Group Information Founder of the UB Group (Late) Vittal Mallya The youngest of three children, Vittal Mallya was

born in Dhaka, now in Bangladesh, on February 8, 1924. He was born in an army family to Mrs. Devi Mallya and Lt. Col. Bantwal Ganapathi Mallya (a Medical Doctor with an FRCS degree). Vittal Mallya grew up to be a smart young man to graduate at a very young age. He received several double promotions during his academic career for outstanding performance and this demonstrated his exceptional calibre and sharp intellect. Following graduation, young Vittal Mallya travelled the world for two years, during which period he visited Latin American countries very extensively and even learnt to speak Spanish. Vittal Mallya saw an opportunity in 1946-47 and started acquiring the shares of United Breweries Limited, of which he became the Chairman. His foresight and business acumen led to the aggressive expansion of the United Breweries Group. Meanwhile, the acquisition of control over McDowell & Company Limited marked the Groups entry into the Wines and Spirits business. The Group took a further stride with the acquisition of Kissan Products Limited in 1950-60. It also began its association, about this time, with Hoechst AG of Germany while co-promoting Hoechst Pharmaceuticals Limited, now known as Aventis Pharma India. Having set the pace for the Groups progress, Vittal Mallya had to slow down because of a health set-back. In 1965, the family moved back to Calcutta. Vittal Mallya acquired Phipson & Company Limited and Carew & Company Limited to further reinforce the Groups presence in the Beverages Alcohol industry. It was 1977, the Morarji era of prohibition. Swimming against the current and showing once again a rare sense of timing and business opportunity, Vittal Mallya acquired several breweries and distilleries. What set Vittal Mallya apart was his humility and simplicity. Despite his poor eyesight, his vision remained unfailing and fully focussed. A vision that has created one of Indias leading corporate houses. A vision that is a shining example and an inspiration.

Dr. Vijay Mallya Chairman The UB Group is one of Indias largest conglomerates with annual sales of over US$ 4 billion and a market capitalization of approximately US$ 12 billion. The Group has diverse interests in brewing, distilling, real estate, engineering, fertilizers, biotechnology, information technology and aviation. It is also the largest Indian manufacturer of beverage alcohol (beer and spirits). Dr. Vijay Mallya is the Chairman of the Group. Dr. Mallya, was elected by shareholders as Chairman of UB in 1983, at the age of 28. He previously assisted his father, the former Chairman, who passed away in the same year. Prior to being entrusted with the responsibilities of a classical Indian corporate conglomerate, Dr. Mallya worked

for the American Hoechst Corporation (now Sanofi-Aventis) in the USA and with Jenson & Nicholson in the U.K. Since 1980, he assisted his father, the then Chairman of The UB Group, in managing the important Brewing and Spirits Divisions and in re-launching the Kingfisher Brand of Beer. In 1983, the sales volume of the UB Spirits division was approximately 2.85 million cases and UBs beer business trailed behind that of Golden Eagle from Mohan Meakins. Also included in the Group were activities such as pharmaceuticals, agrochemicals, paints, petrochemicals and plastics, the manufacture of electro-mechanical batteries, the manufacture of food products and carbonated beverages, a fast-food pizza chain and several medium and small scale industrial units. Upon assuming the position of Chairman in October 1983, Dr. Mallya initiated the process of defining a corporate structure with performance accountability, inducting professional management and consolidating the unwieldy empire into individual operating divisions. In 1988, Dr. Mallya became a non-resident Indian to pursue global opportunities and to transform the UB Group into Indias first multinational company. While, in the initial stages, overseas representative offices had been commissioned, the real break came in 1988 when Dr. Mallya, in a leveraged buyout, acquired the global Berger Paints Group with operating companies across four continents. The exit strategy for this investment was profitably executed when Dr. Mallya successfully directed five Initial Public Offerings on the London, Singapore (Main Boards), Nairobi, Jamaica and Abidjan Stock Exchanges. The paints business was divested for significant value in 1996. Dr. Mallya also founded a software company in the USA in 1993 which was subsequently listed on the NASDAQ in 1996 and which provides a considerable window of opportunity to the vast US market. He also initiated several ventures for the promotion and globalization of UB brands and, in particular, Kingfisher and McDowell. In 1990, following the Government of Indias liberalised economic policies, Dr. Mallya decided that the UB Group would only retain interests in businesses that were globally competitive and which did not depend upon fiscal tariff protection. He also decided to focus on areas of core competence and transformed the vastly diversified UB conglomerate into a handful of key operating businesses. On entering the new millennium, the UB Group is considerably more focused and has dramatically increased value for its shareholders through its various operating businesses. Sales of the UB Spirits Division have crossed 90 million cases (9 litres each) during the fiscal year 2008-09. In addition, this Division is one of only three in the world to own nineteen millionaire brands and at least five brands rated by Drinks International, UK to be amongst the ten fastest growing brands in the world in their respective categories. The market share of the Spirits Division in India is currently 60% and exports to the Middle East, Africa and Asian countries are growing rapidly. In 2007, United Spirits Limited, the flagship of The UB Group, acquired a hundred percent of premium scotch distillers Whyte & Mackay and Liquidity Inc, a United States-based maker of specialty vodkas. The Delaware-based Liquidity Inc produces speciality brands like Pinky Vodka and Marakesh. The UB Groups Brewing Division has also assumed undisputed market leadership with a national

market share in excess of 48%. Through a process of aggressive acquisition and market penetration, The UB Group today controls 60% of the total manufacturing capacity for beer in India. The flagship brand, Kingfisher, is now sold in over 50 countries worldwide having received many accolades for its quality. Kingfisher, one of the flagship brands of The UB Group, has partnered with NDTV, Indias leading broadcast group in a first-of-its-kind media alliance for the promotion of NDTV Good Times. The UB Groups Kingfisher Airlines is today the undisputed market leader in Indias aviation market. In the short span since it was launched, Kingfisher Airlines has redefined the whole experience of flying and has raised the bar by unleashing a host of product and service innovations. It has received numerous awards since its inception. Kingfisher Airlines offers Full Service and an unparalleled experience to the Indian air traveller. Inflight entertainment has been taken to a new level with the introduction of Live TV to compliment the latest and finest Audio and Video on Demand system that is available. With the merger of Air Deccan and Kingfisher Airlines, the airline covers all segments of air travel from low fares to premium fares and offers the maximum number of flights offered by any single airline network in India. Dr. Mallya is the Chairman of public companies both in India as well as in the USA. He has been the Chairman of Aventis Pharma India (previously Hoechst) as well as the Chairman of Bayer Crop Science in India (previously Agrevo) for over 20 years, in addition to his Chairmanship of several other corporations. Dr. Mallya is the first Indian ever to become the owner of a Formula One Team. The Netherlandsbased Mol Family and Dr. Mallya have formed a consortium that is now the joint owner of Force India Formula One, which is also Indias first-ever Formula One Team and represents Indias first, truly global sports foray. He is a keen sportsman and is an ardent aviator and yachtsman of distinction. He not only participates in various sporting events but also supports various sporting activities worldwide, particularly for the under privileged.

Dr. Mallya has received several professional awards both in India and overseas. He was conferred a Doctorate of Philosophy in Business Administration, by the Southern California University, Irvine. He has also been nominated as a Global Leader for Tomorrow by the World Economic Forum. He was conferred Frances highest civilian honour Officier de la legion d Honneur for his exceptional career as businessman heading a multinational with diversified interests. Dr. Mallya has always believed that Corporations have a responsibility to society and mankind. To this end, he has contributed generously to various Charities and Foundations in several countries in addition to establishing The Mallya Hospital, The Mallya-Aditi School and the Vittal Mallya Scientific

Research Foundation in Bangalore, India.

History of McDowell 1826 McDowell and Co. is established as a trading company with its Headquarters in Madras, by an enterprising Scotsman, Angus McDowell. 1898 McDowell & Company Limited is incorporated. 1951 Vittal Mallya acquires McDowell, initiating a new era in the history of the company. 1959 Vittal Mallya envisions an enterprise of his own, built on the foundation of McDowell. The first distillery is established in Cherthala, on the banks of Keralas famed Vembanad Lake. 1961 The first ever distillation plant in the country to produce Extra Neutral Alcohol with French collaboration, is commissioned in Cherthala. It begins bottling Beehive French Brandy for Herbertsons Limited. 1963-64 Vittal Mallya envisions an enterprise of his own, built on the foundation of McDowell. The first distillery is established in Cherthala, on the banks of Keralas famed Vembanad Lake. 1968 McDowells No. 1 Whisky launched and proves to be an instant success. 1969-73 McDowells Hyderabad distillery is commissioned, followed by one in Ponda (Goa) in 1971 and in Hathidah (Bihar) in 1973.

1973 Vittal Mallya acquires Herbertsons. Vijay Mallya, his son, is inducted as Director of McDowell & Co. 1976 Herbertsons launches Bagpiper Whisky. It is a sell-out clocking 100,000 cases in its year of launch. 1977-80 Vittal Mallya goes on a distillery acquisition spree bagging distilleries in Udaipur, Alwar, Mirganj, Serampore and also sets up a plant in Pondicherry. 1980 Royal Challenge (a Shaw Wallace brand at that time) trailblazers from the North to win the hearts of whisky drinkers across India. 1983 Dr. Vijay Mallya takes over as Chairman of the UB Group and McDowell. The Company soon earns itself a reputation for innovation in product development and marketing strategy. 1987 McDowell shifts headquarters from Chennai to Bangalore. 1988 The Group creates a full-fledged Technical Development Centre, one of Asia's finest where continuous research work is carried out for product and process development. 1990 McDowell's No.1 Rum is launched - Celebration (Dark) and Carribean (White). 1991-92 McDowell acquires the spirits business of Forbes Forbes Campbell & Company Limited with a manufactory at Nashik and its brand portfolio. 1992 McDowell launches Asia's first Single Malt, Duet Gin and Vodka variants. Shaw Wallace launches Antiquity Rare Premium Whisky, a blend of exclusive scotch, fine Indian malts and premium neutral alcohol. India's first joint venture in alcoholic beverages is created - United Distillers India Limited is formed with United Distillers p.l.c. of UK. Black Dog 12 YO Deluxe Scotch, Black & White, VAT 69 and White Horse are bottled in India at the Group's Nashik Unit.

1994 A prized new product, slated to be the 'Best Indian Whisky', is introduced. A wellrounded bouquet of Indian peated malts with a generous infusion of exclusive scotch, it is named McDowell's Signature. 1995 Carew Phipson Limited, Consolidated Distilleries Ltd and a few other companies merge into McDowell& Co. which now owns 9 manufacturing facilities. 1998 McDowell & Co. Ltd celebrates its centenary. With five millionaire brands in its portfolio: No.1 McDowells Whisky with annual sales of over 2.5 million cases, No.1 McDowells Brandy with annual sales in excess of 2 million cases and Celebration Rum, Old Cask Rum and Diplomat Whisky with sales of over one million cases each. 2005 McDowell & Co. completes acquisition of Shaw Wallace and Company, for long its traditional competitor in the market place. 2006 USL, the flagship of the US $ 3 billion plus, UB Group is created through the merger of McDowell & Co., Herbertsons Limited, Triumph Distillers and Vinters Private Limited, Baramati Grape Industries Limited, United Distillers India Limited, Shaw Wallace Distilleries Limited and four other companies. Bouvet Ladubay, subsidiary of France-based Taittinger is acquired. 2007 Together, Shaw Wallace, McDowell, Herbertsons and Triumph Distillers & Vintners account for group sales exceeding 66 million cases with retail sale value of over Rs 14,000 crore. USL acquires Whyte and Mackay, the UKs leading Scotch Whisky distillers. In this year, USL also acquires US-based Liquidity Inc., makers of Pinky Vodka. 2008 USL introduces McDowell's No.1, Royal challenge and Antiquity in new, international packaging. Whyte & Mackay Special, bottled at Nashik facility is launched. Romanov Red Vodka makes waves in the prestige vodka market. In FY09 the company clocked sales of 90 million cases, growing at 20% over the previous year.

THE BEER STORY

Success It was the late 19th century. Beer was delivered in bullock carts in casks called hogsheads. Consumers were mostly defense personnel. Over hundred years have passed. Beer from United Breweries is now delivered all over the world, catering to the needs of consumers across generations and continents. From modest, local beginnings, the UB Group has transformed into a global conglomerate. The early days The history of beer-making in India and UBL is interlinked. We can trace it to the early days when breweries were set up in South India to cater to the British troops stationed in Bangalore, Madras and Pune. The Rose & Crown Brewery at Ketti in the Nilgiris was started to meet the demand of Boer prisoners captured by the British during the South African war of 1899-1902. The Castle Brewery which dates back to 1857 (the year of the Indian mutiny) was set up for the European planters scattered over the Nilgiris. So was the Nilgiris Brewery Company. The British Brewing Corporation set up in Madras (1902) catered to the elite of the port town of Madras while the Bangalore Brewery Company had been supplying beer for the troops stationed at Pune and Bangalore since 1885. United Breweries Limited (UBL) was founded on March 15, 1915, in Madras by Thomas Leishman, a Scotsman, also its first Managing Director. UBL manufactured and sold only bulk beer for troops of both the world wars. It was a classic case of role reversal India being introduced to this exotic brew and in turn becoming its major exporter. Consolidating growth The Companys brewing tradition has a legacy of nearly 130 eventful years. Along its journey through the global Alcoholic Beverages landscape, UBL has consistently influenced business paradigms, beer-drinking habits and conventional mindsets. One man played a pivotal role in the Groups growth Vittal Mallya who was elected to the Board of Directors of UBL in 1947 at the age of 22 and a year later became its Chairman. Bangalore has been at the core of UBLs existence. The Registered Office of UBL was shifted to Bangalore in June 1952, into the spacious 22-acre factory of the Bangalore Brewery Company. The Bangalore Brewery buildings, dating as far back as 1885, have since given way to newer construction. The only relic that still stands is the present godown adjacent to the UB Towers building, which earlier housed the bottling cellars, pasteurizing and packing departments. The five acres of land across the road donated to the Jesuit Society now forms the campus of St Josephs Indian High School.

Exploring Opportunities In 1951, United Breweries Limited added liquor to its product cabinet when McDowells became its first subsidiary. Under the dynamic guidance of Vittal Mallya, the Company became the first to manufacture Indian substitutes of foreign liquor. This gave rise to a new term IMFL (Indian Made Foreign Liquor). McDowell has since then been the undisputed market leader and one of the largest and fastest moving consumer goods companies in the country. Vittal Mallya was not a man to rest on his laurels. He continued to pursue opportunities in the Alcoholic Beverages business and at the same time diversified into Polymers and Batteries in addition to Pharmaceuticals and Foods that the Company had been making till then.

Corporate governance

Corporate Governance and transparency of high standards with substantial promoter holding.

Composition of Board consists of 4 independent directors i.e. 50% of the Board in compliance & with Listing Agreement clause 49.

Experienced and eminent personalities provide an external perspective & support to the Board.

Functional committees are Audit Committee, Remuneration/ Compensation Committee, Shareholder's/ Investor's Grievance Committee and General Committee of Directors.

Adequacy and effectiveness of internal control system is constantly reviewed by the Audit Committee of Board of Directors.

UB Group Internal audit team periodically reviews the risk assessment and minimization procedures.