I won’t sell ’family silver’ to rescue Kingfisher, Vijaya Mallya says
GREATER NOIDA: Liquor baron Vijaya Mallya does not have to do a deal with UK drinks giant Diageo and will not sell prized assets to rescue his grounded Kingfisher airline, he told Reuters at the weekend.
Speaking in his office at Force India, the Formula One team he co-owns, the UB Group head poured scorn on media reports that he would be forced to sell stakes in profitable businesses to fund Kingfisher.
"That is the media perspective of what I am going to do. I am not so sure that I lack commercial acumen to the extent that I would sell a hugely thriving, successful business to take the cash and put it into an airline in an environment such as India," Mallya said at the Indian Grand Prix at the Buddh International Circuit south of New Delhi.
"My group is sufficiently cash-generative to fund the airline as we have done. We have put almost 150 million pounds since April 2012 into the airline. But that has not meant that I have had to sell my family silver to fund the airline."
Mallya has been talking to Diageo Plc, makers of brands including Johnnie Walker whisky and Smirnoff vodka, about selling a stake in his United Spirits Ltd.
Earlier this weekend he said he was unsure whether or not he would agree terms with the London-listed firm.
"I do not have to do a deal with Diageo at all," said Mallya. "I am under no compulsion whatsoever. But having said that, I will do what is good ... for myself, my family wealth and for long-term shareholder value."
"I must do that for every business because these are public companies and I owe it to the shareholders and stakeholders in these companies," he said.
"Selling assets to fund the airline? No plans of that nature whatsoever."
Best shot
Kingfisher Airlines Ltd, which has never made a profit, had its licence suspended by India’s civil aviation authorities last week and has not flown since the start of October after a protest by employees, who had been unpaid since March.
The cash-strapped carrier said on Friday it would use its own money to try and get back in the air. The day before, staff had agreed to return to work after the airline said it would pay three months of overdue salary by November 13.
According to the consultancy Centre for Asia Pacific Aviation, Kingfisher has total debt of about $2.5 billion.
Mallya said the airline had to be dealt with professionally, but he wanted it to survive.
"The environment and government policy must also encourage me to do that," he said, cigar in hand. "So we are going to give it our best shot. We are committed to that."
The tycoon, who said on Twitter earlier in the week that he was relieved to no longer be a billionaire on the latest Forbes list because it might lessen some of the envy directed at him, defended the management of the company.
He said there were many reasons for Kingfisher’s predicament, but laid much of the blame on taxation and the Indian government.
"Very high fuel costs, obscenely high taxation, lack of foreign investment permission, until literally six weeks ago - so many different factors which make the Indian aviation space actually somewhat unattractive other than the potential growth going forward," he explained.
"The government needs to look at taxation very seriously. You can’t have a 25 per cent average sales tax on fuel when crude oil prices that used to hover around $60 or $70 a barrel are now well in excess of $100 a barrel."
Mallya has been looking for partners for the airline and said two investment bankers had been hired as part of the search.
"Both an Indian partner or partners or a foreign partner. we are in dialogue with a number of potential investors," he said.
"Now, you can’t possibly sew up a deal in six weeks. It’s impossible. It takes more like six months. Everything is moving. There are a lot of moving parts and we are trying to put together a good solid strong package," he said.
Please note that under 66A of the IT Act, sending offensive or menacing messages through electronic communication service and sending false messages to cheat, mislead or deceive people or to cause annoyance to them is punishable. It is obligatory on kemmannu.com to provide the IP address and other details of senders of such comments, to the authority concerned upon request. Hence, sending offensive comments using kemmannu.com will be purely at your own risk, and in no way will Kemmannu.com be held responsible.
Similarly, Kemmannu.com reserves the right to edit / block / delete the messages without notice any content received from readers.
Final Journey of Judith Lewis (91 years) | LIVE From Kallianpur
Obituary : Miss Judith Lewis (91), Milagres A Ward, Kallianpur
Rozaricho Gaanch April, 2024 - Ester issue
Final Journey Of Theresa D’Souza (79 years) | LIVE From Kemmannu | Udupi |
Invest Smart and Earn Big!
Creating a World of Peaceful Stay!
For the Future Perfect Life that you Deserve! Contact : Rohan Corporation, Mangalore.
Final Journey Of Joe Victor Lewis (46 years) | LIVE From Kemmannu | Organ Donor | Udupi |
Milagres Cathedral, Kallianpur, Udupi - Parish Bulletin - Feb 2024 Issue
Way Of Cross on Good Friday 2024 | Live From | St. Theresa’s Church, Kemmannu, Udupi | LIVE
Good Friday 2024 | St. Theresa’s Church, Kemmannu | LIVE | Udupi
2 BHK Flat for sale on the 6th floor of Eden Heritage, Santhekatte, Kallianpur, Udupi
Maundy Thursday 2024 | LIVE From St. Theresa’s Church, Kemmannu | Udupi |
Kemmennu for sale 1 BHK 628 sqft, Air Conditioned flat
Symphony98 Releases Soul-Stirring Rendition of Lenten Hymn "Khursa Thain"
Palm Sunday 2024 at St. Theresa’s Church, Kemmannu | LIVE
Final Journey of Patrick Oliveira (83 years) || LIVE From Kemmannu
Carmel School Science Exhibition Day || Kmmannu Channel
Final Journey of Prakash Crasta | LIVE From Kemmannu || Kemmannu Channel
ಪ್ರಗತಿ ಮಹಿಳಾ ಮಹಾ ಸಂಘ | ಸ್ತ್ರೀಯಾಂಚ್ಯಾ ದಿಸಾಚೊ ಸಂಭ್ರಮ್ 2024 || ಸಾಸ್ತಾನ್ ಘಟಕ್
Valentine’s Day Special❤️||Multi-lingual Covers || Symphony98 From Kemmannu
Rozaricho Gaanch December 2023 issue, Mount Rosary Church Santhekatte Kallianpur, Udupi
An Ernest Appeal From Milagres Cathedral, Kallianpur, Diocese of Udupi
Diocese of Udupi - Uzvd Decennial Special Issue
Final Journey Of Canute Pinto (52 years) | LIVE From Mount Rosary Church | Kallianpura | Udupi
Earth Angels Anniversary | Comedy Show 2024 | Live From St. Theresa’s Church | Kemmannu | Udupi
Kemmannu Cricket Match 2024 | LIVE from Kemmannu
Naturya - Taste of Namma Udupi - Order NOW
New Management takes over Bannur Mutton, Santhekatte, Kallianpur. Visit us and feel the difference.
Focus Studio, Near Hotel Kidiyoor, Udupi
Earth Angels - Kemmannu Since 2023
Kemmannu Channel - Ktv Live Stream - To Book - Contact Here
Click here for Kemmannu Knn Facebook Link