The UB Group will shift those officials who are not directly involved with operations of its companies to UB Holdings.
“There is no churn at all and I don't think it needs to be overemphasised,” UB Group Chairman Vijay Mallya told newspersons on Tuesday at the sidelines of United Spirits’ annual general meeting.
“Our relations with Diageo will be similar to the ties between United Breweries and its joint venture partner Heineken,” he pointed out.
Wide portfolio
Talking about USL-Diageo integration, Mallya said: “Diageo has a wide portfolio of world class brands and obviously, this has to be very carefully implemented in phases and it will start from early October. The consumer franchise for USL remains very strong.”
“It will make USL product portfolio even more powerful and more comprehensive and this will be a major advantage. Revenues are expected to flow in from October,” Mallya said.
Raw material pricing
He said the trading conditions for FY14 are difficult and there has been an unprecedented increase in the price of principle raw material – Extra Neutral Alcohol (ENA).
“This has been obviously compounded by ethanol blending programme mandated by the Union Government and the advantage that sugar manufacturers are taking as a result,” he explained.
United Spirits Ltd has appointed Anand Kripalu as its Chief Executive Officer-designate.
In a release to exchanges, company said the board of directors at its meeting held on September 24 has appointed Kripalu as Managing Director and Chief Executive Officer with effect from May 1, 2014.
He will assume charge on the expiry of the term of Ashok Capoor on April 30, 2013, the present Managing Director.
Kripalu was formerly President — India and South Asia at Mondelez International. In this position, he played a key role in leading Mondelez after the Cadbury acquisition by Kraft in India, the statement said.
Capoor, on expiry of his term as Managing Director, will assume the role of President, Strategy.