Vijay Mallya

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DR.

VIJAY MALLYA
“THE KING OF GOOD
TIMES” AND “THE
LIQUER BARREL”

PRESENTED BY
GROUP NO.1
Dr. Vijay Mallya
BORN - December 18, 1955
PROFILE
 Mallya worked for the American Hoechst
Corporation (now Sanofi-Aventis) in the US
and with Jenson & Nicholson in the UK.

 Since 1980, he assisted his father, the


Chairman of The UB Group, in managing the
important Brewing and Spirits Divisions and
in re-launching the Kingfisher Brand of Beer.
 In 1988, Mallya became a non-resident Indian
to pursue global opportunities and to transform
The UB Group into India's first multinational
company.

 Mallya also founded a software company


“UBIX” in the US in 1993 which was
subsequently listed on the NASDAQ in 1996.
PERSONAL INFORMATION
Mallya is originally from the town of Bantwal in
Karnataka. He was educated at La Martiniere
Boys' College, Calcutta in Kolkata[2] and completed
his degree from St. Xavier's College, Calcutta under
Calcutta University. Mallya is married twice. His first
wife was Sameera and they have a son together,
named Sidhartha Vijay Mallya. After separation with
his first wife he got married to Rekha and has two
daughters Leana and Tanya Mallya. Mallya has a
home in Sausalito, California, USA
Journey to sucess

 Vijay Mallya is the son of a famous industrialist


Vittal Mallya. He assumed the Chairman of the UB
Group in 1983 and took the company to great heights.
 Under his dynamic leadership the group has grown
into a multi-national conglomerate of over sixty
companies.
 Vijay Mallya is referred to as India's Richard
Branson. A great part of the personality of the
Kingfisher brand is based on Mallya's
personality.
 He is credited with having single handedly
changed the image of his beer brand from a
commodity to a lifestyle brand.
 The Kingfisher brand commands a 29% share
of the beer market in India and is sold in over
52 countries.
AWARDS AND ACHIEVEMENTS
 Establishment of Mallya Hospital in Bangalore. The
hospital is located in Vittal Mallya road, named after
his father.
 Helped to fund the Mallya Aditi International School,
a prestigious private school in Bangalore.
 Successfully bid for the sword of Tipu Sultan at an
auction in London in 2004, and brought it back to
India.[14]
 Initiated the development of prized real estate
UB city, in the heart of Bangalore. The project hosts
corporate offices, retail and service
HIS BUSINESSES
 1. Breweries
Mallya took over as Chairman of the
United Breweries Group in 1983. Since then, the group
has grown into a multi-national conglomerate of over
sixty companies with an annual turnover which has
increased by 439% to US$1.2 billion in 1998-1999 .
 The focal business areas of the group encompass
alcoholic beverages, life sciences, engineering,
agriculture, chemicals, information technology, aviation
and leisure. He owned McDowell Crest, which took
loans in crores of rupees from the general public.
 In May 2007, United Breweries Group
announced the all-cash acquisition of
scotch whisky maker Whyte & Mackay for 595
million pounds (approximately Rs 4,819 crore).

 In 2005 he took over Millennium Breweries Ltd


(formerly known as inertia industries ltd),
which owned the two premium beer brands
named SANDPIPER and ZINGARO>
U.B GROUP
• Vijay Mallya, the flamboyant CEO of
 U.B GROUP
United Breweries - the company that
owns the Kingfisher brand - is one of the most
flamboyant CEOs in Asia.

• Vijay Mallya believes in leading his brand


from the front by leveraging his personality.
• The UB Group is 3rd largest spirits
marketer in the world, with overall sales
reaching 60 million cases.

• Subsequent to the acquisition of Shaw


Wallace & Company Limited, The UB
Group spirits divison offers 140 brands at
varying price points, attracting consumers of
every taste. Combined with its unparalleled
reach it has become an object of envy for the
competition.
Five of UB Group's brands
 Bagpiper Whisky
 McDowell's No.1 Whisky,

 Director's Special Whisky,

 McDowell's No.1 Brandy

 McDowell's Celebration Rum


 United Spirits limited is the major player in the
spirits business.
 Is the 3rd largest spirits marketer in the world
with sales of approx. 60 million cases.
 The 'Millionaire' Brands belonging to United
Spirits has increased to 15.
 McDowell's No.1 Brandy is the largest selling
brandy in the world.
 McDowell's No. 1 Whisky is one of the fastest
growing whisky brands in the world with sales of
over 6.07 million cases.
 54% market share in the domestic market
 McDowell's No.1 Whisky is the 5th largest non-scotch
whisky and 8th largest whisky (including Scotch) in the
world.
 Offers 140 brands.
 Bagpiper Whisky is India's Largest selling whisky with
sales of over 10 million cases last year.
 John Exshaw Brandy has joined the millionaire club.
Bagpiper Whisky and Honey Bee Brandy are
millionaire brands
 Bagpiper Whisky is the 4th largest selling whisky and
largest selling non-scotch whisky brand in the world

Innovations
 United spirits (Formerly Mcdowell & Company
Limited & Herbertsons Limited ) has always powered
ahead riding on innovations.
 A series of packaging innovations have added value
and assurance for the customer. These include
holograms, non-refillable 'guala' caps, tamper proof
tear off caps based on German technology.
 Not surprisingly,United spirits occupies the pride of
place in UB Group, contributing to a major chunk of
the Group's turnover
Shaw Wallace & Co. Limited and its
acquisition by UB group
 Ever since its inception in 1886, Shaw
Wallace has established a legacy in India
that is drenched in the spirit of the Nation
for the last 120 years.
 The company came into existence at a time
when the country was battling for its
freedom against the colonialism of the
British regime.
 Shaw Wallace after a modest beginning blossomed into one
of the forerunners in the alcohol and beverage industry. In
1987, the company came under the leadership of the late
Mr. M. R. Chhabria.

 In yet another historic development, in June 2005, Shaw


Wallace was taken over by The UB Group, spearheaded
under the dynamic leadership of Dr. Vijay Mallya.

 Heralding a complete new era for the erstwhile corporate


entity, Dr. Mallya completed the acquisition by taking over
as the company's Chairman, making the combined entity
of McDowell, Herbertsons and Triumph Distilleries &
Vintners and SWC as the third largest distilled spirits
marketer in the world.  
SALES
 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. 
Sales
 It’s annual sales of over US$ 4 billion
United Breweries Limited (UBL)

 Upon demerger of the beer business from the


erstwhile United Breweries Limited, the newly
constituted UBL has become the main brewing
company of the UB Group.
 The latter has now been renamed as United
Breweries (Holdings) Limited.
 UBL has been associated with brewing for
over five decades and and commands a
domestic market share in excess of 50%.
 Its leading brands readily brings cheer all over
India and abroad - that include Kingfisher, UB
Export, London Pilsner, Premium Ice and
Kalyani Black Label.
KINGFISHER –THE FAMOUS
BRAND
 The Kingfisher towers over every beer brand not only in
India but on foreign shores too. While Kingfisher Premium
has raced to sales of 18.8 million cases, Kingfisher Strong
became the fastest growing brand.

 Its sales crossed the 10 million cases mark within 5 years of


introduction. The brand has also comfortably outpaced the
industry average growth- notching up 29 % growth as
against 3% for the industry.
KINGFISHER
 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.
UBL POSITION AND ITS
STRATEGIES
 To build upon its leadership position, UBL has
broken new grounds with a multi-faceted strategic
alliance with Scottish & Newcastle Plc. (S&N).
While allowing UBL to market S&N's
international brands in India, it will also leverage
S&N's global network while further globalizing
the Kingfisher brand.  
 Commands a domestic market share of over 50%
 Leading brands are Kingfisher, UB Export,
London Pilsner, Premium Ice and Kalyani Black
Label.
 Kingfisher to bring in "international good
times" with S & N's brands. And Kingfisher
will also bring cheer abroad.
 Kingfisher is the only Indian Beer brand
available in 52 countries and also on
international flights.
 Every third beer sold in India is Kingfisher.
United Spirits Sep ‘05
Rs Crores
USL
Net sales 957.22

Cost of goods Sold 477.22 51%

EBITDA 122.16 13%


Interest/Finance cost 75.39
Depreciation 12.21

PBT 34.56 4%
Brand Performance HY–I -- FY’06
Brand FY’05 FY’06 % Grwth
Bagpiper Whisky 3.49 5.45 56%
McDowell’s No.1 Whisky 2.56 3.02 18%
McDowell’s No.1 Brandy 2.32 2.80 21%
McDowell’s Celebration Rum 2.03 2.18 7%
McDowell’s Signature Whisky 1.48 2.04 38%
Old Cask Rum 0.82 0.82 1%
Gilbey’s Green Label Whisky 1.15 1.11 (4%)
Blue Riband Gin Series 0.56 0.56 1%
Gold Riband Whisky 0.46 1.04 127%
Antiquity Rare Whisky 0.04 0.06 53%
Royal Challenge Whisky 0.44 0.46 6%
Director’s Special Black Whisky 2.27 3.49 54%
Director’s Special Whisky 1.93 2.38 18%
White Mischief Vodka 2.78 4.20 51%
UB Group (India)
MARKET SHARE MOVEMENTS

2003-04

Others, 17

M M, 6
UBL, 46 UBL
SAB
MM
Others

SAB, 31
Apr to Sept 05

Others, 17
UBL
M M, 6
UBL, 49 SAB
MM
Others
SAB, 28
2. Kingfisher Airlines

 Based in Bangalore, Kingfisher Airline is a private airline owned by Dr.


Vijay Mallya.

 It started its operations on May 9, 2005 with a fleet of 4 leased Airbus A-


320 aircrafts.

 Presently it covers destinations like Agartala, Ahmedabad, Bangalore,


Bhubaneswar, Chennai, Coimbatore, Delhi, Dibrugarh, Guwahati, Goa,
Hyderabad, Jaipur, Jammu, Kochi, Kolkata, Mangalore Mumbai Nagpur,
Pune, Srinagar , Udaipur, Varanasi, Vijayawada and Visakhapatnam
 He could buy Newcastle utd. to increase his business.
Airlines.

 A hoarding of Kingfisher Airlines with Vijay Mallya's


signature
In 2005, Vijay Mallya established Kingfisher Airlines. At
present, the airline connects 32 cities. Mallya's Kingfisher
airlines recently obtained 26% stake in Air Deccan, a low cost
Indian airline. Mallya plans to pick up a personal, controlling
stake in Epic Aircraft, a US-based aircraft manufacturing
company. He recently flew into Oshkosh with his key team
members and met
VISION OF KINGFISHER
AIRLINES
Its vision is to constantly deliver a safe, value-
based and enjoyable travel experience to all its
customers. It has placed a strong emphasis on
safety.
 Today’s decision follows recommendations to this
effect made by professional services firm Accenture
which was appointed to present a report on synergies
between the two airlines.
The new firm will operate two separate brands
– Deccan and Kingfisher – and will retain their
identities of being a low-cost carrier and a full-
service airline, respectively.  
KINGFISHER AIRLINES MERGER
WITH DECCAN AIRLINES
 The boards of Deccan Aviation and Kingfisher Airlines on
Wednesday decided to merge Kingfisher Airlines with Deccan
Aviation.
  The merger will create the largest player in the domestic
aviation market and pave the way for Vijay Mallya to fly his
Kingfisher Airlines to overseas destinations.  
 Deccan Aviation will subsequently be renamed Kingfisher
Airlines.
  Mallya’s UB Holdings, which owns the closely-held
Kingfisher Airlines and has 46 per cent in Deccan Aviation,
will hold a “significant majority” in the new firm.
 Vijay mallya will be he chairman of aviation
in India with Deccan Aviation, will be its vice-
chairman.
 Vijay Mallya will be the chairman and CEO of
this company and GR Gopinath, who
pioneered low cost
REASON FOR MERGERS

 Both the airlines are in the red. While Deccan


Aviation reported a loss of Rs 419 crore for
the year ended June 30, 2007, Kingfisher
Airlines had a loss of Rs 577 crore on its
books for the year ended March 31, 2007.
SERVICES OFFERED BY
KINGFISHER
 It offers several specialized services to its
customers like personal valet at the airport to
assist in baggage handling and boarding,
exclusive lounges with private space, audio
and video on-demand, extra-wide personalized
screens in the aircraft and three-course
gourmet cuisine.
Kingfisher,jet hold talks, may forge
operational alliance
TO BEAT RISING FUEL
PRICES,INPUT COSTS
 THE AIRLINES ARE REPORTEDLY HIT BY
LOSES OF UPTO 10 CRORE A DAY
 THE MAIN PURPOSE FOR THIS ALLIANCE IS
TO CHECK COST AND TO OPTIMISE THE
LOAD FACTORS.
 THROUGH THIS THEY CAN INCREASE THE
AIRLINE FARES AND CAN MAKE PROFIT
COMPETITORS
AIR INDIA:-
 State owned domestic airline
 Formerly known as Indian Airlines
 Company rebranded as Indian in Dec 05 to revamp image
in preparation for an IPO
 GoI’s plan to merge Air India and Indian into one giant
airline consisting of 130-140 aircraft
 Began on 3 Dec 1993with two Boeing 737-200
aircrafts as Sahara Airlines
 Initially services concentrated in northern India
 Rebranded as Air Sahara on 2 October 2000.
 Uncertainty over the airline's fare caused domestic
market share to slide from 11% in Jan 06 to 8.5% in
April
 Set up by J.R.D. Tata
 Nationalised in 1953
 National flag carrier
 44 world-wide destinations
 Profitable in most years since its inception
 Net profit of Rs.97 m for 2005-06
 Growth of almost 15% over the previous year.
 “Regular” airline offering normal economy and
business class seats.
 300 flights, 43 Indian destinations
 Indian market share 32%
 Does not own its brand. Brand owned by Jetair
Enterprises Ltd. a separate company substantially
owned by Naresh Goyal
 Prevents possible ‘hostile’ takeover bid
 Low-cost airline (LCC)
 Began in May 2005
 Entered with Rs. 99 fares for first 99 days
 “Offering low everyday spicey fares”
 Aim: Compete with Indian Railways AC
sgment
 fleet of 6 Boeing 737-800 with 189 seats.
 GoAir – The People’s Airline
 established in June 2004
 LCC promoted by The Wadia Group
 GoAir FreeFares
 Relatively small player as compared to other LCCs
 Initial flights in southern & western India with the first nine A320s

Remaining 11 aircrafts being added in 2nd yr
VIJAY MALLAYA INTERESTS
 Football
 Mallya's United Breweries sponsors the
East Bengal and Mohun Bagan football clubs
in Kolkata.[12]
 Recently linked with buying into the new
revolution at Queens Park Rangers FC, as part
of the Bernie Ecclestone, Flavio Briatore and
Lakshmi Mittal consortium.[13]
Cricket

 Mallya's flagship firm UB Group owns the Royal


Challengers Bangalore team in the Indian Premier
League. He won this team in an auction by paying
US$111.6 million for the team. The Royal
Challengers Bangalore team includes players like
Rahul Dravid, Anil Kumble, Jacques Kallis,
Shivnarine Chanderpaul, Zaheer Khan, Mark
Boucher,Sunil Joshi and Dale Steyn.
 After the poor performance of his team in IPL, the
liquor baron said he had some players in mind but
Rahul Dravid and Charu Sharma completely ignored
them and went ahead with their own plan to select the
players.
Conclusion
 Vijay Mallya is a classic example of how
Asian CEOs can lead their brands by being the
most vocal ambassadors of their brands to
build and sustain brand equity.

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