Why Closed ?

SCAM - 1

FinRich Kingfisher Overview

• Kingfisher is an Indian brand owned by United Breweries Holdings Limited (UBHL) or UB Group based Indian Company. UB group has several businesses but its core business is , aviation, and investment. • UB Group markets its beer product under the brand name of kingfisher, UB groups also owns several brands of . Kingfisher was launched in 1978 and now it is the largest beer producer of with market shares. Who is Vijay mallaya ?

• Vijay Vittal Mallya (born 18 December 1955) born in manglore is an Indian businessman and former Member of Parliament (Rajya Sabha).

• Vijay Vittal Mallya became the chairman of United Breweries Holdings Limited (UBHL) in 1983 at the age of 28 after his father’s death. grew its company rapidly. What is scam ?

• covered 50% of market share & was available in 52 countries (Became 2 largest beverage company in world)

• Vijay Mallya’s kingfisher becomes India’s no.1 domestic airline company and first choice of every passenger.

• From 1998 to 1999, Vijay Mallya grew the turnover of the company by 64%. He also Diversified the business of the company by acquiring many other companies. He acquired Berger Paints which is an Indian Paint company. 2002 • Elected to Rajya Sabha as independent member until 2010 with the support of Janata dal & INC also in 2010 supported by Janata dal and BJP.

2003 • Kingfisher launched limited edition calendar with top model of swim suit. 2005

• Launched luxury and high class “” on (7th may 2005) but as per Indian government rules company has to wait for 5 years to start airlines business internationally.

• Vijay mallya doesn’t wanted to wait for 5 years. 2007 • Bought Sahara formula one team & loss making company Air deccan which started 4 years back. (ie 2003)

2008 • Kingfisher bought Royal challenger Bangalore IPL team. 2008 Recession

• There are not all internal faults in the failure of Kingfisher airlines; there are some external factors too. The other reason for failure in Kingfisher airlines is the 2008 recession which plays an important role in the failure of Kingfisher airlines.

• The recession impacted the whole world and also the aviation industry. Due to the recession, there is high Crude Oil inflation in fuel prices & also airport charges. All of these factors impact the health of Kingfisher airlines. 2009 • Kingfisher got permission for international flights but there was no synchronization between flights, Both company’s flight was at same time & was killing each others market, so mallya decided to shut down air deccan.

• As kingfisher was a luxury air lines brand & suddenly it started with low budget air lines which many of its customer didn’t like & they shifted to some other air lines for travelling. 2010 • As company was making continues losses they started taking loans and debt was heavily increased which was total 9000 cr.

Loan Amount Banks 2011 • In 2011 again crude oil prices went up drastically and it impacted kingfisher airlines the most as it was already running in loess and kingfisher was unable to pay salary to employees. 2012 • SEBI declared kingfisher loan amount as s Non performing asset & in oct 2012 kingfisher closed its business & Vijay mallya was in huge trouble. 2016

• Company was unable to pay loan amount, but he offered 4000 crore, banks denied and asked for full amount of 9000 crore + interest.

• Resigned from his post as Rajya Sabha, After a week the Rajya Sabha ethics panel declared that he should no longer be a member of house & one day before the panel was set to meet again to recommend his expulsion HE LEFT INDIA.