The Hindu : Business : UB group plans expansion

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Wednesday, Sep 20, 2006
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UB group plans expansion

Special Correspondent

To open office in Shanghai for marketing company's products

BANGALORE: The United Breweries (UB) group has chalked out a <243>Rs. 400-crore capacity expansion plan, involving setting up of greenfield breweries and raising capacity at its existing plants over the next three years, Vijay Mallya, Chairman, said.

The expansion plan involves a foray into the Chinese market, initially by opening an office in Shanghai for marketing the company's products there, Mr. Mallya told shareholders at the annual general meeting (AGM) held here on Tuesday. "We will invest Rs. 400 crore in the manufacturing network over the next three years. This will be funded through internal resources and debt,'' he said. UB, he said, saw a big market for its liquor brands in countries like China.

The expansion plan in Rajasthan, Uttar Pradesh, Andhra Pradesh and Orissa would raise the company's capacity by 50 per cent. The AGM approved a special dividend of 7.5 per cent, taking the total dividend for 2005-06 to 22.5 per cent.

Kingfisher Airline IPO

Kingfisher Airline will consider a stock-exchange listing only after the company breaks even and it has adequate financial backing for the present, according to Mr. Mallya. He said the airline would not suffer from funds-crunch as it had lined up long-term financing.

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