Stockrabit · Analysts
Questions across 4 calls

Vivek Gupta

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Cyient Limited

United Breweries Limited

United Breweries Limited CC-Mar25.pdf · 2025-05-08
Yes. No, see, we just got the pricing only on February 15. When I say very soon, I think it has to go through the government pricing committee and all. So I don't know the timing of that. And there is no notification which has come. But I'm not expecting any pricing in the next few months, because it goes through a process. It is a pricing committee which needs to be there. But our conversation with the government is completely on that it is important that they understand that we are still not out of the red completely on this one. And also the recent price increase for consumers is also impacting category growth. So we also have to see the data in the next couple of months how the beer category performs in Telangana overall. And then we will go back with a comprehensive proposal which actually they would like to see how their revenue increases, we would like to see how our viability of our business increases. So it's still a work in progress. Right now, another focus in Telangana is to get the payment back. There is overdue. I think we did get a part of it, but we are still not out of the wood there. I think we are also working with the government and through the industry association. So that the payments are regularized as per their commitment, because especially in the season, we don't want to get back to a situation where the category is growing, we are growing, and we expect some working capital and we don't get the payment. So we're working very closely with the finance department of the state and the stakeholders so that things get in line.
Yes. I think there is -- I cannot share the exact numbers of April with you. But I would say that the decline is not to that extent. But there is a decline, double-digit decline in the category, which we have seen since the duties have increased. And it has also driven primarily because the price of the economy there has actually gone up. Now, on the other side, as a company, we are growing our shares. But as I keep repeating, my role is not to only grow share. It is also to growing category. We are category makers, not category takers. So on the share front , we are doing well, because the economy segment has slowed down. We did not take pricing on Kingfisher. We have a very strong program. We're sponsoring IPL. All of those things are there. But there is a real challenge on the category versus the previous year in Karnataka.
United Breweries Limited CC-Jun24.pdf · 2024-07-26
Yes. Thanks, Abneesh. I think let me answer the second question first. I think we actually have the manufacturing facility ready for last 9 months. We had applied for the permit for the local label registration and till the time you get the permit, you can not actually import. So we're waiting for the permits to happen as well. So we waited to do the right things without being very tactical to just import because we wanted the full permit on actually producing locally and selling locally, which we have now got, and we will do that. So the other thing is Heineken, we got the permit sometime in mid-June, but the brew itself takes 21, 24 days, it went through -- it goes through a huge amount of quality checks, including sending samples to our overseas operations. So they want to make sure the beer is absolutely consistent to do that. So that is about that part. So we did not have an option to import from any other state because of the permits, which we got later and this was a long drawn process. But good part is, we will be manufacturing locally, and that will be improving our margins but also giving us the full space. Heineken as a brand is now the world's biggest beer brand. We launched Heineken in India with Heineken Original. But in last couple of years, we have actually launched Heineken Silver, which is a raving success in other Southeast Asian market because of a different taste profile it brings in and does that. And so we think in our plan for 2030, Heineken will play a massive role -- this portfolio will play a massive role. And it could be anywhere between 7% to 8% of our total portfolio, that part of it. In Maharashtra and Goa, where we are in Heineken, our sales growth of Heineken is above 40%. And every month, we are beating share versus previous month. As you know, we launched Heineken Draft. We are gaining the distribution to do that. So I think it is not going to be a huge that for month 1 and year 1 we'll hit 7, 8 shares, but it will actually start giving us 100 to 200 basis points of share growth every quarter on a very profitable premium segment and very distinct product, which is 100% malt product. So we are feeling very, very bullish about it. The other good part is in Karnataka, the launch was very successful before we applied for local -- that's why we made a choice to do local manufacturing. So we already know that the moment we will announce in the market, there is a pipeline which will get into it, and there's already a latent customer demand. So we are feeling very, very strong about it.
Look, we are working with Delhi as we relaunch our operations to get Heineken there. That's a big part of the market. We are already doing Heineken in Rajasthan. We have a manufacturing unit, which is ready to go in Rajasthan as well to produce more Heineken there. So we are working plan broadly. But what we also don't want to do is we also want to go -- we have a very big innovation agenda across multi -brands. And I would say over a period of next 12 to 18 months, we will have a very strong presence of Heineken in m any other markets as well.

Acutaas Chemicals Limited