R.T.Sakthidaran

On April 7, 2010 United Spirits Limited (USL) proudly announced that the company along with its associates and subsidiaries achieved a sales volume in excess of 100 million (10 crore) cases. Thus, it became the world’s 2^nd largest Spirits company (FY 2010). The retail sales value is Rs 38,200 Crores. By this achievement, it dislodged the Paris head-quartered Pernod-Ricard from its number 2 position.

Commenting on USL catapulting to the number 2 position globally, Dr Vijay Mallya, Chairman, the UB group said, “We have done extremely well, despite the economic slowdown this year. This has been made possible through our sheer dedication and commitment to the vision of becoming the best in the business. It wasn’t long ago that we were merely a 3 million case company. We have created a new history in the world of beverage alcohol by selling 740 million cases in about a quarter of a century. The Indian spirits industry today is pegged at 236 million cases and USL has a 59% market share in India in the segments it operates in. We are certain that our additional sales in the next financial year will take us to the No. 1 position globally”.

Key highlights:

1. USL brands grew at 14% while the world’s top 100 spirits brands collectively grew only 1% and this when 18 of the top 25 global premium brands lost ground.
2. With more than 100 million potential consumers entering the legal drinking age in the 5 years, the opportunity for growth for USL is tremendous.
3. To match the future demand, USL plans to invest more than Rs 650 Crores in capacity augmentation.
4. United Breweries Ltd (UBL) sold in FY 2010 more than 7.8 million hectolitres (780 million liters) of beer which is equivalent to 100 million cases (700 ml for each Indian irrespective of their age).
5. UBL achieved 20% growth rate compared to last year.
6. Kingfisher has moved from being a brand to an icon of an emerging lifestyle!
7. With 140 brands, 20 are millionaire brands
8. Manufacturing and bottling units at 80 locations across the country.
9. It was established as a proprietary business in 1826.

Dr Vijay Mallya has a vision and dedication to achieve his vision. Politicians and governments are happy to help him achieve his mission as that brings revenue and votes. I wouldn’t be surprised if Dr Vijay Mallya makes an announcement at the end of 3^rd quarter (after Diwali, Christmass, New Year eve etc.) that they could become No.1 in the world even before the end of FY 2011.

No doubt, the campus discipline is deteriorating day by day and fast in the last 5 years. It is damaging the health of our students and wealth of their parents. Invariably, smoking, drinking, rowdyism and sexual harassment go all together as good companions. The teaching profession is becoming much tougher. Who can do research or development? Teachers are busy managing students all the time. Most of the technology like mobile phone, i pod has already established proven nuisance in the campus.

Dr Vijay Mallya’s achievement can be a personal one. It certainly wouldn’t bring pride to India and its people. 30 years back, Russians were considered to be the worst drunkards in the world. Today, India can claim that notoriety. It can never bring glory to a country. Of course, our intellectuals would say that Indian Gods drank Soma ras and what not. Every one need not damage his lever to understand the ill effect of liquor. Get rid of it. Enjoy the company of your family members and society. Those who want to know the harmful effect of drinking read this.

I have seen people loosing their job because of uncontrollable drinking habit. People have been made to believe that socializing is not possible with out drinks. Marketing, advertisements and MBAs are extensively used to propagate drinking among our population.

Can you protect yourself from Dr Vijay Mallya’s vision? I know, you can. You can also save your family and the future generation. It is not sufficient that you don’t drink but also see that others are educated on these aspects and save them from numerous diseases. When somebody is sick and spends on medical treatment the burden indirectly fall on all of us. So, save your life first and then others.

Jai Hind

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