SABMiller India:

SABMiller India Entered in India in 2001. To Expand it’s business in India, Soon after its entry it embarked a major effort to acquire few Indian companies. It was the need of the company to adapt a state of the art system to integrate the data for the smooth functioning of the organization in a highly competitive and globalize environment.

The case highlights the process and challenges faced by SABMiller in successfully implementation of ERP (SYSPRO).

The Background of SABMiller PLC:

SABMiller plc is one of the world's largest brewers with a brewing presence in over 40 countries across four continents and a portfolio of strong brands and leading market shares in many of the countries in which it has brewing operations. Outside the USA, SABMiller plc is one of the largest bottlers of Coca-Cola products in the world.

In June 2001, SABMiller acquired, through its subsidiary company, a controlling 76% interest in Mysore Breweries Limited (MBL), a company listed on the Bangalore Stock Exchange. The MBL group operates two breweries situated at Bangalore and Aurangabad, employing 250 people.  SABMiller also acquired, through its subsidiary company, SAB India Limited, a 53% controlling interest in Rochees Breweries Limited (RBL) and in Narang Breweries, in Nawabganj, Uttar Pradesh, northeast of Delhi.  Recently, SABMiller signed a joint venture with Shaw Wallace Group and acquired major beer market share in India and currently operating from more than 20 sites nationwide.

SABMiller India studied thoroughly their requirements and the how’s and why’s of ERP that are discussed below:

  • § Customized Software Solution leads to endless programming and developments.  It is not a cost-effective solution.  It does not allow business to follow Industry Standard Practices.
  • § Accounting Packages support limited functionalities.  It does not provide seamless integration and therefore leads to duplication of works.  It does not grow when the business grows.
  • § ERP software provides all those features that are not supported by Customized and Accounting solution as described above.  In addition to this, scalability, future upgrading, user friendliness navigation, integrity and security are fundamental aspects of ERP solution.  Modern business automation concepts such as CRM, SCM, PLM, E-commerce, web & internet compatibility, interoperability, platform and environment independency are built-in features of the world-class ERP solution

In May 2002, after evaluating local and international ERP solutions and accounting packages SABMiller has decided to go for IMPACT/Syspro.  The principal company, ‘South African Breweries’ in South Africa has been using Syspro’s ERP solutions for past several years and this was one of the major factors that SABMiller decided to opt for Syspro.  The other aspects SABMiller evaluated such as Cost effectiveness, user friendliness and most importantly the system is able to grow as and when business grows in SABMiller.