With many companies in the race to become a partner of United Breweries Limited, it is time for this beer major to value itself properly to get a good partner.United Breweries Ltd. (UBL) has the strong parentage of the UB Group. United Breweries manufactures beer, stout, brewer's yeast, etc. It also trades in various products such as beer, batteries, processed fruits, vegetable products & liquors, marine products and chemicals. In the alcoholic beverages segment, it commands a market share in excess of 40 percent. With strong brands such as Kingfisher and Kalyani Black Label, United Breweries is the market leader in the Indian Beer market. Kingfisher has also made inroads into UK and USA. The brands show a strong growth potential. The presence however is more felt in Maharastra and Karnataka where the brands are hugely popular. The growth in the rest of the domestic market is yet to be exploited.
The liquor industry has traditionally been a money-spinner for the Government of India. The size of the organized liquor industry in the country is around Rs 45 bn (inclusive of excise duty), comprising 56 breweries and 25 Indian Made Foreign Liquour (IMFL) manufacturers. The major states accounting for alcohol production are Maharashtra, Karnataka, Tamil Nadu and Uttar Pradesh. Most of the breweries are located in Andhra Pradesh, Karnataka, Tamil Nadu, Haryana and Punjab.
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