Yesterday attended a leadership program at South Mumbai. It was great to hear how the Indian companies have continued to aspire generations through Leadership. They are well known brands across the globe and some of them are pioneer in themselves.
Coming back to the topic Kingfisher, on the basis of personal vanity, and continued vanity is now shrinking Vijay Mallya business from empire to kingdom as Kingfisher’s Rs 7,000 crore dues force him to sell large parts of his better businesses bit by bit.
The short point is this: in his blind pursuit of a “sexy” hubris-driven business like civil aviation, Vijay Mallya is now about to lose his crown jewels. His is a classic demonstration of management guru Jim Collins’ five-stage process of letting a business slip from success to failure. Only, in his case, Mallya has lost more than just one business. He is losing half his empire. Continue reading “The first case of wilful defaulter India – Kingfisher”
The world’s largest spirits company Diageo Plc decided to hike its stake in United Spirits (USL), a company it acquired in 2012 and try to take its stake to 55%.
Diageo has launched an open offer on Tuesday morning to acquire an additional 26% in the company. Currently Diageo holds 29% stake in the company via one of its international arms Relay BV and has been trying to gradually acquire more shares in Vijay Mallya’s flagship distillery from the open market.
The motive of the offer, if successful, aimed at better strategic control, will give Diageo a higher direct ownership in the business. Tender offer in the Indian market is a rare phenomenon comparing to the global markets. Continue reading “Has the Motive for M&A changed with the Time ?”
There is a better way to handle the KFA bankruptcy is to seize all its assets while leaving the liabilities to the existing company & its shareholders.
The assets including landing rights, planes etc along with the staff can be put up for auction in 3 months time to all bidders.
In the meanwhile, the planes can fly as usual under a temporary Government of India appointed management a la Stayam till the auction is completed. Continue reading “The Case of Kingfisher Airlines KFA – Bankruptcy”