UNITED BREWERIES LTD

United Breweries Limited sells beer under its flagship brand 'Kingfisher'. Kingfisher Strong is India's largest selling beer. International beer brands Heineken and Amstel and import portfolio complement United Breweries' Kingfisher franchise. The Company is primarily engaged in the manufacture, purchase and sale of beer and non-alcoholic beverages. United Breweries Limited was erstwhile established as 'UB Infrastructure Projects Limited' on May 13, 1999. The name of the Company was then changed from UB Infrastructure Projects Limited to UB Beer Limited on 31 July, 2001. Subsequently, the name was again changed to United Breweries Limited on 7th August, 2002. The Company was incorporated to carry on the business of infrastructure facilities and other allied activities. The erstwhile UBL was the holding company of the company and in terms of the Scheme of Arrangement, the brewing business carried on by erstwhile UBL in its various undertakings and/or units and administrative properties relating to or necessary for the aforesaid units are transferred to and now vest in the Company. UBL also referred to as the Beer Division of the UB Group. The Beer business of the company has gone on to become the undisputed 'king' in the Indian beer market. UBL boasts an impressive spread of own and contract manufacturing facilities throughout the Country. Quality Management Systems laid out along the lines of ISO 9000 are strictly adhered to, controlling quality at every stage of production, from raw materials to the end product of the company. Millennium Alcobev Pvt Ltd., (MABL), is the Joint Venture Company in which UB along with its subsidiary and Scottish & Newcastle of the UK have equal stake of 50%. UBL's flagship brand 'Kingfisher' has achieved an international recognition consistently, and has won many awards in International Beer Festivals. Kingfisher Premium Lager beer is currently available in 52 countries outside India and leads the way amongst Indian beers in the International market. During the year 2004, the company had joined Reebok to market souvenirs and memorabilia, signed bottling agreements in Thailand, Lanka and Pakistan. Also in the same year of 2004, UBL had inked a manufacturing and distribution pact with Independent Liquor of New Zealand to take its flagship beer Kingfisher Premium Lager Down Under. The Company won a number of awards at the Big Bang Awards at Bangalore and AAA of I Awards at Mumbai during the year 2004-05 and also in the same year entered into definitive agreement for acquisition of the demerged brewing entity of Karnataka Breweries & Distilleries Limited, which had augmented further control over capacities in Karnataka, one of the most Profitable markets in India. The Company had acquired Chhabria's stake in Herbertsons during the year 2005 and also joined hands with Punjab Government. ABDL and MBDL were amalgamated with the company effect from 1st April of the year 2005. During the year 2005-06, the company's capacities created in Australia and New Zealand through contract agreements and further enhanced brand equity and retention. During the same year UBL had also implemented 'NAVISION' an ERP package from Microsoft Business Solutions, which has also strengthened the internal control processes. The acquisition of brewery business of KBDL in Karnataka was completed, as a wholly owned subsidiary of the company and, which has now been amalgamated with company effective from 1st April of the year 2006. In the year 2006-07, the company had launched its new range of offerings across the country. Kingfisher Strong 330ml Can was launched in Goa, Pondicherry, West Bengal and Rajasthan markets, and, Kingfisher Strong 330ml pint bottle was also launched in Goa. The 500ml King Can (Kingfisher Strong) was successfully launched in Mumbai, Maharashtra, Karnataka & Pondicherry.The Company also launched an exciting Multi Can pack to offer consumers a convenient take home pack. UBL had launched two new products in the year 2007-08, as Kingfisher Draught 500 ml can in the key markets of Maharashtra and Karnataka and Kingfisher - Non Alcoholic Beer in the alcohol prohibited markets. Innovative promotions continue in the Company's brand building effort, UBL had partnered with NDTV in the same period of 2007-08 to launch the NDTV Good times channel to reinforce the Lifestyle platform and leverage competitive advantage. As at August 2008, ICRA had assigned LBBB+ (pronounced LBBB plus) rating on the long-term scale to the long-term debt program of the United Breweries Limited. In 2009, Heineken N.V. acquired control over Scottish & Newcastle Plc. (S&N). S&N held 37.5% equity shares in United Breweries. As a result of the takeover of S&N by Heineken, Heineken became a co-promoter of United Breweries. On 7 December 2009, Dr. Vijay Mallya, United Breweries Holdings Ltd. (UBHL) and United Breweries Ltd. (UBL) announced that they have reached an agreement with Heineken N.V. (Heineken) to cement their alliance to lead the Indian beer market. The Dr. Vijay Mallya Group (including UBHL), Heineken and UBL have entered into a new Shareholders Agreement and thereby have resolved their differences amicably. Consequently the litigations initiated inter se will be withdrawn. Going forward Heineken will be active in India solely through UBL. Both parties will continue to engage constructively with each other to expeditiously work towards creating a unified structure in order to derive synergies and enhance shareholder value. The alliance will offer consumers the best portfolio of national and international brands in India, including Kingfisher, the number one Indian brand, and Heineken, the largest global beer brand. The parties have agreed upon the key commercial terms for the production of the 'Heineken' brand in India. This will allow Heineken and UBL to reinforce the development of the 'Heineken' brand and accelerate the growth of the premium beer segment throughout India. At the same time, UBL will work with Heineken to expand the international presence of the 'Kingfisher' brand through Heineken's global footprint. The Board of Directors of United Breweries at its meeting held on 13 September 2010 approved the merger of Millennium Alcobev and its subsidiary companies into United Breweries (UBL). This is the first step in the creation of a fully integrated brewing entity. Millennium Alcobev is a joint venture between UBL and Heineken and consists of three operating companies with breweries located in the states of Haryana, Maharashtra, Andhra Pradesh and Tamil Nadu. These breweries have installed capacity of 33 million cases, which accounts for about 10% of the country's overall brewing capacity. In addition to manufacturing UBL's brands on contract brewing arrangements, Millennium Alcobev and its subsidiaries also own popular brands like Sand Piper, Kalyani Black Label Strong, Marco Polo, Guru and Zingaro, which have been historically marketed by UBL. As per the swap ratios, UBL shall issue 1.5 crore new shares upon merger of the transferor companies. The Board of UBL also approved creation of UBL Benefit Trust which shall hold 60.10 lakh shares out of the newly issued UBL shares for the benefit of the company. The UBL Benefit Trust would provide for an alternative fund raising mechanism for UBL on future sale of shares held by the Trust. The Board of Directors of United Breweries at its meeting held on 10 February 2011 considered and approved the amalgamation of UB Nizam Breweries Pvt Ltd (UBN) and UB Ajanta Breweries Pvt Ltd (UBA) into United Breweries. The Board of Directors of United Breweries at its meeting held on 11 March 2011 considered and approved the amalgamation of Chennai Breweries Private Limited (CBPL) into United Breweries Limited (UBL). As consideration of for amalgamation, UBL will issue shares to the shareholders of CBPL in the ratio of 17 shares of UBL for every 30 shares held in CBPL. On 11 July 2011, United Breweries (UBL) announced that UBL Benefit Trust (the Trust) has placed all 60.07 lakh equity shares it held in UBL with select long-term, high quality institutional investor(s). The Trust will realize approximately Rs 285 crore from this share placement. As UBL is the sole beneficiary of the Trust, these proceeds will ultimately accrue to UBL. The placement of the shares was executed in the stock exchanges on 11 July 2011. The Board of Directors of United Breweries (UBL) at its meeting held on 7 February 2012 considered and approved the amalgamation of Scottish & Newcastle India Private Limited (SNIPL) into United Breweries Limited (UBL). As consideration for Amalgamation, UBL will issue 8,489,270 fully paid equity share of UBL for every 32,223,912 fully paid equity shares of SNIPL. The Kingfisher' beer brand from the house of United Breweries created history by achieving the significant milestone of 100 million cases sold in the financial year 2011-12. The Board of Directors of United Breweries at its meeting held on 27 May 2014 approved a proposal to acquire the brewery assets viz., land, building, plant/equipment of Pacific Spirits Private Limited, having its brewery located at Shahjahanpur, District Alwar, Rajasthan at a negotiated consideration of Rs 105 crore. The acquisition is subject to due diligence and securing necessary approvals. On 4 September 2014, United Breweries announced that it has completed the acquisition of the brewery assets viz., land, building, plant, machinery etc. of Pacific Spirits Private Limited, located at Shahjahanpur, district Alwar, Rajasthan at a negotiated consideration of Rs 105 crore. With this acquisition, the company will be able to expand its production capacity in Rajasthan to cater to the expected further growth in the market. Pacific Spirits Private Limited has not been operational for a while and United Breweries will further invest to make the brewery operational before the coming season. This acquisition will also create additional employment opportunities in the vicinity, upon the brewery becoming operational. On 28 January 2016, United Breweries announced the launch of a new product 'Kingfisher-Buzz' a malt based ready to drink alcoholic beverage that comes in two flavors viz., Berry and Lychee. The new product aims to cater to the carefree, confident and energetic youth in India. On 27 February 2016, United Breweries informed the stock exchanges about commencement of supplies of beer upon commissioning of the company's brewery located at Shahjahanpur, Rajasthan. On 11 May 2017, United Breweries informed the stock exchanges that consequent to the imposition of total prohibition effective April 2017, the commercial production at the company's brewery located at Kopakalan, Naubatpur, District Patna has been discontinued. Earlier, the Bihar state government had imposed ban on sale and consumption of alcoholic beverages in the state and permitted manufacture of alcoholic beverages for export out of the state. The notification of Bihar government imposing the ban was struck down by Patna High Court. The state government of Bihar has challenged such decision of Patna High Court in Supreme Court. On 11 May 2017, United Breweries Limited announced the launch of Kingfisher STORM, a new premium strong beer. Kingfisher STORM is made from the finest imported malts and hops which have a distinctive taste. On 24 May 2018, United Breweries Limited announced the launch of the iconic Dutch beer brand AMSTEL, a new International super premium strong beer in the Indian market. AMSTEL is a slow brewed and extra matured lager, internationally appreciated for its quality, and enjoyed in over 100 countries across the globe. It launched Kingfisher Radler in 2018. In 2019, the Company introduced Heineken Amstel Malt Beverage and Kingfisher Ultra Non-Alcoholic and further strengthened its product portfolio offering. On June 23, 2021, Heineken International B.V. acquired an additional 3,96,44,346 Equity Shares of the Company being 14.99% of the Equity Share Capital from the Recovery Offi¬cer, DRT (under sale proclamation) through a block deal taking Heineken Group Shareholding in the Company from 46.52% to 61.52%. Heineken Group therefore became a majority promoter shareholder. From September 2022 onwards, the Company launched Heineken Silver in the India market. Ultra MAX Draught was launched in Punjab and Chandigarh. Ultra launched its own Music IP Ultra Soulflyp', an immersive celebration of music tapping into the growing alternative music space. It expanded Witbier's capacity at Mysore Brewery and added KF Ultra capability at the Dharuhera brewery in Haryana. In FY 2022-23, Kingfisher Ultra launched its own music IP- ULTRA SOULFLYP, in 4 cities, Bangalore, Goa, Mumbai and Delhi with top international (DJ Lag, IAMDDB) and domestic artitsts. Thereafter, Kingfisher Ultra Witbier expanded its footprint into key markets of Telangana. Kingfisher Ultra MAX Draught was launched in Karnataka in 2024. The Company also expanded its brand London Pilsner at Karnataka providing an upgrade option from economy beers.