A Multinational Company (MNC) Assignment.

SICSR MBA IT By: Vishal D Gaikwad

PRN: 16030141013

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 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 USLBOARD OF DIRECTORES

Executive Committee

ChairmanMahendra Kumar Sharma Directore D. SivanandhanDirectore Sudhakar Rao Directore Ravi Rajgopal Directore Dr. Mrs Indu SahaniDirectore Rajeev Gupta Vice Chairman Dr. Nicholas Blazquez CFO Sanjeev Churiwala CMO Amrit Thomas CPO Pankaj Gupta HR Steve CorreaLegal Counsel Mamta SundaraPresident All India Operations P S GillBusiness Head Luxury & Corporate Relations Abanti Sankaranarayanan

MANAGEMENT COMMITTEE

PRODUCTS

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

Technical CenterHighly 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&DExtensive 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.

INNOVATIONInnovation, 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.

HeadquartersUB Tower, No. 24 Vittal Mallya RoadBangalore Karnataka, 560001India

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.

MANAGEMENT OF DIAGEO PLC

BOARD OF DIRECTORES

NON-EXECUTIVE DIRECTOR, DIAGEO PLC

CHAIRMANDr. Franz B Humer CHIEF EXECUTIVE Ivan Menezes CHIEF FINANCIAL OFFICERKathryn Mikells

Executive Committee

Peggy B Bruzelius Javier FerránBetsy D Holden Lord Davies Ho Kwon Ping Nicola S Mendelsohn Stewart JH Alan Walmsley Emma David Harlock

Sam Fischer PRESIDENT, DIAGEO GREATER CHINA AND ASIA Brian Franz CHIEF PRODUCTIVITY OFFICERAnand KripaluCEO, UNITED SPIRITS LIMITEDCharlotte Lambkin CORPORATE RELATIONS DIRECTOR AnnaManz GROUP STRATEGY DIRECTORSiobhan Moriarty GENERAL COUNSELMairead Nayager HUMAN RESOURCES DIRECTORSyl Saller CHIEF MARKETING OFFICER

OPERATIONAL RISK MITIGATION

Diageo Business StructureDiageo 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.

Business Relationship between Parent Country and India.Diageo Asia Pacific and IndiaDiageo 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 MarketsAsia 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 OperationsUnited 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.

BRAND AND PRODUCTS

HeadquartersDiageo plcLakeside DrivePark RoyalLondonNW10 7HQEngland, United Kingdom