The Hindu Business Line : United Breweries raises borrowing limit to Rs 1,500 cr

United Breweries has raised its borrowing limit to Rs 1,500 crore after shareholders at its annual general meeting on Tuesday approved the company's resolution seeking increase in the limit.

Soon after the AGM, the UB group Chairman, Mr Vijay Mallya, told newspersons that it was only an enabling resolution to seek increase in the borrowing limit. He said the company has already committed an investment of around Rs 400 crore in increasing capacities of its various breweries across the country.

He said the company has decided to set up a marketing office in Shanghai in China. "We have already identified a person who will manage our office there. We are going to first understand the market and then look at various options," he said.

On the issue of whether the group plans to bid for privately-owned Independent Liquor in New Zealand, he said the reports on the same were entirely "premature". "We are not bidding for the business," he said.

The group is also not currently looking at acquiring the US-based Domaine Carneros, which is part of the Champagne Taittinger Group. "We had evaluated Champagne Taittinger. They have a subsidiary in the US. The fact that we walked out of the deal meant that we walked out of the US part as well. It could come back onto the market. If it does, we could consider it," he said. He said as of now the US wine maker has not been put up for sale.

He said the group plans to revive the tie-up between Whyte & Mackey and Shaw Wallace. "We are planning to revive the tie-up now that we have acquired Shaw Wallace. We could look at launching some of their brands here," he said.

Mr Mallya said the group will leverage the Kingfisher brand as much as possible. Hence it will be launching its wine business under the Kingfisher brand. "Kingfisher Wine will be launched in another six months," he said.

He said the group plans to launch another variant under the Kingfisher brand to counter the entry of foreign brands. It will be called Kingfisher Ultra and will be positioned to take on foreign brands.

Mr Mallya said that UB's partner, Scottish & Newcastle, will now handle distribution of Kingfisher beer in overseas markets. He said the group is also evaluating Scottish & Newcastle brands, which could be launched in India. "It is better to launch an existing brand rather than build one," he said.

He said Kingfisher Airlines will float an IPO only after it breaks even which is expected to be in financial year 2008. "Its paid-up equity is Rs 400 crore. We will float an IPO only after it breaks even," he said.

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