The UB Group has dipped its feet in many fields and made billions of profits. Some of the biggest companies under their wing produce, as we said beer and spirits, but the corporation is also very active in engineering and fertilizer production. We have also mentioned that they entered the pharmacy business. They are also passionate about sports as their acquisition of a football club, and F1 team proves. Which subsidiaries are the most profitable ones can be found below.
The company owns many successful companies, like the United Breweries Limited (UBL) which is a market leader in its field. It controls over 50% of the Indian beer market. Again, we have to mention its biggest brand Kingfisher which reached the markets of 52 countries. The company is very progressive with the acquisition of other smaller companies which led them to set up a monopoly in India. Still, legal troubles and indebtedness led the company under the ownership of Heineken, which owns 43% shares of UBL since 2016.
Similar to UBL, the United Spirits Limited (USL) ranked very high in 2006 as the third biggest global spirit manufacturer. In fact, this manufacturer owns seven brands that are worth millions. The company went global buying businesses all over the world like Whyte and Mackay ten years ago. But meanwhile, the company was sold in 2014 to a company based in the Philippines.
UB Engineering Limited (UB EL) was acquired by the UB Group in 1988, and it participates in construction projects, procurement projects, mechanical equipment testing, and infrastructure works. The company was founded in 1963, and it went public nine years later. The company also oversees maintenance of plants for different industries, and not only in the home country, but it is also known for its international business deals.
Mangalore Chemicals and Fertilizers is a business run from a factory in Karnataka and is specialized in the production of fertilizers. The company offers an array of products like diammonium phosphate, soil conditioners, urea, granulated and specialty fertilizers, as well as micronutrients.
Another subsidiary worth mentioning is the UBICS Inc which is a firm offering IT consulting services, as well as IT equipment and supplies to professional businesses.
The Kingfisher Airlines
The airline in ownership of the UB Group was based in Mumbai, and it was entitled to 50% of the Kingfisher Red carrier which is a low-cost airline. It was the second largest market holder in India until 2011, but the carrier hit rock bottom only one year later in 2012 when its business tumbled down to the lowest market ranks. The DGCA shut down the airline by revoking their flight license. Subsequently, the Indian Government withdrew the flights it had allocated to this airline and reassigned them to other providers.
In 2014, the airline was officially insolvent and ceased its operations. The company was active for somewhat more than a decade. The airlines turned to Bombay Stock Exchange (BSE) in 2011 disclosing that their net worth significantly dropped. The company did take certain measures like fleet recovery and a debt repayment plan which could still attract investors. Some lenders believed that once the company gets the needed capital, it will recover. Still, the company was doomed to fail, and despite the will of investors, it failed to stay viable.
Force India Formula 1
This F1 team is operating in Britain but under an Indian license. It is also a part of the UB Group since their chairman Mallya sat together with a Dutch businessman and handed out a $90 million dollar deal by buying Spyker F1. Force India came into being in 2007. At first, the team had a tough time with scoring no points in 29 races, but in 2009, Italian Fisichella finished second in the Belgian Grand Prix. Sutil was also one of the drivers who brought points to the team by finishing fourth in the Italian Grand Prix.
In 2011, a fair share of 42.5% shares was sold to another Indian magnate, the Sahara India Pariwar. The price was $100 million. Since then on, the team has been renamed to Sahara Force India, whereby Force India also owns 42.5%. The Mol family owns the remaining 15%. The most important sponsor of Force India is, of course, another giant from the UB Group, i.e. the most famous one Kingfisher. Whyte and Mackay, which used to be owned by the UB Group, recently, also joined the sponsorship.
The East Bengal Football Club
This club is also part of the UB Group empire and plays in the highest Indian league called the I-League in Kalkota. The club is very successful, and one of the best in India with three claimed titles in the I-League. The team also represents India in Asian cups and competitions. The red and gold team has so far over 100 trophies under their belt including international competitions as well. The club’s main sponsor is Kingfisher Premium.