The Hindu Business Line : UB to sport a trimmer brand portfolio soon

After having acquired a controlling stake in Shaw Wallace & Co for Rs 1,300 crore in March this year, the UB Group has embarked on a major restructuring and amalgamation exercise. Mr Ravi Nedungadi, President and CFO, The UB Group, told Business Line that the integration effort is aimed at cutting out `unnecessary and mindless competition' among its existing and newly acquired brands.

"A slight repositioning and price segmentation will be necessary, though there will be no reduction in our brand building expenditure," Mr Nedungadi clarified. He, however, admitted that "some amount of cannibalisation was inevitable".

The merger has resulted in 140 brands, 15 of which are millionaire brands and 75 manufacturing locations across the country.

Rationalisation will be achieved through simple low-hanging efforts such as having lesser number of manufacturing facilities and offices across the country and better efficiency in the distribution chain, he said. Current sales turnover of the company (including vendor manufacturing) is pegged at Rs 5,000 crore.

In the talent integration area, the company is taking steps very slowly because historically the two companies have been rivals.

"So we are judging each individual and taking the best people for the job," Mr Nedungadi said.

The integration of the UB Group spirits business comprising McDowell & Co, Herbertsons Ltd, Triumph Distillers & Vintners Ltd, and Shaw Wallace & Co Ltd, to create United Spirits Ltd, the world's second largest distilled spirits company, is expected to be concluded in the next two months, he said.

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