United Spirits Ltd


BSE: 532432 | NSE: MCDOWELL-N | ISIN: INE854D01016 
Market Cap: [Rs.Cr.] 8,371 | Face Value: [Rs.] 10
Industry: Breweries & Distilleries

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Director's Report

REPORT OF THE DIRECTORS

Your Directors have pleasure in presenting the Annual Report of your Company and the audited accounts for the year ended March 31, 2009.

At the outset, your Directors are glad to report that the Scheme of Amalgamation of Shaw Wallace & Company Limited and Primo Distributors Private Limited with the Company ("the Scheme") has been sanctioned by the Hon'ble High Courts of Karnataka, Bombay and Calcutta and the Scheme has become effective on July 6, 2009. The Amalgamation takes effect from April 1, 2007, being the Appointed Date.

Your Directors are also glad to report that the Scheme of Amalgamation of Zelinka Limited with the Company with the Appointed Date of April 1, 2007 became operative from March 26, 2009 pursuant to a Scheme of Amalgamation sanctioned by the Hon'ble High Court of Karnataka at Bangalore and compliance of the procedure required to be followed by Zelinka Limited under the local laws of Cyprus.

Accordingly, the financial results for the year ended March 31, 2009 also include those relating to the amalgamating Companies.

FINANCIAL RESULTS

Rupees in Millions
2008-09 2007-08
The working of your Company for the year under review resulted in
• Profit from operations 4,953.169 5,175.774
Less:
• Depreciation 361.565 326.112
• Taxation (including deferred tax) 1,624.980 1,736.903
• Profit after tax 2,966.624 3,112.759
Profit B/F from previous year 7,018.342 4,411.221
Profit transferred on Amalgamation 103.983 -
Profit available for appropriation 10,088.949 7,523.980
Your Directors have made the following appropriations:
To General Reserve 350.000 250.000
To Capital Redemption Reserve - 77.500
Proposed Dividend:
Preference Shares - 1.930
Equity Shares 215.825 150.331
Corporate Tax on Proposed
Dividend 36.679 25.877
Balance carried to the Balance Sheet 9,486.445 7,018.342
EPS - Basic - Rupees 27.49 31.84
EPS - Diluted - Rupees 27.49 31.40

Your Directors propose a Dividend on the equity shares of the Company at the rate of Rs.2/- per share, including on 7,749,121 equity shares of Rs.10/- each fully paid-up allotted to the shareholders of Shaw Wallace & Company Limited pursuant to the Scheme of Amalgamation sanctioned by the Hon'ble High Courts of Karnataka, Bombay and Calcutta.

CAPITAL

In terms of the Scheme of Amalgamation ("the Scheme") sanctioned by the Hon'ble High Courts of Karnataka, Bombay and Calcutta, the Authorised Capital of Shaw Wallace & Company Limited and Primo Distributors Private Limited, the Transferor Companies stood combined with that of your Company. Consequently, the Authorised Capital of the Company stands increased from Rs.1,200,000,000/- divided into 110,000,000 equity shares of Rs.10/- each and 10,000,000 Preference Shares of Rs. 10/- each to Rs.3,292,000,000/- divided into 245,000,000 Equity Shares of Rs.10/- each and 84,200,000 Preference Shares of Rs.10/- each.

In terms of the Scheme, 7,749,121 Equity shares of Rs.10/-each, fully paid-up were issued and allotted on July 24, 2009 to the shareholders of Shaw Wallace & Company Limited in the ratio specified in the Scheme. Consequently, the Issued, Subscribed and Paid-up Equity Share Capital of the Company stood increased from Rs.1,001,632,560/- divided into 100,163,256 equity shares of Rs.10/-each to Rs.1,079,123,770/-divided into 107,912,377 equity shares of Rs.10/- each.

PERFORMANCE OF THE COMPANY

The Company has been able to record a 20% growth in volumes during the year with some key brands, such as, Signature Whisky recording a growth of 27% to enter the Millionaires Club. The umbrella McDowell's brand continues its buoyant growth and has earned the distinction of being India's largest consumer brand calculated by retail value of sales.

With over 50% of India's 1.2 billion population not having yet achieved legal drinking age, the industry is currently witnessing a demographic window of opportunity with large number of first time consumers entering the market.

The year however, witnessed a steep rise in input costs. Reduced sugarcane output and a political stand off between State Governments and sugarcane farmers in key producing states during the crushing season, resulted in unprecedented spike in input costs. Despite an impact of over Rs.3.5 billion on account of higher input prices during the year, the Company managed to show only a marginal reduction in profits for the year which stood at Rs.2.97 billion as against Rs 3.11 billion in the previous year.

AMALGAMATION

Amalgamation of Shaw Wallace & Company Limited and Primo Distributors Private Limited with the Company

In terms of the Scheme of Amalgamation of Shaw Wallace & Company Limited (SWCL) and Primo Distributors Private Limited (Primo) with the Company ("the Scheme") sanctioned by the Hon'ble High Courts of Karnataka, Bombay and Calcutta, which became effective on July 6, 2009, with Appointed Date as April 1, 2007:

• SWCL and Primo, both subsidiaries of the Company were amalgamated with the Company and the entire business and whole of the undertaking of the said transferor companies stood transferred to and vested in the Company;

• The shareholders of erstwhile SWCL were issued and allotted in aggregate 7,749,121 Equity Shares of Rs.10/-each fully paid-up in the Company in the ratio of 4 equity shares of Rs.10/- each fully paid-up in the Company for every 17 equity shares of Rs.10/- each fully paid-up in SWCL;

• 15,072,311 equity shares of Rs.10/- each representing, 31.40% of the paid-up capital of SWCL held by the Company stood cancelled upon the Scheme becoming effective;

• The Equity Shares held by the Company in Primo were cancelled without any exchange of shares in the Company, as its entire paid-up share capital was held by the Company

• Consequent to the Scheme becoming effective, Primo stood dissolved without winding up. SWCL will be dissolved without winding up under a separate Order of the Hon'ble High Court at Calcutta.

In terms of the Scheme, a Trust in the name of Primo Benefit Trust and a Trust in the name of SWC Benefit Trust were created for transfer of 1,306,431 Equity shares held by Primo and 10,282,553 equity shares held by SWCL in the Company to the aforesaid Trusts respectively. Upon the Scheme becoming effective, the beneficial interest in SWC Benefit Trust and Primo Benefit Trust stands transferred and vested in the USL Benefit Trust, whose beneficiary is the Company. Subsequent to the year end, SWCL has sold 10,282,553 Equity Shares held by it in the Company in the open market, through the stock exchanges and 1,306,431 equity shares held by Primo in the Company has been transferred to Primo Benefit Trust. Upon the Scheme becoming effective, the shares held by Primo Benefit Trust stood transferred to and vest with USL Benefit Trust.

Amalgamation of Zelinka Limited with the Company:

In terms of the Scheme of Amalgamation of Zelinka Limited with United Spirits Limited as sanctioned by the Hon'ble High Court of Karnataka at Bangalore and subsequent compliance of the procedure required to be followed by Zelinka Limited under the local laws of Cyprus, which became operative on March 26, 2009, with Appointed Date as April 1, 2007:

• the entire undertaking of Zelinka Limited including all assets and liabilities, stood transferred to and vested in the Company;

• The Equity Shares held by the Company in Zelinka Limited were cancelled without any exchange of shares in the Company, as its entire paid-up share capital was held by the Company.

Amalgamation of Balaji Distilleries Limited with the Company

Balaji Distilleries Limited (BDL), which has been a contract manufacturing unit of the UB Group ever since its inception in the year 1983, is proposed to be amalgamated with the Company with effect from April 1, 2009, being the Appointed Date. BDL has a large state of the art distillery and brewery in Tamil Nadu. The distillery has a capacity to produce Ten million cases per year while the brewery has a capacity of Nine million dozens per annum expandable to about twelve " million dozens. BDL incurred huge losses resulting in the erosion of its entire Net Worth and in consequence, BDL on reference, has been declared as a sick industrial undertaking under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA).

The draft Rehabilitation Scheme along with the Scheme of Arrangement between Balaji Distilleries Limited, Chennai

Breweries Private Limited and United Spirits Limited has been submitted to the Board for Industrial and Financial Reconstruction (BIFR). The Scheme of Arrangement will become effective on receipt of necessary approval from BIFR.

SUBSIDIARIES

During the year under review, United Spirits (Shangai) Trading Company Limited became a wholly owned subsidiary of your Company.

Consequent upon the amalgamation of Shaw Wallace & Company Limited and Primo Distributors Private Limited with the Company:

• Shaw Wallace & Company Limited and Primo Distributors Private Limited ceased to be subsidiaries of the Company;

• Shaw Wallace Breweries Limited became direct subsidiary of the Company;

Consequent upon the amalgamation of Zelinka Limited with the Company:

• Zelinka Limited ceased to be a wholly owned subsidiary of the Company;

• Palmer Investment Group Limited and Montrose International S.A. became direct wholly owned subsidiaries of the Company;

• Liquidity Inc. became a direct subsidiary of the Company.

The Company has made application to the Government of India pursuant to Section 212(8) of the Companies Act, 1956 seeking approval for exempting the Company from attaching with the accounts of the Company, the Balance Sheet, Profit & Loss Account, Directors' Report, Auditors' Report and other particulars of the Subsidiary Companies as on March 31, 2009. The necessary approval in this regard is awaited. Pending such approval, Balance Sheet, Profit Loss Account, Directors' Report, Auditors' Report and other particulars of the subsidiary companies as on March 31, 2009 have not been attached with the accounts of the Company. The documents/details will be made available to any Member of the Company and its subsidiaries upon request to the Company. The annual accounts of the subsidiary Companies as on March 31, 2009 will also be kept for inspection by any member at the Registered Office of the Company and that of the subsidiary Companies concerned.

The Accounting year of United Spirits Nepal Private Limited (USNPL), your Company's Subsidiary in Nepal is from mid-July to mid-July every year. Accordingly, Accounting year of 2007-08 of USNPL ended on July 15, 2008 and the Accounting year 2008-09 ended on July 14, 2009, i.e., after the end of the close of the financial year of the Company, which ended on March 31, 2009. For the purpose of compliance under Accounting Standard-21, relating to "Consolidated Financial Statement," the Accounts of USNPL has been drawn up to March 31, 2009.

For the purpose of compliance under Accounting Standard - 21, "Consolidated Financial Statement" presented by the Company includes the financial information of its subsidiaries.

PROSPECTS

The IMFL industry has been growing at a fast pace and the rate of growth seems to be accelerating. This is due to a combination of first time entrants to the market upon attaining legal age and uptrading from country liquor. For the year ended March 31, 2009, the total IMFL industry stood at 214 million cases and it is anticipated that double digit growth will continue in the industry for several years to come.

Input costs have been on the rise for the last two years and continue to be a cause of concern. However, supply side constraints are somewhat mitigated by reduction in demand for industrial use of alcohol and new grain distillation facilities that have come up in various parts of the country. Your Company, as the clear market leader would expect to garner a major share of the growth prospects of the industry, while being able to parley its critical size to ensure consistent availability of inputs at competitive prices.

Efforts by the Company to generate resources to prepay loans were successfully initiated with the sale of 10,282,553 "Treasury Shares", which raised about US$ 186 million. Plans have been drawn up for raising additional sums to further repay debt, which will have the beneficial impact of lower interest costs in the coming years.

The demand for Scotch continues to grow, especially from new markets in Asia and this has led to the continued hardening of scotch prices, thus affirming the strategic advantage of the Whyte and Mackay acquisition.

The consolidated accounts for the year include non cash adjustments, reflecting changes in the relative exchange rates of reporting currency, the US Dollar and the Great Britain Pound. While Accounting Standards require the Company to recognize these differences in a calibrated manner over three years, the same is not viewed as a business constraint.

DEPOSITORY SYSTEM

The trading of the equity shares in your Company is under compulsory dematerialisation mode. As of date, equity shares representing 94.66% of the equity share capital are in dematerialised form. As the depository system offers numerous advantages, members are requested to take advantage of the same and avail of the facility of dematerialisation of the Company's shares.

DIRECTORS

Mr. Sreedhara Menon and Dr.Vijay Mallya retire by rotation and being eligible, offer themselves for re-appointment.

AUDITORS

M/s. Price Waterhouse, your Company's Auditors, are eligible for re-appointment at the Annual General Meeting and it is necessary to fix their remuneration.

TAX AUDITORS

Your Directors have appointed M/s. Lodha & Co., Chartered Accountants as the Tax Auditors of the Company to carry out the tax audit of the Company for the year ended March 31, 2009.

LISTING OF SHARES OF THE COMPANY

Your Company's Equity Shares have been delisted from the Stock Exchanges at Ahmedabad, Chennai, Delhi and Kolkata in accordance with the shareholders' approval at the Annual General Meeting of the Company held on November 28, 2007.

The Equity Shares of your Company continue to remain listed on Bangalore Stock Exchange Limited, Bombay Stock7,749,121 equity shares issued and allotted to the shareholders of erstwhile Shaw Wallace & Company Limited in terms of the Scheme of Amalgamation will be listed on the stock exchanges where the existing equity shares of the Company are presently listed and necessary steps have been taken by your company in this regard Exchange Limited and National Stock Exchange of India Limited. The listing fees for the year 2009-10 have been paid to these Stock Exchanges.

GLOBAL DEPOSITARY SHARES

Your Company had issued 17,502,762 Global Depositary Shares (GDSs) representing 8,751,381 Equity Shares ranking pari-passu in all respects with the existing paid-up equity shares, 2 GDSs representing 1 equity share of par value of Rs.10/- each at US$7.4274 per GDSs aggregating to US$ 130 mn. These GDSs are listed on the Luxembourg Stock Exchange.

As on July 24, 2009, there is an outstanding of 689,900 GDSs representing 344,950 equity shares.

CREDIT RATING

ICRA Limited (ICRA) has assigned "LA-" (pronounced LA minus) rating on the long term scale to the Long Term Debt Programme of the Company (Basel II) and also assigned "A1" (pronounced A One) rating on the short term scale to the Short Term Debt Programme of the Company.

CORPORATE GOVERNANCE

A report on the Corporate Governance is annexed separately as part of this report along with a certificate of compliance from a Company Secretary in practice. Necessary requirements of obtaining certifications/declarations in terms of Clause 49 have been complied with.

MANAGEMENT DISCUSSION AND ANALYSIS

Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges, Management Discussion and analysis Report is annexed and forms an integral part of the Annual Report.

FIXED DEPOSITS

Fixed Deposits from the public and shareholders, stood at Rs.654.01 million as at March 31, 2009. Matured deposits for which disposal instructions had not been received from concerned depositors stood at Rs.28.07 million as at March 31, 2009. Of this, a sum of Rs. 7.51 million has been since paid as per instructions received after the year-end.

TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND

Pursuant to the provisions of Section 205A(5) and 205C of the Companies Act, 1956, the Unclaimed Dividend, Debentures and Deposits, remaining unclaimed and unpaid for more than 7 years, have been transferred to the Investor Education and Protection Fund.

HUMAN RESOURCES

Employee relations remained cordial at all the Company's locations.

Particulars of employees drawing an aggregate remuneration of Rs.2,400,000/- or above per annum or Rs.200,000/- or above per month, as required under Section 217(2A) of the Companies Act, 1956, are annexed.

EMPLOYEE STOCK OPTION SCHEME

The Company has not offered any stock option to the Employees during the year 2008-2009 either under the McD ESOP Scheme or McD-Employee Stock Option Scheme - 2002.

CONSERVATION OF ENERGY & TECHNOLOGY ABSORPTION, ETC.

In accordance with the provision of Section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of the Board of Directors), Rules, 1988, the required information relating to Conservation of Energy, Technology Absorption and Foreign Exchange earnings and outgo is annexed.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 217 (2AA) of the Companies Act, 1956, in relation to financial statements for the year 2008-09, the Board of Directors reports that:

• in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

• accounting policies have been selected and applied consistently and that the judgements and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at the end of the financial year and of the profit of the Company for the year ended March 31, 2009;

• proper and sufficient care have been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

• the annual accounts have been prepared on a going concern basis.

THANK YOU

Your Directors place on record their sincere appreciation for the continued support from the shareholders, customers, suppliers, banks and financial institutions and other business associates. A particular note of thanks to all employees of your Company, without whose contribution, your Company could not have achieved the year's performance.

By Authority of the Board

Bangalore Dr. VIJAY MALLYA
July 29, 2009 Chairman

ANNEXURE TO DIRECTORS' REPORT

[Additional information given pursuant to requirement of Section 217(1 )(e) of the Companies Act, 1956]

CONSERVATION OF ENERGY

With reference to energy conservation and cost reduction, steps taken by the company at its various manufacturing units were as follows:-

• Energy Audits were undertaken and devices such as 'Power Bos', 'Variable Frequency Drive' and 'Automatic Power Factor Control unit' were installed for conservation of electrical and thermal energies.

• Process plant revamp was done to reduce steam consumption.

• Plate Heat Exchangers were installed for Heat Recovery.

• Steam driven condensate recovery pumps were installed for reducing Electrical / Fuel consumption.

RESEARCH & DEVELOPMENT (R&D)

As an ongoing process the Company carries out research in its State-of-the-art in-house Research and Development Centre for development of new-age products, new innovative packaging materials and analytical method for quality management.

Expenditure on R & D: (Rs. in Million)

(a) Capital 0.214
(b) Recurring 30.033
(c) Total 30.247

(d) Total R&D expenditure as a percentage of total turnover - 0.08%

TECHNOLOGY ABSORPTION

Technology imported during the last 5 years : Nil

• The Company is evaluating latest Technology for effluent Treatment of Distillery waste by a new process called evaporation / incineration.

• Imported labeling machines were installed for labeling of premium products to further enhance the quality of finished product.

• The Company perfected the art of sleeving technology by importing sleeving machine for full body sleeving of certain White Spirit Brands.

• The Company is also evaluating the use of Gas Turbines for utilizing Methane gas produced in Anaerobic Digester and generating captive power for running the Distilleries.

FOREIGN EXCHANGE EARNINGS/OUTGO

(Rupees in Million)

2008-09 2007-08
1 Exports & Foreign Exchange earnings 42.142 19.597
2 Imports / Expenditure in Foreign Currency 1,944.014 792.318

By Authority of the Board
Bangalore Dr. VIJAY MALLYA
July 29, 2009 Chairman

ANNEXURE TO DIRECTORS' REPORT

STATEMENT OF PARTICULARS OF EMPLOYEES AS REQUIRED UNDER SECTION 217(2A) OF THE COMPANIES ACT, 1956 AND COMPANIES (PARTICULARS OF EMPLOYEES) RULES, 1975.

SL No NAME AGE DESIGNATION/ NATURE OF DUTIES REMUNERATION (Rs) QUALIFICATION EXPERIENCE IN YEARS DATE OF COMMENCEMENT OF EMPLOYMENT PARTICULARS OF PREVIOUS EMPLOYMENT
1 A R BANERJEE 51 ASSISTANT VICE PRESIDENT - FINANCE & ACCOUNTS 4,375,118 B COM (HONS), AICWA 30 1-Oct-85 Cost Accountant, Bengal Waterproof Limited
2 A HARISHA BHAT 55 DEPUTY PRESIDENT & GROUP TREASURER 8,658,348 CA 31 22-Nov-90 Manager Treasury, Digital Equipment (I) Limited
3 ABHAY KEWADKAR 48 SENIOR VICE PRESIDENT-WINES 4,632,010 B TECH (CHEM) 27 23-Aug-06 Vice President & Wine Maker, Grover Vineyards Limited
4 AJAY B BALIGA* 50 EXECUTIVE VICE PRESIDENT - PPMQC 2,296,350 B TECH (CHEM ENGG) 27 3-NOV-08 Senior Vice President - Business Development & Mfg, Allied Blenders & Distillers Pvt Limited
5 ALOK GUPTA* 43 EXECUTIVE VICE PRESIDENT - MARKETING & BRAND INDIA 3,606,686 B COM, PGDM 21 21-Feb-95 Deputy General Manager, Shaw Wallace & Company Limited
6 ALOK KUMAR SEN 54 SENIOR GENERAL MANAGER - MATERIALS 2,934,709 M COM 30 19-Apr-82 Accounts Executive, Calcutta Industrial Supply Corporation
7 AMRIT THOMAS 42 EXECUTIVE VICE PRESIDENT - MARKETING 12,137,840 B TECH, PGDM 17 12-Jun-07 Category Head - Beverages, Hindustan Lever Limited
8 ANANT IYER 49 DIVISIONAL VICE PRESIDENT -INSTITUTIONAL & TRADE MARKETING 6,185,605 M SC, M.M.S, 25 15-Jun-92 Controller - Marketing, Consolidated Distilleries Limited
9 ANIL KUMAR KUSH 53 CHIEF EXECUTIVE - VITTAL MALLYA SCIENTIFIC RESEARCH FOUNDATION 9,488,777 PHD, MBA 25 13-May-05 Scientific Director, Genesis Management Consultants
10 ARUN BOPAIAH 57 DIVISIONAL VICE PRESIDENT -MANUFACTURING 4,570,305 B.SC, LLB 28 27-Oct-93 Manager - Personnel & Admin, Karnataka Jewels Limited
11 ARUN MOKAL 52 GENERAL MANAGER - ADMINISTRATION 2,537,532 B.COM 30 15-Apr-85 Mavkinnon Mackensieco Limited
12 ARVIND JAIN 46 DIVISIONAL VICE PRESIDENT - SALES 4,746,485 PGDM 25 12-Apr-91 Area Manager, Titan Watches Limited
13 ASHOK CAPOOR 56 DEPUTY PRESIDENT 18,974,061 B.A (ECO), MBA 34 12-May-92 Chief Operating Officer, erstwhile Herbertsons Limited
14 ASHWIN MALIK* 51 CHIEF OPERATING OFFICER OF A SUBSIDIARY COMPANY 8,529,076 B.A. (ECO), MBA 29 1-Nov-88 Vice President Sales & Marketing, Carew Phipson Limited
15 B NARAYANA RAJU 55 ASSISTANT VICE PRESIDENT - DISTILLERY 2,677,490 M.SC 29 24-Jun-02 General Manager - Production & Admin, Balaji Group
16 BHARATH RAGHAVAN 45 DIVISIONAL VICE PRESIDENT - LEGAL & SECRETARIAL 3,860,638 B.COM, ACS 23 13-Feb-98 Senior Manager Fixed Income, Peregrine Capital India Private Limited
17 DALIP KUMAR GARG 55 DIVISIONAL VICE PRESIDENT - SALES 4,877,446 B.A. 30 4-Oct-01 Vice President - Sales, Millenium Breweries Limited
18 DEBABRATHA BANERJEE* 49 SENIOR VICE PRESIDENT-SALES 3,452,403 PGDBM 28 1-Nov-96 Chief Operating Officer, erstwhile Herbertsons Limited
19 DEBASHISH SHYAM 41 DIVISIONAL VICE PRESIDENT-MARKETING 4,670,002 BSC, PGDBM 18 20-Sep-04 Head - Marketing & Alliances (Internet Services), Bharti Infotel Limited, New Delhi
20 DEBASISH DAS 51 DIVISIONAL VICE PRESIDENT-MANUFACTURING (SOUTH) 4,895,189 BSC, B TECH, PGDBM 26 20-Aug-84 Chemist, Eastern Distilleries Private Limited
21 DHARMARAJAN S 51 DIVISIONAL VICE PRESIDENT - FINANCE & ACCOUNTS 4,917,754 B COM, ACA, LLB 25 7-Nov-86 Consultant, N M Raiji & Company
22 DR BINOD K MAITIN 60 SENIOR VICE PRESIDENT - QUALITY ASSURANCE & TECHNICAL 6,041,753 M SC, PH.D., 38 14-D#c-88 Senior Research Officer & Head, Analytical Research Group, Shriram Institute For Industrial Research
23 G DEVANATHAN 53 SENIOR GENERAL MANAGER-INFORMATION SYSTEMS 3,356,473 B.SC 31 3-May-95 General Systems Manager, Amco Batteries Limited
24 I P SURESH MENON 52 SENIOR VICE PRESIDENT - PLANNING & CONTROL 7,713,678 B.A. (HONS)MMS 31 1-Apr-85 Secretary & Finance Manager ,UB Electronic Instruments Limited
25 JOHN MATHEW ANTHRAPER 36 SENIOR GENERAL MANAGER MARKETING 2,719,735 MSC, MBA 12 19-Jan-05 Britania Industries Limited
26 JOSEPH PC 56 GENERAL MANAGER - SALES (CSD) 2,613,243 B A 35 11-Oct-76 Packsell Combine, Office Assistant
27 K KRISHNAMOORTHY 58 ASSISTANT VICE PRESIDENT & COMPANY SECRETARY - SHAW WALLACE & COMPANY LIMITED 3,666,185 B Com (Hons), LLB, ACS, Inter ICWA 38 3-Sep-93 General Manager (Corp Finance) & Company Secretary, Ceeta Industries Limited,
28 K R SANKARANARAYANA 53 SENIOR GENERAL MANAGER - TECHNICAL 7,908,779 M SC, DIFAT 30 2-Jul-79 Executive, Tunga Bhadra Sugar Works
29 K VIJAY KUMAR 44 SENIOR GENERAL MANAGER - DISTILLERY 2,437,580 B SC, PDDBM, DIFAT 22 17-Feb-04 UDV India Limited
30 KAUSHIK CHATTERJEE 48 CHIEF OPERATING OFFICER - REGIONAL PROFIT CENTRE (EAST) 12,097,381 B.COM 25 27-Apr-06 Chief Operating Officer - Indian Operations, Mason And Summers Akobev Private Limited
31 KUSHAL BANERJEE 51 SENIOR GENERAL MANAGER - PERSONEEL & ADMINISTRATION 3,042,341 B COM, PGDPM (IISWBM) 30 8-Jul-02 Chief - Industrial Relations, Exide Industries Limited
32 LAL RANGWANI 43 ASSISTANT VICE PRESIDENT TRADE MARKETING & INSTITUTIONAL SALES (WEST) 3,161,037 M.COM 22 7-Aug-87 Executive, erstwhile Herbertsons Limited
33 LALIT GUPTA 49 SENIOR VICE PRESIDENT-LEGAL 5,105,868 BSC, LLB, DLL 26 1-Jun-98 Joint Manager - Legal, Shriram Foods & Fertilizers
34 LAXMI NARASIMHAN 39 CHIEF OPERATING OFFICER - REGIONAL PROFIT CENTRE (AP) 5,781,485 BE, PGDM 15 8-Dec-03 Regional Manager, Coca Cola India
35 M A HAMEED 52 ASSISTANT VICE PRESIDENT - SALES 3,366,006 B COM 25 1-Apr-03 Branch Sales Manager, Seagram Manufacturing Private Limited
36 MAHESH NEDUNGADI 49 SENIOR GENERAL MANAGER - LEGAL 2,802,274 B COM (HONS), ACS 26 6-May-96 Company Secretary, Nova Granites (India) Limited
37 MATHEW XAVIER 45 DIVISIONAL VICE PRESIDENT- MARKETING & INNOVATIONS 5,954,224 PGDM / B COM 20 10-Nov-03 Vice President - Marketing, Erstwhile Shaw Wallace Distilleries Limited
38 MOHAN P MEDEIRA 51 SENIOR GENERAL MANAGER - LOGISTCS, MATERIALS & MARKETING SERVICES 3,246,935 B.SC (HONS), PGOSM, DBMM 31 17-Apr-84 Sales Assistant, Fibreglass Pilkington Limited
39 MOHANTY B K 55 SENIOR GENERAL MANAGER - SALES 2,534,637 B.A 32 20-Jul-77 NA
40 MONGIA S K 68 DIVISIONAL VICE PRESIDENT - BUSINESS PROMOTION 3,611,808 M.SC, DEF SC 51 2-Aug-93 Commodore-Indian Navy
41 N R RAJSEKHER 53 CHIEF OPERATING OFFICER - REGIONAL PROFIT CENTRE (WEST) 12,493,979 B.SC 30 8-Apr-82 Vice President - Sales, erstwhile Shaw Wallace Distilleries Limited
42 NAGAPPAGS 54 DIVISIONAL VICE PRESIDENT - SALES 4,835,691 B.SC 34 1-Aug-75 Executive, erstwhile Herbertsons Limited
43 NANDINI VERMA 54 EXECUTIVE VICE PRESIDENT - CORPORATE AFFAIRS 7,470,077 BA (HONS), IFDAF 37 13-Apr-07 Vice President - Corporate Affairs & Public Relation, Jet Airways
44 NAVRATAN DUGAR 65 DEPUTY PRESIDENT - PROCUREMENT, PLANNING, MANUFACTURING & QUALITY CONTROL 15,198,254 B.COM, M.COM, MBA, MCIM 40 1-May-01 Adviser, Balaji Group of Companies
45 P A MURALI 51 DEPUTY PRESIDENT & CHIEF FINANCIAL OFFICER 18,680,713 B COM, ACA 28 5-Jul-93 Executive Vice President & Chief Financial Officer, United Breweries Limited
46 P SRIRAM 49 ASSISTANT VICE PRESIDENT-MANUFACTURING 4,606,605 B TECH, PGDPM 26 4-Jan-95 Assistant Vice President - Manufacturing, erstwhile Shaw Wallace Distilleries Limited
47 PN PODDAR 56 SENIOR VICE PRESIDENT 6,523,806 M.TECH, DMS 33 1-Jan-88 Production Manager, Union Carbide (1) Limited
MANUFACTURING
48 PV ACHAR 57 GENERAL MANAGER - MATERIALS 2,686,430 B COM, MBA, DIP IN MM 38 11-Jan-88 Ideal Jawa (1) Pvt Limited, Senior Stores Officer
49 PADMANABHAN N R 52 ASSISTANT VICE PRESIDENT FINANCE & ACCOUNTS 3,816,458 B COM, CA 26 31-Aug-94 Accounts Superintendent, Schrader Duncan Limited
50 PARAMJIT SINGH GILL 47 CHIEF OPERATING OFFICER - REGIONAL PROFIT CENTRE (NORTH) 7,272,217 B SC, D LL-CHARTERED MARKETER, M PHIL 26 1-Dec-07 Executive Vice President, United National Breweries (SA) (Pty) Limited, Centurion
51 PHILIP SARGUNAR A B 60 CHIEF OPERATING OFFICER - REGIONAL PROFIT CENTRE (SOUTH) 15,730,324 BA, MA 39 20-Nov-02 Executive Director & Chief Reputation Officer, The Empee Distilleries Limited
52 PRAKASH MIRPURI 46 ASSISTANT VICE PRESIDENT - CORP MEDIA 2,811,797 PGD 26 9-Apr-07 Director - Client Services, Ipan
53 PRATIP SEN 57 ASSISTANT VICE PRESIDENT -MANUFACTURING 3,988,859 B TECH (CHEM), PGDBM 35 24-Nov-03 Chief Executive Officer, Vivada Chemicals Private limited
54 R SATSANGI 52 DIVISIONAL VICE PRESIDENT - REGIONAL MANUFACTURING HEAD (NORTH) 4,914,504 B TECH (MECH) 30 19-Feb-96 Plant Manager, Pepsico India Holding Limited
55 R N PILLAI 53 DIVISIONAL VICE PRESIDENT - FINANCE 3,859,614 CA 33 1-Mar-86 Accountant, Royal Oman Police
56 RAGHUNATHAN A 57 EXECUTIVE VICE PRESIDENT - FINANCE & ACCOUNTS 8,180,984 B COM, ACA 34 24-Sep-79 Executive Vice President - Finance & Accounts, erstwhile Herbertsons Limited
57 RAJA R PETER 50 SENIOR GENERAL MANAGER - BUSINESSDEVELOPMENT 2,446,835 BE 20 16-Jul 07 General Manager and Head Marketing Alliances,Tata Teleservices Limited
58 RAJIV SURI 52 DIVISIONAL VICE PRESIDENT - FINANCE 5,047,917 B COM (HONS), MBA, ACA, 31 16-May-94 Senior Manager - Marketing Finance, Reliance Industries Limited
59 RANAJOY SARKAR* 58 SENIOR GENERAL MANAGER - ACCOUNTS 3,237,286 B COM (HONS), AICWA 33 1-Dec-86 Western India Industries
60 RAVI NEDUNGADI A K 51 PRESIDENT & CHIEF FINANCIAL OFFICER -UB GROUP 26,126,482 B COM (HONS), AICWA, ACA 30 1-Jan-90 Group Finance Director, UB International Limited, U K
61 ROBIN BASU* 50 SENIOR VICE PRESIDENT-HR 4,074,211 B COM, MBA 24 20-Mar-07 Senior Vice President - HR, Berger Paints
62 S ANANDA PRASAD 56 GENERAL MANAGER TAXATION 2,784,284 B COM,LL B, 35 1-Jul-84 Assistant Manager - Accounts, Mysore Wine Products Limited
63 S R AINAPUR 51 ASSISTANT VICE PRESIDENT - ACCOUNTS 4,544,664 CA 27 1-Dec-87 Accounts Assistant, Kesarval Beverages Limited
64 S A BAGI 55 SENIOR GENERAL MANAGER - DISTILLERY 3,186,601 B SC , DIFAT, DBM 34 13-Aug-75 NA
65 S C SINGHAL 56 DIVISIONAL VICE PRESIDENT - MANUFAC-TURING (EAST) 4,944,857 B SC, DIFAT 32 1-Sep-89 Assistant Manager (Works), Shri Shadilal EnterprisesLimited
66 S D LALLA 65 JOINT PRESIDENT OVERALL OPERATIONS 36,046,105 LC & SE, AMIE (CIVIL) 47 5-Apr-94 Managing Director, erstwhile Herbertsons Limited
67 S K RASTOGI 55 DIVISIONAL VICE PRESIDENT - Quality 5,357,745 M SC, 37 14-Nov-82 Quality Control Officer, Jagatjit Industries Limited
68 S N PRASAD 51 Control DIVISIONAL VICE PRESIDENT - FINANCE 4,956,553 B COM, ACA, ACS, 25 7-Mar-91 Deputy Manager - Finance, UB Hoppecke Energy Products Limited
69 S SATISH 49 ASSISTANT VICE PRESIDENT - PLANNING & CONTRO L 4,234,769 B COM 29 21-Jul-89 Accounts Officer, BPL Sanyo Limited
70 S SURYANARAYANAN 49 ASSISTANT VICE PRESIDENT - ENGINEERING 3,817,452 B SC.B TECH (MECH) 27 10-Feb-89 Purchase Officer, Sundaram - Clayton Limited
71 SANJAY RAINA* 44 EXECUTIVE VICE PRESIDENT - HUMAN RESOURCES 2,282,195 MSW-PERSONNEL MGMT 22 19-Nov-08 Head HR - Network, Supply Cham - India & Er - SE Asia, Motorola India Private Limited
72 5ANJAY ROY 35 HEAD - MARKETING & SALES - WINES 2,833,566 B COM, PGDM 12 18-Sep-00 Marketing Officer - Flash Lights, Eveready Industries India Limited
73 SATENDRA CHAUDHARY* 50 SENIOR GENERAL MANAGER - HR 1,318,669 BA, LLB, PGDPM&IR 29 18-Sep-08 Vice President, Aditya Birla Group,
74 SATISH NAIR 57 ASSISTANT VICE PRESIDENT - MATERIALS 3,854,268 B SC, D-STRS MGMT, MATS 34 6-Jul-84 Stores And Purchase Officer, Kartnataka Oxygen Limited
75 SHARMA V K 66 EXECUTIVE DIRECTOR - CHAIRMANS OFFICE 7,028,860 B.COM, MA, LLB 35 S-Oct-84 Executive Director - Chairman's Office, erstwhile Herbertso ns Limited
76 SHIV KUMAR GUPTA 56 ASSISTANT VICE PRESIDENT - DISTILLERY 3,379,526 B SC, DIFAT 36 13-Jan-06 General Manager - Distillery, A B Sugars Limited
77 SUDARSHAN VACHARYA 50 DIVISIONAL VICE PRESIDENT - RAW MA- TERIALS & OVERSEAS SUPPLY CHAIN 4,266,689 B COM , DO-MAT, DIP- LABOUR LAW 28 20-Jan-89 Assistant Manager - Purchase, Astra Idl Limited, Bangalor e
78 SUKHVINDER SINGH 58 SENIOR GENERAL MANAGER - DISTILLERY 2,695,602 BA 32 1-Jul-82 NA
79 T K SUBRAMANIAN 58 DIVISIONAL VICE PRESIDENT - SYSTEMS 6,496,668 B.SC.DMS 38 16-Mar-83 Controller - Systems, UBICS Limited
80 T SAMBANDASAMY 50 DIVISIONAL VICE PRESIDENT-SALES 3,443,486 B.B.A, MBA 27 12-Apr-83 General Manager - Sales, erstwhile Shaw Wallace Distilleries Limited
81 TV SUBRAMANIAN 54 ASSISTANT VICE PRESIDENT - BUSINESS DEVELOPMENTS 4,659,799 M.COM ICWA 31 16-Jun-86 Manager-Branch Services, Deccon Marketing Limited
82 V K REKHI 63 MANAGING DIRECTOR 42,361,828 MA (HONS), PGDBA., 38 3-Jan-72 Regional Director, UB International Limited, U K
83 V S VENKATARAMAN 55 COMPANY SECRETARY & SENIOR VICE PRESIDENT 7,193,171 B.COM (HONS), ACS 37 20-Aug-82 Deputy Company Secretary, United Breweries Limited
84 V MURALI 47 SENIOR GENERAL MANAGER - DISTILLERY 2,813,692 ME (CHEM).DBA 23 4-Oct-90 Manager - Technical Service, Associated Drug Company Private Limited Deputy General Manager, Shaw Wallace 8c
85 VIVEK PRAKASH 48 SENIOR VICE PRESIDENT - CSD SALES 7,521,889 B COM, LLB, 27 15 Jun-98 Company Limited
86 WILLIAM DEVADASS 41 SENIOR GENERAL MANAGER - INST SALES & TRADE MKTG 2,792,350 B COM 18 25-Oct-06 Seagram Manufacturing Private Limited
87 ZEYN MIRZA 46 SENIOR GENERAL MANAGER - BUSINESS DEVELOPMENT 2,728,074 B.COM, DIP IN COMP, F&A, HRSE BREED 24 19-Aug-03 Managing Director, Adroit Tech Solutions Limited

* Employed for part of the year Notes:

1. No Employee is on Contract Employment Other Terms and Conditions are as per Service Rules of the Company from time to time.

2. None of the above mentioned employees is related to any Director of the Company.

3. Remuneration as shown above includes Salary, House Rent Allowance, Company's contribution to Provident Fund and Super Annuation Fund, Value of Residential Accomodation, Bonus, Medical and other facilities.

By Authority of the Board

Bangalore Dr. VIJAY MALLYA
July 29, 2009 Chairman
   

Peer Comparison

Company Market Cap
(Rs. in Cr.)
P/E (TTM)
(x)
P/BV (TTM)
(x)
EV/EBIDTA
(x)
ROE
(%)
ROCE
(%)
D/E
(x)
United Breweries 12,685.91 79.70 12.10 29.63 14.3 15.6 0.59
United Spirits 8,371.21 20.01 1.64 16.02 7.8 12.1 0.72
Radico Khaitan 1,612.31 20.73 2.51 13.60 11.9 12.5 0.76
Tilaknagar Inds. 669.28 17.64 1.91 9.72 15.2 14.0 1.84
Som Distilleries 420.64 24.61 5.18 20.14 24.4 28.2 0.39
Jagatjit Inds. 246.44 0.00 1.04 5.46 2.2 7.4 0.89
Globus Spirits 235.87 6.52 1.13 5.00 21.8 27.0 0.17
Khoday India 190.02 9.14 1.87 17.86 0.0 0.0 1.33
IFB Agro Inds. 124.16 3.79 1.43 1.47 22.9 29.3 0.23
Mohan Meakin 121.76 0.00 2.90 0.00 -14.0 1.2 2.26
Empee Distill. 120.08 6.77 0.48 7.01 6.9 10.4 0.48
G M Breweries 63.55 4.73 0.74 2.17 17.3 29.1 0.01
Pioneer Distil. 37.49 0.00 -5.11 0.00 0.0 0.0 5.93
Rochees Brew. 27.68 0.00 -2.82 0.00 0.0 0.0 0.00
Indage Vintners 25.03 0.00 0.61 0.00 0.0 0.0 2.64

Futures & Options Quote

 
Expiry Date
642.35 14.00  (2.2%)
Instrument: FUTSTK
Expiry Date: 31 May 2012
Open Price: 626.70
Average Price: 641.83
No. of Contracts Traded: 788,500
Open Interest: 1,346,500
Underlying: MCDOWELL-N
Market Lot: 250
Previous Close: 642.35
Day’s High | Low: 651.80 | 624.40
Turnover (Cr.): 50.61
Open Int. Change: -98,500.00 ( [6.8]% )
View detailed F& O quotes >>

Key Information

Key Executives:

Vijay Mallya , Chairman 

S R Gupte , Vice Chairman 

M R Doraiswamy Iyengar , Director 

B M Labroo , Director 


Company Head Office / Quarters:
UB Tower Level 6,
24 Vittal Mallya Road UB City,
Bangalore,
Karnataka-560001
Phone : 91-80-39856500/22210705/0278
Fax : 91-80-39856862
E-mail : uslinvestor@ubmail.com
Web : http://www.unitedspirits.in
Registrars:
Integrated Enterprises (I) Ltd
No. 30 Ramana Resid.
4th Cross Sampige Rd
Malleswaram
Bangalore - 560003

Fund Holding


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