Ub To Be A Beverage,Alcohol,Lifestyle Group

The UB Group had decided to transform itself into a beverage, alcohol and lifestyle entity in the next five years.

This will see the group exiting from sectors such as engineering and construction (UB Engineering), pharmaceuticals (Hoechst Marion Roussel) and fertilisers (Mangalore Fertilisers).

Disclosing this, UB group president and chief financial officer Ravi Nedungadi said: "We will be exiting from all investments other than beer, spirits and lifestyle. The lifestyle company essentially will pick up equity in event-management and sports companies in order to promote the UB brands.

Vijay Mallya, the UB Group chairman, said: "We will get out of these businesses at the right price".

 

Nedungadi said the company has appointed four consultants for undertaking various exercises.

The Mumbai-based Ambit Corporate Finance has been appointed for brand acquisitions and corporate-level restructuring, while Andersen Consulting has been mandated for improving operational efficiency including voluntary retirement schemes.

PricewaterhouseCoopers will undertake tax restrcuturing exercise, while Deloitte, Touche & Tohmatsu has been given the nod to help adapt the company to the generally accepted accounting principles norms of US to facilitate a listing there.

Meanwhile, Nedugandi ruled out a merger of McDowell & Co Ltd with UB. He also said that a minority stake held by the company in United Television (UTV) will be jettisoned once the firm gets listed on the domestic bourses. The UB Group had earlier sold its majority stake to UTV.

The UB Group has also acquired stake in two football teams in West Bengal and Kerala.

On the institutional investors in McDowell, Nedugandi said the US-based T Rowe Price Fleming equity's take has touched 6 per cent.

The fund has picked up equity from the market, he said.

Meanwhile, McDowell &Co Ltd has reported a 33.81 per cent rise in net profit at Rs 25.21 crore for the year ended

March 31, 2000, compared with Rs 18.84 crore during the previous year.

Other income decreased to Rs 8.34 crore Rs 13.16 crore. Total expenditure was up to Rs 1,037 crore from the previous Rs 862.57 crore, while the interest outgo was cut down marginally to Rs 22.24 crore from the previous Rs 26.66 crore.