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Evolution of the Ub Group EVOLUTION OF THE UB GROUP Vittal Mallya saw an opportunity in 1946-47 and started acquiring the shares of United Breweries Limited, of which he became the Chairman. His foresight and business acumen led to the aggressive expansion of the United Breweries Group. Meanwhile, the acquisition of control over McDowell & Company Limited marked the Group’s entry into the Wines and Spirits business. The Group took a further stride with the acquisition of Kissan Products Limited in 1950-60. It also began its association, about this time, with Hoechst AG of Germany while co-promoting Hoechst Pharmaceuticals Limited, now known as Aventis Pharma India. Having set the pace for the Group’s progress, Vittal Mallya had to slow down because of a health set-back. In 1965, the family moved back to Calcutta. Vittal Mallya acquired Phipson & Company Limited and Carew & Company Limited to further reinforce the Group’s presence in the Beverages Alcohol industry. It was 1977, the Morarji era of prohibition. Swimming against the current and showing once again a rare sense of timing and business opportunity, Vittal Mallya acquired several breweries and distilleries. What set Vittal Mallya apart was his humility and simplicity. Despite his poor eyesight, his vision remained unfailing and fully focussed. A vision that has created one of India’s leading corporate houses. A vision that is a shining example and an inspiration After the death of Vittal Mallya, his son Vijay Mallya was elected by shareholders as Chairman of UB in 1983, at the age of 28. Upon assuming the position of Chairman in October 1983, Dr. Mallya initiated the process of defining a corporate structure with performance accountability, inducting professional management and consolidating the unwieldy empire into individual operating divisions. In 1988, Mallya became a non-resident Indian to pursue global opportunities and to transform The UB Group into India's first multinational company. While, in the initial stages, overseas representative offices had been commissioned, the real break came in 1988 when Mallya, in a leveraged buyout, acquired the global Berger Paints Group with operating companies across four continents. The exit strategy for this investment was profitably executed when Mallya successfully directed five Initial Public Offerings on the London [Images], Singapore (Main Boards), Nairobi, Jamaica and Abidjan Stock Exchanges. The paints business was divested for significant value in 1996. Mallya also founded a software company in the US in 1993 which was subsequently listed on the NASDAQ in 1996 and which provides a considerable window of opportunity to the vast US market. He also initiated several ventures for the promotion and globalization of UB brands and, in particular, Kingfisher and McDowell. In 1990, following the Government of India's liberalised economic policies, Dr. Mallya decided that the UB Group would only retain interests in businesses that were globally competitive and which did not depend upon fiscal tariff protection. He also decided to focus on areas of core competence and transformed the vastly diversified UB conglomerate into a handful of key operating businesses. On entering the new millennium, The UB Group is considerably more focused and has dramatically increased value for its shareholders through its various operating businesses. Sales of the UB Spirits Division have touched 74 million cases (9 litres each) during the third quarter of the fiscal year 2007-08. In addition, this Division is one of only three in the world to own fifteen millionaire brands and at least five brands rated by Drinks International, UK to be amongst the ten fastest growing brands in the world in their respective categories. The market share of the Spirits Division in India is currently 60% and exports to the Middle East, Africa and Asian countries are growing rapidly. In 2007, United Spirits [Get Quote] Limited, the flagship of The UB Group, acquired a hundred percent of premium scotch distillers Whyte & Mackay and Liquidity Inc, a United States-based maker of specialty vodkas. The Delaware-based Liquidity Inc produces speciality brands like Pinky Vodka and Marakesh. The UB Group's Brewing Division has also assumed undisputed market leadership with a national market share in excess of 48%. Through a process of aggressive acquisition and market penetration, The UB Group today controls 60% of the total manufacturing capacity for beer in India. The flagship brand, Kingfisher, is now sold in over 50 countries worldwide having received many accolades for its quality. Kingfisher, one of the flagship brands of The UB Group, has partnered with NDTV, India's leading broadcast group in a first-of-its-kind media alliance for the promotion of NDTV Good Times. The NDTV Good Times channel would leverage from the editorial credibility and quality of the NDTV group and the strong lifestyle appeal of the Kingfisher brand and icon, to offer Indian viewers a world-class television entertainment experience. The UB Group's Kingfisher Airlines is today the undisputed market leader in India's booming aviation market. In the short span of just under three years since it was launched, Kingfisher Airlines has redefined the whole experience of flying and has raised the bar by unleashing a host of product and service innovations. It has received over thirty awards since its inception. Later it merged with Deccan Aviation to form the largest private airline in India. Kingfisher Airlines offers full service and promises an unparalleled experience to the Indian air traveller. The UB group is also into manufacture of fertilizers. The group company Mangalore Chemicals and Fertilizers (MCF) has a factory at Panambur in Dakshina Kannada district of Karnataka. UB Engineering Limited is the group's engineering business arm. It undertakes EPC Projects, Infrastructure, on-site fabrication of structures, installation, testing and Commissioning of Electrical and Mechanical Equipments, Piping etc. for large industrial projects such as Power, Refineries, Steel, Cement, Fertilizer, Petrochemical and Desalination Projects. The company was initially established as Western India Erectors in 1963 and came under the UB Group in 1988. The group entrance to the IT sector had also been marked by the formation of UBICS, Inc. The company provides IT consulting, Body shopping services and professional IT products to business companies. .
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