United Spirits Limited Bangalore

The company's genesis was in 1951 in newly Independent India. Visionary entrepreneur Vittal Mallya, who had built United Breweries into a leading manufacturer of beer from 1947, acquired McDowell and Co established by Angus McDowell in 1826. This spurred him into creating a spirits business of his own. He built a new distillery in Kerala in 1959 and began bottling Bisquit Cognac and Dorville French Brandy, made from concentrates imported from France. Soon it moved on to produce perfumery grade alcohol (Extra Neutral Alcohol), the first in the country to do so. It also began manufacturing and bottling brandy for major stores and liquor companies. By 1962, it launched its own brand Golden Grape Brandy, which was so popular that the marketing team had to ration the brandy!

From 1958 onwards, Vittal Mallya began a series of acquisitions - he took over Phipson & Co Ltd and Carew & Co Ltd and launched Coronation Blend Whisky, using imported Scotch and molasses-based ENA, resulting in the term Indian Made Foreign Liquor (IMFL).

After acquiring a considerable stake in the British-owned Herbertsons Ltd in 1973, Vittal Mallya inducted his son Vijay Mallya as Director in McDowell & Co. In the late 70s, when the long shadow of possible prohibition loomed over the industry and many in the industry went into a panic mode, Vittal Mallya did the opposite - he bought as many distilleries as he could knowing the situation would change and it did. Taking over as Chairman after his father's untimely death in 1983, Dr Mallya turned the empire into individual operating divisions. As the Chairman of McDowell & Co, he implemented innovations in product development and marketing and executed a series of mergers. In the years that followed, the Technical Development Center in Bangalore created brands for distilleries across the country. Smart marketing built a wide and loyal base of consumers both within and outside the country. He also inducted professionals to take the business ahead.

With globalisation opening up the Indian economy, the company charted an aggressive growth plan in the 1990s, pursuing acquisitions and fighting doughty battles to get its way, as in the case of Shaw Wallace and Company Ltd. In December 2002, Dr Mallya acquired 85 per cent stake in Triumph Distillers & Vintners (TDV), licensees and marketers of the best selling Gilbey's Green Label Whisky. By 2007, the combined turnover of the various companies - Shaw Wallace, McDowell's, Herbertsons and Triumph Distillers & Vintners accounted for over 66 million cases and a retail sale value of Rs 14000 crore (US $3 billion plus).

UB Spirits Products

After all these companies were brought together to form United Spirits Limited (USL), the new company has been on a global acquisition spree. It acquired Bouvet Ladubay, the subsidiary of French wine major Taittinger for Rs 85 crore (US $21 million) in July 2006. In May 2007, USL acquired Glasgow based Whyte and Mackay for Rs 7908 crore (US $1.8 billion). The all-cash acquisition is helping expand the market for Whyte and Mackay brands in India while USL has in turn got access to new markets in Europe and North America. The acquisition has reinforced United Spirits as the No. 3 spirits company in the world, after Pernod Ricard of France and Diageo of Britain. In September 2007, USL acquired a majority stake in the US-based alcohol beverage firm, Liquidity Inc for Rs 12 crores (US $3 million) through a wholly owned subsidiary Zelinka Ltd and added Pinky Vodka to its growing portfolio.