ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconFacebook IconIcon FacebookGoogle Plus IconLayer 1InstagramCreated with Sketch.Linkedin IconIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerIcon Opinion QuotePositive ArrowIcon PrintRSS IconIcon SearchSite TitleTitle ChevronTwitter IconIcon TwitterYoutube Icon
Consumer Non-Durables

United Breweries Ltd.

  • 1,126.00 INR
  • +0.55
  • +0.05%
  • India
    Apr 20, 2018
  • Ticker
    BOM(532478)
  • Prev. close
    1,125.45
  • Market cap (INR)
    297,574.75M
  • Market cap (USD)
    4,506.23M
  • Shares
    264.40M

Company Background

The company is the beer-industry leader in India, controlling about 50% of the market. Dutch brewer Heineken holds a roughly 40% share in the company, while UB Group Chairman Vijay Mallya holds a stake of about 36%. Heineken owns much of its stake in the company through its Indian subsidiary, Scottish & Newcastle India.

Mallya's stake was once the same as Heineken's, but the Dutch company increased its interest 2013. Mallya, who also owns the grounded Kingfisher Airlines, was elected chairman of UB Group in 1983 at age 28. Prior to joining his family business, he worked for the American Hoechst Corporation (now Sanofi-Aventis) in the U.S. and Jenson & Nicholson in the U.K.

United Breweries was set up in 1915 after Scotsman Thomas Leishman bought and merged five breweries in south India. In 1947, the company was purchased by Mallya's father, Vittal Mallya. In 2004, United Breweries entered a joint venture with Scottish & Newcastle India, which is now owned by Heineken, to produce and sell beverages. The company behind India's best-selling beer, Kingfisher Strong, started manufacturing and distributing Heineken beer in India in 2009.

Business Summary

United Breweries Ltd. is a holding company, which engages in the manufacture and trade of beer. It also manages and operates breweries and does brand licensing. The firm operates through the India and Outside India geographical segments. It distributes its products under the following brands: Kingfisher, Bullet, Cannon 10000, Kalyani Black Label, UB Export, Zingaro, and London Pilsner. The company was founded on March 15, 1915 and is headquartered in Bangalore, India.

Financial Highlights

Mar 2017 INRUSD
Revenue47,291.90M705.24M
Gross Profit16,351.30M243.84M
Operating income3,742M55.80M
Income before tax3,481.30M51.91M
Net income2,295.70M34.23M
EBITDA6,612.50M98.61M
Diluted EPS8.680.12
Dividends Per Share1.150.01
Total Assets45,125.20M694.92M
Total liabilities21,755.30M335.03M
Total equity23,342.10M359.46M
Operating cash flow4,882.80M72.81M
Currency in INRCurrency in USD

Historical Data

 Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017
Revenue 38,987.40M 42,296.60M 46,881.10M 48,331.40M 47,291.90M
Gross Profit 15,775M 17,798.90M 20,088.70M 18,051.80M 16,351.30M
Operating income 3,121.30M 3,904.40M 4,223.20M 5,034.10M 3,742M
Income before tax 2,660.30M 3,351.40M 3,790M 4,546.50M 3,481.30M
Net income 1,723.70M 2,260.20M 2,598.40M 2,983M 2,295.70M
EBITDA 4,825.40M 5,882.60M 6,298.60M 7,470.40M 6,612.50M
Diluted EPS 6.42 8.45 9.73 11.28 8.68
Dividends Per Share 0.70 0.90 1 1.15 1.15
Total Assets 37,564.30M 39,189.40M 39,169.80M 44,007M 45,125.20M
Total liabilities 22,436.40M 22,104.40M 20,642M 22,510.50M 21,755.30M
Total equity 15,111.50M 17,066.20M 18,506.10M 21,471.20M 23,342.10M
Operating cash flow 1,462.50M 2,134.40M 7,777.60M 4,619.30M 4,882.80M
 Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017
Revenue 716.34M 699.87M 766.73M 738.21M 705.24M
Gross Profit 289.84M 294.51M 328.55M 275.72M 243.84M
Operating income 57.35M 64.60M 69.07M 76.89M 55.80M
Income before tax 48.87M 55.45M 61.98M 69.44M 51.91M
Net income 31.67M 37.39M 42.49M 45.56M 34.23M
EBITDA 88.66M 97.33M 103.01M 114.10M 98.61M
Diluted EPS 0.11 0.13 0.15 0.17 0.12
Dividends Per Share 0.01 0.01 0.01 0.01 0.01
Total Assets 691.15M 656.19M 625.90M 664.53M 694.92M
Total liabilities 412.81M 370.11M 329.84M 339.92M 335.03M
Total equity 278.04M 285.75M 295.71M 324.22M 359.46M
Operating cash flow 26.87M 35.31M 127.20M 70.55M 72.81M

Valuation Measures

Mar 2017
PER88.77
ROA5.15%
ROE10.24%
Operating margin7.91%
Profit margin4.85%

Key executives

  • Managing Director & Executive Director: Shekhar Ramamurthy
  • Senior Vice President-Operations & Malting: Rohtash Kumar Jindal
  • Senior Vice President-Operations: C. Gouri Shankar
  • Chief Financial Officer & Executive Director: Steven Bosch
  • General Manager-Technical: Shyam Lal Mittal

Shareholders

  • United Breweries Ltd. (34.0%)
  • United Breweries (Holdings) Ltd. (10.3%)
  • Heineken NV (9.6%)
  • MALLYA VIJAY (8.0%)
  • Mallya Pvt Ltd. (3.7%)
  • First State Investment Management (UK) Ltd. (3.4%)
  • McDowell Holdings Ltd. (2.3%)
  • Arisaig Partners (Asia) Pte Ltd. (2.2%)
  • Kamsco Industries Pvt Ltd. (2.0%)
  • The Gem Investment & Trading Co. Pvt Ltd. (1.6%)

Contact Details

Related Companies

  • Pacific Spirits Pvt Ltd. /Brewery Assets/
  • Scottish & Newcastle India Pvt Ltd.
  • Maltex Malsters Ltd.
  • Chennai Breweries Pvt Ltd.
  • UB Ajanta Breweries Pvt Ltd
  • London Draft Pubs Pvt Ltd.
  • UB Group Employees Welfare Trust

Competitors

  • Anheuser-Busch InBev SA/NV
Last Updated on 20 Apr, 2018

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

Get unlimited access
NAR site on phone, device, tablet

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

3 months for $9

Get unlimited access
NAR site on phone, device, tablet

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media