Mallya Project

The Project Report

On

The UB Group

Submitted by

Mohit Varshney

&

Kevin Shrimali

FW/ISBE/09-11

THE ENTREPRENEURSHIP PROJECT ON THE UB GROUP

SUBMITTED BY MOHIT VARSHNEY & KEVIN SHRIMALI FW / ISBE / 09-11

Executive Summary

The project report basically based on the life of a person who is famous for his lavish and

flamboyant lifestyle. He is in the list of richest people of the world. In this project we are talking

about a legend Mr. Vijay Vittal Mallya .

In this project of entrepreneurship, we will be taking up the key facts of this great

entrepreneur who acts as a driving force behind Rs. 5,000 Crores Empire. We will talking

about all those things which as a whole make this entrepreneur a successful and unbelievable

person.





AUTOBIOGRAPHY

Vijay Mallya (Kannada/Konkani: ವಿಿ ಜಯ ಮಲಯ , born December 18, 1955) is an Indian

businessman and Rajya Sabah MP.

The son of industrialist Vittal Mallya, he is the Chairman of the United Breweries Group

and Kingfisher Airlines, which draws its name from United Breweries Group's flagship

beer brand, Kingfisher.

As of 2008, Mallya was ranked as the 362nd richest person in the world and the 7th

in

India with a net worth of US$1.2 billion. He receives substantial press coverage that focuses

on his lavish parties and his hotels, automobiles, and his yacht, the Indian Empress.

Mallya is originally from the town of Bantwal, Mangalore in Karnataka. He was educated

at La Martiniere Boys' College, Calcutta in Kolkata and completed his degree from St.

Xavier's College, Calcutta under Calcutta University.

He later set up business ventures in Dubai, United Arab Emirates. Mallya is married twice.

His first wife was Sameera and they have a son together, named Sidhartha Vijay Mallya.



Mallya took over as Chairman of the United Breweries Group in 1984. Since then, the group

has grown into a multi-national conglomerate of over sixty companies with an annual

turnover which has increased by 639% to US$11.2 billion in 1998-1999.

He owned McDowell Crest . In May 2007, United Breweries Group announced the all-cash

acquisition of scotch whisky maker Whyte & Mackay for £595 million (approximately Rs

6000 crore).

In 2005 he took over Millennium Breweries Ltd (formerly known as Inertia Industries Ltd),

which owned two premium brands of beer named sandpiper and zingaro .

Whyte and Mackay Ltd is a Scottish company producing alcoholic beverages.

It was founded in 1844 and is based in Glasgow, Scotland. Since May 2007 Whyte and Mackay

has been owned by United Breweries Group, a large Indian conglomerate.Its flagship brand

‘Kingfisher’, has achieved international recognition consistently and has won many awards

in international beer festivals.





INDUSTRIES Breweries

Mallya took over as Chairman of the United Breweries Group in 1983. Since then, the group

has grown into a multi-national conglomerate of over sixty companies with an annual

turnover which has increased by 639% to US$11.2 billion in 1998-1999 .

The Local business areas of the group encompass alcoholic beverages, life sciences,

engineering, agriculture, chemcals, information technology, aviation and leisure. He owned

McDowell Crest, which took loans in crores of rupees from the general public.

Kingfisher Premium Lager Beer is currently available in 52 countries outside India and leads

the way among Indian beers in International market. It has been ranked among top 10 fasting

growing brand of UK. UNITED SPIRITS LIMITED (USL) has a portfolio of more than 140 brands

of which 19 are millionaire brands(selling more than million cases a year) and enjoys a strong

59% market share for its first line brands in India. United Spirits recorded global sales of 90

million cases for the year ended on March 31,2009. With the acquisition of BOUVET LADUBAY

in 2006,the UB Group has made a strategic entry into of the wines category. Bouvet-Ladubay,

located in the Loire valley of the Saumur region in France, has a heritage of over 156

years.



Airlines

In 2005, Vijay Mallya established Kingfisher Airlines. At present, the airline connects 32 cities.

Mallya's Kingfisher airlines recently obtained 46% stake in Air Deccan, a low cost Indian airline

which he later acquired fully and integrated it into his Kingfisher fleet, rebranding it as

Kingfisher RED.

Vijay Mallya and his Jet Airways counterpart Naresh Goyal announced an alliance after a

marathon meeting on 13 October 2008 at Mumbai, India. Kingfisher airlines were the first

airlines to order the Airbus A380. In just about three years Kingfisher has become one of the

leading airlines in India.

FERTILIZERS

MANGALORE CHEMICALS & FERTILIZERS LIMITED

Located in Karnataka, the only fertilizer company under UB’s management that has effected

an amazing turnaround to become one of the most efficient and profitable naphtha based

urea producers in the country. In 1990, the Government of Karnataka had selected the UB

group to take over Mangalore Chemicals& Fertilizers. The company achieved a turnover of 614

crore up by 9% over the previous year.

UB Engineering

UB Engineering-the UB Group’s Engineering division-is one of the foremost Indian Engineering

companies in the field of installation plants. UB Engineering’s activities are strongly focused

on the Trunkey division for projects in Power, Fertilizers, oil&gas , Fire Fighting, Effluent

Treatment, Agrotech and other sector like-concept to commissioning, on site fabrication,

installation, overhauling and maintenance.



SPORTS

Force India (F 1 Racing)

In 2007, Mallya and the Mol family from The Netherlands bought the Spyker F1 team for 88 million Euros. The team changed its name to Force India F1 from the 2008 Season. Team’s car VJM-01 was named after its owners Vijay Mallya, Jan Mol and Michie l Mo l.

FOOTBALL Mallya's United Breweries sponsors the East Bengal and Mohun Bagan football clubs in Kolkata. In 2008 he was linked with buying into the new revolution at Queens Park Rangers FC, as part of the Bernie Ecclestone , Flavio Briatore and Lakshm i Mitta l consortium.

CRICKET

Mallya's flagship firm UB Group owns the Royal Challengers Bangalore team in the Indian Premier League. He won this team in an auction by paying Rs.464.3 crore for the team. The Royal Challengers Bangalore team includes players like Rahul Dravid, Anil Kumble , Kevin Pietersen , Jacques Kallis , Shivnarine Chanderpau l, Robin Uthappa, Mark Boucher, Sunil Joshi, Misbah-ul-Haq, Ross Taylor and Dale Steyn . Royal Challengers Banglore was the second most expensive team in the league after Mumbai Indians which was bought for Rs.480 crore by RIL Chairperson Mr.Mukesh Ambani.

HORSE RACING Mallya also owns the company, United Racing and Bloodstock Breeders (URBB) which has interests in horse racing. URBB runs the Kunigal stud farm , under lease from the Government of Karnataka.



POLITICAL CAREER

Mallya entered politics in 2000 and replaced Subramanian Swamy as the president of the Janata Party , a breakaway faction of the original Janata Da l party. His party contested almost all of the 224 seats during the Karnataka State legislative election. He campaigned vigorously through the media, but his party failed to make any impact and did not win a single seat. Following the party's failure in the elections, it has been largely ignored by the media.

AUCTION PURCHASES

Vijay Mallya is noted for his successful bidding in auction of items that are considered of great cultural value to India. In 2004, he placed the winning bid of £175,000 for the sword of Tipu Sultan at an auction in London, and brought it back to India. In March 2009, Mallya successfully bid for the belongings of Mahatma Gandhi at US$1.8 million, in a New York auction that initially caused an uproar in India and its government tried and failed to prevent it from going under the hammer.



QUALITIES OF MR. VIJAY MALLYA

Flamboyant and flashy lifestyle Mr. Vijay Mallaya has been known for his charismatic personality, flamboyance and lavish lifestyle. The stylish Business tycoon is known for sporting diamond ear studs. Mallya does not think twice before flaunting his wealth. Mallya owns yachts, private jets, a customized Boeing 727,around 250 vintage cars and a stud farm with 200 horses.

Sports lover Vijay Mallya is the owner of the BANGLORE ROYAL CHALLENGERS Team of IPL. Mallya paid Rs 464.3 cr for the team. The team was lead by Rahul Dravid for the first season and by Anil Kumble for the second season. The team has players like Zaheer Khan, Praveen Kumar, Mark Boucher and many more big names. Mallya and Dutch Businessman Michiel Mol are the owners of a Formula One Team, FORCE INDIA. Force India was earlier called spyker .They bought the team for 88 million Euros.

Great Acquirer UNITED BREWERIES is the second largest spirit group in the world. The UB group acquired Whyte and Mackay for 595 million pounds in 2007.The UB group has a market capitalization of around US$12 billion. In the aviation sector KINGFISHER has become one of the leading Airlines in India. Mallya owns 46 percent stake in the low cost airline Air Deccan.



Great Leader Vijay Mallya became the Chairman of the UB Group at age 28 , after his father Vittal Mallya passed away. Since that time he has led the group and turned into a multi billion dollar business. Today the company has annual sales of more than US$4 billion. Vijay Mallya holds an honorary Doctorate of Philosophy in Business Administration, conferred by University of fullest. Under his dynamic leadership the group has grown into a multinational conglomerate of over sixty companies.

Hard worker Vijay Mallya was born on December 18, 1955. He studied at La Martini ere School in Kolkata. Mallya went to St Xavier’s college, University of Calcutta for his Bachelor’s Degree. He started working while he was in college. He worked for his company for Rs 400 per month. Later, Mallya went to the US and worked for American Hoechst Corporation.

For the people Vijay Mallya is a personality who believes a lot in helping the society. He helped in the establishment of Mallya Hospital in Bangalore. The hospital is located in Vittal Mallya Road, named after his father. He also helped to fund the Mallya Aditi International Schoo l, a private school in Bangalore. These are some his major achievements.



LEARNINGS FROM THIS GREAT LEADER

1. HARDWORK: Despite having his father’s own company he worked there for just Rs.400 at

the initial level. This shows the hard work and dedication from this individual.

2. LEADERSHIP SKILLS: After his father’s death he took the charge of UB group at an early

age of 28. He turned his father’s 50 crore company into 5000 crore unit.

3. PASSIONATE: It was his own passion and interest which he turned into business units. He

turns his passion into his business. It was his passion which led him to purchase RCB of IPL

and FORCE INDIA a Formula one team.

4. MAMMOTH: Out of all the liquor consumption through out the world 9% is from the UB

which shows the mammoth contribution of this group.



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Mallya Project