Ubs Kenyan Paint Unit Up For Sale

The liquor and beer major, United Breweries (UB) plans to sell off its Kenyan paint company Crown Berger Kenya as a part of the groups move to exit non-core business. Crown Berger Kenya is said to have a turnover of Rs 40-50 crore. Many Indian and multinational paint companies could be interested in it to get a foothold in the African market.

The UB group, which had owned paints operations in many companies, had got rid off most of them except a few in Africa like those in Rwanda, Burundi, Senegal, etc.

UB sources said the aim is to quit most of the paint subsidiaries and focus on its core business of spirits and beer. Over the last few years, the group has been getting rid off several non-core businesses like foods, petrochemicals, fertilisers and engineering.

 

It sold Kissan foods business to the Unilever group in 1993, Hindustan Polymers to LG Chemicals of South Korea in 1997 and Best & Crompton to Polysindo of Indonesia in 1997.

The United Breweries group owns some of the countrys largest selling brands like Kingfisher beer, McDowell range of whiskies, and Bagpiper whisky.

It is revamping its flagship company McDowell, which just completed the merger of Carew Phipson and Consolidated Distilleries and Breweries with itself. Management consultant Arthur Anderson is aiding in the revamp.

The sale of Crown Berger could provide UB funds to fight Kishore Chhabrias threat to bid for Herbertsons, where he holds a 43 per cent stake. Chairman of the UB group Vijay Mallya and his associates hold between 30-35 per cent in Herbertsons.