The company manufactures, sells and distributes an outstanding portfolio of spirits
ranging from premium brands such as Johnnie Walker, Black Dog to Aspiring class including McDowell’s No1, White Mischief etc.
PRO - They have something for every class of income
2/n
Growing industry - Rs 3.9 trillion alcohol beverage market to grow at 6.8% till 2023: ICRIER
The share of the upper-middle income group in alcohol consumption has increased steadily from 7 per cent to 21 per cent and is expected to increase to 44 per cent by 2030
3/n
India & Spirit growth -
- The country that consumes the most whiskey in the world is India
- The rising affluence of India’s middle class will drive the growth ~10% year in the $33B market
USL's focus is forward looking in the right direction to tap consumer spend
4/n
As the industry continues to grow, it also offers a moat status with very low chances of disruption, highly regulated in India and complex policies on liquor
Premiumization is phenomenon playing out and it is benefitting USL - Prestige & Above segment net sales grew 20-30%
5/n
COVID Shifts
- Consumption at home making alcohol semi-essential
- Home-delivery opened up in some areas
- Shift from beer to Scotch & Whiskey
Once workplaces, bars open, social drinking will open up and some of the home consumption would still continue
6/n
Transformation
- High experience retail stores opening in Tier 1 & Tier 2 cities
- Increased demand for premium upper prestige liquor (as home consumption made these more affordable. the same brand costs 2x to 3x in bars) = MORE VALUE TO THE CUSTOMER at same price
7/n
Innovation - Strengthen exists brands, Make in India & also bring global brands to India
- One of the most loved beer globally (Guinness) to be introduced to India
- Craft continues to excel due to the low price and fresh brewed - Epitome Reserve 100% rice grain
8/n
Financials
- Sharp growth in revenue and PAT over the last few quarters
- Key focus on becoming debt free (Less debt == less interest == more value)
Focus on stakeholder value generation
- long-term value to all our Stakeholders
- Dividend payout in future
9/n
Key shifts
10/n
Social responsibility and education
- Launch of DrinkIQ India website
- Moving India towards ‘Drink Better, not More’
11/n
Key triggers & shift
- New leadership team with new strategy
- Fixing balance sheet by getting rid of debt
- Controlling operations and supply chain by improving efficiencies and improving margin
- Focus on Premiumization
- Focused investment on core brands
12/n
Create an account with one of the Fuel Providers.
I fill my petrol only in Indian Oil, so created IOCL account and always give my mobile number for the billing.
So every time petrol is filled XTRAREWARDS get accrued
#ccgeek
Step 2 - with Credit Card
Take a Fuel based credit card which will offer you rewards and surcharge waiver for every fuel transaction
I use Indian Oil - Citi Card which provides 4 Turbo points / Rs. 150 spent
Each Turbo Point = 1 rupee
Step 3 - Without Credit Card
Using Park+ App...
This is a new app which is providing insane offers on Indian Oil Vouchers.
On spinning the wheel, we generally get ~50 off on ~1000 which is 5% off
By playing quizzes, fasttag recharges etc, one can accumulate Park+ petrol
Attended my kids school orientation session today, he will be joining NURSERY soon…
In the session, teachers shared some trends they are observing & suggested some key pointers for parents to keep a watch on …
Although all are basics, this made me INTROSPECT a lot
1/n
Children have slowed on taking instructions these days …
Reason - they watch TV/Gadgets and most of the learning is happening through eyes & not ears
Earlier kids in school used to listen in 1st instance, now it takes 5 times
LEARNING THROUGH EARS IS REDUCING
2/n
Most of us stay in apartments & hence use lifts …
Usage of lifts is impacting child’s physical development & many kids in KG are not even able climb a few steps. Kids in class 8-10 are showing arthritis symptoms
I have screened over 500 resumes and conducted more than 250 interviews ranging from entry-level to senior executives, and here are some basic/generic observations
Keeping politics aside, the reason this is very close to my heart is because of the impact it created on many other visionaries who then setup such institutes across India to help nurture India’s young leaders with world class faculty & opportunities
Late Prof Bala, fondly known as uncle Bala was my guru during my MBA at Great Lakes. He was one of legends in transforming Indian education system & creating 1000s of young leaders globally
He was a true visionary and always had high regards for CBN for what he has done for ISB