Vijay Mallaya’s UBL Sells Stake To Heineken

Vijay Mallaya’s United Spirits Ltd (USL) dominated the Indian liquor market for a number of a years and make Mallaya extremely wealthy. The charismatic businessman used his wealth and power to get into a number of new businesses including buying Force India, an F1 team in 2007, the Royal Challengers Bangalore, an IPL cricketing franchise and Kingfisher Airlines.

Kingfisher Airlines proved to be a financial disaster for Mallaya and his F1 team did not work out and he was forced to sell it in 2011. Mallaya’s safest best was his USL business but his company has now been forced to sell its 3.2% to Heineken for a 872 crore Indian rupees. While Mallaya still controls a 32% stake in USL, Heineken has now taken control of 42% of the company.

In a statement, a representative for Heineken said “Due to this transaction, Heineken’s stake in UBL goes up from 38.9 per cent to 42.1 per cent. This does not materially change the ownership structure nor the nature of our collaboration. It is very much business as usual for all parties. There are no changes being made to the UBL governance structure. Heineken remains very pleased with the business in India and the partnership with Dr Mallya.”

Beer industry analysts predict that Heinken could think about introducing its brand into the Indian market which is currently dominated by the Kingfisher brand. Reports suggest that Heinken will market its beer through UBL and is all set to launch in Indian during 2016.