Hot Pursuit     27-Sep-21
United Breweries tumbles after CCI imposes penalty
United Breweries fell 3.84% to Rs 1544.85 after the Competition Commission of India (CCI) fined the company about Rs 750 crore for indulging in cartelisation in the sale and supply of beer.
CCI on Friday (24 September) imposed penalties on three beer makers as well as their trade association All India Brewers' Association (AIBA) for cartelisation.

CCI passed a final order against UBL, SABMiller India (now known as Anheuser Busch InBev India) and Carlsberg India for indulging in cartelisation in the sale and supply of beer in various States and Union Territories in India.

As AIBA was found to be actively involved in facilitating such cartelisation, CCI also held AIBA to be in contravention of the provisions of Competition Act, 2002 (the 'Act').

The period of cartel was held to be from 2009 to at least 10 October 2018, with Carlsberg India joining in from 2012. AIBA served as a platform for facilitating such cartelisation since 2013.

"Giving benefit of reduction in penalty under the provisions of Section 46 of the Act of 100% to AB InBev and its individuals, 40% to UBL and its individuals and 20% to Carlsberg India and its individuals," the release said.

The CCI directed UBL and Carlsberg India to pay penalties of approximately Rs 750 crore and Rs 120 crore respectively, besides passing a cease-and-desist order.

Based on evidences, CCI found that the three companies engaged in price co-ordination in Andhra Pradesh, Karnataka, Maharashtra, Odisha, Rajasthan, West Bengal, National Capital Territory of Delhi and the Union Territory of Puducherry.

The firms were collectively restricting beer supply in Maharashtra, Odisha and West Bengal. The companies were sharing market in Maharashtra and co-ordinating beer supply to premium institutions in Bengaluru.

Further, the fair trade regulator also found co-ordination among UBL and AB InBev for purchase of second-hand bottles.

"We are reviewing the order in consultation with our Legal Advisors, and will evaluate further legal options, as may be available under applicable law," United Breweries said in a clarification on Friday (24 September).

On a consolidated basis, United Breweries reported a net profit of Rs 30.89 crore in Q1 FY22 as against a net loss of Rs 114.40 crore in Q1 FY21. Net revenue from operations rose 120.6% to Rs 1,119.47 crore in the first quarter as compared with the same period las year.

United Breweries is primarily engaged in the manufacture, purchase and sale of beer and non-alcoholic beverages.

Previous News
  United Breweries consolidated net profit rises 424.73% in the June 2022 quarter
 ( Results - Announcements 28-Jul-22   08:16 )
  Britannia Industries Ltd Slides 1.31%
 ( Hot Pursuit - 31-Jul-23   09:45 )
  United Breweries
 ( Results - Analysis 29-Jul-23   00:24 )
  United Breweries Ltd up for third straight session
 ( Hot Pursuit - 18-Jul-22   13:05 )
  United Breweries Ltd spurts 2.27%, up for third straight session
 ( Hot Pursuit - 22-Apr-22   13:05 )
  United Breweries Ltd soars 1.45%
 ( Hot Pursuit - 16-Jun-23   13:05 )
  United Breweries Q1 PAT slides 16% YoY to Rs 136.21 cr
 ( Hot Pursuit - 29-Jul-23   14:56 )
  United Breweries Ltd spurts 0.63%, up for fifth straight session
 ( Hot Pursuit - 01-Sep-21   13:00 )
  United Breweries
 ( Results - Analysis 28-Jan-22   19:32 )
  United Breweries consolidated net profit declines 28.39% in the December 2021 quarter
 ( Results - Announcements 28-Jan-22   18:05 )
  United Breweries consolidated net profit declines 25.90% in the June 2019 quarter
 ( Results - Announcements 14-Aug-19   15:33 )
Other Stories
  Kirloskar Ferrous Q4 PAT drops 81% YoY to Rs 18 cr
  18-May-24   16:00
  ZEEL reports turnaround Q4 numbers
  18-May-24   15:46
  NHPC Q4 PAT slides 18% to Rs 610 cr
  18-May-24   15:20
  Nestle India ends higher after public shareholders reject royalty hike proposal to Swiss parent
  18-May-24   15:12
  Sobha Q4 PAT drops 85% YoY to Rs 7 cr
  18-May-24   15:05
  Kirloskar Ferrous Industries Ltd leads losers in 'A' group
  18-May-24   15:00
  Vindhya Telelinks Ltd leads losers in 'B' group
  18-May-24   14:45
  Volumes soar at MTAR Technologies Ltd counter
  18-May-24   14:30
  Ashok Leyland Ltd up for third consecutive session
  18-May-24   13:05
  Zee Entertainment Enterprises Ltd spurts 4.37%
  18-May-24   13:05
Back Top