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DR. VIJAY MALLYA DR. VIJAY MALLYA THE THE KING OF GOOD KING OF GOOD TIMES” AND TIMES” AND “THE “THE LIQUER LIQUER BARREL” BARREL” PRESENTED BY PRESENTED BY GROUP NO.1 GROUP NO.1
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Page 1: VIJAY MALLYA

DR. VIJAY MALLYADR. VIJAY MALLYA

“ “THE KING OF THE KING OF GOOD GOOD TIMES” TIMES” AND “THE AND “THE LIQUER BARREL”LIQUER BARREL”

PRESENTED BY PRESENTED BY

GROUP NO.1GROUP NO.1

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Dr. Vijay MallyaDr. Vijay Mallya BORN - BORN - December 18December 18, 1955, 1955

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PROFILEPROFILE Mallya worked for the American Hoechst Mallya worked for the American Hoechst

Corporation (now Sanofi-Aventis) in the Corporation (now Sanofi-Aventis) in the US and with Jenson & Nicholson in the US and with Jenson & Nicholson in the UK. UK.

Since 1980, he assisted his father, the Since 1980, he assisted his father, the Chairman of The UB Group, in managing Chairman of The UB Group, in managing the important Brewing and Spirits the important Brewing and Spirits Divisions and in re-launching the Divisions and in re-launching the Kingfisher Brand of Beer.Kingfisher Brand of Beer.

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In 1988, Mallya became a non-resident In 1988, Mallya became a non-resident Indian to pursue global opportunities Indian to pursue global opportunities and to transform The UB Group into and to transform The UB Group into India's first multinational company.India's first multinational company.

Mallya also founded a software Mallya also founded a software company “UBIX” in the US in 1993 company “UBIX” in the US in 1993 which was subsequently listed on the which was subsequently listed on the NASDAQ in 1996.NASDAQ in 1996.

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PERSONAL PERSONAL INFORMATIONINFORMATION

Mallya is originally from the town of Mallya is originally from the town of BantwalBantwal in in KarnatakaKarnataka. He was educated at . He was educated at La La MartiniereMartiniere Boys' College, Calcutta Boys' College, Calcutta in in KolkataKolkata[2][2] and and completed his degree from completed his degree from St. Xavier's College, CalcuttaSt. Xavier's College, Calcutta under under Calcutta UniversityCalcutta University. Mallya is married twice. . Mallya is married twice. His first wife was Sameera and they have a son His first wife was Sameera and they have a son together, named Sidhartha Vijay Mallya. After together, named Sidhartha Vijay Mallya. After separation with his first wife he got married to separation with his first wife he got married to Rekha and has two daughters Leana and Tanya Rekha and has two daughters Leana and Tanya Mallya. Mallya has a home in Mallya. Mallya has a home in SausalitoSausalito, , CaliforniaCalifornia, USA , USA

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Journey to sucessJourney to sucess

Vijay Mallya is the son of a famous Vijay Mallya is the son of a famous industrialist Vittal Mallya. He assumed industrialist Vittal Mallya. He assumed the Chairman of the UB Group in 1983 the Chairman of the UB Group in 1983 and took the company to great heights. and took the company to great heights.

Under his dynamic leadership the group Under his dynamic leadership the group has grown into a multi-national has grown into a multi-national conglomerate of over sixty companies. conglomerate of over sixty companies.

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Vijay Mallya is referred to as India's Vijay Mallya is referred to as India's Richard Branson. A great part of the Richard Branson. A great part of the personality of the Kingfisher brand is personality of the Kingfisher brand is based on Mallya's personality.based on Mallya's personality.

He is credited with having single He is credited with having single handedly changed the image of his handedly changed the image of his beer brand from a commodity to a beer brand from a commodity to a lifestyle brand.lifestyle brand.

The Kingfisher brand commands a The Kingfisher brand commands a 29% share of the beer market in India 29% share of the beer market in India and is sold in over 52 countries.and is sold in over 52 countries.

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AWARDS AND AWARDS AND ACHIEVEMENTSACHIEVEMENTS

Establishment of Mallya Hospital in Establishment of Mallya Hospital in BangaloreBangalore. The hospital is located in Vittal . The hospital is located in Vittal Mallya road, named after his father. Mallya road, named after his father.

Helped to fund the Helped to fund the Mallya Mallya AditiAditi International School International School, a prestigious private , a prestigious private school in Bangalore. school in Bangalore.

Successfully bid for the sword of Successfully bid for the sword of TipuTipu Sultan Sultan at an auction in at an auction in LondonLondon in 2004, in 2004, and brought it back to India.and brought it back to India.[14][14]

Initiated the development of prized real Initiated the development of prized real estate estate UB cityUB city, in the heart of , in the heart of BangaloreBangalore. . The project hosts corporate offices, retail The project hosts corporate offices, retail and service and service

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HIS BUSINESSESHIS BUSINESSES 1. Breweries1. Breweries Mallya took over as Chairman of the Mallya took over as Chairman of the

United Breweries GroupUnited Breweries Group in 1983. Since then, in 1983. Since then, the group has grown into a multi-national the group has grown into a multi-national conglomerate of over sixty companies with an conglomerate of over sixty companies with an annual turnover which has increased by 439% annual turnover which has increased by 439% to to US$US$1.2 billion in 1998-1999 . 1.2 billion in 1998-1999 .

The focal business areas of the group The focal business areas of the group encompass encompass alcoholic beveragesalcoholic beverages, , life scienceslife sciences, , engineeringengineering, , agricultureagriculture, , chemicalschemicals, , information technologyinformation technology, , aviationaviation and and leisureleisure. . He owned McDowell Crest, which took loans He owned McDowell Crest, which took loans in crores of rupees from the general public.in crores of rupees from the general public.

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In May 2007, In May 2007, United Breweries GroupUnited Breweries Group announced the all-cash acquisition of announced the all-cash acquisition of scotch whiskyscotch whisky maker maker Whyte & MackayWhyte & Mackay for for 595 million pounds (approximately Rs 595 million pounds (approximately Rs 4,819 crore). 4,819 crore).

In 2005 he took over Millennium In 2005 he took over Millennium Breweries Ltd (formerly known as inertia Breweries Ltd (formerly known as inertia industries ltd), which owned the two industries ltd), which owned the two premium beer brands named SANDPIPER premium beer brands named SANDPIPER and ZINGARO>and ZINGARO>

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U.B GROUPU.B GROUP

U.B U.B GROUPGROUP

• Vijay Mallya, the flamboyant CEO Vijay Mallya, the flamboyant CEO of of United Breweries - United Breweries - the company that owns the company that owns the the Kingfisher brand - is one of the most Kingfisher brand - is one of the most

flamboyant CEOs in Asia.flamboyant CEOs in Asia.

• Vijay Mallya believes in leading his Vijay Mallya believes in leading his brand from brand from the front by the front by leveraging his personalityleveraging his personality..

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• The UB Group is 3rd largest The UB Group is 3rd largest spirits marketer in the world, with spirits marketer in the world, with overall sales reaching 60 million overall sales reaching 60 million cases.cases.

• Subsequent to the acquisition of Subsequent to the acquisition of Shaw Wallace & Company Shaw Wallace & Company Limited, The UB Group spirits Limited, The UB Group spirits divison offers 140 brands at divison offers 140 brands at varying price points, attracting varying price points, attracting consumers of every taste. consumers of every taste. Combined with its unparalleled Combined with its unparalleled reach it has become an object of reach it has become an object of envy for the competition.envy for the competition.

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Five of UB Group's Five of UB Group's brandsbrands

Bagpiper WhiskyBagpiper Whisky McDowell's No.1 Whisky,McDowell's No.1 Whisky, Director's Special Whisky,Director's Special Whisky, McDowell's No.1 BrandyMcDowell's No.1 Brandy McDowell's Celebration RumMcDowell's Celebration Rum

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United Spirits limited is the major player United Spirits limited is the major player in the spirits business.in the spirits business.

Is the 3rd largest spirits marketer in the Is the 3rd largest spirits marketer in the world with sales of approx. 60 million world with sales of approx. 60 million cases. cases.

The 'Millionaire' Brands belonging to The 'Millionaire' Brands belonging to United Spirits has increased to 15. United Spirits has increased to 15.

McDowell's No.1 Brandy is the largest McDowell's No.1 Brandy is the largest selling brandy in the world. selling brandy in the world.

McDowell's No. 1 Whisky is one of the McDowell's No. 1 Whisky is one of the fastest growing whisky brands in the fastest growing whisky brands in the world with sales of over 6.07 million world with sales of over 6.07 million cases.cases.

54% market share in the domestic market

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McDowell's No.1 Whisky is the 5th largest McDowell's No.1 Whisky is the 5th largest non-scotch whisky and 8th largest whisky non-scotch whisky and 8th largest whisky (including Scotch) in the world. (including Scotch) in the world.

Offers 140 brands. Offers 140 brands. Bagpiper Whisky is India's Largest selling Bagpiper Whisky is India's Largest selling

whisky with sales of over 10 million cases last whisky with sales of over 10 million cases last year. year.

John Exshaw Brandy has joined the John Exshaw Brandy has joined the millionaire club. Bagpiper Whisky and Honey millionaire club. Bagpiper Whisky and Honey Bee Brandy are millionaire brands Bee Brandy are millionaire brands

Bagpiper Whisky is the 4th largest selling Bagpiper Whisky is the 4th largest selling whisky and largest selling non-scotch whisky whisky and largest selling non-scotch whisky brand in the world brand in the world

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InnovationsInnovations United spirits (Formerly Mcdowell & United spirits (Formerly Mcdowell &

Company Limited & Herbertsons Limited ) Company Limited & Herbertsons Limited ) has always powered ahead riding on has always powered ahead riding on innovations. innovations.

A series of packaging innovations have added A series of packaging innovations have added value and assurance for the customer. These value and assurance for the customer. These include holograms, non-refillable 'guala' caps, include holograms, non-refillable 'guala' caps, tamper proof tear off caps based on German tamper proof tear off caps based on German technology. technology.

Not surprisingly,United spirits occupies the Not surprisingly,United spirits occupies the pride of place in UB Group, contributing to a pride of place in UB Group, contributing to a major chunk of the Group's turnovermajor chunk of the Group's turnover

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Shaw Wallace & Co. Limited Shaw Wallace & Co. Limited and its acquisition by UB and its acquisition by UB

groupgroup Ever since its inception in 1886, Ever since its inception in 1886,

Shaw Wallace has established a Shaw Wallace has established a legacy in India that is drenched in legacy in India that is drenched in the spirit of the Nation for the last the spirit of the Nation for the last 120 years. 120 years.

The company came into existence The company came into existence at a time when the country was at a time when the country was battling for its freedom against the battling for its freedom against the colonialism of the British regime. colonialism of the British regime.

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Shaw Wallace after a modest beginning Shaw Wallace after a modest beginning blossomed into one of the forerunners in the blossomed into one of the forerunners in the alcohol and beverage industry. In 1987, the alcohol and beverage industry. In 1987, the company came under the leadership of the late company came under the leadership of the late Mr. M. R. Chhabria. Mr. M. R. Chhabria.

In yet another historic development, in June In yet another historic development, in June 2005, Shaw Wallace was taken over by The UB 2005, Shaw Wallace was taken over by The UB Group, spearheaded under the dynamic Group, spearheaded under the dynamic leadership of Dr. Vijay Mallya. leadership of Dr. Vijay Mallya.

Heralding a complete new era for the erstwhile Heralding a complete new era for the erstwhile corporate entity, Dr. Mallya completed the corporate entity, Dr. Mallya completed the acquisition by taking over as the company's acquisition by taking over as the company's Chairman, making the combined entity of Chairman, making the combined entity of McDowell, Herbertsons and Triumph McDowell, Herbertsons and Triumph Distilleries & Vintners and SWC as the third Distilleries & Vintners and SWC as the third largest distilled spirits marketer in the world. largest distilled spirits marketer in the world.   

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SALESSALES

Sales of the UB Spirits Division have Sales of the UB Spirits Division have touched 74 million cases (9 litres each) touched 74 million cases (9 litres each) during the third quarter of the fiscal during the third quarter of the fiscal year 2007-08. In addition, this Division year 2007-08. In addition, this Division is one of only three in the world to own is one of only three in the world to own fifteen millionaire brands and at least fifteen millionaire brands and at least five brands rated by Drinks five brands rated by Drinks International, UK to be amongst the ten International, UK to be amongst the ten fastest growing brands in the world in fastest growing brands in the world in their respective categories. their respective categories. 

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SalesSales

It’s annual sales of over US$ 4 It’s annual sales of over US$ 4 billionbillion

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United Breweries Limited United Breweries Limited (UBL) (UBL)

Upon demerger of the beer business Upon demerger of the beer business from the erstwhile United Breweries from the erstwhile United Breweries Limited, the newly constituted UBL has Limited, the newly constituted UBL has become the main brewing company of become the main brewing company of the UB Group. the UB Group.

The latter has now been renamed as The latter has now been renamed as United Breweries (Holdings) Limited. United Breweries (Holdings) Limited.

UBL has been associated with brewing UBL has been associated with brewing for over five decades and and commands for over five decades and and commands a domestic market share in excess of a domestic market share in excess of 50%. 50%.

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Its leading brands readily brings Its leading brands readily brings cheer all over India and abroad - cheer all over India and abroad - that include Kingfisher, UB Export, that include Kingfisher, UB Export, London Pilsner, Premium Ice and London Pilsner, Premium Ice and Kalyani Black Label. Kalyani Black Label.

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KINGFISHER –THE KINGFISHER –THE FAMOUS BRANDFAMOUS BRAND

The Kingfisher towers over every beer brand The Kingfisher towers over every beer brand not only in India but on foreign shores too. not only in India but on foreign shores too. While Kingfisher Premium has raced to While Kingfisher Premium has raced to sales of 18.8 million cases, Kingfisher sales of 18.8 million cases, Kingfisher Strong became the fastest growing brand. Strong became the fastest growing brand.

Its sales crossed the 10 million cases mark Its sales crossed the 10 million cases mark within 5 years of introduction. The brand within 5 years of introduction. The brand has also comfortably outpaced the industry has also comfortably outpaced the industry average growth- notching up 29 % growth as average growth- notching up 29 % growth as against 3% for the industry. against 3% for the industry.

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KINGFISHERKINGFISHER Kingfisher, one of the flagship brands of Kingfisher, one of the flagship brands of

The UB Group, has partnered with The UB Group, has partnered with NDTVNDTV, , India's leading broadcast group in a first-India's leading broadcast group in a first-of-its-kind media alliance for the of-its-kind media alliance for the promotion of promotion of NDTV Good TimesNDTV Good Times. The . The NDTV Good TimesNDTV Good Times channel would channel would leverage from the editorial credibility and leverage from the editorial credibility and quality of the quality of the NDTVNDTV group and the strong group and the strong lifestyle appeal of the Kingfisher brand lifestyle appeal of the Kingfisher brand and icon, to offer Indian viewers a world-and icon, to offer Indian viewers a world-class television entertainment experience. class television entertainment experience.

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UBL POSITION AND ITS UBL POSITION AND ITS STRATEGIESSTRATEGIES

To build upon its leadership position, UBL To build upon its leadership position, UBL has broken new grounds with a multi-has broken new grounds with a multi-faceted strategic alliance with Scottish & faceted strategic alliance with Scottish & Newcastle Plc. (S&N). While allowing UBL Newcastle Plc. (S&N). While allowing UBL to market S&N's international brands in to market S&N's international brands in India, it will also leverage S&N's global India, it will also leverage S&N's global network while further globalizing the network while further globalizing the Kingfisher brand.   Kingfisher brand.  

Commands a domestic market share of Commands a domestic market share of over 50% over 50%

Leading brands are Kingfisher, UB Export, Leading brands are Kingfisher, UB Export, London Pilsner, Premium Ice and Kalyani London Pilsner, Premium Ice and Kalyani Black Label. Black Label.

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Kingfisher to bring in Kingfisher to bring in "international good times" with S "international good times" with S & N's brands. And Kingfisher will & N's brands. And Kingfisher will also bring cheer abroad. also bring cheer abroad.

Kingfisher is the only Indian Beer Kingfisher is the only Indian Beer brand available in 52 countries brand available in 52 countries and also on international flights. and also on international flights.

Every third beer sold in India is Every third beer sold in India is Kingfisher. Kingfisher.

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United Spirits Sep ‘05

Rs CroresU S L

Net sales 957.22

Cost of goods Sold 477.22 51%

EBITDA 122.16 13%Interest/Finance cost 75.39Depreciation 12.21

P B T 34.56 4%

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Brand Performance HY–I -- FY’06

UB Group (India)

BrandBrand FY’05FY’05 FY’06FY’06 % Grwth% Grwth

Bagpiper WhiskyBagpiper Whisky 3.493.49 5.455.45 56%56%

McDowell’s No.1 WhiskyMcDowell’s No.1 Whisky 2.562.56 3.023.02 18%18%

McDowell’s No.1 BrandyMcDowell’s No.1 Brandy 2.322.32 2.802.80 21%21%

McDowell’s Celebration RumMcDowell’s Celebration Rum 2.032.03 2.182.18 7%7%

McDowell’s Signature WhiskyMcDowell’s Signature Whisky 1.481.48 2.042.04 38%38%

Old Cask RumOld Cask Rum 0.820.82 0.820.82 1%1%

Gilbey’s Green Label WhiskyGilbey’s Green Label Whisky 1.151.15 1.111.11 (4%)(4%)

Blue Riband Gin SeriesBlue Riband Gin Series 0.560.56 0.560.56 1%1%

Gold Riband WhiskyGold Riband Whisky 0.460.46 1.041.04 127%127%

Antiquity Rare WhiskyAntiquity Rare Whisky 0.040.04 0.060.06 53%53%

Royal Challenge WhiskyRoyal Challenge Whisky 0.440.44 0.460.46 6%6%

Director’s Special Black WhiskyDirector’s Special Black Whisky 2.272.27 3.493.49 54%54%

Director’s Special WhiskyDirector’s Special Whisky 1.931.93 2.382.38 18%18%

White Mischief VodkaWhite Mischief Vodka 2.782.78 4.204.20 51%51%

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MARKET SHARE MARKET SHARE MOVEMENTSMOVEMENTS

2003-04

UBL, 46

SAB, 31

M M, 6

Others, 17

UBL

SAB

M M

Others

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Apr to Sept 05

UBL, 49

SAB, 28

M M, 6

Others, 17UBL

SAB

M M

Others

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2. Kingfisher Airlines 2. Kingfisher Airlines

Based in Bangalore, Kingfisher Airline is a private airline Based in Bangalore, Kingfisher Airline is a private airline owned by Dr. Vijay Mallya.owned by Dr. Vijay Mallya.

It started its operations on May 9, 2005 with a fleet of 4 It started its operations on May 9, 2005 with a fleet of 4 leased Airbus A-320 aircrafts. leased Airbus A-320 aircrafts.

Presently it covers destinations like Agartala, Ahmedabad, Presently it covers destinations like Agartala, Ahmedabad, Bangalore, Bhubaneswar, Chennai, Coimbatore, Delhi, Bangalore, Bhubaneswar, Chennai, Coimbatore, Delhi, Dibrugarh, Guwahati, Goa, Hyderabad, Jaipur, Jammu, Kochi, Dibrugarh, Guwahati, Goa, Hyderabad, Jaipur, Jammu, Kochi, Kolkata, Mangalore Mumbai Nagpur, Pune, Srinagar , Kolkata, Mangalore Mumbai Nagpur, Pune, Srinagar , Udaipur, Varanasi, Vijayawada and Visakhapatnam Udaipur, Varanasi, Vijayawada and Visakhapatnam

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He could buy Newcastle utd. to increase his business.He could buy Newcastle utd. to increase his business. Airlines.Airlines.

A hoarding of A hoarding of Kingfisher AirlinesKingfisher Airlines with Vijay Mallya's with Vijay Mallya's signaturesignature

In 2005, Vijay Mallya established In 2005, Vijay Mallya established Kingfisher AirlinesKingfisher Airlines. At present, the airline connects 32 cities. Mallya's . At present, the airline connects 32 cities. Mallya's Kingfisher airlines recently obtained 26% stake in Kingfisher airlines recently obtained 26% stake in Air Air DeccanDeccan, a low cost Indian airline. Mallya plans to , a low cost Indian airline. Mallya plans to pick up a personal, controlling stake in pick up a personal, controlling stake in Epic AircraftEpic Aircraft, , a US-based aircraft manufacturing company. He a US-based aircraft manufacturing company. He recently flew into Oshkosh with his key team recently flew into Oshkosh with his key team members and met members and met

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VISION OF KINGFISHER VISION OF KINGFISHER AIRLINESAIRLINES

Its vision is to constantly deliver a Its vision is to constantly deliver a safe, value-based and enjoyable safe, value-based and enjoyable travel experience to all its travel experience to all its customers. It has placed a strong customers. It has placed a strong emphasis on safety. emphasis on safety.

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Today’s decision follows Today’s decision follows recommendations to this effect made by recommendations to this effect made by professional services firm Accenture professional services firm Accenture which was appointed to present a report which was appointed to present a report on synergies between the two airlines. on synergies between the two airlines. The new firm will operate two separate brands – Deccan and Kingfisher – and will retain their identities of being a low-cost carrier and a full-service airline, respectively.  

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KINGFISHER AIRLINES KINGFISHER AIRLINES MERGER WITH DECCAN MERGER WITH DECCAN

AIRLINESAIRLINES The boards of Deccan Aviation and Kingfisher The boards of Deccan Aviation and Kingfisher

Airlines on Wednesday decided to merge Kingfisher Airlines on Wednesday decided to merge Kingfisher Airlines with Deccan Aviation. Airlines with Deccan Aviation.

  The merger will create the largest player in the The merger will create the largest player in the domestic aviation market and pave the way for Vijay domestic aviation market and pave the way for Vijay Mallya to fly his Kingfisher Airlines to overseas Mallya to fly his Kingfisher Airlines to overseas destinations.  destinations.  

Deccan Aviation will subsequently be renamed Deccan Aviation will subsequently be renamed Kingfisher Airlines. Kingfisher Airlines.

  Mallya’s UB Holdings, which owns the closely-held Mallya’s UB Holdings, which owns the closely-held Kingfisher Airlines and has 46 per cent in Deccan Kingfisher Airlines and has 46 per cent in Deccan Aviation, will hold a “significant majority” in the new Aviation, will hold a “significant majority” in the new firm. firm.

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Vijay mallya will be he chairman of Vijay mallya will be he chairman of aviation in India with Deccan aviation in India with Deccan Aviation, will be its vice-chairman.Aviation, will be its vice-chairman.

Vijay Mallya will be the chairman and CEO of this company and GR Gopinath, who pioneered low cost

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REASON FOR MERGERSREASON FOR MERGERS

Both the airlines are in the red. Both the airlines are in the red. While Deccan Aviation reported a While Deccan Aviation reported a loss of Rs 419 crore for the year loss of Rs 419 crore for the year ended June 30, 2007, Kingfisher ended June 30, 2007, Kingfisher Airlines had a loss of Rs 577 crore Airlines had a loss of Rs 577 crore on its books for the year ended on its books for the year ended March 31, 2007. March 31, 2007.

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SERVICES OFFERED BY SERVICES OFFERED BY KINGFISHERKINGFISHER

It offers several specialized services to It offers several specialized services to its customers like personal valet at the its customers like personal valet at the airport to assist in baggage handling airport to assist in baggage handling and boarding, exclusive lounges with and boarding, exclusive lounges with private space, audio and video on-private space, audio and video on-demand, extra-wide personalized demand, extra-wide personalized screens in the aircraft and three-course screens in the aircraft and three-course gourmet cuisine. gourmet cuisine.

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Kingfisher,jet hold talks, Kingfisher,jet hold talks, may forge operational may forge operational

allianceallianceTO BEAT RISING FUEL TO BEAT RISING FUEL PRICES,INPUT COSTSPRICES,INPUT COSTS

THE AIRLINES ARE REPORTEDLY HIT THE AIRLINES ARE REPORTEDLY HIT BY LOSES OF UPTO 10 CRORE A DAYBY LOSES OF UPTO 10 CRORE A DAY

THE MAIN PURPOSE FOR THIS THE MAIN PURPOSE FOR THIS ALLIANCE IS TO CHECK COST AND TO ALLIANCE IS TO CHECK COST AND TO OPTIMISE THE LOAD FACTORS.OPTIMISE THE LOAD FACTORS.

THROUGH THIS THEY CAN INCREASE THROUGH THIS THEY CAN INCREASE THE AIRLINE FARES AND CAN MAKE THE AIRLINE FARES AND CAN MAKE PROFITPROFIT

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COMPETITORSCOMPETITORS

AIR INDIA:-AIR INDIA:- State owned domestic airlineState owned domestic airline Formerly known as Indian AirlinesFormerly known as Indian Airlines Company rebranded as Indian in Dec 05 to Company rebranded as Indian in Dec 05 to

revamp image in preparation for an IPOrevamp image in preparation for an IPO GoI’s plan to merge Air India and Indian into GoI’s plan to merge Air India and Indian into

one giant airline consisting of 130-140 one giant airline consisting of 130-140 aircraftaircraft

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Began on 3 Dec 1993with two Boeing 737-Began on 3 Dec 1993with two Boeing 737-200 aircrafts as Sahara Airlines200 aircrafts as Sahara Airlines

Initially services concentrated in northern Initially services concentrated in northern India India

Rebranded as Air Sahara on 2 October Rebranded as Air Sahara on 2 October 2000.2000.

Uncertainty over the airline's fare caused Uncertainty over the airline's fare caused domestic market share to slide from 11% domestic market share to slide from 11% in Jan 06 to 8.5% in Aprilin Jan 06 to 8.5% in April

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Set up by J.R.D. TataSet up by J.R.D. Tata Nationalised in 1953Nationalised in 1953 National flag carrierNational flag carrier 44 world-wide destinations44 world-wide destinations Profitable in most years since its Profitable in most years since its

inceptioninception Net profit of Rs.97 m for 2005-06Net profit of Rs.97 m for 2005-06 Growth of almost 15% over the previous Growth of almost 15% over the previous

year.year.

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““Regular” airline offering normal economy Regular” airline offering normal economy and business class seats. and business class seats.

300 flights, 43 Indian destinations 300 flights, 43 Indian destinations Indian market share 32%Indian market share 32% Does not own its brand. Brand owned by Does not own its brand. Brand owned by

Jetair Enterprises Ltd. a separate Jetair Enterprises Ltd. a separate company substantially owned by Naresh company substantially owned by Naresh GoyalGoyal

Prevents possible ‘hostile’ takeover bidPrevents possible ‘hostile’ takeover bid

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Low-cost airline (LCC)Low-cost airline (LCC) Began in May 2005Began in May 2005 Entered with Rs. 99 fares for first 99 Entered with Rs. 99 fares for first 99

daysdays ““Offering low everyday spicey fares”Offering low everyday spicey fares” Aim: Compete with Indian Railways AC Aim: Compete with Indian Railways AC

sgmentsgment fleet of 6 Boeing 737-800 with 189 fleet of 6 Boeing 737-800 with 189

seats.seats.

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GoAir – The People’s AirlineGoAir – The People’s Airline established in June 2004established in June 2004 LCC promoted by The Wadia GroupLCC promoted by The Wadia Group GoAir FreeFaresGoAir FreeFares Relatively small player as compared to other LCCsRelatively small player as compared to other LCCs Initial flights in southern & western India with the first nine Initial flights in southern & western India with the first nine

A320sA320s

Remaining 11 aircrafts being added in 2Remaining 11 aircrafts being added in 2ndnd yr yr

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VIJAY MALLAYA VIJAY MALLAYA INTERESTS INTERESTS

FootballFootball Mallya's United Breweries sponsors Mallya's United Breweries sponsors

the the East BengalEast Bengal and and MohunMohun BaganBagan football clubs in football clubs in KolkataKolkata..[12][12]

Recently linked with buying into the Recently linked with buying into the new revolution at new revolution at Queens Park Rangers FCQueens Park Rangers FC, as part of , as part of the the Bernie Bernie EcclestoneEcclestone, , FlavioFlavio BriatoreBriatore and and LakshmiLakshmi MittalMittal consortium.[13] consortium.[13]

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CricketCricket

Mallya's flagship firm UB Group owns the Mallya's flagship firm UB Group owns the Royal Challengers Bangalore team in the Royal Challengers Bangalore team in the Indian Premier League. He won this team in Indian Premier League. He won this team in an auction by paying US$111.6 million for an auction by paying US$111.6 million for the team. The Royal Challengers Bangalore the team. The Royal Challengers Bangalore team includes players like Rahul Dravid, team includes players like Rahul Dravid, Anil Kumble, Jacques Kallis, Shivnarine Anil Kumble, Jacques Kallis, Shivnarine Chanderpaul, Zaheer Khan, Mark Chanderpaul, Zaheer Khan, Mark Boucher,Sunil Joshi and Dale Steyn.Boucher,Sunil Joshi and Dale Steyn.

After the poor performance of his team in After the poor performance of his team in IPL, the liquor baron said he had some IPL, the liquor baron said he had some players in mind but Rahul Dravid and Charu players in mind but Rahul Dravid and Charu Sharma completely ignored them and went Sharma completely ignored them and went ahead with their own plan to select the ahead with their own plan to select the players.players.

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ConclusionConclusion

Vijay Mallya is a classic example of Vijay Mallya is a classic example of how Asian CEOs can lead their how Asian CEOs can lead their brands by being the most vocal brands by being the most vocal ambassadors of their brands to build ambassadors of their brands to build and sustain brand equity.and sustain brand equity.

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