The product chosen for analysis is beer and the two firms chosen for analysis are United Breweries Limited (UBL) and Skol Breweries Limited (SB).
UBL is a major shareholder in the beer market. It has a strong market presence and an indomitable brand in Kingfisher beer. In the last few years the corporate has grown stronger which directly reflects on the bourses, and also has been one of the top revenue grossers in the country as well as one of the most respected brands. Currently, United Breweries has crossed sales of 100 million cases in   financial year 2010 and has an amazing growth rate of more than ten percent. As an investor, the corporate boosts confidence in investing into the company.
Similarly, SB (SABMiller India) is the second largest producer of beer (Haywards). SABMiller India is the closest competitor to UBL in the beer market. With highly competing products, the company has been able to give some tough time to the Kingfisher products. Therefore for an investor, it becomes very important to compare the financial positions of both these highly competing firms before deciding to invest.
Examination of certain factors like Price of Finished goods (Beer) and Volume produced
The price of beer produced by the two firms and the volume of beer produced are tabulated below:
Table 1: Price and Volume Details for UBL
FY 2009 2008 2007
Price per litre (Rs) 53.60 50.52 45.14
Volume produced in litres 367463200 313368400 299759200

Table 2: Price and Volume Details for SB Limited
FY 2009 2008 2007
Price per litre (Rs) 46.01 40.69 38.11
Volume produced in litres 471542112 435924576 354753036

The average market price and the average volume produced of the product by the market are tabulated below:

Table 3: Price and Volume Details for Market
FY 2007 2008 2009
AVERAGE MARKET PRICE (Rs) 48.29 44.18 40.65
TOTAL VOLUME PRODUCED BY MARKET (LITRES) 725592915 847032833 953169618