Project Work on

A STUDY ON COST ANALYSIS OF BEER MANUFACTURED BY UBL

LTD

submitted by+

HARSHITHA KN

USN: 4SO18MBA11

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL

GUIDE
Dr.Babitha Rohit
Department of business Mr.Kushalappa
Administration, Finance head
Mangalore. United breweries ltd
Mangalore.

Department of Business Administration

St. Joseph Engineering College
Vamanjoor, Mangaluru-575028
2019-2020
 DECLARATION

I HARSHITHA K N hereby declare the report on project at United

Breweries Ltd,is prepared by me under the guidance of Dr. Babita
Rohit,Assistant profesor in St.joseph engineering college and external
assistance by Mr.Kushalappa Finance head United breweries ltd
Mangalore.
I also declare that this Project work is towards the partial fulfilment of the
University regulations for the award of Degree of Master of Business
Administration by Visvesvaraya Technological University, Belagavi.

I have undergone the Project for a period of 6 weeks. I further declare that
this report is based on the original study undertaken by me and has not
been submitted for Project University/Institution.

Place: Mangaluru Signature of

Student Date: 27/02/2020

i
 ACKNOWLEGDEMENTS

With grateful heart, I would like to remember the people who have
helped me during my course of project work. I wish to place on record
my words of gratitude towards my external guide Mr. Kushalappa
Finance head United breweries ltd Mangalore.

I sincerely thank him for his guidance and for providing all the necessary
information related to the project.

I would like to thank the internal guide Dr.Professor & Dean, Department
of Business Administration, St Joseph Engineering College, for his
encouragement and constant guidance which helped me in the successful
completion of the project.

It is privilege to thank Dr.Rio D’Souza,Principal,StJoseph Engineering

College, Mangaluru for giving me Opportunity to take up this course. My
profound gratitude goes to the faculty of Department of Business
Administration for their continuous guidance.

I am very thankful to my parents, family members and friends for being

constant source of support and encouragement.

Date: 27/02/2020 HARSHITHA KN

Place: Mangaluru 4SO18MBA11

ii
 TABLE OF CONTENTS

Chapter No. Contents Page No.

1 INTRODUCTION ABOUT THE

ORGANISATION AND INDUSTRY

2 ORGANISATION PROFILE

2.1 Background

2.2 Nature of business

2.3 Vision, mission, quality policy

2.4 Workforce model

2.5 Product/Service profile

2.6 Ownership pattern

2.7 Achievements/awards if any

2.8 Future growth and prospects

3 MCKINSEY’S 7S FRAMEWORK

4 LITERATURE REVIEW & RESEARCH

DESIGN

4 SWOT ANALYSIS

5 ANALYSIS OF FINANCIAL
STATEMENTS

6 LEARNING EXPERIENCE

iii
 CHAPTER 1
INTRODUCTION ABOUT THE
INDUSTRY

AND INDUSTRY PROFILE

iv
 Introduction

UNITED BREWERIES PVT.LTD

INTRODUCTION

It all by way of 5 breweries in South India. The most established of which, Mansion
Bottling works, dated back to 1857. Joined Bottling works, as these united breweries
were named in 1915 has come an exceptionally broad way. 

Quickly subsequently, seeing bullock trucks conveying colossal barrels or 'Hoard's

heads' containing brew turned into a family unit sight. These trucks wheeled their way
to the clients, including English Soldiers, living in and around Madras, Bangalore and
the Nilgiris. In a brief timeframe the blend from UB develop into a top choice, only
with the English Soldiers. So started the historical backdrop of Lager in India. What's
more, the historical backdrop of Lager division of Joined Bottling works. 

The organization was brought by method for late Mr. Vital Malaya in 1947, and from
that point forward has never thought back. Today every single one of the 32,000
Lager outlets in India sells one brand or the other from Joined united breweries.

United Breweries is the unmatched market pioneer of the Indian lager advertise with
piece of the overall industry of 52% which is just about multiple times the closest
contender. It has a broad creation impression with 21 claim bottling works and 10
agreement units giving Pan-India inclusion. The organization sells brew under its
leader image 'Kingfisher'. Kingfisher Strong is India's biggest selling brew.
Universal lager brands Heineken and Amstel and import portfolio supplement United
Breweries' Kingfisher establishment. The UB Group was established the leader
organization United Breweries Limited (UBL) in thirteenth May of the year 1999 as
UB Infrastructure Projects Limited and as an open constrained organization at
Karnataka to do the matter of framework offices and other associated exercises.

The recent UBL was the holding organization of the organization and as far as the
Scheme of Arrangement the blending business carried on by past UBL in its different
endeavors or potentially units and authoritative properties identifying with or
fundamental for the previously mentioned units are moved to and now vest in the
Company. UBL additionally alluded to as the Beer Division of the UB Group.

Timelines:
March 15th – 1915 – Mr. Thorpas Leishman bought 5 bottling works to from Joined
Distilleries Pvt. Ltd. with its enlisted office at 17 American Road, Chennai – 1. 

UBL has a connection with maturing going back more than nine decades, beginning
with 5 bottling works in South India in 1915. From bullock truck – stacked barrels or
Hogsheads of foaming lager, the profession business has proceeded to build up the
undoubted lord in the Indian brew showcase. UBL today supports as a great spread of
possess and agreement fabricating offices all through the nation. Here, imaginative,
inventive and forceful advertising is supplemented by a solid circulation arrange. An
administration concentrated on building brand value on one hand and abusing it to
handle on the other. 

Quality and cleanliness are the key components of the Assembled Bottling works
fabricating theory. To this end, the Focal Logical Research facility (CSL),
headquartered at Bangalore sets measures for every one of its distilleries. Quality
Administration Frameworks laid about along the lines of ISO 9000 are carefully clung
to, controlling quality at each phase of creation, from the crude materials to the
finished result.
Additionally,other than controlling the creation procedure, The CSL investigations the
Organization's lager taken off market retires everywhere throughout the nation, the
opposition's lagers and lagers from over the world. These lagers are tried according to
the measures set somewhere near the European Bottling works Show on 40 distinct
parameters. By these models, 'Joined Bottling works' brews don't simply approach,
yet even outperform, a few Dutch and American lagers. 

It's lead image 'Kingfisher', has accomplished worldwide acknowledgment reliably,

has won numerous honors in Global Lager Celebrations. Kingfisher Premium ale
lager is at present accessible in 52 nations and leads the path among Indian lagers in
the Global market. It has been positioned among the main 10 quickest developing
brands in the U.K.

BACK GROUND

Code of Business Conduct of UBL Mangalore

The Governing body of Joined Bottling works Restricted has embraced the
accompanying Code of Business Lead and Morals for executives of the Organization
and all representatives of the position of Bad habit – President or more . The Top
managerial staff has the privilege to extend/change the degree and inclusion of
workers under this Code. 

The organization is focused on moral and legal business direct and sees it as basic to
the organization's prosperity. The organization will maintain the moral and lawful
gauges while seeking after its targets. Steady with its standards, The Organization's
Board has received with the Code for the consistence both in the Letter and soul by all
the Executives and Secured Workers. While it is beyond the realm of imagination to
expect to foresee each circumstance or situation that may emerge, the code is
proposed to fill in as a wide guide. The Load up claims all authority to revise, adjust
or end the Code whenever and in any way, shape or form, subject to material
law. Chiefs/Secured Workers who damage/veer off from the prerequisites of the Code
will draw in disciplinary activity which may incorporate end of office/business. 

In playing out their capacities, Chiefs and Secured Workers will; 

1. Act with uprightness, honor, trustworthiness, straightforwardness and with most
extreme great confidence. 

2. Actively help with actualizing the Organization's Targets and making an

association that is responsive, positive and driven by business and social needs.

NATUREOF THE BUSINESS

The UB Gathering's Preparing Division likewise accepted undisputed administration

with a national piece of the overall industry in overabundance of half. Through
procedure of forceful obtaining and market infiltration, The UB Gathering today
controls 60% of the absolute assembling limit with regards to brew in India. The
leader brand, kingfisher, is currently sold in over half nations overall having gotten
numerous honors for its quality. 

In an intense serious blending industry, which currently has all the world's significant
brewers battling for piece of the overall industry, UBL towers over all others. A
development of 20% in the market developing at a large portion of that rate has
guaranteed that UBL's steady of market driving brands order a joined piece of the
overall industry over half. 

While kingfisher solid has risen as India's most well-known lager, different variations,
for example, Kingfisher's Ultra, very premium item, are likewise being eagerly gotten
by the market. 

UBL's situation in both the residential and worldwide lager market will be
additionally fortified subsequent to the consenting to of investor arrangement with
Heineken. The conceives, in addition to other things, the creation and offer of the all-
inclusive acclaimed Heineken brew in India by UBL. At the same time, utilizing
Heineken's universal appropriation solidarity to additionally spread of Kingfisher
Lager in select Brew in select worldwide market.
PROMOTERS OF THE COMPANIES

Board of trustees of United Breweries Ltd

DIRECTOR : A K Ravi Nedungadi

INDEPENDENT DIRECTOR : Sunil Alagh
COMPANY SECRETARY : Govind Iyengar
INDEPENDENT DIRECTOR : Madhav Bhatkuly
INDEPENDENT DIRECTOR : Kiran Mazumdar Shaw
INDEPENDENT DIRECTOR : Stephan Gerlich
MANAGING DIRECTOR : Shekhar Ramamurthy
DIRECTOR : Christiaan J Van Steenbergen
ADDITIONAL DIRECTOR : Rudolf Gijsbert Servaas Van Den Brink
AUDITOR : S R Batliboi & Associates Llp
IND NAME : Breweries & Distilleries
HOUSE NAME : UB

VISION MISSION QUILITY POLICY

VISION STATEMENT

“Our Vision is to lead and build up the Indian lager advertise and convey top tier
execution through greatness in item and brand portfolio, abilities and arrangements”

M ISSION STATEMENT

To be the perceived pioneer in our objective market. 

To perceive the estimation of human resources and be the favored boss whatever we
work 

To be the accomplice of decision for clients and providers. 

To be the accomplice of decision of client, provider, and other maker of creative

ideas. 

QUALITY POLICY AND PRODUCT POLICY

Our Product – Some Facts

  Beer is blended for over 6000 years back
 Early man constantly thought about brew as an enhancement to consume less
calories. 
 Beer is firmly identified with preparing of bread as grain, water and yeast is
utilized in both. 
 The fundamental crude materials for making brew are malt, jumps, yeast and
water. 
 Beer has supplements like proteins, nutrients, fiber, minerals, cell
reinforcements.

Professor DrAntonPiendl, Technical University of Munich, Germany

says,

“One Beer is better than no Beer”

One Kingfisher is better than no Kingfisher

Quality Management

Quality and cleanliness are the key components of the UB gatherings' assembling
theory. To this end the Central Scientific Laboratory (CSL) headquartered at
Bangalore sets norms for every one of its bottling works. Quality Management
Systems spread out along the lines of ISO 9000 are carefully clung to, controlling
quality at each phase of creation.Nature of the lager is checked electronically toward
the finish of each procedure and the nature of the last bundled item is physically
checked.
WORK FLOW MODEL
 ORGANISATION STRUCTURE

PRODUCTS, SERVICE PROFILE

United Breweries Group Based in Bangalore, is a combination of various

organizations with significant spotlight on lager. Joined Breweries is an India's
biggest maker of lager with piece of the overall industry of overabundance of half.

Coming up next are the results of joined united breweries group gathering

Lager is the primary result of United Breweries. Joined Breweries delivers its item
under the brand name of Kingfisher. Kingfisher brew is administering the Indian
brand showcase, it is the most well known brand in India.

The following are the kingfisher beer brands

 Kingfisher Strong
Kingfisher Strong, India's biggest selling lager, is blended from the best malted grain
and bounces. Its esteemed worldwide honors are an additional verification of its
generally acclaimed one of a kind taste and quality. Kingfisher solid joins this one of
a kind taste and quality in a solid lager and involves a similar situating stage as the
mother brand, Kingfisher. The brand symbolize the estimation of qualities, the style,
energy and fun. Basically, the brand is an image of current India.

This notable brand was propelled in 1999 to take into account the developing interest
of the solid lager portion in the nation. The brand has an enormous family and is
accessible in the accompanying pack sizes 650ml, 330ml pints, 500ml standard jars
and 330ml thin jars.

 Kingfisher Premium

Propelled in 1978, Kingfisher Premium is one of the main brands propelled in the
gentle brew classification under the Kingfisher umbrella. A youthful, contemporary
and fun brand. Kingfisher Premium is accessible in 650ml jugs, 330ml pints, 500ml
normal jars and 330 Ml thin jars

 Kingfisher ultra Max

Kingfisher Ultra Max means "Most extreme Taste Maximum Life" .Launched in
2015, Kingfisher Ultra Max is a fresh, reviving solid lager with lovely fragrance and
delayed flavor impression. A moderate blending and delayed development process,
utilizing the best imported Pilsner malt, kingfisher Ultra max has a full-seasoned
'most extreme Taste' that is smooth and simple to drink.

Kingfisher Ultra Max brews are accessible in 650ml and 330ml containers and 500, l
jars.

 Kingfisher Ultra

Kingfisher Ultra is for the tasteful, current, certain, free and confident shopper. One
who searches ultra-experience out of everything? Propelled in 2009, Kingfisher Ultra
bigger is the preeminent premium lager brand on offer right now. Propelled first in
Bombay, Bangalore, Delhi and Calcutta, Kingfisher Ultra is currently generally
accessible all over in India.

 Kingfisher Storm
Propelled in 2017, Kingfisher Storm is another solid lager from the place of United
Breweries Ltd. Everything about Storm directly from the lager to the bundling to the
utilization experience is new, reviving, exceptional and extraordinary. It's an image
that conveys with it, a sharp, striking and certain demeanor and offers shoppers the
chance to "Carry on with the Swag Life".

 Kingfisher Buzz

Kingfisher Buzz is new age malt based, enhanced mixed drink. Supplementing the
vivacious, carefree and expressive young people of today, Kingfisher buzz really
unites the insane blend of feelings and exercises such is reality. It comes in energizing
flavors. Berry and Lychee. Propelled in 2016, Kingfisher Buzz is as of now accessible
in Bangalore, Delhi, Mumbai, Goa, Pune, and Thane.

Components and Raw Materials of Beer

WATER: water is the transcendent preparing crude material with most brews made
out of 90-95% water. In this manner, the state of this water is of vital significance to
the brewer, as this will have ramifications for the nature of the lager. The significance
of water utilized in the preparing business is customarily so critical that the area and
quantitatively endurance of a bottling works has been dictated by its water supply.

MALTED BARLEY: Malted grain is the fundamental crude material utilized in the
fermenting of brew. Malt gives the sugar that will be aged into liquor in the preparing
procedure. Grain is an oat generally developed in gentle sea atmospheres and for quite
a long time it has been utilized in the creation of lager.

BROKEN RICE: Rice is an extremely regular harvest and a significant wellspring of

starch. Rice is utilized in preparing on the grounds that the starch present right now
promptly available yet it must be 'gelatinized' at high temperature before it tends to be
changed over into fermentable sugar.

MAIZE: Maize (or corn) is a typical harvest developed in warm and mild
atmospheres. It is a modest wellspring of starch. The starch is promptly open however
it must be 'gelatinized' at high temperature before it tends to be changed over into
fermentable sugar. Maize is ordinarily utilized at up to 20% of the grist in ale to
lessen malty flavors and produce a clean carefully seasoned brew.

MAIZE FLAKES: They are delivered by preparing corn meal through hot rollers
which gelatinizes the starch and makes it available to the malt catalysts.

SUGAR: Sucrose is exceptionally fermentable and is normally added to the bubbling

vessel. It supplies the vital starch source that invigorates fermentative pathways in
yeast for creation of liquor. Sugar can be developed normally as on account of sugar
stick or beet. It is utilized to enhance the malt where malt handling plant (stockpiling,
factories, squash tunes and so forth.) is a restricting component. Sucrose can likewise
be added to the lager after aging as 'priming’s' to give sugar to energize molding or
increment sweetness.

YEAST:Yeast is the unicellular microorganism that is liable for aging and creation of
brew. Yeast processes the sugars removed from grains, which produces liquor and
carbon dioxide, and accordingly changes over worth into lager. Notwithstanding
aging the lager, yeast impacts the character and flavor. The prevailing sorts of yeast
used to make brew are the top-maturing Saccharomyces cerevisiae and base aging
Saccharomyces uvarum.

HOPS: Hops are the female blossoms of Humulus lupulus. Bounces, different herbs
and flavors were most likely initially added to completed lager to deliver exceptional
flavors and conceal "off-flavors" conferred by microbial contaminants during the
previous long periods of fermenting. Jumps are still added to brew during creation.
Bounce expansion is truly perceived to present sharpness and unmistakable smell or
flavor to the lager, however today jumps are perceived as likewise having the option
to improve brew steadiness (regarding clearness), head security, against microbial
action and light solidness.

COMPETATORS INFORMATION:

Competition

As of now over 80% of the market is constrained by two significant players United
Breweries Limited (48%) and SABMiller India (35%).Strong lager is anticipated to
become quicker as it is seen to offer an incentive for cash option in contrast to spirits.
With InBev getting Anheuser-Busch, it can possibly develop as the third significant
player in the Indian lager advertise. The eventual fate of lager showcase in India looks
positive with the section of numerous universal players. Brew deals will increment
alongside expanding number of brands and sub-classes in India. Existing players like
UBL and SABMiller are wanting to extend their scope of products.New players like
ABInBev, Carlsberg are carrying their universally famous brands to India

Top players

UNITED BREWERIES

Joined Breweries crossed achievement of 100 million cases. It appreciates a 57

percent share in the evaluated 200 million cases household lager showcase. Its
complete volume of deals expanded by 20% while the incomes expanded by 18%.
The organization additionally observed immense ascent in its net benefits by 51%.

UB Group today controls 60% of the complete assembling limit with regards to Beer
in India. The organization, which sold more than 100 million instances of lager in
2009-10, expects a business development of 30-35 percent in the current financial.
For FY 2008-09-The Company detailed a net turnover of INR 17475.7 mn and benefit
after assessment of INR 624.9 mn

Brands: Kingfisher (Premium, Strong, Strong crisp, Draft, Ultra, Blue, Red,
Bohemia), Zingaro, UB Export, Londer Pilsner Premium solid, Kalyani Black Label
solid, Bullet, Marco Polo, Guru Strong, London strong.
Business Strategy: UBL has an assembling system of 22 bottling works across
India. The organization appreciates a piece of the overall industry of 48% in the
business and plans to extend its offer further. Kingfisher Strong is the single biggest
selling lager brand in India, while Kingfisher Premium kept on beating in its
category.UBL plans to set-up two new green field bottling works at Mallepally in
Andhra Pradesh and Nanjangud in Karnataka so as to help the income development.
UB Group firm United Breweries Ltd today said it is intending to locally deliver
Dutch lager brand ''Heineken'' by next monetary other than propelling a revamped
''Tiger'' brand in India this year.
SABMILLER
SABMiller India is a backup of SABMiller PLC enlisted in India as SKOL Breweries
Limited. For FY 200708 the organization revealed a net turnover of INR 10860 mn
and benefit after duty of INR 344 mn.
Brands: Haywards 5000, Haywards 2000, Haywards Black, Foster's, Indus Pride,
Peroni, Royal Challenge, Knock Out

Business Strategy: SABMiller has 10 bottling works found deliberately across

India to serve the brew advertises proficiently. The organization has a piece of the
overall industry of 35% and stands in the subsequent position. The organization has
put about INR 1250 mn in the previous two years for overhauling the distilleries to
worldwide benchmarks. SABMiller has utilized its worldwide aptitude in bundling,
estimating, event and item holes which were improved dependent on buyer
insights.Also it intends to bring the notorious Dutch premium brew Grolsch to India.
SABMiller Plc has procured the brand for USD 1.2 bn in 2007.

Other players
INBEV INDIA
Brands: Tennents Super, Beck's, Stella Artois, Hoegaarden, Leffe

Anheuser-Busch (AB) was procured by InBev in 2008 and framed ABInBev India; as
of now works utilizing exchanging name InBev India. InBev works in India through a
49:51 joint endeavor with soda pop bottler RKJ Group. Stomach muscle began tasks
in India through a 50:50 joint endeavor with Crown Beers International at first yet
later AB bought the rest of the proprietorship from Crown Beer India Ltd.
Business Strategy: InBev India has a creation limit of 1.9 mn cases a year through
two agreement brewering courses of action in Regent Breweries in Madhya Pradesh
and Dasappa and Sons Bangalore. InBev plans to present Tennents brand in North
India either by finding an agreement brewer or by setting up a bottling works.
ABInBev India dispatches Budweiser brew in North India in August 2009. It has
gotten a decent reaction in the Southern states and Maharashtra. The organization
hopes to cross 2.9 mn cases in deals of Budweiser brew by December 2009.

CARLSBERG
It entered Indian market in 2006 and works here through a joint endeavor named
South Asia Breweries and situated itself as a premium gentle lager. With the dispatch
of its leader image, the organization is attempting to make a top notch, all-malt lager
classification. In 2009 Carlsberg was the fourth biggest distillery bunch on the planet.
Its items are sold in excess of 150 markets. In 2008 the Group sold in excess of 120
million hectoliters of lager, about 100 million jugs of brew a day. Their significant
shoppers are in Southern India. Howsoever, it intentionally picked the north, east and
west districts of the nation to set up its distilleries

Technique received via Carlsberg is to focus on to the undiscovered market of north

and west India in the underlying phase of the creation. Besides, since it has situated
itself as a top notch item, it is just taking into account the urban areas of India.

OWNERSHIP PATTERN

PROMOTERS % of share
Indian Promoter 29.99%

Foreign Promoter 43.88%

DIIs 4.4%

FIIs 16.38%

Others 5.35%

ACHIEVEMENTS AWARDS

 Won the Bronze Award at the 'Australian International Beer Awards' in the

"Worldwide Packaged Beer Section for the year 2000".

 First cost in the International Beer Awards composed by the New Zealand Hop

Marketing Board

 First Prize for the name work classification at the Asian Grad Pixel Cyrel 2000

 Gold Medal at the World Beer Championship held in Chicago in 1997

  World's Best Lite Larger Award at the Stockholm Beer celebration in 1995

 World's Beer Lite Larger Award at the Stockholm Beer Festival in 1994

 Kingfisher Strong granted "Asian best solid Larger 2013' by the renowned

world Beer Award 2013.

MCKENSY’S 7’S

The McKinsey 7-S structure. Created in the mid 1980s by Tom Peters and Robert
Watermen two advisors working at the McKinsey and Company counseling firm the
fundamental reason of the model is that there are seven inner parts of an association
that should be adjusted in the event that it is to be fruitful.

The McKinsey 7-S model can be applied to components of a group or a task too. The
arrangement issues apply, paying little mind to how you choose to characterize the
extent of the zones you study.

Figure no:3.1 Mckensy’s 7’s Framework

STRUCTURE
The way which the association units identify with one another is called as
structure.Organization structure and authority and duty relationship are remembered
for the structure.

SYSTEM

The arrangement of the UBL is basically straightforward where the creation and
procedure office assume an essential job and in help with the money related and the
HR. Also, the wellbeing office will giving more center contrast with other
department.UBL giving more significance for security so wellbeing division is talking
all safeguards with the end goal of the wellbeing. In the association the organization
having wellbeing measures to meet any issue.

SKILL

It comprises of the capacities and skills that exist inside the organization. It is the
ability, specialty or achievement, normally procured or created through preparing and
capacities fitting for explicit occupation. The workers need to have both explicit just
as conventional aptitudes. Conventional expertise implies critical thinking aptitude,
dynamic ability, correspondence and so forth. Explicit ability like that time the board,
building groups, administration and inspiration, innovativeness , building groups,
inspiration ,inventiveness ,progresses wellbeing and condition ,mechanical security
and condition.

Classification of skill:

1 Technical skill

2 Conceptual skills

1. Technical Skill

It is the capacity of a director to utilize the types of gear, strategies and procedures
engaged with performing explicit assignments. Specialized ability is required more
than at the lower level of management.ie at supervisory level. At more elevated level,
the specialized aptitude is less significant ass directors can depend upon other for
specialized data.
2. Conceptual skill

The style of activity is a blend of both top down and base up. Presently on the off
chance that we adopt the top down strategy what happens is toward the finish of each
budgetary year the overseeing chief alongside the VP's meet and examines the various
plans and different techniques for coming money related years.

STYLE

The style of activity is a blend of both top down and base up. Presently on the off
chance that we adopt the top down strategy what happens is toward the finish of each
budgetary year the overseeing chief alongside the VP's meet and examines the various
plans and different techniques for coming money related years.

Vital goal accompanies top administration. The top administration choose the system
to concoct. These techniques are suggested to the individuals let down. Be that as it
may, with regards to advertising activities, it is commonly base up.

STRATEGY

in India liquor and tobacco produces are not permitted to publicize. So these
organizations need to concoct creative procedures to open their brands to the shopper.
Inorder to keep the brand in the psyches of the purchaser an imaginative substitute
way is required. One such path is to make anthor item that can be publicized lawfully
and the name of the item with a similar brand name can't be promoted.

STAFF

In United bottling works there are 113 staffs are working: Under 99 are guys rest of
the 14 are females. This 113 staff incorporate specialized
staff,mangers,clerks,employees,workers. UBL enlisting admirably talented workers in
to their association. For quality offices, the organization choosing representatives who
have great specialized ability. Furthermore, organization giving preparing to their
representatives.

SHARED VALUE
  Passion for accomplishment, achievement and winning

 Freedom to work and gain from botches

 Treating individuals with deference and reasonableness

 Integrity in every way and all occasions.

Porter’s five forces model

This model is created by Michael Porter, this model investigates the nature and power
of rivalry in an industry through five powers (competition, clients, provider, new
contestants, and substitutes). These five powers are clarified as beneath:-

BARGAINING POWER OF SUPPLIERS

With expanding cost of crude material and diminishing expense of grain providers
haggling power was high yet with in reverse combination by gaining Maltex Malsters
Ltd. What's more, moving their creation of brew on malt organization has
accomplished a hang on its crude material and significant decreased the provider
strenth and reliance. Organization has aslo worked together with Government of pujab
and haryana for supply of iits crude material.

RIVALRY

Contention is the methods through which contenders battle for position by utilizing
strategies, for example, value, rivalry, promotion fights, and new item presentation, to
bring down the benefits of rivals in the business.

THREAT OF NEW ENTRANCE

Brew industry is in Growth stage with 11% CAGR, so it is appealing for the new
players. In any case, solid brands like kingfisher and haywards which as of now have
their image review and broad commercial new participants are relied upon to battle to
extend their purchaser base as they attempt to infiltrate the lager showcase in India.
Outside brewers have been looking at the Indian market for certain years now as India
is generally recognized to be the last undiscovered large development showcase
Several universal brewers have as of now constructed brand affiliations and are
advertising their brands forcefully through different retail location advancements all
through their dissemination systems.

BARGAINING POWER OF CUSTOMERS

It is the degree to which clients are effective in driving costs down, or making sure
about high caliber or more assistance at a similar cost. Clients will in general be
amazing when the amounts they buy structure a huge segment of the dealer's all out
deals. Purchaser don't comprehend the nature of the drinks and as there are very few
players in the market the client has less order over cost.
THREAT OF SUBSTITUTE

India is dominatingly a spirits market and brew is a minority inclination for the
individuals who devour drink liquor. So substitute is greatest risk as inclination for
brew among refreshment consumer is less yet the low entrance in lager utilization in
contrast with worldwide levels offers the desire for significant and manageable
development popular for brew in years to come, especially given the energetic age of
India's populace.

SWOT ANALYSIS
Swot analysis (strength, weakness, opportunities, and threats analysis) is a framework
for indentifying and analyzing the internal and external factors that can have an input
on the viability of a project,product,place or persons.

STRENGTHS
 Most popular brand in India. Highest brand recall, which result in high sales.
 UBL has the strong worldwide brand distribution system. Kingfisher brand is
available across most retail outlets as well as pubs restaurant night clubs.
 Being the oldest and largest player in India it understands the Indian market and
the consumer better than its competitors
 Brand which well known worldwide. It sells beer in 52 countries across the world.
It has won many award internationally. It has strong brand image not only in India
but also internationally
 UBL has never compromised on quality. They have always come up with product
of international standards
 Aggressive advertising and promotion at outlet, pubs and bars.
 Consistent investment by UBL in the product, packaging and distribution and
communication along with well established distribution, puts UB in a strong
 position, as seen by consistent improvement to the Company’s national market
share.
 United Breweries have more than 50% market share in India. It is one of the
strength for the company
 Kingfisher has used massive brand development strategies like sponsoring fashion
event, being associated with high profile sporting events like IPL. Formula one
which has helped build its image tremendously.

WEAKNESS

 Negative mentality of the people about the product

 Losing market share due to competition from other brands
 Decline in production and sales due to so many bars are closed in surroundings of
highway road

OPPORTUNITIES

 Beer consumption is increasing with growing demand, the domestic production of

beer on the rise.
 Changing life style of middle class: a section of middle class seems to have been
influenced by the west. They are living a more luxurious lifestyle compared to the
people of earlier generation. They do not mind spending more money on quality.
So even if the beer is priced high in the case of super-premium beer, they are
willing to pay for it.
 It is expected that gradually there will be a deregulation in the Indian beer industry
too, giving it is a boost.
 The youths are more attracted towards beer so the demand will be high for beer
 Compare to other alcoholic product beer includes less alcoholic content so the
demand will be high for beer, it is one of the opportunities for beer market
 Kingfisher already have better brand image in the field of beer market so if they
provide quality of product then they will have opportunity that get more market
share
 Adopt new technologies in production to reduce cost of production

THREATS

 High tax on beer

  So many outlets closed due to government regulation
 Restriction on product promotion.

FUTURE GROWTH AND PROSPECTS

 UBL has looking forward development of 5-8% in future 5 years.

 To sell brew in more outlets all over India

 To sell their item in remote nations moreover

 To be advertise pioneer in Beer showcase.

FINANCIAL STATEMENTS

PROFIT AND LOSS ACCOUNT OF UNITED BREWERIES LTD

PARTICULARS 31 MARCH 2019 31 MARCH 2018 31 MARCH 2017 31 MARCH 2016 31 MARCH 2015

INCOME

Sales Turnover 14136.82 12426.61 10228.16 9167.73 8238.68

Excise Duty 7664.39 6809.58 5494.04 4086.25 3546.39

NET SALES 6472.43 5617.03 4734.12 5081.48 4692.29

Other Income 31.7000 12.9800 51.6000 44.7900 37.5900

TOTAL INCOME 6504.13 5630.01 4785.72 5126.27 4729.88

EXPENDITURE:

Manufacturing Expenses 183.55 147.85 136.05 141.25 141.92

Material Consumed 3150.55 2749.02 2283.20 2104.98 1994.66

Personal Expenses 443.86 394.63 352.09 336.04 297.37

Selling Expenses 349.11 310.86 359.32 .00 .00

Administrative Expenses 1207.60 1113.57 962.29 1776.20 1637.58

TOTAL
EXPENDITURE 5334.67 4715.93 4092.95 4358.47 4071.53

Operating Profit 1137.76 901.10 641.17 723.01 620.76

EBITDA 1169.46 914.08 692.77 767.80 658.35

Depreciation 259.78 259.60 286.95 243.51 207.39

Other Write-offs .00 .00 .00 .00 .00

EBIT 909.68 654.48 405.82 524.29 450.96

Interest 31.20 47.65 58.65 75.91 72.99

EBT 878.48 606.83 347.17 448.38 377.97

Taxes 315.70 212.84 117.84 153.81 118.44

Profit and Loss for the

Year 562.78 393.99 229.33 294.57 259.53

Non Recurring Items -7.40 -3.05 -2.53 .00 .00

Other Adjustments 7.40 3.05 2.53 .00 .00

PAT 562.78 93.99 229.33 294.57 259.53

BalanceSheet - UNITED BREWERIES LTD. Rs (in Crores)

Particulars Mar'2019 Mar'2018 Mar'2017 Mar'2016 Mar'2015

Liabilities

Share Capital 26.44 26.44 26.44 26.44 26.44

Reserves & Surplus 3155.45 2662.01 2306.08 2081.16 1823.19

Net Worth 3181.89 2688.45 2332.52 2107.60 1849.63

 Secured Loan 81.43 257.78 295.93 321.12 510.89

Unsecured Loan .00 .00 100.00 89.98 188.25

TOTAL LIABILITIES 3263.32 2946.23 2728.45 2518.70 2548.77

Assets

Gross Block 3987.33 3713.02 3501.09 3300.64 3085.83

(-) Acc. Depreciation 2235.14 2007.97 1775.54 1503.28 1274.99

Net Block 1752.19 1705.05 1725.55 1797.36 1810.84

Capital Work in Progress 189.92 72.27 137.18 60.84 90.16

Investments 25.68 25.57 25.50 25.47 25.47

Inventories 1030.80 806.44 750.14 605.10 558.38

Sundry Debtors 1510.02 1498.35 1295.35 1143.03 964.28

Cash and Bank 45.12 20.16 21.55 11.34 10.76

Loans and Advances 824.87 591.21 518.70 486.88 420.74

Total Current Assets 3410.81 2916.16 2585.74 2246.35 1954.16

Current Liabilities 2032.72 1691.26 1666.55 1487.26 1206.73

Provisions 82.56 81.56 78.97 124.06 125.13

Total Current Liabilities 2115.28 1772.82 1745.52 1611.32 1331.86

NET CURRENT ASSETS 1295.53 1143.34 840.22 635.03 622.30

Misc. Expenses .00 .00 .00 .00 .00

TOTAL ASSETS(A+B+C+D+E) 3263.32 2946.23 2728.45 2518.70 2548.7

CASH FLOW STATEMENT OF UNITED BREWERIES LTD

Rs (in Crores)

Particulars Mar'19 Mar'18 Mar'17 Mar'16 Mar'15

Profit Before Tax 878.48 606.83 347.17 448.38 377.97

Net Cash Flow from Operating Activity 644.38 562.01 543.88 493.75 838.65

Net Cash Used in Investing Activity -429.70 -195.92 -233.53 -245.25 -327.22

Net Cash Used in Financing Activity -190.00 -363.44 -301.09 -251.43 -571.81
Net Inc/Dec In Cash and Cash Equivalent 24.68 2.65 9.26 -2.93 -60.38

Cash and Cash Equivalent - Beginning of the Year 15.20 12.55 3.29 6.09 66.47

Cash and Cash Equivalent - End of the Year 39.88 15.20 12.55 3.16 6.09

CHAPTER 2
Conceptual background
&
Literature Review
A STUDY ON COST ANALYSIS OF BEER MANUFACTURED BY
UBL LTD

Introduction
A cost examination includes the way toward revealing separate components in a cost
proposition, for example, work, gear and materials that make up an item or
administration, just as its proposed benefit. It is utilized for cost-assessment purposes
when there is an absence of rivalry or similar ideas in the commercial center.
Regularly alluded to as money saving advantage investigation or cost-viability
examination, a cost investigation requires explicit abilities to direct, and it is a helpful
instrument for different parts of business arranging.

A cost examination gives a chance to pass judgment on the proficiency of activities.

For instance, an organization can dissect the quantity of items delivered from a given
degree of assets. It enables an organization to choose whether an activity is conveying
worth and fills in as a guide for execution upgrades. The aftereffects of a cost
investigation report may help an organization in better using accessible assets. It
likewise fills in as documentation that shows proof of responsibility. A cost
investigation can follow costs and spending, which can enable an organization to
decide whether assets are abused or not.

When there is an absence of value rivalry in the commercial center, a cost

examination is of advantage. Without value rivalry, it is hard to decide whether an
offer is sensible. A cost investigation will help an organization in assessing a
proposition's different cost components, just as the proposed benefit, when there are
no comparative or existing business item offers that can be utilized for correlation.
For instance, when arranging sole-source obtainment, an organization will manage a
solitary provider; along these lines, it will be difficult to have a serious offering
procedure to think about costs.

MEANING OF COST

COST' speaks to a penance of qualities, a previous or an arrival of something of

significant worth. It is the cost of financial assets utilized because of creating or doing
the thing cost. It is the measure of use caused on a given thing. Cost has been
characterized as the sum estimated in cash or money exhausted or other gathering
moved, capital stock gave, administrations performed or an obligation caused with
regards to merchandise and overhauled got or to be gotten. By cost, we mean the real
expense for example authentic expense. ICWA (UK) characterizes cost as the
measure of use (real or notional) brought about on, or owing to a predetermined thing
or movement.

CLASSIFICATION OF COST

Cost order is the way toward gathering costs as indicated by their basic highlights.
Expenses are to be ordered in such a way, that they are related to cost focus or cost
unit.

1. BASIS OF BEHAVIOR OF COST

Conduct implies change in cost because of progress in yield. Based on conduct cost is
grouped into the accompanying classifications:

 FIXED COST

It is that bit of the complete cost which stays consistent independent of the yield upto
limit. It is called as a period cost as it is worried about period. It relies on the
progression of time. It is additionally alluded to as non-variable expense or remain by
cost, limit cost or "period" cost. It will in general be unaffected by varieties in yield.
These expenses give conditions to creation instead of expenses of creation. They are
made by legally binding commitments and administrative choices. Lease of premises,
expenses and protection, staff pay rates comprise fixed expense.

 VARIABLE COST

This expense changes as indicated by the yield. As it were, it is a cost which changes
as per the adjustments in yield. It will in general fluctuate in direct extent to yield. In
the event that the yield is diminished, variable expense additionally will diminish. It is
worried about yield or item. Consequently, it is called as an "item" cost. On the off
chance that the yield is multiplied, variable cost will likewise be multiplied. For
instance, direct material, direct work, direct costs and variable overheads. It is
appeared in the chart below.

 SEMI-VARIABLE COST
This is likewise alluded to as semi-fixed or mostly factor cost. It stays consistent up to
a specific level and registers change a while later. These expenses fluctuate in some
degree with volume yet not in immediate or same extent. Such expenses are fixed
uniquely comparable to determined steady conditions. For instance, fixes and upkeep
of hardware, phone charges, supervision proficient expense, and so forth.

2. BASIS OF ELEMENTS OF COST

Components implies nature of things. An expense is made out of three components,

material, work and costs. Every one of these components can be immediate and
roundabout.

 DIRECT COST

It is the cost which is legitimately chargeable to the item made. It is effectively

recognizable. Direct cost comprises of three components which are as per the
following:

 DIRECT MATERIAL

It is the expense of fundamental crude material utilized for assembling an item. It

turns into a piece of the item. No completed item can be made without fundamental
crude materials. It is effectively recognizable and chargeable to the item. For instance,
calfskin in leatherwares, mash in paper, steel in steel furniture, sugarcane for
sugarcane and so forth what is crude material for one maker may be done item for
another. Direct material incorporates the accompanying:

 All materials uncommonly bought for creation or the procedure.

 All segments bought for creation or the procedure.
 Material moved starting with one cost place then onto the next or one
procedure to another.
 Primary pressing materials, wrappings, cardboard boxes and so on,
fundamental for safeguarding or insurance of item.
 DIRECT LABOR OR DIRECT WAGES

It is the sum paid to those laborers who are occupied with the assembling line for
transformation of crude materials into completed products. The measure of wages can
be handily distinguished and legitimately charged to the item. These laborers
legitimately handle crude materials, work in progress and completed merchandise on
the creation line. Wages paid to the laborers working machines, penetrating, cutting
machines and so on are immediate wages. Direct wages are additionally as gainful
work, process work or prime cost work.

Direct wages incorporate the installment made to the accompanying gathering of

laborers:

 Labour connected on the capital creation of the item.

 Labour occupied with helping the activities viz. Boss, Foreman, Shop
assistants and Worker on interior vehicle.

 Inspectors, Analysts required for such creation.

 DIRECT EXPENSES OR CHARGEABLE EXPENSES

It is the measure of costs which is straightforwardly chargeable to the item made or

which might be designated to item legitimately. It very well may be effectively related
to the item. For instance, contract charges of an uncommon machine utilized for
assembling an item, cost of planning the item, cost of examples, draftsmen
expenses/surveyors charges, or employment cost of trial work did particularly for an
occupation and so forth. Cost of unique drawings, cost of exceptional format plans,
licenses, designs, cost of models, surveyors expenses, Excise obligation, sovereignty
on creation, cost of amending imperfect work. Utility of such costs is depleted on
culmination of employment.

 INDIRECT COST

It is that part of the all out cost which can't be distinguished and charged
straightforwardly to the item. It must be assigned and allocated and retained over the
units fabricated on an appropriate premise. It comprises of the accompanying three
components:

 INDIRECT MATERIAL
It is the expense of the material other than direct material which can't be charged to
the item legitimately. It can't be treated as a piece of the item. It is otherwise called
costs materials. It is the material which can't be dispensed to the item yet which can
be allotted to the cost units. Models are as per the following:
  Lubricants, cotton squander, oil, oil, stationery and so forth

 Small instruments for general use

 Some minor things, for example, string in dress making, cost of nails in
shoemaking and so on

 INDIRECT LABOUR
It is the measure of wages paid to those laborers who are not locked in on the
assembling

line, for instance, wages of laborers in organization division, watch n ward office,
deals office, general supervision.

 INDIRECT EXPENSES
It is the measure of costs which isn't chargeable to the item legitimately. It is the
expense of offering administration to the creation division. It incorporates production
line costs, managerial costs, selling and appropriation costs and so on.

 SUPPLEMENTARY COST
Total of roundabout expense is alluded to as overheads. It emerges because of by and
large activity of a business. As per Weldon overheads signify, "the expense of
circuitous material, roundabout work and such different costs, including
administrations as can't advantageously be charged direct to explicit cost units". It
incorporates all assembling and non-producing supplies and administrations.

These expenses can't be related with a specific item. The chief component of
overheads is the absence of direct detectability to singular item. It remains moderately
consistent from period to period. The measure of overheads isn't legitimately
chargeable for example it must be appropriately distributed, allotted and consumed on
some fair premise.

3. BASIS OF OVERHEADS

 On the basis of functions

 Factory overheads
It is the total of all the processing plant costs acquired regarding assembling of an
item. These are brought about regarding running of processing plant. It incorporates
the things of costs viz, industrial facility compensation, work directors pay,
processing plant fixes, lease of manufacturing plant premises, production line
lighting, greases, plant power, drawing office pay, haulage (cost of interior vehicle)
devaluation of plant and apparatus inefficient wages, estimation costs, sovereignties,
free instruments w/off, material taking care of charges, time office pay rates, tallying
house pay rates and so forth.

 ADMINISTRATIVE OR OFFICE OVERHEADS

It is the total of the considerable number of costs as respects organization. It is the
expense of office administration or dynamic. It comprises of the accompanying costs:
Staff compensations, printing and stationery, postage and wire, phone charges, lease
of office premises, office movement, printing and stationery and fixes and devaluation
of office premises and furniture and so on.

 SELLING & DISTRIBUTION OVERHEADS

It is the total of the considerable number of costs brought about regarding deals and
circulation of completed item and administrations. It is the expense of deals and
dissemination administrations.

Selling costs are such costs which are brought about gaining and holding clients. It
incorporates the accompanying costs:

a- Advertisement
b- Show room expenses
c- Traveling expenses
d- Commission to agents
e- Salaries of Sales office
f- Cost of catalogues
g- Discount allowed
h- Bad debts written off
i- Commission on sales
j- Rent of Sales Room
k- Sample and Free gifts
l- After sales service expenses
m- Expenses on demonstration and technical advice to prospective customers
n- Free repairs and servicing expenses
o- Expenses on market research
 p- Fancy packing and demonstration.

DISTRIBUTION EXPENSES

include all those expense which are incurred in connection with making the goods
available to customers these expense includes the following (a) Packing charges
(b) Loading charges (c) Carriages on sales (d) Rent on warehouse (e) Insurance
and lighting of warehouse (f) Insurance of delivery van (g) Expense on delivery
van (h) Salaries of Godownkeeper, drivers and packing staff.

Literature Review

Book: The complete guide to Beer

 Author: Brian Glover

 Right now, complete manual for brew, the creator depicts about the
lager drinking.

 He says that requesting a brew is an ambiguous proclamation of
purpose. Many underestimate brew, accepting that a glass has little to
offer past extinguishing a thirst and giving inebriation. Be that as it may,
brew is significantly more than a chilled pilsner on a hot day. You should
never surge a decent lager.

 Author: B. Verhoef

In this book, the complete encyclopedia of beer, the author described

about the brewing process and the history of beer.

This reference book likewise contains bunches of fascinating realities more than 800
lager brands and their distilleries and numerous delightful photographs of jugs, jars
and names. Just as lagers from the primary brew nations, for example, Germany,
England, The Czech Republic and Belgium. You will likewise discover lagers from
the littler and less notable ones, for example, Fine land, Italy, and Spain, and
obviously the Netherlands is additionally given the complete inclusion right now.

Book: The bar and beverage book (Third edition)

Authors: Costas Katsigris, Mary porter, Chris Thomas.

In this book, the bar and beverage book, the authors describe about the
industry trends of beer.

This internet reference http://www.crc.dk/flab/quality.htmis describes about

the quality control of beer.

The quality benchmark group of the Kingfisher Research Laboratory performs

examinations of water, grain, maize, jump items, wort and lager from the kingfisher
Breweries and its subsidiary bottling works so as to guarantee that the items are of the
most excellent everywhere throughout the world.

Book: current café administration (a manual for understudies and experts)

Creator: john more full

Right now current café administration, the creator depicts about the administration
technique of lager.

The creator says that the packaged brews are served from 3dl jugs and filled a 3 ¾ dl
glass. They are presented with the Head or neckline. Serve immediately with the goal
that a full Head remains.

He additionally tells that the English drafts are served at ordinary cool basement
temperature. Ale lagers are constantly served chilled. The creator that the draft brews
are served fifty-fifty pints or pints must be served in glasses, mugs or mugs bearing
the official crown stamping and quality must be full to the imprint.

Book: The global book of lager

(a manual for the world's most mainstream drink)

Creator: Barrie pepper

In the book, the universal book of brew the writer portrays about the arrangement,
bundling and particular characteristics of a wide assortment of lagers on overall
premise.

The creator says that brew is a consistently has been a genuinely universal drink. Like
wine, its taste and notoriety for rises above insignificant topographical limits and
furthermore like wine, the sheer assortment of brew now accessible bewilderingly
lavish. Regardless of whether its areal brew from the unified realm, a light brew from
the US or an originator ale from France or Italy, lager drinking excited the world over
are similarly as sharp, devoted and educated as any authority of fine wine.

This book gives a full record of the historical backdrop of lager and the specific study
of fermenting, total glossary of brew phrasing and an interesting and conceivable
dubious rundown of what the writer considers to be the world's best ten lagers.

As pointed out by Boardman et al. (2011), in constructing a Cost/Benefit

analysis it is both helpful and informative to break it down into a number of
component steps, and examine each one of these steps individually. First, the analyst
needs to specify the set of alternative projects. This is especially helpful if there are a
number of ways to proceed to a given outcome (e.g. an employment target). Other
times, however, there may be only one project to analyze (e.g. whether to do a project
or not) and in this case the project is compared with the status quo.

COST SHEET

For assurance of absolute expense of creation an announcement demonstrating the

different components of cost is readied. This announcement is called as an
announcement of cost or cost sheet. Cost sheet is an explanation which gives
gathering of the point by point cost of a cost community or a cost unit. It is an
announcement demonstrating the subtleties of an) absolute expense of employment b)
Cost of an activity or request. It draws out the organization of absolute expense in a
legitimate request under appropriate arrangements and sub-divisions. The period is
taken care of by the expense sheet might be by seven days every month or somewhere
in the vicinity. Separate sections are given to show all out cost, cost per-unit and so
on. In the event of various items there are diverse cost sheets for various items. A cost
sheet is set up under yield or unit costing strategy.

Reason for COST SHEET

1. It gives the separation of all out expense under various components.

2. It shows complete expense just as cost per unit.

3. It aides in examination with earlier years.

4. It offices planning of tenders or citations.

5. It empowers the administration to fix up selling cost.

6. It controls cost.

DIVISIONS OF COST

PRIME COST

It involves every immediate material, direct work and direct costs. It is otherwise
called level expense

Prime expense = Direct Materials + Direct Labor + Direct Expenses

WORKS COST

It is otherwise called a processing plant cost or cost of production. It is the expense of

assembling an article. It incorporates prime expense and industrial facility costs.

Works Cost = Prime Cost + Factory Overheads

COST OF PRODUCTION

It speaks to manufacturing plant cost

COST OF PRODUCTION

It speaks to production line cost in addition to regulatory costs.

Cost of Production = Factory Cost + Administrative Expenses

All out COST

It speaks to cost of creation in addition to selling and conveyance costs.

All out Cost= Cost of Production + Selling and Distribution Expenses

SELLING PRICE

It is the value which incorporates all out expense in addition to edge of benefit or less
misfortune, assuming any.

Selling Price = Total Cost + Profit (- Loss)

NON COST ITEMS

Non-cost things are those things which don't shape some portion of cost of an item.
Such things ought not be considered while finding out the expense of an item. These
are things remembered for the Profit and Loss A/c.

These won't come in the cost sheet

a) Income charge

b) Interest on capital

c) Interest on credit

d) Profit on Sale of fixed resources

e) All the benefits

f) Donations

g) Capital Expenditure
h) Discount on shares and Debentures

i) Commission to Partners, Managers and so forth

j) Brokerage

k) Preliminary Expenses Written off.

l) Wealth charge and so forth

m) Bonus to executives and workers on the off chance that it depends on benefit,
costs of raising capital, punishments and fines.

UTILITY OF COST SHEET

Decide THE TOTAL COST

An all out cost sheet (articulation) helps in deciding total expense of assembling an
item or offering an assistance.

Deciding PRODUCT PRICE

A cost sheet helps in distinguishing the all out expense for an item or administration
which thus helps in appropriately valuing of items and administrations.

COST REDUCTION OR COST CONTROL

Cost sheets helps in recognizing the all out cost arrange insightful and any undesirable
expense can be diminished.

Plan BUDGETS

A cost explanation helps in getting ready spending plan for every division
Benefit PLANNING

It assists with limiting expense and increment benefits.

1. STAGE WISE COST IDENTIFICATION

Costs, for example, prime cost, plant cost, cost of creation, cost of merchandise sold,
absolute expense of offer and so on.

2. DETERMINE THE COST PER UNIT

This aides in deciding expense per unit on which u can anticipate additionally cost.

Assurance OF TOTAL COST

Cost of item is resolved according to cost append idea. Complete expense of an item
comprises of different components of cost which have the nature of lucidness. All the
components of cost can be assembled and pulled together. Gathering and pulling
together of different components of cost prompts noteworthy divisions of cost.

Goals OF STUDY

• Cost examinations can give assessments of what a program's expenses and

advantages are probably going to be, before it is actualized. "Ex-bet" or "before the
reality" cost investigations may must be founded on unpleasant appraisals of expenses
and anticipated advantages. Nonetheless, if a program is probably going to be over the
top expensive to execute, extremely hard to "un-do" when it is set up, or hard to
assess, even an unpleasant gauge of productivity might be very important in the
arranging stages (Rossi and Freeman, 1993).

COST ANALYSIS METHODOLOGY :

Essential DATA COLLECTION :-

• All the information assortment process has been helped out through the
constitutions with the staff individuals worried in the branch of fund in the
association.

• Direct communications with the director, The bookkeepers and the related
staff concern helped me in get-together of the necessary information.

• Took the assistance of the administration from different offices and the
direction from the inner guide

Chapter 3
Research Design

Need for the Study

 The importance of cost reduction programs within a company cannot

be overstated. 
 Companies that are losing money, need to increase profits, or must
become more competitive
 Need to cut expenses in order to succeed. Knowing how to
implement effective cost reduction 
 Strategies can be the determining factor in the survival of a business.

Statement of the problem

 1. Prices of beer are going to increase in the recent days.

2. Lack of marketing information.

3. Increasing the government taxes on the beer and other drinks.

4. Sales force to the firm with minimum sales man working in the firms

5. Lack of credit facility.

6. Lack of sales promotional activities.

Objectives of the Study

 To examine the effect of cost benefit on UBL
 To examine the cost incurred under UBL ( direct and indirect)
 To understand the market performance of beers under UBL 
 To understand the  effects of cost on company
 To understand cost management pattern of UBL
 To examine the employee satisfaction level in ubl in term of
facilities and salary

Scope of the Study

 Detailed information on United Breweries Limited required for
business and competitor intelligence needs.
 A study of the major internal and external factors affecting United
Breweries Limited in the form of a SWOT analysis
 An in-depth view of the business model of United Breweries
Limited including a breakdown and examination of key business
segments
 News about United Breweries Limited, such as business expansion,
restructuring, and contract wins
 Large number of easy-to-grasp charts and graphs that present
important data and key trends.

Limitations of the Study:

 Busy schedule of the managers and executives.
 Researchers limited for particular topic.
 All the information’s were not provided by the company but most of
the relevant information’s were obtained.
 Due to the lack of time it was not possible to collect information from
all staff.
 Insufficient time form the study of the researcher.
 Some of the employees hesitated to express their feelings so enough
information was unable to collect.
 Problems of communication gap for collecting information from the
employees.

Conclusion

India as a nation is making economic progress. There are lots of people

who are indulging in luxurious life, they prefer to buy branded products
and do not mind paying a premium for quality. But for the majority price
is a constraint, especially for the middle class population. They would
only purchase items that they feel is value for money. So if they feel that
they don’t get enough benefit from the product then they avoid buying it.

As far as buying behavior of people with respect to beer is also the same.
The highest selling beer in India is kingfisher strong and premium which
is priced at Rs70 for 650ml bottle. The sales of Super Premium beer like
kingfisher Ultra is relatively low, which is priced at Rs100 for 650ml
bottle. Even though the Super premium beer is of high quality and has
been appreciated by the consumer, it has not resulted in as high sales as
compared to the premium category beer.

This just shows that it will still take some time for the Indian mindset to
change where more number of people will be willing to spend on quality
without thinking much about the cost. But we can already see a
reasonable change in the consumer mindset, from say 10 years back.
 CHAPTER 5

SWOT ANALYSIS
CHAPTER 5
ANALYSIS OF
FINANCIAL
STATEMENTS
 COST SHEET OF UNITED BREWERIES LTD

PROFORMA OF COST SHEET

Cost sheet for every 1lac units produced and sold.

Cost Per Unit

Quantity Manufactured 1 100000
Quantity sold 1 100000

CPU(Rs)
DIRECT COST
Raw materials consumed
Opening stock of raw materials 0
Purchases of Raw Materials 5.805
(-)Closing stock of Raw Materials 0
Materials Consumed 5.805
Direct labour/wages 0.124
Direct cost/expenses 0.2415
PRIME COST 6.1705
INDIRECT COST
Factory/Works Overheads
Indirect labour 0.122
Depreciation on Machinery 0.675
Works Overheads 0.05204
Cost of Maintanence 0.0589
Other Factory Expenses 0.0282
Supervisors Salary 0.0385
Power & Fuel 0.5678
Total Overheads 1.54244

FACTORY COST/WORKS COST 7.71294

Office and Administrative Overheads

Depreciation on office furniture@7% 0.0281
Office Rent 0.0585
Salary to Staff 0.089
Office and General Expenses 0.0257
Telephone expenses 0.0219
Electricity and Lightings 0.03123
Printing and stationary 0.00294
Total Office and Administrative Overheads 0.25737

COST OF GOODS SOLD 7.97031

Selling and Administrative Overheads

Sales Commission 0.705
Salary of Salesman 0.1
Carriage Outward 0.12798
Sales Expenses 0.057
Total Selling and Administrative Overheads 0.98998

COST OF SALES 8.96029

PROFITS 1.03971
SALES 10

Raw Materials Cost

Flour 3.756
Water 0.892
Yeast 0.6789
Salt 0.4781
Raw Materials per unit 5.805

United breweriesLimited

Profit and Loss account for the year ended(Rs in crores)

Particulars 31 March 2018 31 March 2019
INCOME
Revenue from operation(net) 201.81 229.41

Other Operating Revenues 15.49 14.93

Total Operating Revenues 217.30 244.35

Other Income 19.07 22.40

Total Revenue 236.37 266.75

EXPENSES

Operating and Direct Expenses 48.78 56.20

Employee benefit Expenses 48.78 80.33

Finance costs 0.73 0.53

Depreciation and Amortization Expenses 11.32 12.39

Other Expenses 44.49 43.27

Total Expenses 181.84 192.71

P&L before exceptional,extraordinary items 54.53 74.04

and tax
0.00 -10.00
Exceptional Items
54.53 64.04
Profit and Loss before Tax

Tax expenses
17.26 25.70
Current tax
1.68 -0.07
Deferred tax
0.00 0.10
Tax for earlier years
18.93 25.73
Total Tax expenses 35.60 38.32

P&L After Tax and Before Extraordinary items 35.60 38.32

Profit/Loss for the period

Balance sheet as on the year ending(Rs in crores)

Particulars 2017-2018 2018-2019
EQUITIES AND LIABILITIES

Shareholders Funds

Total share capital 23.54 23.63

Total Reserve and Surplus 331.84 371.57

Total shareholders funds 355.33 395.12

Non-Current Liabilities

Other Long term Liabilities 2.21 1.54

Long term provisions 0.75 4.96

Total Non-Current Liabilities 2.96 6.50

CURRENT LIABILITIES

Short-term borrowings 0.00 0.00

Trade payable 15.62 6.78

Other Current Liabilities 143.52 226.20

Short term provisions 0.15 1.14

Total Current Liabilities 159.29 234.12

Total Capital & Liabilities 517.63 635.82

ASSETS

Non-Current Assets

Tangible assets 51.52 48.18

Intangible assets 6.48 6.89

Total Non Current Asset 58.00 55.06

FIXED ASSETS

Non-Current Investments 38.27 28.27

Deferred Tax Assets 3.14 3.21

Long-Term Loans and Advances 104.04 92.31

Other Non-current Assets 0.25 0.20

Total Non-Current Assets 203.71 179.05

CURRENT ASSETS

Current Investments 0.00 72.21

Trade receivables 96.25 133.75

Cash 140.85 180.31

Short-term Loans and Advance 22.85 21.23

Other Current Assets 54.56 49.27

Total Current Assets 313.92 456.77

TOTAL ASSETS 517.63 635.82

1. Current Ratio:
Current ratio is on of the mot fundamental liquidity ratio.It measures the ability
of business to repay current liabilities with current assets.Current asset are
those,the amount of which can be realized within a period of one year.They are
cash in hand,cash at bank,debtors,bills receivable , prepaid expenses etc.Current
liabilities are those amount which are payable within period of one year.They
are creditors , bills payable , bank overdraft , outstanding expenses etc.

Table:5.1 Shows Current Ratio of 2 years

Formula:Current Asset/Current Liabilities

Year Current Assets Current Current Ratio

Liabilities
2017-2018 313.92 159.29 1.97
2018-2019 456.77 234.12 1.95

Fig 5.1 Shows chart for Current Ratio of 2 years

CURRENT RATIO
1.98
1.97
1.97
CURRENT RATIO

1.97
1.96
1.96
1.95
1.95
1.95
1.94
2017-2018 2018-2019

YEARS

Interpretation:
In the year 2017-2018 current ratio was 1.97.In the year 2018-2019 it is
decreased to 1.95.There has been reduction in current ratio from the year 2017-
2018 to the year 2018-2019.The reduction is from 1.97 to 1.95,the reason
behind this is that the difference in current liabilities for the past two years is
greater than the difference in current assets.

2. Return on Assets(ROA) Ratio:

Return on assets is the ratio of annual net income to average total assets of
business during a financial year.It measures efficiency of the business in using
its assets to generate net income.It is a probability ratio.

Table :5.2 Shows Return on Assets (ROA)Ratio of 2 years

Formula:Net income/Total Assets*100

Year Net income Total Assets ROA

2017-2018 236.37 517.63 45.66%

2018-2019 266.75 635.82 41.95%

Fig 5.2 Shows Chart for Return On Assets Ratio of 2 years

RETRUN ON ASSETS RATIO

46 45.66
RETURN ON ASSETS

45
44
43
41.95
42
41
40
2017-2018 2018-2019

YEARS

Interpretation:
In the year 2017-2018 ROA was 45.66%.In the year 2018-2019 it is decreased
to 41.95%.This indicates that the company’s profit has decreased when
compared to previous year.

3. Debt Equity Ratio:

Debt o equity ratio is the ratio of total debt of a business to its shareholders
equity.It is a leverage ratio and it measures the degree to which the assets of the
business are financed by the debts and the shareholders equity of a business.

Table: 5.3 Shows Debt Equity Ratio of 2 years

Formula:Total Long term debt/Shareholders fund

Total Long term Shareholders Debt Equity

Year
debt fund Ratio

2017-2018 104.04 355.33 0.29

2018-2019 92.31 395.12 0.23

Fig 5.3 Shows Chart for Debt Equity Ratio of 2 years

Debt Equity Ratio

0.35
DEBT EQUITY RATIO

0.29
0.3
0.25 0.23
0.2
0.15
0.1
0.05
0
2017-2018 2018-2019

YEARS

Interpretation:
In the year 2017-2018 debt equity ratio was 0.29.In the year 2018-2019 it is
decreased to 0.23.Therefore debt equity rati0 is low in the year 2018-2019 that
means the company does not depend upon the deb.The company is much stable
and debt is been reduced as of last year it is 0.23 compared to 0.29 of previous
year.

4. Proprietary Ratio:

The proprietary ratio shows the contribution of stockholders’ in total capital of

the company. A high proprietary ratio, therefore, indicates a strong financial
position of the company and greater security for creditors. A low ratio indicates
that the company is already heavily depending on debts for its operations.

Table:5.4 Shows Proprietary Ratio of 2 years

Formula:Shareholders Fund/Total Assets

Shareholders
Total Assets Proprietary
Year Fund
Ratio

2017-2018 355.33 517.63 0.69

2018-2019 395.12 635.82 0.62
Fig 5.4 Shows chart for proprietary Ratio of 2 years

Proprietary Ratio
0.7 0.69
PROPRIETARY RATIO

0.68

0.66

0.64
0.62
0.62

0.6

0.58
2017-2018 2018-2019

YEARS

Interpretation:
In the year 2017-2018 proprietary ratio was 0.69.In the year 2018-2019 it is
decreased to 0.62.Therefore it shows that the contribution of stockholders in
total capital of the company has reduced.

5. Total Assets Turnover Ratio:

The ratio is calculated by dividing the net sales by the value of total sales.

Table:5.5 Shows Total Assets Turnover Ratio

Formula:Net Sales/Total Assets

Net Sales Total Assets Total Assets

Year
Turnover Ratio

2017-2018 201.81 517.63 0.39

2018-2019 229.41 635.82 0.36

Fig 5.5 Shows chart for Total Assets Turnover Ratio

TOTAL ASSETS TURNOVER RATIO

Total Assets Turnover Ratio

0.4 0.39
0.39
0.39
0.38
0.38
0.37
0.37 0.36
0.36
0.36
0.35
0.35
2017-2018 2018-2019

YEARS

Interpretation:

In the year 2017-2018 Total Assets Turnover Ratio was 0.39.In the year 2018-
2019 it is decreased t 0.36.Total Asset turnover of the company is 0.36 which
means the company is not generating enough revenue compared to its total
assets.
 CHAPTER 6
LEARNING
EXPERIENCE
Project work arc the cherrics on top of the resume. They can make any student
stand on to colleges. future employers. The practical situations encountered in
the organization on the daily basis are based in the nature and entirely different
from one situation to another. Even though the company has competitors it is
known for its convenience and quality of service. Internships are quickly
becoming essential for any job and can offer a lot of experience to students
hoping to get ahead. Well it educated sue of the important things on project
work experience.

And it is helps that to know how the various departments co-ordinated each
other. What are the discipline should maintain in the organization, and how to
build employee and employer relationship. United Breweries is a big company
so here to I learn lot of thinks which not available anywhere
This project work provided excellent opportunity to build professional
connections the co- workers, explained about the organization structure, the
basic principles and practices and financial analysis and could gather, analyze
and interpret the date. These professional settings became familiar with regular
work therefore, these connections will give you a strong recommendation in the
future. Working in n force environment, helped to observe how others operate
and take on those attributes that are: best at work place, whether it's
communications, behavior, or office etiquette. This organization helped to
procure career skills required and to be nurtured throughout professional life.

This organizational study was the opportunity to test out the skills developed in
college and see how they work in the real world. By applying skills at
internship, got an idea of biggest strength and areas of improvement this helped
me to figure out if a field is right or wrong. This organizational study was a
success and set the direction for career. There was a very good chance to learn
new skills during this period. The organization also gave the opportunity to deal
with the financial statements and gain analyzing techniques.
In short, United breweries ltd Mangalore.my Experience at was amazing which
will be with me as a memorable time throughout my Life.
 Through sampark you can find:
1. The UBL University – Learning and Development
2. The Online Performance Appraisal System – Cloud – platform based
3. Online Recruitment for executives and staff
4. Information and updates
5. The UBL Enterprise Social Network …..and many more

Corporate Social Responsibility

Water

Provision of Safe drinking water in the vicinity of manufacturing units

In 2015 – 16, 54000 people in 25 villages were covered
 5 villages near UB Nelamangala (Karnataka) benefitting 3,700 people.
 10 villages near UB Golconda and UB Nizam (Telangana) benefitting
17,904 people.
 10 villages near UB Ajanta and UB Ellora (Maharashtra) benefitting
32,960 people.

Education

Provision of quality primary health care for co - communities

 Over 30000 individuals have been provided health care services in FY 15

– 16.
 Breweries have established Health Centers / Dispensaries/ Mobile
Medical units or conduct Health Camps, which provide free medical
check – ups and basic medicines.

Health

Provision of improved quality education for co - communities

 In 2015-16, we have benefitted 11000 school children through our
education initiatives
 Each brewery has adopted one school and benefits 250 children on an
average
 Science centers established in 7 schools near UB Chamundi benefiting
1306 students
 10 schools adopted in the vicinity of UB Rajasthan for complete
infrastructure overhauling and improvement of teaching – learning
environment impacting 2600 children over a period of 3 years.

BIBILIOGRAPHY
www.kingfisherworld.com
http://www.financialexpress.com/news/united-breweries-acquires-gmr-
brewery http://en.wikipedia.org/wiki/United_Breweries_Group
http://en.wikipedia.org/wiki/Beer_in_India
http://www.mindbranch.com/Beer-India-Forecasts-R587-51/
http://www.scribd.com/doc/26542793/Beer-Market
Financial Express “Barley gains attention of beer industry”, Jan 2008 &
“High demand from beer cos pushes barley prices up by 20%”, May 2008
Business Standard articles “Indian beer market ready for new fizz”, May
2008 & “Craft Beers set to challenge 'Lager' territory”, Jun 2009
http://www.euromonitor.com/Beer_in_India,
Boardman, Anthony, Vining, Aidan, and W.G. Waters II, “Costs and Benefits through
Bureaucratic Lenses: Example of a Highway Project, “ Journal of Policy Analysis and
Management 12(3) 1993, 532-555.

Boardman, Anthony, Greenberg, David, Vining, Aidan, and David Weimer, Cost-Benefit
Analysis: Concepts and Practice 4th Edition, 541 pages, 2011, Prentice Hall publishers, New
York