Suit up! You’re about to read about a business man. There is a lot of talking going on about him these days; comparisons between his past and his today! Businesspersons are known to be fair in dealings to ensure long-term survival of their business. But this guy will teach you how things will be if business goes wrong. He is trending on social media for all wrong reasons! Vijay Mallya? Yes!
Vijay Mallya was the chairman of not one, but many companies with an extravagant lifestyle that got him renowned as the ‘King of Good Times’. His breweries have been a part of celebrations in more than 52 countries around the world which, undoubtedly, got a lot of money his way. He launched a new business venture in 2005, the Kingfisher Airlines. But very soon it had to shut down because the company hadn’t paid salaries to employees for almost 15 months then and had lost its license to operate as an airline. Seems like good times ended for the king there, because ever since, he has been entangled in financial controversies and hasn’t been able to find a way out of the mesh yet!
Considering the current situations, Vijay Mallya owes over 7000 crores to a group of different banks. How can a flamboyant billionaire like him ruin things for himself?
- 2012: Employees of Kingfisher Airlines went on a strike for nonpayment of salaries, income-tax debt froze the company’s accounts and the airline had all his flights grounded. In Oct, the government suspended the airline’s license. In the same period, a British alcoholic beverages firm, Diageo agreed to buy a majority of stakes in United Spirits
- 2013: Diageo acquired 27% stake in USL for INR 6,500 crore, but the airline lenders did not get any funds.
- 2014: United Bank identified United Breweries Holdings as conscious defaulter.
- 2015: Diageo asked Mallya to resign from the post of chairman of the Indian liquor firm but he refused.
- 2016: Banks moved debt recovery tribunal, which restrained Mallya from accessing INR 515 crore
Mallya seemed to do well when he was building up on what his dad left for him; ergo stuck to the liquor business. Running an overleveraged airline business is what cost him his fortune.
As Kingfisher drowned in debt, the most valuable company of the group, the USL, was lost. It had owned 50% of India’s market share! Challenges like these have caused him to permanently derail from making any of his businesses a success for now!
How not to be him? If you miss the game-winning shot one day, you must come to terms with it quickly and move on. You cannot run away from the country for failing in a business and claim that it isn’t time for you to step into the country yet because the infamous billionaire seems to have made his way out of the country to fly to London while the SC is scheduled to hear his plea.