United Spirits set to auction Vijay Mallya’s Rs crore Mumbai house - Livemint
Apart from his marquee homes in Mumbai, Delhi and Scotland, the details of other Mallya properties parked on the USL balance sheet are not. Vijay Mallya, Pinky Lalwani and Siddhartha Mallya arrive at According to reports, this property was previously owned by the father of Once known as the “Branson of Bangalore", Mallya has reportedly been dating Lalwani. . Maharashtra approves Mahindra's Rs 19 bn tourism project in Mumbai suburb. India Business News: Lenders' attempt today to auction Kingfisher House, the erstwhile headquarters of Vijay Mallya- owned, now defunct.
Unlike in most parts of the world, Indians, 'due to historical reasons', prefer spirits-which provide a higher kick for buck spent-than beer and wine. And since liquor is a state subject, there are 23 different markets with their own sets of rules, regulations and prices. State-owned corporations now control 75 per cent of total liquor distribution in the country.
There are just 81, retail outlets in a country of crore people. Also, the biggest barrier for any new player is a complete ban on liquor advertising which makes building new brands tough and expensive, if not impossible. These restrictions meant a market leader like UB could continue its monopoly, selling one of every two bottles of beer and two out of five bottles of spirits.
Mallya and melodrama In Novembernewspapers across the country carried a piece of news prominently, that 'liquor baron' Vijay Mallya had donated 32 kg of gold and 1, kg of copper for gold plating at the sanctum sanctorum of the famed Sabarimala Ayyappan temple in Kerala, at a cost of Rs 18 crore.Vijay Mallya Billionaire Lifestyle, Assets, House, Cars, Private Jet, Bikes And Girlfriends
What many people had missed that year was a small footnote in resolutions being passed at that year's AGM Annual General Meeting. The funds for that exercise had actually come from the UB Group and not from Mallya's personal wealth.
When an agitated shareholder speaking at the AGM-held at Chowdiah Memorial Hall in Malleswaram, Bangalore-noticed the fine print and demanded why the bill for the donation was being passed onto the company, he was initially shushed down by Mallya's men strategically placed around the hall. When the shareholder persisted, Mallya declared it was because "liquor was a very tough business to be in and, the donation had been done to seek divine blessings on behalf of all shareholders".
The incident was narrated to india today by an old UB shareholder who exited the company in after witnessing such incidents.
The shareholder who declined to be identified said he did not think very highly of corporate governance practices at the company. But the increasingly erratic diversifications made me sell my shares after 12 long years.
I got out in good time. He had his father's foresight in spotting an opportunity, but lacked the diligence to follow it through. However, the liquor empire assiduously built up by the senior Mallya generated a force field of cash that shielded his business forays. Inhis spirits empire had a Rs 9, crore turnover and gross profit of Rs 1, crore. Likewise his beer empire had a turnover of Rs 5, crore and gross profit of Rs crore.
InMallya leapt into a new venture: His only experience in this was dealing with multiple state governments to ensure he was in their good books to "manage the system".
On July 23 that year, he had a providential escape. The chopper he was flying in with Sanjay Khan crash-landed at Bagalkot, km north of Bengaluru. Mallya escaped without a scratch because the machine crashed into a slushy field.
It foretold the fate of his fledgling political party, the Janata Party, which he relaunched that year. It drew a blank in all assembly seats they contested in He chose the Rajya Sabha route to enter politics inan independent supported by the Congress and Janata Dal Secular led by former prime minister H. Mallya chose historical artefacts to raise his profile-forking out? His December birthday parties either on his luxury yacht The Indian Empress-which he had bought from the Qatari royal family-or at the 'Kingfisher Villa' in Goa, were a must-attend.
Guests would be flown in on private jets. Mallya revelled in the 'King of Good Times' title but preferred to be addressed as Dr Mallya, for his doctorate in business administration from an online only degree mill in the United States.
Mallya had acumen- the ability to think big and fulfil his ambitions or dream with audacity and panache.
Auction for Vijay Mallya’s Kingfisher House and villa fails for fourth time
Behind the flamboyance, there was a shrewd business plan. With liquor companies not able to advertise their products, he used his foray into other ventures as a major brand-building exercise of which he was the best ambassador. By starting Kingfisher Airlines, acquiring an IPL cricket team called Royal Challengers, promoting Formula 1 racing and bringing out the Kingfisher calendar with bikini-clad models, he was promoting his best liquor brands and giving them an image of being racy, top of the line, exciting to be associated with-all the imagery needed to raise the level of spirit sales to stratospheric heights.
But the man who had fashioned himself as a desi Richard Branson had no illusions about who the biggest brand was. I'm the best ambassador for my brand. It doesn't matter which one works as long as the brand works," Mallya told india today in a interview.
But none of this, not the fancy houses on four continents, the vintage cars, personal jets, race horses, cricket teams, yachts, could have brought him down if he had not taken that one step, says a former USL director. The crash landing That fatal step was the plunge into aviation, a move that would prove to be his nemesis.
Mallya's first brush with aviation was in when he launched UB Air's 'scheduled operator' service between Bangalore and Mangalore. It was swiftly abandoned. The market, he felt, was not ready. Inaviation was hailed as India's sunrise sector even though it ran contrary to global experience.
United Spirits set to auction Vijay Mallya’s Rs300 crore Mumbai house
Few airlines made money and operated in highly regulated environments and state-operated carriers. Click here to Enlarge Vijay Mallya, aged four, had received a motor car as a birthday gift from his disciplinarian father. Now, 'VJM', as close colleagues call him, was determined to present a life-changing gift to his son and business heir Siddharth, his son from his first marriage to a former Air India air hostess, Samira Tyabjee.
He would gift Siddharth an airline. True to his promise, Kingfisher Airlines flew on May 9,two days after Mallya junior's 18th birthday. Mallya launched a full service airline which would not only compete against established players like Air India and Jet Airways but also low-cost airlines like Air Deccan and Indigo.
He started offering prices like a Rs 3, Delhi-Lucknow ticket, which was simply unsustainable. Gopinath, who ran Air Deccan, told this writer some years ago. Nedungadi's fears were accurate. Kingfisher started bleeding money see Kingfisher financials graphic. Mallya acquired the struggling Air Deccan in to circumvent government regulations of an airline having to operate for five years and have 20 planes before being allowed to fly abroad.
Nine months later, in SeptemberKingfisher began international flights. InKingfisher and Air Deccan together reported losses of Rs 1, crore.
Even as his aviation business continued to lose money hand over fist, in on income of Rs Mallya kept pumping money, borrowing by pledging his holdings in other group companies, providing for intra-group loans and providing personal guarantees.
India is going to be the fourth largest domestic aviation market in the world.
The flight and fall of Mallya - Cover Story News - Issue Date: Mar 28,
Kingfisher today owes over Rs 9, crore to its lenders, employees and suppliers. If only he had ring-fenced the aviation business without compromising his other interests; if only aviation fuel price had not gone through the roof; if only regulations were a little more friendly Wire service PTI quoted him recently as saying that the only regret he had was that Kingfisher wasn't flying now when aviation fuel across the globe is at record lows and airlines are benefitting because of that.
Back inwith losses mounting, an obdurate Mallya was finally unable to funnel any more cash. Kingfisher ceased flying in October and had its licence revoked in February Mallya's ego had got the better of him. With lenders, employees and suppliers baying for blood, Mallya was forced to do a deal with the world's largest spirits company, Diageo, to whom he sold a majority stake in USL on July The remaining 10 unsold units are to be spilt among members of Mallya's family.
There are five points of entry to the apartments, but to begin with, only two will be used. While the millionaire residents will be using the Kasturba Road Cross entry, Mallya has a separate entry from Vittal Mallya Road, which incidentally, is the same entry as that of his old house.
The separate entry, which is adorned on one side by a 39, sqft private garden, leads Mallya to his personal lobby, a home-office, and a private lift to the penthouse. Each of the other apartments is 8, sqft and begins at Rs 20 crore.
The apartments begin only from the 5th floor, and as one goes higher, the price increases. The first four floors, along with two floors in the basement, have been reserved for car parking. While each resident would be getting around 3- 5 car parks, Mallya gets to have a car park area that can accommodate around cars. Mallya will also have a designated area where he will be showcasing his collection of vintage cars. Initially, the project was to have around units in three different sizes, but the plans were changed to have apartments of one size of 8, sqft.
It is learnt that many of the millionaire buyers didn't like the idea of there being different apartment sizes as such a scenario would result in ego clashes among them. TOI has learnt that while Prestige have sold out their share of the apartments, Mallya has just begun the process of selling.
Kingfisher Towers might well be the only apartment building in Bangalore, where maids would get their own personal lift and lobby area, which would lead in to their private living quarters. The luxury project has a 6,sqft clubhouse and garden on the 5th floor, a similar sized swimming pool area on the 10th floor, a badminton court on the 15th floor, and party hall and terrace garden on the 25th floor.