Analysis of beer market in China (on Russian)
Beer market of Ukraine: big three losing weightIn 2016, fast increase of excises and resulting price spike stood in the way of the beer market stabilization. Most of competition (as well as mass sorts) moved to the economy segment of the market. The biggest losses were incurred by the leading three, especially Obolon, which again experienced pressure after reallocation of Efes market share. However, one should already speak of TOP-4. Group Oasis CIS (PPB) became a strong player and competitor to transnational companies. Besides the net sales of many regional medium breweries look rather good and 16-fold cost reduction wholesale trade license for craft brewers opens up a possibility of rapid growth in 2017.
Analysis of beer market in China
China’s transition to a “new normal” reality backfired on the brewing industry unexpectedly. Stagnation and subsequent market decline resulted from dynamic social and economic changes. There has emerged a “two speed” market where the medium class significance is growing, yet the share of main beer consumers, “blue collar” is decreasing. Also the inflow of consumers is shrinking, as demographics stopped being a growth driver. Finally, beer is giving way to other alcohol drinks....
India. Sebi expands probe into financial dealings of Vijay Mallya firms
The matter is also being flagged to other agencies and government departments, including the corporate affairs ministry and its probe agency the SFIO (Serious Fraud Investigation Office), a senior official said.
The Sebi is looking into violation of securities market regulations including the strict disclosure requirements such as insider dealings with the promoters and related parties.
Besides, Sebi is also probing any possible violation of norms aimed at checking fraudulent and unfair trades and compromising the interest of minority shareholders.
A forensic audit has found possible irregularities and mismanagement in advances and investments made by Mangalore Chemicals and Fertilisers Ltd (MCFL), where Mallya’s UB Group remains a promoter entity despite Zuari Group having acquired a controlling stake, to his other group companies.
As a result, financial dealings of other group companies with their respective promoters are also being probed, the official said.
The board of MCFL, which Zuari Fertilisers and Chemicals Ltd took over last year after wresting control from Mallya, had appointed Ernst and Young LLP to do a forensic investigation into the Rs.200 crore investment MCFL had made in Bangalore Beverages Ltd.
The audit was also asked to look into various advances made by MCFL to Mallya’s flagship United Breweries (Holdings) Ltd (UBHL), of which Rs.16.68 crore was outstanding as of 31 March 2016.
Bangalore Beverages is a step-down subsidiary of UBHL and is facing a liquidity crunch. The audit found these “transactions may have involved irregularities and elements of mismanagement in the company.”
On its part, MCFL is also taking legal advice in connection with the findings of Ernst and Young. MCFL has made provision of Rs.200 crore for potential diminution in the value of investments in Bangalore Beverages.
It has also provided for Rs.16.68 crore advances receivable from UBHL in its books of account for 2015-16.
Various UB Group firms are already facing probes by Sebi relating to listing rule violations, while the corporate affairs ministry is also looking into alleged violations of certain provisions of the Companies Act. The role of previous auditors is also under the scanner.
10 May. 2016