BIZCHINA / Overseas Investment
Indian alcohol firm joins Chinese market
By Chen Weihua (China Daily)
Updated: 2007-05-23 11:05
SHANGHAI: United Spirits Ltd (USL), the world's third-largest alcohol
beverage company, has joined a host of international rivals in the
Chinese market.
The Indian company formally announced its march into China over the
weekend at SIAL China 2007, an international food and beverage fair held
in Shanghai.
Vijay Mallya, chairman of both USL and its parent company United
Breweries (Holding) Ltd, said the company has made the Chinese market a
top priority.
"We will offer a complete range of alcohols of different flavors," said
Mallya, a prominent business leader in India and a member of the Indian
Parliament.
Initially, USL plans to launch five alcohol brands in China, including
the Bagpiper Deluxe Whisky, the world's best-selling whisky. USL markets
more than 140 alcohol brands, among them 15 are so-called millionaire
brands - those with annual sales above 1 million cases.
Mallya is optimistic about the Chinese market.
"I believe the taste of Chinese people and Indian people are very
similar. Our products will be enjoyed, especially the first five products
we are going to launch," he said.
"We are looking forward to the start of a very successful business in
China. We will start in Shanghai and then extend to other parts of the
country," said Mallya, who is also an avid aviator, yachtsman and lover
of Chinese food.
USL also plans to bottle locally here in China. "I don't think any other
international companies have offered to bottle their products locally,"
he said.
"When you go to a market as important as China, you have to prepare to do
whatever it takes... and USL is in China for the long-term," the
51-year-old said.
Mallya said major manufacturers in the spirits business are stocking
their products because they expect high demand from China and India.
A relatively late starter in the Chinese market, Mallya said in business,
it's never too late.
He gave the example of Kingfisher Airlines, which he owns. Kingfisher
started it's aggressive expansion just two years ago and has already
increased its market share in India to 9.8 percent and has ordered dozens
of aircraft to enable growth and expansion.
(China Daily 05/23/2007 page14)
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