Founder of the UB Group
(Late) Vittal Mallya

The youngest of three children, Vittal Mallya was born in Dhaka, now in Bangladesh, on February 8, 1924. He was born in an army family to Mrs. Devi Mallya and Lt. Col. Bantwal Ganapathi Mallya (a Medical Doctor with an FRCS degree). Vittal Mallya grew up to be a smart young man to graduate at a very young age. He received several double promotions during his academic career for outstanding performance and this demonstrated his exceptional calibre and sharp intellect. Following graduation, young Vittal Mallya travelled the world for two years, during which period he visited Latin American countries very extensively and even learnt to speak Spanish.

Vittal Mallya saw an opportunity in 1946-47 and started acquiring the shares of United Breweries Limited, of which he became the Chairman. His foresight and business acumen led to the aggressive expansion of the United Breweries Group. Meanwhile, the acquisition of control over McDowell & Company Limited marked the Group’s entry into the Wines and Spirits business. The Group took a further stride with the acquisition of Kissan Products Limited in 1950-60.

Founder of the UB Group
(Late) Vittal Mallya

It also began its association, about this time, with Hoechst AG of Germany while co-promoting Hoechst Pharmaceuticals Limited, now known as Aventis Pharma India.

Having set the pace for the Group’s progress, Vittal Mallya had to slow down because of a health set-back. In 1965, the family moved back to Calcutta. Vittal Mallya acquired Phipson & Company Limited and Carew & Company Limited to further reinforce the Group’s presence in the Beverages Alcohol industry.

It was 1977, the Morarji era of prohibition. Swimming against the current and showing once again a rare sense of timing and business opportunity, Vittal Mallya acquired several breweries and distilleries. What set Vittal Mallya apart was his humility and simplicity. Despite his poor eyesight, his vision remained unfailing and fully focussed. A vision that has created one of India’s leading corporate houses. A vision that is a shining example and an inspiration.

Dr. Vijay Mallya
Chairman

The UB Group is one of India’s largest conglomerates with annual sales of over US$ 4 billion and a market capitalization of approximately US$ 12 billion. The Group has diverse interests in brewing, distilling, real estate, engineering, fertilizers, biotechnology, information technology and aviation. It is also the largest Indian manufacturer of beverage alcohol (beer and spirits). Dr. Vijay Mallya is the Chairman of the Group.

Dr. Mallya, was elected by shareholders as Chairman of UB in 1983, at the age of 28. He previously assisted his father, the former Chairman, who passed away in the same year. Prior to being entrusted with the responsibilities of a classical Indian corporate conglomerate, Dr. Mallya worked for the American Hoechst Corporation (now Sanofi-Aventis) in the USA and with Jenson & Nicholson in the U.K. Since 1980, he assisted his father, the then Chairman of The UB Group, in managing the important Brewing and Spirits Divisions and in re-launching the Kingfisher Brand of Beer. In 1983, the sales volume of the UB Spirits division was approximately 2.85 million cases and UB’s beer business trailed behind that of Golden Eagle from Mohan Meakins.

Dr. Vijay Mallya
Chairman

Also included in the Group were activities such as pharmaceuticals, agrochemicals, paints, petrochemicals and plastics, the manufacture of electro-mechanical batteries, the manufacture of food products and carbonated beverages, a fast-food pizza chain and several medium and small scale industrial units.

Upon assuming the position of Chairman in October 1983, Dr. Mallya initiated the process of defining a corporate structure with performance accountability, inducting professional management and consolidating the unwieldy empire into individual operating divisions.

In 1988, Dr. Mallya became a non-resident Indian to pursue global opportunities and to transform the UB Group into India’s first multinational company. While, in the initial stages, overseas representative offices had been commissioned, the real break came in 1988 when Dr. Mallya, in a leveraged buyout, acquired the global Berger Paints Group with operating companies across four continents.

Dr. Vijay Mallya
Chairman

The exit strategy for this investment was profitably executed when Dr. Mallya successfully directed five Initial Public Offerings on the London, Singapore (Main Boards), Nairobi, Jamaica and Abidjan Stock Exchanges. The paints business was divested for significant value in 1996.

Dr. Mallya also founded a software company in the USA in 1993 which was subsequently listed on the NASDAQ in 1996 and which provides a considerable window of opportunity to the vast US market. He also initiated several ventures for the promotion and globalization of UB brands and, in particular, Kingfisher and McDowell.

Dr. Vijay Mallya
Chairman

In 1990, following the Government of India’s liberalised economic policies, Dr. Mallya decided that the UB Group would only retain interests in businesses that were globally competitive and which did not depend upon fiscal tariff protection. He also decided to focus on areas of core competence and transformed the vastly diversified UB conglomerate into a handful of key operating businesses. On entering the new millennium, the UB Group is considerably more focused and has dramatically increased value for its shareholders through its various operating businesses. Sales of the UB Spirits Division have crossed 90 million cases (9 litres each) during the fiscal year 2008-09. In addition, this Division is one of only three in the world to own 22 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. The market share of the Spirits Division in India is currently 60% and exports to the Middle East, Africa and Asian countries are growing rapidly.

Dr. Vijay Mallya
Chairman

In 2007, United Spirits Limited, the flagship of The UB Group, acquired a hundred percent of premium scotch distillers Whyte & Mackay and Liquidity Inc, a United States-based maker of specialty vodkas. The Delaware-based Liquidity Inc produces speciality brands like Pinky Vodka and Marakesh.

The UB Group’s Brewing Division has also assumed undisputed market leadership with a national market share in excess of 48%. Through a process of aggressive acquisition and market penetration, The UB Group today controls 60% of the total manufacturing capacity for beer in India. The flagship brand, Kingfisher, is now sold in over 50 countries worldwide having received many accolades for its quality.

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.

Dr. Vijay Mallya
Chairman

The UB Group’s Kingfisher Airlines is today the undisputed market leader in India’s aviation market. In the short span since it was launched, Kingfisher Airlines has redefined the whole experience of flying and has raised the bar by unleashing a host of product and service innovations. It has received numerous awards since its inception.

Kingfisher Airlines offers Full Service and an unparalleled experience to the Indian air traveller. In-flight entertainment has been taken to a new level with the introduction of Live TV to compliment the latest and finest Audio and Video on Demand system that is available.

With the merger of Air Deccan and Kingfisher Airlines, the airline covers all segments of air travel from low fares to premium fares and offers the maximum number of flights offered by any single airline network in India.

Dr. Vijay Mallya
Chairman

Dr. Mallya is the Chairman of public companies both in India as well as in the USA. He has been the Chairman of Aventis Pharma India (previously Hoechst) as well as the Chairman of Bayer Crop Science in India (previously Agrevo) for over 20 years, in addition to his Chairmanship of several other corporations.

Dr. Mallya is the first Indian ever to become the owner of a Formula One Team. The Netherlands-based Mol Family and Dr. Mallya have formed a consortium that is now the joint owner of Force India Formula One, which is also India’s first-ever Formula One Team and represents India’s first, truly global sports foray.

He is a keen sportsman and is an ardent aviator and yachtsman of distinction. He not only participates in various sporting events but also supports various sporting activities worldwide, particularly for the under privileged.

Dr. Vijay Mallya
Chairman

Dr. Mallya has received several professional awards both in India and overseas. He was conferred a Doctorate of Philosophy in Business Administration, by the Southern California University, Irvine. He has also been nominated as a Global Leader for Tomorrow by the World Economic Forum. He was conferred France’s highest civilian honour – “ Officier de la legion d” Honneur” for his exceptional career as businessman heading a multinational with diversified interests.

Dr. Mallya has always believed that Corporations have a responsibility to society and mankind. To this end, he has contributed generously to various Charities and Foundations in several countries in addition to establishing The Mallya Hospital, The Mallya-Aditi School and the Vittal Mallya Scientific Research Foundation in Bangalore, India.

History of McDowell

1959 Vittal Mallya envisions an enterprise of his own, built on the foundation of McDowell. The first distillery is established in Cherthala, on the banks of Kerala’s famed Vembanad Lake.

1961 The first ever distillation plant in the country to produce Extra Neutral Alcohol with French collaboration, is commissioned in Cherthala. It begins bottling Beehive French Brandy for Herbertsons Limited.

1963-64 Vittal Mallya envisions an enterprise of his own, built on the foundation of McDowell. The first distillery is established in Cherthala, on the banks of Kerala’s famed Vembanad Lake.

1968 McDowell’s No. 1 Whisky launched and proves to be an instant success.

THE BEER STORY

The Castle Brewery which dates back to 1857 (the year of the Indian mutiny) was set up for the European planters scattered over the Nilgiris. So was the Nilgiris Brewery Company. The British Brewing Corporation set up in Madras (1902) catered to the elite of the port town of Madras while the Bangalore Brewery Company had been supplying beer for the troops stationed at Pune and Bangalore since 1885.
United Breweries Limited (UBL) was founded on March 15, 1915, in Madras by Thomas Leishman, a Scotsman, also its first Managing Director. UBL manufactured and sold only bulk beer for troops of both the world wars. It was a classic case of role reversal – India being introduced to this ‘exotic’ brew and in turn becoming its major exporter.

Consolidating growth
The Company’s brewing tradition has a legacy of nearly 130 eventful years. Along its journey through the global Alcoholic Beverages landscape, UBL has consistently influenced business paradigms, beer-drinking habits and conventional mindsets. One man played a pivotal role in the Group’s growth – Vittal Mallya who was elected to the Board of Directors of UBL in 1947 at the age of 22 and a year later

THE BEER STORY

became its Chairman. Bangalore has been at the core of UBL’s existence. The Registered Office of UBL was shifted to Bangalore in June 1952, into the spacious 22-acre factory of the Bangalore Brewery Company. The Bangalore Brewery buildings, dating as far back as 1885, have since given way to newer construction. The only relic that still stands is the present godown adjacent to the UB Towers building, which earlier housed the bottling cellars, pasteurizing and packing departments. The five acres of land across the road donated to the Jesuit Society now forms the campus of St Joseph’s Indian High School.

Exploring Opportunities
In 1951, United Breweries Limited added liquor to its product cabinet when McDowells became its first subsidiary. Under the dynamic guidance of Vittal Mallya, the Company became the first to manufacture Indian substitutes of foreign liquor. This gave rise to a new term – IMFL (Indian Made Foreign Liquor). McDowell has since then been the undisputed market leader and one of the largest and fastest moving consumer goods companies in the country. Vittal Mallya was not a man to rest on his laurels. He continued to pursue opportunities in the Alcoholic Beverages business and at the same time diversified into Polymers and Batteries in addition to Pharmaceuticals and Foods that the Company had been making till then.