When Vijay Mallya took over the business, he was just 27 years old. At the time of his father's death, his company 'United Breweries' (which owns many brands including Kingfisher) was in a bad condition. Three out of 5 factories of Kingfisher beer were closed, and hard liquor (whiskey, rum, etc.) sales were no different.
When Vijay Mallya took charge of the company, he not only restarted 3 closed factories in the first 5 years, but also opened 2 new factories in South India. After this Vijay Mallya started some new brands in Hard Liquor and bought some new brands and made them super hit. Some of the brands have names like - Royal Challenge, DSP, Officers Choice, Antiquity etc.
Apart from Kingfisher in beer, Mallya bought London Pilsner and Haywards 5000 and made them superhit.
Mallya made Kingfisher a tremendous brand, further strengthening the Kingfisher brand by investing in Kingfisher Calendar, Formula 1 Racing, Cricket (IPL) etc.
Along with this, Mallya also managed chemical business 'Mangalore Fertilizers' and paint business 'Berger Paints'.
At the age of 27, Vijay Mallya made the company of 20 crores in his hand, a 25,000 crore mega empire in just 3 years! At the age of 30.
But then he made a mistake, due to which his 25 years of hard-earned business was left out of his hands and now Vijay Mallya, who was in debt, has been declared a fugitive, and you know what his condition is. Are only
He invested in the airlines business.
Airlines are an industry that operates in very small margins. And this is a very serious business where profit margin comes from saving money at every little place and working in a very excellent manner.
But Vijay Mallya got involved in promoting Kingfisher's brand by putting the responsibility of Kingfisher Airlines on the company's CEO and other management.
Now put the responsibility on management, but still he managed to leave Air India behind, Kingfisher started flying on non-profitable routes, passengers started getting one to one facilities like these flight entertainment, free miles and every passenger A set of headphones was also found to carry with him.
Expenses are very high and earnings are very low, that is why Kingfisher Airlines has never been able to profit.
Loan increased, then Indian Oil refused to give jet fuel to Kingfisher. It was recently that they were not able to pay the parking fees of their planes. The pilot and the rest of the staff did not receive salaries for 10 months and all started resigning.
Then banks also stopped lending.
And after seeing everything went out of hand. United Breweries got out of hand due to Kingfisher Airlines. This is one of the few costly mistakes made in Indian history.
Credit/shusang agnihotri
bhagoda chor
ReplyDelete