United Spirits Limited (USL) Diageo plc.

United Spirits Limited (USL)

1. A Multinational Company (MNC) Assignment.



SICSR MBA IT
By: Vishal D Gaikwad
PRN: 16030141013

2. United Spirits Limited


United Spirits Limited (USL) is a subsidiary of Diageo plc which is a global leader in
beverage alcohol with an outstanding collection of brands across spirits, beer and wine
categories. In 2013-14, Diageo plc acquired a 54.8% shareholding in United Spirits
making India one of its largest markets
United Spirits Limited, abbreviated to USL, is an Indian alcoholic beverages company, and the
world's second-largest spirits company by volume It is a subsidiary of Diageo and
headquartered at UB Tower in Bangalore Karnataka. USL exports its products to over 37
countries.
According to the official website of the company as of March 2015 USL has more than 140
liquor brands of which 20 brands each sell more than one million cases annually while 5 brands
each sell is more than 10 million cases annually,
Heritage & History
United Spirits Limited's (USL) history arcs through the space-time-continuum, leaping
backwards to the British Raj of the 19th Century, trotting through the license Raj of an
Independent and Socialist India - through the 50s, 60s, 70s and 80s, coming into its own at the
cusp of the new millennium and now in the Info Age, the clear Numero Uno in the world
alcohol beverages market.
The company originated as a trading company called McDowell and Company (also known as
McDowell & Co, McDowell or McDowell's) founded in India in 1826 by Angus McDowell a Scot
He set up a warehouse near Fort St. George, Madras (Chennai)
Vijay Mallya, took over as director of McDowell's the same year, and assumed chairmanship of
UB Group and McDowell's after Vittal Mallya died in 1983. McDowell's moved its headquarters
from Madras to Bangalore in 1987. The company established a technical centre for product and
process development research in Bangalore in 1989. McDowell's No.1 Rum was launched in
1990. McDowell's acquired the spirits business and manufacturing facility of Forbes Campbell &
Company Limited. McDowell's formed United Distillers India Limited, India's first joint venture
in the alcoholic beverages industry, with United Distillers Privet Limited Company of the United

3. Kingdom in 1991–92. McDowell's Signature whisky was launched in 1994. In 1995, Carew
Phipson Limited, Consolidated Distilleries Ltd and several other companies were merged into
McDowell's The company was incorporated as McDowell Sprits Ltd in 1999. The name was
changed to McDowell & Company Ltd on 1 April 2000. McDowell Alcobev became a wholly
owned subsidiary of McDowell & Company in 2002. In the same year, the company acquired
Phipson Distilley, McDowell International Brands Ltd, and most of Triumph Distilleries & Vinters
Pvt Ltd. McDowell launched Derby Special Whisky in 2003 and Old Cask rum in 2004.


MANAGEMENT USL
BOARD OF DIRECTORES


Chairman
Mahendra Kumar
Sharma
Directore
D. Sivanandhan
Directore
Sudhakar Rao
Directore
Ravi Rajgopal
Directore
Dr. Mrs Indu
Sahani
Directore
Rajeev Gupta
Vice Chairman
Dr. Nicholas Blazquez
MD & CEO
Anand Kripalu

4. Executive Committee


MANAGEMENT COMMITTEE



CFO
Sanjeev
Churiwala
CMO
Amrit Thomas
CPO
Pankaj Gupta
HR
Steve Correa
Legal Counsel
Mamta Sundara
President All India
Operations
P S Gill
Business Head Luxury &
Corporate Relations
Abanti Sankaranarayanan

5. PRODUCTS
Brand
Antiquity , Bagpiper , McDwell’s No.1, Royal Challenge, Signature, Black Dog, Pinky,
Romanov , Vladivar , White Mischief, McDowell's VSOP, Blue Riband, Four Seasons.

Technical Center
Highly qualified and experienced scientists with international exposure from various fields like
sensory sciences, analytical chemistry, microbiology, organic chemistry, bio-technology and
food technology, currently work at the Technical Centre, with high energy levels in taking up
challenges and contributing significantly to the company's growth. The cumulative experience
of the "TC Leadership Team" working at the Technical Center is about 150 yrs, who possess
tremendous consumer technical insight and the ability to link "consumer unmet needs" with
"technology solutions".
R&D
Extensive research has been done at Technical Centre on yeast genetics and molecular biology
for strain development for osmo and thermo tolerant yeasts. These strains have been used for
maximising process efficiency at USL's own units. In wine making, several process
improvements have been accomplished. Technical Centre has also done extensive research on
extension of shelf-life of blends.
Major functions at the Technical Centre are New Product Development (NPD), Research &
Development (R&D), Special Spirits Management, Food Flavour Management, Quality
Management and Regulatory Affairs.

6. INNOVATION

Innovation, quality, speed and thirst for excellence are Technical Centre's key drivers,
particularly reflected in consumer driven NPD, as well as NPD based on innovation platform.
The Centre has worked extensively on quality improvement of extra neutral alcohol, novel
methods for extension of shelf-life of products, brand protection & authenticity and maturation
studies. Technical Centre has also effectively managed special spirits and flavours for
maintaining blend quality and consistency so critical for exceeding consumer expectations.


Headquarters
UB Tower, No. 24 Vittal Mallya Road
Bangalore Karnataka, 560001
India

7. DIAGEO PLC
Diageo is the leading spirits player in every region of the world.
Diageo plc is a British multinational alcoholic beverages company headquartered
in London, England. It is the world's largest producer of spirits and a major producer of beer.
Diageo's brands include Smirnoff (the world's best-selling vodka) Johnnie Walker (the world's
best-selling blended Scotch whisky) Baileys (the world's best-selling liqueur) and Guinness (the
world's best-selling stout) It also owns 34% of Moet Hennessy which owns brands
including Moet & Chandon, Veuve Clicquot and Hennessy. It sells its products in over 180
countries and has offices in around 80 countries.
Diageo has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100
Index. It has a secondary listing on the New York Stock Exchange.

8. MANAGEMENT OF DIAGEO PLC
BOARD OF DIRECTORES


NON-EXECUTIVE DIRECTOR, DIAGEO PLC

CHAIRMAN
Dr. Franz B Humer
CHIEF EXECUTIVE
Ivan Menezes
CHIEF FINANCIAL OFFICER
Kathryn Mikells
Peggy B
Bruzelius
Javier Ferrán Betsy D
Holden
Lord Davies Ho Kwon Ping
Nicola S
Mendelsohn
StewartJH
Alan
Walmsley
Emma
David Harlock

9. Executive Committee


David Cutter
PRESIDENT, GLOBAL SUPPLY AND PROCUREMENT
Sam Fischer
PRESIDENT, DIAGEO GREATER CHINA AND ASIA
Brian Franz
CHIEF PRODUCTIVITY OFFICER
Anand Kripalu
CEO, UNITED SPIRITS LIMITED
Charlotte Lambkin
CORPORATE RELATIONS DIRECTOR
AnnaManz
GROUP STRATEGY DIRECTOR
Siobhan Moriarty
GENERAL COUNSEL
Mairead Nayager
HUMAN RESOURCES DIRECTOR
Syl Saller
CHIEF MARKETING OFFICER

10. OPERATIONAL RISK MITIGATION

11. Diageo Business Structure
Diageo is the leading spirits player in every region of the world. The regional profile provide
with exposure to the greatest consumer growth opportunities in This sector. Diageo operate
as 21 geographically based markets around the world and have a presence in over 180
countries. Diageo employ more than 32,000 talented people across the global business.

12. Business Relationship between Parent Country and India.
Diageo Asia Pacific and India
Diageo strategy in Asia Pacific, which encompasses both developed and emerging markets, is to
operate across categories in international spirits, local spirits, ready to drink formats and beer.
Diageo focus on the highest growth categories and consumer opportunities, driving continued
development of super and ultra premium scotch, and leveraging the emerging middle class
opportunity through a combination of organic growth and selective acquisitions.
Diageo acquired a 10% stake in United Spirits at a cost of ₹20,927,196,000 (US$310 million). It
also separately acquired an additional 58,668 shares for ₹ 85,778,082.

On 4 July 2013, Diageo
bought an additional 14.98% of the company for ₹31.35 billion (US$470 million). Diageo
acquired an additional 21.77 million shares at a cost of ₹1,440 (US$21) per share in an off-
market-deal from United Spirits' promoters, raising its holdings to 25.02 per cent of the
company.

Following that purchase, Diageo held 36.3 million shares in USL, acquired at a cost of
₹52,358.5 million (US$780 million),making it the largest shareholder. Under pressure from
Diageo, some substantial changes to the management structure of the firm began to take place
in 2013.
In 2014, Diageo's share holdings rose to 54.8% of USL.
Diageo Markets
Asia Pacific comprises South East Asia (Vietnam, Thailand, Philippines, Indonesia, Malaysia,
Singapore, Cambodia, Laos, Myanmar, Nepal and Sri Lanka), Greater China (China, Taiwan,
Hong Kong and Macau), India, Global Travel Asia and Middle East, Australia (including New
Zealand), and North Asia (Korea and Japan).

Supply Operations
United Spirits Limited (USL) operates 27 owned manufacturing facilities in India including one in
Nepal, leases 13 facilities in India and further 34 are licensed to produce USL and Diageo
brands. In addition, same of have bottling plants in Korea, Thailand, Indonesia and Australia
with ready to drink manufacturing capabilities.

13. BRAND AND PRODUCTS









Headquarters
Diageo plc
Lakeside Drive
Park Royal
London
NW10 7HQ
England, United Kingdom