UB Group achieves sales of 30.8 million cases for 2002-03

Company press release, April 1, 2003

Bangalore

The UB Group Spirits Division, comprising of flagship company, McDowell & Co. Ltd. and Herbertsons Ltd, the largest beverage alcohol group in the country today announced the landmark achievement of sales of over 30.8 million cases for the year 2002-03. This has catapulted it to the position of the 5th largest beverage alcohol group in the world. The landmark represents a record sales growth of over 14.5% against sales of 26.5 million cases in 2001-02.

Growing faster than the industry average of 6 %, the Division further consolidated its leadership.

The Division also announced that Vin Light Whisky, a brand marketed in the southern states has crossed the million case landmark in 2002-03 taking the tally of millionaire brands in UBSPD's portfolio to 8. Last year, UBSPD's portfolio of 7 millionaire brands was ranked as the 4th largest in world by Drinks International, the world's leading magazine on the beverage -alcohol industry.

"Our strategic decision to focus on Power brands and restructure into Regional Profit Centres has lead to the accelerated growth. Our regular and above brand portfolio has grown by a robust 10% as against 3% industry growth. Together with our 7 Power brands we have also identified 6 Focus brands. These are brands that have great potential to drive our future growth," said UBSPD President Mr Vijay K. Rekhi.

"It is a red-letter day for us at UBSPD. The team has worked passionately to realize this collective dream," he added.

Bagpiper Whisky, the largest selling whisky in India, scaled new heights with sales of 6 million cases. McDowell's No.1 Whisky, true to its Mera No.1 claim, crossed the 4 million mark becoming the first prestige whisky brand in India to have this distinction. The brand commands a phenomenal market share of over 40%. McDowell's No.1 Celebration Rum broke through the 3 million cases mark to close the year with 3.5 million cases. In a stagnant rum market, Celebration Rum's consistent rapid growth has given it a market share of 35% nationally.

"The Power brands were supported by aggressive marketing and brand building initiatives," said Mr Rekhi. McDowell's No.1 whisky received a brand-make over with an international look and through its association with Elton John's 'One Night Only' concert and Bollywood Blockbusters, galvanized the McDowell image as a company and No. 1 as a brand. Celebration Rum's world-class new look pack was rolled out around middle of last year and has met with tremendous response.

"The challenge before the Division now is to continue its leadership status in the industry, offer value-added products to our customers, enhance consumer acceptance and loyalty," Mr Rekhi added.

"Besides the Power Brands, we introduced new brands like Scottish Crown, Derby Special whisky and Shotz (A ready to drink brand). These have been received well. This year we will continue to develop the beverage alcohol market in India with premium quality products," he added.

The year also saw the Division taking major strides in IT enabling its operations. The Division became the first beverage alcohol manufacturer in the country to implement Enterprise Resource Planning software system, SAP in the country interestingly christened as 'Turning Point'. The initiative is expected to synergise the resources of the Division through information flow.

All 16 Group distilleries across the country were also certified ISO 9001 compliant during the year. Besides these, the Division sources its brands from an additional 23 distilleries.

Apart from the new entrant Vin Light Whisky, the millionaire club at UBSPD includes Bagpiper Whisky, McDowell's No.1 Whisky, Kerala Malted Whisky, McDowell's No.1 Celebration Rum, Old Cask Rum, No.1 McDowell's Brandy and Honey Bee Brandy.

UBSPD is the undisputed leader in the Indian spirits industry and has many firsts to its credit:

· Launch of Ready to Drink, low alco-bev - Shotz

· Launch of India's first very own domestic owned Regular Scotch Whisky brand - Scottish Crown

· Launch of flavoured Gin - Blue Riband Duet, Tango

· McDowell's Single Malt Whisky

· 12 year old deluxe Scotch whisky - Black Dog

· UBSPD has also set benchmarks in packaging and aesthetics. It has been working with internationally acclaimed design houses such as Claessan's International, UK and has innovations in the areas of packaging such as PET bottles, foil labels, chamfered caps, tin canisters, etc.

For further information please contact:

Sandeep Raj Singh/ Vaidyanathan Venkataraman

Rediffusion DY & R Public Relations

Tel: 080 - 559 5126 / 51133102

Fax: 080 - 559 4823