2. UNITED SPIRITS LTD.
U.S.L. the RS. 5500 spirits arm of multi – billion
dollar UB group.
U.S.L. is the largest spirits company in India.
U.S.L. as global foot print with exports of 20
countries.
A company is known to be an innovator in the
industry and has several firsts to its credit such
as the first premixed GIN the first TETRAPACK in
the spirits industry in India and the first single
malt manufactured in ASIA.
11. United Spirits has a well
established manufacturing and
distribution footprint
comprising of 37 owned
manufacturing units, 57
contract manufacturing tie-ups
and distribution
13. Outsourcing Contract Units
• Ghaziabad
• Lucknow
• Guwahati
• Aligarh
• Patna
• Sikkim
• network covering almost 98% of the sales channel
in India.
14. USL Products Are Distributed
Across 64000 Retail Outlets In
India.
15. UB Group Has Total Of 60% Of
Manufacturing Capacity Of Spirits
In India.
18. • The Industry has registered a steady 4-5% volume
growth over the past five years.
• Rising disposable income levels
• Up-gradation from country liquor.
• Increasing proportion of India’s young population
entering the drinking age
• Increasing acceptance within the social circles.
19. Materials
Materials for production of Beer
Materials for production of Whiskey
Materials for production of Brandy
Materials for production of Rum
Materials for production of Vodka
24. The Indian Market
Re-distribution structure –
• Government market (65%) –State government is the sole
distributor
• Auction market (16%) – State government auctions geographical
territories which has led to monopolies / cartels
• Free market (19%) – Through trade licenses
• Bargaining power in the distribution network is commanded by
players with premium brands, large volume base and product
range
The UB Group enjoys a unique advantage as the
Leader in both Spirits and Beer Segments
25. Particulars Total Number Comments
Brands 140 19 of these are millionaire
brands and there are about
151 brand variants
SKU’s 2992 Distillery-State-Brand-Pack
combinations
Distillery/Bottling Plants 79 30 Owned Manufacturing
facilities;49 contract
manufacturing units
Depots 48 Break-bulk points for finished
goods distribution
Retail Outlets 64000 Inclusive of both on and off
premise outlets
26. Supply chain
United Spirits has a well established manufacturing and
distribution footprint
comprising of 37 owned manufacturing units
57 contract manufacturing tie-ups
Distribution network covering almost 98% of the sales
channel in India
28. Placement of orders with Local
Manufacturers and Import Suppliers of
IMFS/BEER.
• Weighted average sale per day is arrived
by = Total no. of sales/ no. of working days
for last 3 months
• The monthly order for other drinks and IMFS
= weighted avg. sales per day * 39 days
and = weighted avg. sales per day *52 days
29. ISSUE OF INDENTS
On 1st of every month the order is placed with all the local manufacturers
and import suppliers and indent is regulated in order to have 15 days
stock
Ensures that the brand does not go out of stock at any point of time
Day to day indents are issued based on the previous day sale
This statement shows the depots which have NIL stock, 1-3 days stock, 4-7
days stock, 8-10 days stock, 11-14 days stock and 15-21 days stock for
particular brand and for a particular pack size.
Based on the statements, indents are being issued to the suppliers on a
daily basis
30. Efficiencies
Efficiency depends on =
Demand / manufactured unit
Also it depends on packaging
how much we safeguard the product so
that it reaches its destination safely .
31.
32. Capital Structure
As of March 2013 (Rs. In Millions)
Ratios:
Debt Equity Ratio = 0.69 (Total Debt / Total Equity)
Industry Average = 1.25
Current Ratio = 0.72 (Current Assets / Current Liabilities)
Industry Average = 1.30
Interest Cover = 1.74 ( PBIT / Interest)
Industry Average = 4.14
Earning Per Share = 24.53 (Market Price / No. of Shareholders Outstanding)
34. Increase/
Decrease in
Stock
2%
Raw
Materials
Consumed
41%
Power &
Fuel
1%
Employee
Cost
6%
Other
Manuf.
Expenses
26%
General &
Admin.
Expenses
5%
Selling &
Distribution
Expenses
17%
Misc.
Expenses
2%
Increase/Decrease in Stock 1704.76
Raw Materials Consumed 30641.69
Power & Fuel Cost 348.40
Employee Cost 4717.92
Other Manufacturing Expenses 19611.94
General and Administration
Expenses
3989.19
Selling and Distribution Expenses 12733.02
Miscellaneous Expenses 1015.78
Expenses Capitalised 0
Total Expenditure 74762.70
Expense Schedule
35. Brands
Whisky / Whiskey Brands
• McDowell No. 1 family (whisk(e)y, brandy and rum)
• Signature
• Royal Challenge
• Antiquity
• Bagpiper
• Director’s Special Whisk(e)y
Scotch Brands
• Black Dog
• Whyte & Mackay
• Jura
• Dalmore
36. Raw Materials
Major ingredients used in production of spirits are:
• Barley : Imported from Scotland for some brands in whisky
• Other grains : Imported from Scotland for some brands in whisky
• Molasses : Used in production of Indian Whisky
• Hops : Procured from India
• Yeast : Procured from India
Scotch Whiskeys like Jura, Dalmore etc. are imported from Scotland
and bottled in Indian bottling plant.
Major areas of Scotland : Isle, Cambeltown, Highland, Lowland
39. UNITED SPIRITS LTD PERFORMANCE
HIGHLIGHTS
•USL brands grew 14%
•18 of the top 25 global premium brand
•USL is one of two companies with more than
10 brands featuring in the top 100 brands
listing
40. LOCATION
•India: 60% market share
•20 countries in Asia, the Middle East, and
Africa
•The company operates facilities in the US, New
Zealand, Canada and Italy.
•kingfisher is sold in over 52 countries
