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Project Work on

A STUDY ON COST ANALYSIS OF BEER MANUFACTURED BY UBL


LTD

submitted by

HARSHITHA KN

USN: 4SO18MBA11

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI

In partial fulfilment of the requirements for the award of the degree of


MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL


GUIDE
Dr.Babitha Rohit
Department of business Mr.Kushalappa
Administration, Finance head
Mangalore. United breweries ltd
Mangalore.

Department of Business Administration


St. Joseph Engineering College
Vamanjoor, Mangaluru-575028
2019-2020
DECLARATION

I HARSHITHA K N hereby declare the report on project at United


Breweries Ltd,is prepared by me under the guidance of Dr. Babita
Rohit,Assistant profesor in St.joseph engineering college and external
assistance by Mr.Kushalappa Finance head United breweries ltd
Mangalore.
I also declare that this Project work is towards the partial fulfilment of the
University regulations for the award of Degree of Master of Business
Administration by Visvesvaraya Technological University, Belagavi.

I have undergone the Project for a period of 6 weeks. I further declare that
this report is based on the original study undertaken by me and has not
been submitted for Project University/Institution.

Place: Mangaluru Signature of


Student Date: 27/02/2020

i
ACKNOWLEGDEMENTS

With grateful heart, I would like to remember the people who have
helped me during my course of project work. I wish to place on record
my words of gratitude towards my external guide Mr. Kushalappa
Finance head United breweries ltd Mangalore.

I sincerely thank him for his guidance and for providing all the necessary
information related to the project.

I would like to thank the internal guide Dr.Professor & Dean,


Department of Business Administration, St Joseph Engineering College,
for his encouragement and constant guidance which helped me in the
successful completion of the project.

It is privilege to thank Dr.Rio D’Souza,Principal,StJoseph Engineering


College, Mangaluru for giving me Opportunity to take up this course. My
profound gratitude goes to the faculty of Department of Business
Administration for their continuous guidance.

I am very thankful to my parents, family members and friends for being


constant source of support and encouragement.

Date: 27/02/2020 HARSHITHA KN


Place: Mangaluru 4SO18MBA11

ii
TABLE OF CONTENTS

Chapter No. Contents Page No.

1 INTRODUCTION ABOUT THE


ORGANISATION AND INDUSTRY

2 ORGANISATION PROFILE

2.1 Background

2.2 Nature of business

2.3 Vision, mission, quality policy

2.4 Workforce model

2.5 Product/Service profile

2.6 Ownership pattern

2.7 Achievements/awards if any

2.8 Future growth and prospects

3 MCKINSEY’S 7S FRAMEWORK

4 LITERATURE REVIEW & RESEARCH


DESIGN

4 SWOT ANALYSIS

5 ANALYSIS OF FINANCIAL
STATEMENTS

6 LEARNING EXPERIENCE

iii
CHAPTER 1
INTRODUCTION ABOUT THE
INDUSTRY

AND INDUSTRY PROFILE

iv
Introduction

UNITED BREWERIES PVT.LTD

INTRODUCTION

It all by way of 5 breweries in South India. The most established of which, Mansion
Bottling works, dated back to 1857. Joined Bottling works, as these united breweries
were named in 1915 has come an exceptionally broad way. 

Quickly subsequently, seeing bullock trucks conveying colossal barrels or 'Hoard's


heads' containing brew turned into a family unit sight. These trucks wheeled their way
to the clients, including English Soldiers, living in and around Madras, Bangalore and
the Nilgiris. In a brief timeframe the blend from UB develop into a top choice, only
with the English Soldiers. So started the historical backdrop of Lager in India. What's
more, the historical backdrop of Lager division of Joined Bottling works. 

The organization was brought by method for late Mr. Vital Malaya in 1947, and from
that point forward has never thought back. Today every single one of the 32,000
Lager outlets in India sells one brand or the other from Joined united breweries.
Timelines:
March 15th – 1915 – Mr. Thorpas Leishman bought 5 bottling works to from Joined
Distilleries Pvt. Ltd. with its enlisted office at 17 American Road, Chennai – 1. 

UBL has a connection with maturing going back more than nine decades, beginning
with 5 bottling works in South India in 1915. From bullock truck – stacked barrels or
Hogsheads of foaming lager, the profession business has proceeded to build up the
undoubted lord in the Indian brew showcase. UBL today supports as a great spread of
possess and agreement fabricating offices all through the nation. Here, imaginative,
inventive and forceful advertising is supplemented by a solid circulation arrange. An
administration concentrated on building brand value on one hand and abusing it to
handle on the other. 

Quality and cleanliness are the key components of the Assembled Bottling works
fabricating theory. To this end, the Focal Logical Research facility (CSL),
headquartered at Bangalore sets measures for every one of its distilleries. Quality
Administration Frameworks laid about along the lines of ISO 9000 are carefully clung
to, controlling quality at each phase of creation, from the crude materials to the
finished result.

Additionally,other than controlling the creation procedure, The CSL investigations the
Organization's lager taken off market retires everywhere throughout the nation, the
opposition's lagers and lagers from over the world. These lagers are tried according to
the measures set somewhere near the European Bottling works Show on 40 distinct
parameters. By these models, 'Joined Bottling works' brews don't simply approach,
yet even outperform, a few Dutch and American lagers. 

It's lead image 'Kingfisher', has accomplished worldwide acknowledgment reliably,


has won numerous honors in Global Lager Celebrations. Kingfisher Premium ale
lager is at present accessible in 52 nations and leads the path among Indian lagers in
the Global market. It has been positioned among the main 10 quickest developing
brands in the U.K.
CHAPTER 2

ORGANIZATION PROFILE
2.1 BACK GROUND

Code of Business Conduct of UBL Mangalore


The Governing body of Joined Bottling works Restricted has embraced the
accompanying Code of Business Lead and Morals for executives of the Organization
and all representatives of the position of Bad habit – President or more . The Top
managerial staff has the privilege to extend/change the degree and inclusion of
workers under this Code. 

The organization is focused on moral and legal business direct and sees it as basic to
the organization's prosperity. The organization will maintain the moral and lawful
gauges while seeking after its targets. Steady with its standards, The Organization's
Board has received with the Code for the consistence both in the Letter and soul by all
the Executives and Secured Workers. While it is beyond the realm of imagination to
expect to foresee each circumstance or situation that may emerge, the code is
proposed to fill in as a wide guide. The Load up claims all authority to revise, adjust
or end the Code whenever and in any way, shape or form, subject to material
law. Chiefs/Secured Workers who damage/veer off from the prerequisites of the Code
will draw in disciplinary activity which may incorporate end of office/business. 

In playing out their capacities, Chiefs and Secured Workers will; 

1. Act with uprightness, honor, trustworthiness, straightforwardness and with most


extreme great confidence. 

2. Actively help with actualizing the Organization's Targets and making an


association that is responsive, positive and driven by business and social needs.

2.2 NATUREOF THE BUSINESS

The UB Gathering's Preparing Division likewise accepted undisputed administration


with a national piece of the overall industry in overabundance of half. Through
procedure of forceful obtaining and market infiltration, The UB Gathering today
controls 60% of the absolute assembling limit with regards to brew in India. The
leader brand, kingfisher, is currently sold in over half nations overall having gotten
numerous honors for its quality. 
In an intense serious blending industry, which currently has all the world's significant
brewers battling for piece of the overall industry, UBL towers over all others. A
development of 20% in the market developing at a large portion of that rate has
guaranteed that UBL's steady of market driving brands order a joined piece of the
overall industry over half. 

While kingfisher solid has risen as India's most well known lager, different variations,
for example, Kingfisher's Ultra, very premium item, are likewise being eagerly gotten
by the market. 

UBL's situation in both the residential and worldwide lager market will be
additionally fortified subsequent to the consenting to of investor arrangement with
Heineken. The conceives, in addition to other things, the creation and offer of the all
inclusive acclaimed Heineken brew in India by UBL. At the same time, utilizing
Heineken's universal appropriation solidarity to additionally spread of Kingfisher
Lager in select Brew in select worldwide market.
2.3 VISION MISSION QUILITY POLICY

VISION STATEMENT

“Our Vision is to lead and build up the Indian lager advertise and convey top tier
execution through greatness in item and brand portfolio, abilities and arrangements”

M ISSION STATEMENT

To be the perceived pioneer in our objective market. 

To perceive the estimation of human resources and be the favored boss whatever we
work 

To be the accomplice of decision for clients and providers. 

To be the accomplice of decision of client, provider, and other maker of creative


ideas. 

QUALITY POLICY AND PRODUCT POLICY

Our Product – Some Facts

 Beer is blended for over 6000 years back


 Early man constantly thought about brew as an enhancement to consume less
calories. 
 Beer is firmly identified with preparing of bread as grain, water and yeast is
utilized in both. 
 The fundamental crude materials for making brew are malt, jumps, yeast and
water. 
 Beer has supplements like proteins, nutrients, fiber, minerals, cell
reinforcements.
Professor DrAntonPiendl, Technical University of Munich, Germany says,
“One Beer is better than no Beer”
One Kingfisher is better than no Kingfisher
Quality Management

Quality and cleanliness are the key components of the UB gatherings' assembling
theory. To this end the Central Scientific Laboratory (CSL) headquartered at
Bangalore sets norms for every one of its bottling works. Quality Management
Systems spread out along the lines of ISO 9000 are carefully clung to, controlling
quality at each phase of creation. 

Nature of the lager is checked electronically toward the finish of each procedure and
the nature of the last bundled item is physically checked.
2.4 WORK FLOW MODEL

ORGANISATION STRUCTURE

2.5Products/service profile
United Breweries Group Based in Bangalore, is a combination of various
organizations with significant spotlight on lager. Joined Breweries is an India's
biggest maker of lager with piece of the overall industry of overabundance of half.

Coming up next are the results of joined united breweries group gathering

Lager is the primary result of United Breweries. Joined Breweries delivers its item
under the brand name of Kingfisher. Kingfisher brew is administering the Indian
brand showcase, it is the most well known brand in India.

The following are the kingfisher beer brands

 Kingfisher Strong
Kingfisher Strong, India's biggest selling lager, is blended from the best malted grain
and bounces. Its esteemed worldwide honors are an additional verification of its
generally acclaimed one of a kind taste and quality. Kingfisher solid joins this one of
a kind taste and quality in a solid lager and involves a similar situating stage as the
mother brand, Kingfisher. The brand symbolize the estimation of qualities, the style,
energy and fun. Basically, the brand is an image of current India.

This notable brand was propelled in 1999 to take into account the developing interest
of the solid lager portion in the nation. The brand has an enormous family and is
accessible in the accompanying pack sizes 650ml, 330ml pints, 500ml standard jars
and 330ml thin jars.

 Kingfisher Premium

Propelled in 1978, Kingfisher Premium is one of the main brands propelled in the
gentle brew classification under the Kingfisher umbrella. A youthful, contemporary
and fun brand. Kingfisher Premium is accessible in 650ml jugs, 330ml pints, 500ml
normal jars and 330 Ml thin jars

 Kingfisher ultra Max

Kingfisher Ultra Max means "Most extreme Taste Maximum Life" .Launched in
2015, Kingfisher Ultra Max is a fresh, reviving solid lager with lovely fragrance and
delayed flavor impression. A moderate blending and delayed development process,
utilizing the best imported Pilsner malt, kingfisher Ultra max has a full-seasoned
'most extreme Taste' that is smooth and simple to drink.

Kingfisher Ultra Max brews are accessible in 650ml and 330ml containers and 500, l
jars.

 Kingfisher Ultra
Kingfisher Ultra is for the tasteful, current, certain, free and confident shopper. One
who searches ultra-experience out of everything? Propelled in 2009, Kingfisher Ultra
bigger is the preeminent premium lager brand on offer right now. Propelled first in
Bombay, Bangalore, Delhi and Calcutta, Kingfisher Ultra is currently generally
accessible all over in India.

 Kingfisher Storm

Propelled in 2017, Kingfisher Storm is another solid lager from the place of United
Breweries Ltd. Everything about Storm directly from the lager to the bundling to the
utilization experience is new, reviving, exceptional and extraordinary. It's an image
that conveys with it, a sharp, striking and certain demeanor and offers shoppers the
chance to "Carry on with the Swag Life".

 Kingfisher Buzz

Kingfisher Buzz is new age malt based, enhanced mixed drink. Supplementing the
vivacious, carefree and expressive young people of today, Kingfisher buzz really
unites the insane blend of feelings and exercises such is reality. It comes in energizing
flavors. Berry and Lychee. Propelled in 2016, Kingfisher Buzz is as of now accessible
in Bangalore, Delhi, Mumbai, Goa, Pune, and Thane.

Components and Raw Materials of Beer

WATER:water is the transcendent preparing crude material with most brews made
out of 90-95% water. In this manner, the state of this water is of vital significance to
the brewer, as this will have ramifications for the nature of the lager. The significance
of water utilized in the preparing business is customarily so critical that the area and
Quantitatively endurance of a bottling works has been dictated by its water supply.
MALTED BARLEY:Malted grain is the fundamental crude material utilized in the
fermenting of brew. Malt gives the sugar that will be aged into liquor in the preparing
procedure. Grain is an oat generally developed in gentle sea atmospheres and for quite
a long time it has been utilized in the creation of lager.

BROKEN RICE: Rice is an extremely regular harvest and a significant wellspring of


starch. Rice is utilized in preparing on the grounds that the starch present right now
promptly available yet it must be 'gelatinized' at high temperature before it tends to be
changed over into fermentable sugar.

MAIZE:Maize (or corn) is a typical harvest developed in warm and mild


atmospheres. It is a modest wellspring of starch. The starch is promptly open however
it must be 'gelatinized' at high temperature before it tends to be changed over into
fermentable sugar. Maize is ordinarily utilized at up to 20% of the grist in ale to
lessen malty flavors and produce a clean carefully seasoned brew.

MAIZE FLAKES: They are delivered by preparing corn meal through hot rollers
which gelatinizes the starch and makes it available to the malt catalysts.

SUGAR: Sucrose is exceptionally fermentable and is normally added to the bubbling


vessel. It supplies the vital starch source that invigorates fermentative pathways in
yeast for creation of liquor. Sugar can be developed normally as on account of sugar
stick or beet. It is utilized to enhance the malt where malt handling plant (stockpiling,
factories, squash tuns and so forth.) is a restricting component. Sucrose can likewise
be added to the lager after aging as 'primings' to give sugar to energize molding or
increment sweetness.

YEAST:

Yeast is the unicellular microorganism that is liable for aging and creation of brew.
Yeast processes the sugars removed from grains, which produces liquor and carbon
dioxide, and accordingly changes over wort into lager. Notwithstanding aging the
lager, yeast impacts the character and flavor. The prevailing sorts of yeast used to
make brew are the top-maturing Saccharomyces cerevisiae and base aging
Saccharomyces uvarum.

HOPS:

Hops are the female blossoms of Humulus lupulus. Bounces, different herbs and
flavors were most likely initially added to completed lager to deliver exceptional
flavors and conceal "off-flavors" conferred by microbial contaminants during the
previous long periods of fermenting. Jumps are still added to brew during creation.
Bounce expansion is truly perceived to present sharpness and unmistakable smell or
flavor to the lager, however today jumps are perceived as likewise having the option
to improve brew steadiness (regarding clearness), head security, against microbial
action and light solidness.
2.6 OWNERSHIP PATTERN

PROMOTERS % of share
Indian Promoter 29.99%

Foreign Promoter 43.88%

DIIs 4.4%

FIIs 16.38%

Others 5.35%

2.7 ACHIEVEMENTS AWARDS

 Won the Bronze Award at the 'Australian International Beer Awards' in the

"Worldwide Packaged Beer Section for the year 2000".

 First cost in the International Beer Awards composed by the New Zealand Hop

Marketing Board

 First Prize for the name work classification at the Asian Grad Pixel Cyrel 2000

 Gold Medal at the World Beer Championship held in Chicago in 1997

 World's Best Lite Larger Award at the Stockholm Beer celebration in 1995

 World's Beer Lite Larger Award at the Stockholm Beer Festival in 1994

 Kingfisher Strong granted "Asian best solid Larger 2013' by the renowned

world Beer Award 2013.

2.8 FUTURE GROWTH AND PROSPECTS

 UBL has looking forward development of 5-8% in future 5 years.

 To sell brew in more outlets all over India

 To sell their item in remote nations moreover


 To be advertise pioneer in Beer showcase.

1. Won the Bronze Award at the ‘Australian International Beer


Awards’ in the “International Packaged Beer Section for the year
2000”.
2. First price in the International Beer Awards organized by the New
Zealand Hop Marketing Board
3. First Prize for the label work category at the Asian Grad Pixel
Cyrel 2000
4. Gold Medal at the World Beer Championship held in Chicago in
1997
5. World’s Best Lite Larger Award at the Stockholm Beer festival in
1995
6. World’s Beer Lite Larger Award at the Stockholm Beer Festival in
1994
7. Kingfisher Strong awarded “Asian best strong Larger 2013’ by the
prestigious world Beer Award 2013.

2.8 FUTURE GROWTH AND PROSPECTS


 UBL has looking forward growth of 5-8% in future 5 years.
 To sell beer in more outlets all over India
 To sell their product in foreign countries also
 To be market leader in Beer market.
CHAPTER 3

MCKINSEY'S 7 S
FRAMEWORK
MCKENSY’S 7’S

The McKinsey 7-S framework. Developed in the early 1980s by Tom


Peters and Robert Watermen two consultants working at the McKinsey &
Company consulting firm the basic premise of the model is that there are
seven internal aspects of an organization that need to be aligned if it is to
be successful.

The McKinsey 7-S model can be applied to elements of a team or a


project as well. The alignment issues apply, regardless of how you decide
to define the scope of the areas you study.

Figure no:3.1 Mckensy’s 7’s Framework

STRUCTURE

The way which the organization units relate to each other is called as
structure.Organization structure and authority and responsibility
relationship are included in the structure.

SYSTEM

The system of the UBL is pretty much simple where the production and
process department play a vital role and in support with the financial and
the human resources. And the safety department will giving more focus
compare to other department.UBL giving more importance for safety so
safety department is talking all precautions for the purpose of the safety.
In the organization the company having safety measures to meet any
problem.

SKILL

It consists of the capabilities and competencies that exist within the


company. It is the talent, craft or accomplishment, naturally acquired or
developed through training and abilities appropriate for specific job. The
employees need to have both specific as well as generic skills. Generic
skill means problem solving skill, decision making skill, communication
etc. Specific skill like that time management, building teams, leadership
and motivation, creativity , building teams, motivation ,creativity
,advances safety and environment ,industrial safety and environment.

Classification of skill:

1 Technical skill

2 Conceptual skills

1. Technical Skill

It is the ability of a manager to use the equipments, methods and


techniques involved in performing specific tasks. Technical skill is
required more than at the lower level of management.ie at supervisory
level. At higher level, the technical skill is less important ass managers
can rely upon other for technical information.

2. Conceptual skill

This consist of the manager’s ability to coordinate all organization


activities and varied interest involved in it. It involves viewing the
organization in its totality and understanding the inter-dependence of its
individual parts. Of all the skills the conceptual skill is the most difficult
skill to acquire. Conceptual skill is very important for top management in
formulating long –range plans, broad policies and relating the business
enterprise to the industry and economy.

STYLE

The style of operation is a mixture of both top down and bottom up. Now
if we take the top down approach what happens is at the end of every
financial year the managing director along with the vice president’s meet
and discusses the different plans and various strategies for coming
financial years.

Strategic intent comes with top management. The top management decide
on the strategy to come up with. These strategies are intimated to the
people lower down. But when it comes to marketing initiatives, it is
generally bottom up.

STRATEGY

Advertising strategy: in India alcohol and tobacco manufactures are not


allowed to advertise. So these companies have to come up with
innovative strategies to expose their brands to the consumer.

Inorder to keep the brand in the minds of the consumer a creative


alternate way is needed. One such way is to create anthor product that can
be advertised legally and the name of the product with the same brand
name cannot be advertised. These brand name have been called surrogate
branding to overcome this problem. They started the kingfisher mineral
water just to keep the brand name in the minds of people .

This is done by Kingfisher to make sure that the consumer recollects the
brand name that could not be advertised and develops an urge to
consumer brand. The strategy of using the brand name on other product
that can be advertised seems to be working. It appears the consumer
liberal and ignores that the name can be given to other product that name
can be given to other product without causing damage. Though mineral
water was sold just to popularize the beer brand but in turn it has become
the second biggest selling mineral water brand.

They have not only use the alternative strategy for the bottled water but
also for the Formula1 race and in ipl cricket league. This strategy has
definitely helped the brand not only in India but also it has helped to
build its image internationally.

STAFF

In United breweries there are 113 staffs are working:

Under 99 are males rest of the 14 are females. This 113 staff include
technical staff,mangers,clerks,employees,workers.

UBL recruiting well skilled employees in to their organization. For


quality departments, the company selecting employees who have good
technical skill. And company providing training for their employees.

SHARED VALUE

 Passion for achievement, success and winning


 Freedom to operate and learn from mistakes
 Treating people with respect and fairness
 Integrity in all things and all times
Porter’s five forces model

This model is developed by Michael Porter, this model analyzes the


nature and intensity of competition in an industry through five forces
(rivalry, customers, supplier, new entrants, and substitutes). These five
forces are explained as below:-

BARGAINING POWER OF SUPPLIERS


With increasing cost of raw material and decreasing cost of barley
suppliers bargaining power was high but with backward integration by
acquiring Maltex Malsters Ltd. And shifting their production of beer on
malt company has achieved a hold on its raw material and considerable
reduced the supplier strenth and dependency. Company has aslo
collaborated with Government of pujab and haryana for supply of iits raw
material.

RIVALRY

Rivalry is the means through which competitors fight for position by


using tactics such as price, competition, advertisement battles, and new
product introduction, to lower the profits of competitors in the industry.

THREAT OF NEW ENTRANCE


Beer industry is in Growth phase with 11% CAGR, so it is attractive for
the new players. But strong brands like kingfisher and haywards which
already have their brand recall and extensive advertisement new entrants
are expected to struggle to expand their consumer base as they try to
penetrate the beer market in India. Foreign brewers have been eyeing the
Indian market for some years now as India is widely acknowledged to be
the last untapped big growth market Several international brewers have
currently built brand associations and are marketing their brands
aggressively through various point-of-sale promotions throughout their
distribution networks.

BARGAINING POWER OF CUSTOMERS

It is the extent to which customers are successful in forcing prices down,


or securing high quality or more service at the same price. Customers
tend to be powerful when the quantities they purchase form a large
portion of the seller's total sales. Buyer do not understand the quality of
the beverages and as there are not many players in the market the
customer has less command over price.

THREAT OF SUBSTITUTE

India is predominantly a spirits market and beer is a minority preference


for those who consume beverage alcohol. So substitute is biggest threat as
preference for beer among beverage drinker is less but the low
penetration in beer consumption in comparison to international levels
offers the expectation of substantial and sustainable growth in demand for
beer in years to come, particularly given the youthful age of India’s
population.
CHAPTER 4

LITERATURE REVIEW &

RESEARCH DESIGN
COST ANALYSIS OF BEER MANUFACTURING
A STUDY OF BRANDS MANUFACTURED BY UBL
LTD

Introduction
A cost analysis involves the process of reporting separate elements in a
cost proposal, such as labor, equipment and materials that make up a
product or service, as well as its proposed profit. It is used for cost-
evaluation purposes when there is a lack of competition or comparable
offers in the marketplace. Often referred to as cost-benefit analysis or
cost-effectiveness analysis, a cost analysis requires specific skills to
conduct, and it is a useful tool for various aspects of business planning.

A cost analysis provides an opportunity to judge the efficiency of


initiatives. For example, a company can analyze the number of products
produced from a given level of resources. It helps a company decide
whether an initiative is delivering value and serves as a guide for
performance improvements. The results of a cost analysis report may
assist a company in better utilizing available resources. It also serves as
documentation that demonstrates evidence of accountability. A cost
analysis can track expenses and spending, which can help a company
determine if funds are misappropriated or not.

When there is a lack of price competition in the marketplace, a cost


analysis is of benefit. Without price competition, it is difficult to
determine if an offer is reasonable. A cost analysis will assist a company
in evaluating a proposal’s separate cost elements, as well as the proposed
profit, when there are no similar or existing commercial product offers
that can be used for comparison. For example, when negotiating sole-
source procurement, a company will deal with a single supplier;
therefore, it will be impossible to have a competitive bidding process to
compare prices.

Literature Review

Book: The complete guide to Beer

 Author: Brian Glover

In this book, the complete guide to beer, the author describes about the
beer drinking.

He says that asking for a beer is a vague statement of intent. Many take
beer for granted, assuming that a glass has little to offer beyond
quenching a thirst and providing intoxication. But beer is much more than
a chilled pilsner on a hot day. You should never rush a good beer.

 Author: B. Verhoef

In this book, the complete encyclopedia of beer, the author described


about the brewing process and the history of beer.

This reference book also contains lots of interesting facts over eight
hundred beer brands and their breweries and many beautiful photos of
bottles, cans and labels. As well as beers from the main beer countries
such as Germany, England, The Czech Republic and Belgium. You will
also find beers from the smaller and less well- known ones, such as Fine
land, Italy, and Spain, and of course the Netherlands is also given the
comprehensive coverage in this review.

Book: The bar and beverage book (Third edition)

Authors: Costas Katsigris, Mary porter, Chris Thomas.


In this book, the bar and beverage book, the authors describe about the
industry trends of beer.

This internet reference http://www.crc.dk/flab/quality.htmis describes about


the quality control of beer.

The quality control group of the Kingfisher Research Laboratory


performs analyses of water, barley, maize, hop products, wort and beer
from the kingfisher Breweries and its affiliated breweries in order to
ensure that the products are of the highest quality all over the world.

Need for the Study

 The importance of cost reduction programs within a company cannot


be overstated. 
 Companies that are losing money, need to increase profits, or must
become more competitive
 Need to cut expenses in order to succeed. Knowing how to
implement effective cost reduction 
 Strategies can be the determining factor in the survival of a business.

Statement of the problem


1. Prices of beer are going to increase in the recent days.

2. Lack of marketing information.

3. Increasing the government taxes on the beer and other drinks.

4. Sales force to the firm with minimum sales man working in the firms

5. Lack of credit facility.

6. Lack of sales promotional activities.


Objectives of the Study
 To examine the effect of cost benefit on UBL
 To examine the cost incurred under UBL ( direct and indirect)
 To understand the market performance of beers under UBL 
 To understand the  effects of cost on company
 To understand cost management pattern of UBL
 To examine the employee satisfaction level in ubl in term of
facilities and salary

Scope of the Study


 Detailed information on United Breweries Limited required for
business and competitor intelligence needs.
 A study of the major internal and external factors affecting United
Breweries Limited in the form of a SWOT analysis
 An in-depth view of the business model of United Breweries
Limited including a breakdown and examination of key business
segments
 News about United Breweries Limited, such as business expansion,
restructuring, and contract wins
 Large number of easy-to-grasp charts and graphs that present
important data and key trends.

Limitations of the Study:


 Busy schedule of the managers and executives.
 Researchers limited for particular topic.
 All the information’s were not provided by the company but most of
the relevant information’s were obtained.
 Due to the lack of time it was not possible to collect information from
all staff.
 Insufficient time form the study of the researcher.
 Some of the employees hesitated to express their feelings so enough
information was unable to collect.
 Problems of communication gap for collecting information from the
employees.

Conclusion

India as a nation is making economic progress. There are lots of people


who are indulging in luxurious life, they prefer to buy branded products
and do not mind paying a premium for quality. But for the majority price
is a constraint, especially for the middle class population. They would
only purchase items that they feel is value for money. So if they feel that
they don’t get enough benefit from the product then they avoid buying it.

As far as buying behavior of people with respect to beer is also the same.
The highest selling beer in India is kingfisher strong and premium which
is priced at Rs70 for 650ml bottle. The sales of Super Premium beer like
kingfisher Ultra is relatively low, which is priced at Rs100 for 650ml
bottle. Even though the Super premium beer is of high quality and has
been appreciated by the consumer, it has not resulted in as high sales as
compared to the premium category beer.

This just shows that it will still take some time for the Indian mindset to
change where more number of people will be willing to spend on quality
without thinking much about the cost. But we can already see a
reasonable change in the consumer mindset, from say 10 years back.
CHAPTER 5

SWOT ANALYSIS
SWOT ANALYSIS
Swot analysis (strength, weakness, opportunities, and threats analysis) is
a framework for indentifying and analyzing the internal and external
factors that can have an input on the viability of a project,product,place or
persons

STRENGTHS
 Most popular brand in India. Highest brand recall, which result in high
sales.
 UBL has the strong worldwide brand distribution system. Kingfisher
brand is available across most retail outlets as well as pubs restaurant
night clubs.
 Being the oldest and largest player in India it understands the Indian
market and the consumer better than its competitors
 Brand which well known worldwide. It sells beer in 52 countries
across the world. It has won many award internationally. It has strong
brand image not only in India but also internationally
 UBL has never compromised on quality. They have always come up
with product of international standards
 Aggressive advertising and promotion at outlet, pubs and bars.
 Consistent investment by UBL in the product, packaging and
distribution and communication along with well established
distribution, puts UB in a strong position, as seen by consistent
improvement to the Company’s national market share.
 United Breweries have more than 50% market share in India. It is one
of the strength for the company
 Kingfisher has used massive brand development strategies like
sponsoring fashion event, being associated with high profile sporting
events like IPL. Formula one which has helped build its image
tremendously.

Weakness

 Negative mentality of the people about the product


 Losing market share due to competition from other brands
 Decline in production and sales due to so many bars are closed in
surroundings of highway road

Opportunities

 Beer consumption is increasing with growing demand, the domestic


production of beer on the rise.
 Changing life style of middle class: a section of middle class seems to
have been influenced by the west. They are living a more luxurious
lifestyle compared to the people of earlier generation. They do not
mind spending more money on quality. So even if the beer is priced
high in the case of super-premium beer, they are willing to pay for it.
 It is expected that gradually there will be a deregulation in the Indian
beer industry too, giving it is a boost.
 The youths are more attracted towards beer so the demand will be
high for beer
 Compare to other alcoholic product beer includes less alcoholic
content so the demand will be high for beer, it is one of the
opportunities for beer market
 Kingfisher already have better brand image in the field of beer market
so if they provide quality of product then they will have opportunity
that get more market share
 Adopt new technologies in production to reduce cost of production

Threats

 High tax on beer


 So many outlets closed due to government regulation
 Restriction on product promotion
CHAPTER 5
ANALYSIS OF
FINANCIAL
STATEMENTS
COST SHEET OF UNITED BREWERIES LTD

PROFORMA OF COST SHEET

Cost sheet for every 1lac units produced and sold.

Cost Per Unit


Quantity Manufactured 1 100000
Quantity sold 1 100000

CPU(Rs)
DIRECT COST
Raw materials consumed
Opening stock of raw materials 0
Purchases of Raw Materials 5.805
(-)Closing stock of Raw Materials 0
Materials Consumed 5.805
Direct labour/wages 0.124
Direct cost/expenses 0.2415
PRIME COST 6.1705
INDIRECT COST
Factory/Works Overheads
Indirect labour 0.122
Depreciation on Machinery 0.675
Works Overheads 0.05204
Cost of Maintanence 0.0589
Other Factory Expenses 0.0282
Supervisors Salary 0.0385
Power & Fuel 0.5678
Total Overheads 1.54244

FACTORY COST/WORKS COST 7.71294

Office and Administrative Overheads


Depreciation on office furniture@7% 0.0281
Office Rent 0.0585
Salary to Staff 0.089
Office and General Expenses 0.0257
Telephone expenses 0.0219
Electricity and Lightings 0.03123
Printing and stationary 0.00294
Total Office and Administrative Overheads 0.25737

COST OF GOODS SOLD 7.97031

Selling and Administrative Overheads


Sales Commission 0.705
Salary of Salesman 0.1
Carriage Outward 0.12798
Sales Expenses 0.057
Total Selling and Administrative Overheads 0.98998

COST OF SALES 8.96029


PROFITS 1.03971
SALES 10

Raw Materials Cost

Flour 3.756
Water 0.892
Yeast 0.6789
Salt 0.4781
Raw Materials per unit 5.805

United breweriesLimited

Profit and Loss account for the year ended(Rs in crores)


Particulars 31 March 2018 31 March 2019
INCOME
Revenue from operation(net) 201.81 229.41

Other Operating Revenues 15.49 14.93

Total Operating Revenues 217.30 244.35

Other Income 19.07 22.40

Total Revenue 236.37 266.75

EXPENSES

Operating and Direct Expenses 48.78 56.20

Employee benefit Expenses 48.78 80.33

Finance costs 0.73 0.53

Depreciation and Amortization Expenses 11.32 12.39

Other Expenses 44.49 43.27

Total Expenses 181.84 192.71

P&L before exceptional,extraordinary items 54.53 74.04


and tax
0.00 -10.00
Exceptional Items
54.53 64.04
Profit and Loss before Tax

Tax expenses
17.26 25.70
Current tax
1.68 -0.07
Deferred tax
0.00 0.10
Tax for earlier years
18.93 25.73
Total Tax expenses 35.60 38.32

P&L After Tax and Before Extraordinary items 35.60 38.32

Profit/Loss for the period

Balance sheet as on the year ending(Rs in crores)


Particulars 2017-2018 2018-2019
EQUITIES AND LIABILITIES

Shareholders Funds

Total share capital 23.54 23.63

Total Reserve and Surplus 331.84 371.57

Total shareholders funds 355.33 395.12

Non-Current Liabilities

Other Long term Liabilities 2.21 1.54

Long term provisions 0.75 4.96

Total Non-Current Liabilities 2.96 6.50

CURRENT LIABILITIES

Short-term borrowings 0.00 0.00

Trade payable 15.62 6.78

Other Current Liabilities 143.52 226.20

Short term provisions 0.15 1.14

Total Current Liabilities 159.29 234.12


Total Capital & Liabilities 517.63 635.82

ASSETS

Non-Current Assets

Tangible assets 51.52 48.18

Intangible assets 6.48 6.89

Total Non Current Asset 58.00 55.06

FIXED ASSETS

Non-Current Investments 38.27 28.27

Deferred Tax Assets 3.14 3.21

Long-Term Loans and Advances 104.04 92.31

Other Non-current Assets 0.25 0.20

Total Non-Current Assets 203.71 179.05

CURRENT ASSETS

Current Investments 0.00 72.21

Trade receivables 96.25 133.75

Cash 140.85 180.31

Short-term Loans and Advance 22.85 21.23

Other Current Assets 54.56 49.27

Total Current Assets 313.92 456.77

TOTAL ASSETS 517.63 635.82

1. Current Ratio:
Current ratio is on of the mot fundamental liquidity ratio.It measures the ability
of business to repay current liabilities with current assets.Current asset are
those,the amount of which can be realized within a period of one year.They are
cash in hand,cash at bank,debtors,bills receivable , prepaid expenses etc.Current
liabilities are those amount which are payable within period of one year.They
are creditors , bills payable , bank overdraft , outstanding expenses etc.

Table:5.1 Shows Current Ratio of 2 years

Formula:Current Asset/Current Liabilities

Year Current Assets Current Current Ratio


Liabilities
2017-2018 313.92 159.29 1.97
2018-2019 456.77 234.12 1.95

Fig 5.1 Shows chart for Current Ratio of 2 years

CURRENT RATIO
1.98
1.97
1.97
CURRENT RATIO

1.97
1.96
1.96
1.95
1.95
1.95
1.94
2017-2018 2018-2019

YEARS

Interpretation:
In the year 2017-2018 current ratio was 1.97.In the year 2018-2019 it is
decreased to 1.95.There has been reduction in current ratio from the year 2017-
2018 to the year 2018-2019.The reduction is from 1.97 to 1.95,the reason
behind this is that the difference in current liabilities for the past two years is
greater than the difference in current assets.

2. Return on Assets(ROA) Ratio:

Return on assets is the ratio of annual net income to average total assets of
business during a financial year.It measures efficiency of the business in using
its assets to generate net income.It is a probability ratio.

Table :5.2 Shows Return on Assets (ROA)Ratio of 2 years

Formula:Net income/Total Assets*100

Year Net income Total Assets ROA

2017-2018 236.37 517.63 45.66%

2018-2019 266.75 635.82 41.95%

Fig 5.2 Shows Chart for Return On Assets Ratio of 2 years

RETRUN ON ASSETS RATIO


46 45.66
RETURN ON ASSETS

45
44
43
41.95
42
41
40
2017-2018 2018-2019

YEARS

Interpretation:
In the year 2017-2018 ROA was 45.66%.In the year 2018-2019 it is decreased
to 41.95%.This indicates that the company’s profit has decreased when
compared to previous year.

3. Debt Equity Ratio:

Debt o equity ratio is the ratio of total debt of a business to its shareholders
equity.It is a leverage ratio and it measures the degree to which the assets of the
business are financed by the debts and the shareholders equity of a business.

Table: 5.3 Shows Debt Equity Ratio of 2 years

Formula:Total Long term debt/Shareholders fund

Total Long term Shareholders Debt Equity


Year
debt fund Ratio

2017-2018 104.04 355.33 0.29

2018-2019 92.31 395.12 0.23

Fig 5.3 Shows Chart for Debt Equity Ratio of 2 years

Debt Equity Ratio


0.35
DEBT EQUITY RATIO

0.29
0.3
0.25 0.23
0.2
0.15
0.1
0.05
0
2017-2018 2018-2019

YEARS

Interpretation:
In the year 2017-2018 debt equity ratio was 0.29.In the year 2018-2019 it is
decreased to 0.23.Therefore debt equity rati0 is low in the year 2018-2019 that
means the company does not depend upon the deb.The company is much stable
and debt is been reduced as of last year it is 0.23 compared to 0.29 of previous
year.

4. Proprietary Ratio:

The proprietary ratio shows the contribution of stockholders’ in total capital of


the company. A high proprietary ratio, therefore, indicates a strong financial
position of the company and greater security for creditors. A low ratio indicates
that the company is already heavily depending on debts for its operations.

Table:5.4 Shows Proprietary Ratio of 2 years

Formula:Shareholders Fund/Total Assets

Shareholders
Total Assets Proprietary
Year Fund
Ratio

2017-2018 355.33 517.63 0.69


2018-2019 395.12 635.82 0.62
Fig 5.4 Shows chart for proprietary Ratio of 2 years

Proprietary Ratio
0.7 0.69
PROPRIETARY RATIO

0.68

0.66

0.64
0.62
0.62

0.6

0.58
2017-2018 2018-2019

YEARS

Interpretation:
In the year 2017-2018 proprietary ratio was 0.69.In the year 2018-2019 it is
decreased to 0.62.Therefore it shows that the contribution of stockholders in
total capital of the company has reduced.

5. Total Assets Turnover Ratio:

The ratio is calculated by dividing the net sales by the value of total sales.

Table:5.5 Shows Total Assets Turnover Ratio

Formula:Net Sales/Total Assets

Net Sales Total Assets Total Assets


Year
Turnover Ratio

2017-2018 201.81 517.63 0.39


2018-2019 229.41 635.82 0.36

Fig 5.5 Shows chart for Total Assets Turnover Ratio


TOTAL ASSETS TURNOVER RATIO

Total Assets Turnover Ratio


0.4 0.39
0.39
0.39
0.38
0.38
0.37
0.37 0.36
0.36
0.36
0.35
0.35
2017-2018 2018-2019

YEARS

Interpretation:

In the year 2017-2018 Total Assets Turnover Ratio was 0.39.In the year 2018-
2019 it is decreased t 0.36.Total Asset turnover of the company is 0.36 which
means the company is not generating enough revenue compared to its total
assets.
CHAPTER 6
LEARNING
EXPERIENCE
Project work arc the cherrics on top of the resume. They can make any student
stand on to colleges. future employers. The practical situations encountered in
the organization on the daily basis are based in the nature and entirely different
from one situation to another. Even though the company has competitors it is
known for its convenience and quality of service. Internships are quickly
becoming essential for any job and can offer a lot of experience to students
hoping to get ahead. Well it educated sue of the important things on project
work experience.

And it is helps that to know how the various departments co-ordinated each
other. What are the discipline should maintain in the organization, and how to
build employee and employer relationship. United Breweries is a big company
so here to I learn lot of thinks which not available anywhere
This project work provided excellent opportunity to build professional
connections the co- workers, explained about the organization structure, the
basic principles and practices and financial analysis and could gather, analyze
and interpret the date. These professional settings became familiar with regular
work therefore, these connections will give you a strong recommendation in the
future. Working in n force environment, helped to observe how others operate
and take on those attributes that are: best at work place, whether it's
communications, behavior, or office etiquette. This organization helped to
procure career skills required and to be nurtured throughout professional life.

This organizational study was the opportunity to test out the skills developed in
college and see how they work in the real world. By applying skills at
internship, got an idea of biggest strength and areas of improvement this helped
me to figure out if a field is right or wrong. This organizational study was a
success and set the direction for career. There was a very good chance to learn
new skills during this period. The organization also gave the opportunity to deal
with the financial statements and gain analyzing techniques.
In short, United breweries ltd Mangalore.my Experience at was amazing which
will be with me as a memorable time throughout my Life.
Through sampark you can find:
1. The UBL University – Learning and Development
2. The Online Performance Appraisal System – Cloud – platform based
3. Online Recruitment for executives and staff
4. Information and updates
5. The UBL Enterprise Social Network …..and many more

Corporate Social Responsibility

Water

Provision of Safe drinking water in the vicinity of manufacturing units


In 2015 – 16, 54000 people in 25 villages were covered
 5 villages near UB Nelamangala (Karnataka) benefitting 3,700 people.
 10 villages near UB Golconda and UB Nizam (Telangana) benefitting
17,904 people.
 10 villages near UB Ajanta and UB Ellora (Maharashtra) benefitting
32,960 people.

Education

Provision of quality primary health care for co - communities

 Over 30000 individuals have been provided health care services in FY 15


– 16.
 Breweries have established Health Centers / Dispensaries/ Mobile
Medical units or conduct Health Camps, which provide free medical
check – ups and basic medicines.

Health

Provision of improved quality education for co - communities


 In 2015-16, we have benefitted 11000 school children through our
education initiatives
 Each brewery has adopted one school and benefits 250 children on an
average
 Science centers established in 7 schools near UB Chamundi benefiting
1306 students
 10 schools adopted in the vicinity of UB Rajasthan for complete
infrastructure overhauling and improvement of teaching – learning
environment impacting 2600 children over a period of 3 years.

BIBILIOGRAPHY
www.kingfisherworld.com
http://www.financialexpress.com/news/united-breweries-acquires-gmr-
brewery http://en.wikipedia.org/wiki/United_Breweries_Group
http://en.wikipedia.org/wiki/Beer_in_India
http://www.mindbranch.com/Beer-India-Forecasts-R587-51/
http://www.scribd.com/doc/26542793/Beer-Market
Financial Express “Barley gains attention of beer industry”, Jan 2008 &
“High demand from beer cos pushes barley prices up by 20%”, May 2008
Business Standard articles “Indian beer market ready for new fizz”, May
2008 & “Craft Beers set to challenge 'Lager' territory”, Jun 2009
http://www.euromonitor.com/Beer_in_India,

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