The Hindu Business Line : Scottish & Newcastle tie-up helps UB boost returns

The tie up with Scottish & Newcastle is helping UB to squeeze more out of the Rs 400-crore investment it has poured into its joint venture's brewery business.

A top company official told Business Line that Scottish & Newcastle's expertise in running its international businesses has helped UB to fine tune the processes at its various breweries leading to free more capacity as well as reduce the 18-day cycle time. Both Scottish & Newcastle and United Breweries have 37.5 per cent share each in the joint venture.

Apart from physical expansion of the breweries, even the brewing processes are being modernised, the official said. "The overall quality of the processes are seeing improvement because of Scottish & Newcastle's positive intervention," the official said. The global procurement practices are also being put in place, the official said. Some of the best practices in the manufacturing side of the business are also being initiated, the official said.

Several other improvements are also being carried out especially in the area of labelling and even the cost per bottle is getting reduced, the official said. The beer major is also looking at innovations in the area of packaging as well as liquids to push sales. Different types of packs as well as low alcohol liquids are also on the anvil. These measures will help the joint venture to get better value out of the Rs 400 crore investment it has earmarked, the official said.

United Breweries has earmarked around Rs 400 crore for investments into expansion and modernisation of its breweries and strengthening its marketing network.