Wednesday 16 April 2014
News updated at 9:40 AM IST
Weather
Max: 34°C
Min : 22.7°C
In Bangalore
Sunny day

UB market share remains low in Tamil Nadu: Mallya

Bangalore, Sept 12, 2013 (PTI)
File Photo.

United Breweries Chairman Vijay Mallya today said the situation of the company has not yet changed in Tamil Nadu with a drastic drop in its market share due to the ordering patterns, followed by the State Marketing Corporation, sole retailer of IMFL in the state.

Mallya, however, hoped that Tamil Nadu government would give UBL a fair share of orders for its brands as they "very popular" among the consumers there.

"Our company continues to face problem in Tamil Nadu where its market share dropped drastically because of the ordering patterns followed by TASMAC," he told reporters after the 14th UB Group annual general body meeting here.

The decision lies in the hands of the state government, he said, hoping that it would give UBL a fair share of orders because the company's brands enjoy a unique franchise with the consumers in that state.


"Clearly, the Kingfisher brand is the most popular brand in India and should be freely available to consumers in Tamil Nadu where it used to enjoy undisputed leadership," he said.

The drop in UBL's market share in Tamil Nadu was triggered by the change in ordering policy where Tamil Nadu decided not to follow market demand in their order pattern, but to look at the capacities available in the state itself.

"After all, we are local producers within Tamil Nadu. It is not as if we are selling beer from outside. We provide the same revenue benefit to the state; employment benefit. So, we hope that we will be able to persuade them (TN govt) to allow Kingfisher to regain its rightful market share."

Asked about the overall national market share of the company in midst of Tamil Nadu problem, Mallya said it remains above 50 per cent though it would have been higher had the UBL's share in Tamil Nadu been true reflection of demand for its products.

"Fortunately, we have grown in other states. Therefore, our national market share remains above 50 per cent," he said.

To a query, Mallya said "the outlook for UBL for FY14 is good barring any unforseen circumstances...". The monsoon has been good in a way contrary to the expectations that it dampens demand for beer... But we have been consciously following a strategy of evening out the weather-related peaks and slumps so that demand for beer remains strong," he added.

Mallya said though the people have experienced inflation in more ways than one in their daily lives, the UBL has done well to ensure its inflationary costs of inputs in particular to be about half of the national inflation figure.

"While there have been some challenging circumstances, I think overall, we are pretty pleased with whatever we have delivered," he added.

Go to Top

Photo Gallery
Devotees gather to offer prayers before an idol of Hanuman during Hanuman Jayanti in Hyderabad...

Devotees gather to offer prayers before an idol of Hanuman during Hanuman Jayanti in Hyderabad...

Students of Visva-Bharati University participating in programme on “Poila Baisakh”...

Students of Visva-Bharati University participating in programme on “Poila Baisakh”...

A friendly volleyball match between Indian and Chinese armies officers on the sidelines...

A friendly volleyball match between Indian and Chinese armies officers on the sidelines...

Daily wage laborers arrange lamps to be transported to respective election polling stations...

Daily wage laborers arrange lamps to be transported to respective election polling stations...

Girl students perform Giddha on the occasion of Himachal Day in Chamba...

Girl students perform Giddha on the occasion of Himachal Day in Chamba...

An eunuch dances to celebrate the Supreme Court’s verdict recognizing a third gender category...

An eunuch dances to celebrate the Supreme Court’s verdict recognizing a third gender category...

School girls at voting awareness campaign in Patna...

School girls at voting awareness campaign in Patna...

Woodcutters use a handsaw to cut a cedar log in different sizes in Imam Sahib village...

Woodcutters use a handsaw to cut a cedar log in different sizes in Imam Sahib village...

Haemophilia effected children participating in an event Haemo Utsav 2014 in New Delhi...

Haemophilia effected children participating in an event Haemo Utsav 2014 in New Delhi...

Eberhard Kern, Managing Director & CEO, Mercedes-Benz India during the launch of Mercedes GL 63...

Eberhard Kern, Managing Director & CEO, Mercedes-Benz India during the launch of Mercedes GL 63...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523