MOSL: THE CORNER OFFICE (UNITED BREWERIES) — Slew of new launches encouraging-Highway ban and GST pose significant
​THE CORNER OFFICE (United Breweries) — Slew of new launches encouraging; Highway ban and GST pose significant near-term challenges
Mr Shekhar Ramamurthy has been part of the UB Group for nearly 26 years, initially in corporate planning and subsequently in what is now United Spirits Limited before being transferred to United Breweries Limited (UBBL). For the last three years, as joint president of UBBL (also appointed on the board, effective 1 August 2015), Mr Ramamurthy has been part of the company’s dynamic growth story, which saw Kingfisher establish an unrivalled market leadership in the country. He graduated from IIT Delhi in 1985 and subsequently from IIM Calcutta in 1987.
Key highlights:
- United Breweries (UBBL) has planned a slew of new launches in FY18, which is encouraging. After the successful launch of its premium strong beer brand Kingfisher Storm in early May 2017, the company plans to come up with five premium brands from the Heineken stable.
- Highway ban and GST implementation are expected to adversely impact the company's near-term sales and margins.
- Premiumization and zero-based budgeting strategies are being employed to mitigate the impact on margins
- Efforts on water sustainability are commendable, with 40% of water requirement at end-FY17 being met by rain water harvesting and water shed management. The company is targeting to be water-positive by 2025, which is remarkable for a company that uses water as key ingredient in manufacturing.
United Breweries is an alcoholic brewing company based in India. Co. is engaged in the manufacturing and marketing of beer made from malt and allied products. Co.'s brewery products include Kingfisher, UB Premium Ice Beer, Charger Extra Strong Beer, Kalyani Black Lable, Kalyani Export Special, Kalyani Black Label Strong, Bullet Super Strong Beer and UB Export. Co. is also engaged in manufacturing of liquors, beer, leather shoes, organic and inorganic petrochemicals, ciprofloxacin, amitriptylene, and ibuprofen. Co.'s other activities include publishing and printing newspaper and journals; selling and servicing of Hitech Medical equipment; operation of a cable television network and others.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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