like Isle of Jura, Dalmore, Vladvir Vodka
and W&M.
u No. of employee 700
u Working on the philosophy of Ǯall good things come
to those who wait
     
u 2006 was a record year for scotch whisky
export
 =


u Indian Liquor Industry divided in two parts:
u Indian Made Foreign Liquor (IMFL) Ȃ 112 mn cases
per annum and per capita consumption around 2.1
liters per annum
u Bear Segment Ȃ 91 mn cases per annum.
u In 2006 Union Budget Govt. impose 4% Counter
Veiling Duty on liquor industry which strengthens
the position of domestic company
 Y  
u Structuring of deal:
1. By Leveraged Buy Out
2. Debt is secured by the assets of the acquired
business & the cash flows of the acquired business
will be used to service the debt
3. Deal was worth Rs.9484.84 Cr
4. Special purpose vehicle Ȃ DzUnited Spiritsdz newly
launched company
5. UB paid GBP 505 Million which accounted 100%
stake in Whyte & Mackay
6. Debt to equity ratio of newly launched company
1.336
 J    
u Acquisition finance to US was provided
by ICICI Bank & Citibank
u Debt of £ 325 Million extended by ICICI
u Debt of £ 310 Million extended by
Citibank
u Advisors to the Buyer and Seller
u Buy side - United Bank of Switzerland
u Sell side - Citigroup
 °   
u MOU with Russian Standard Company
1. China Initiatives
2. Wine business
3. New product initiatives
Scotch - Black Dog 8 year old
Prestige+ - Royal Mist
Vodka - Romanov mango/Chocolate, White
Mischief
   
u Portfolio Strategy
1. Luxury Brands
2. Emerging Premium Brands
3. Power Brands
 =   Y

u
  
=    !"# $
 %&& '(   
  )    
"#%"#'*'
 è °(''
u United Breweries Group
1. To increase the brand portfolio
2. Enter into the Russian and China
Market
3. Self sufficient for scotch requirement
4. Brand image of Whyte & Mackay
5. Import tariff avoided and brand can
be sold at higher margin