Back Ground

 Vijay Mallya was born in 1955 in Kolkata to Konkani Gaud Saraswat Brahmin family
 Mallya graduated with a bachelor’s degree in commerce from St. Xavier’s College in Kolkata
in 1976
 Mallya worked for the American Hoechst Corporation (now Sanofi-Aventis) in the US and
with Jenson & Nicholson in the UK. from1980
 He assisted his father, in managing the important Brewing and Spirits Divisions and in
relaunching the Kingfisher Brand of Beer. Mallya, was elected by shareholders as Chairman
of UB in 1983, at the age of 28.
 Mallya took over as Chairman of United Breweries Group in 1984 from his father Vittal
Mallya. Since then, the group has grown into a multi-national conglomerate of over sixty
companies, with an annual turnover which increased by 63.9% over 15 years to US$11.2
billion in 1998–1999.
 In 2006, Mallya established Kingfisher Airlines.
 Mallya owns the MarinScope Newspapers which serve Marin County, California where he
maintains a home and stores a portion of his car collection

Achievements

United's Kingfisher beer has a major market share in India's beer market and is available in 52 and
countries outside India and leads among Indian beers in the international market.

Vijay Mallya also co-owns the Formula One team Sahara Force India F1 team

Kingfisher Calendar published by Kingfisher the United Breweries (UB) Group of India annually since
2003 features top models which included Katrina Kaif, Deepika Padukone, Yana Gupta etc

Royal Challengers Bangalore one of the team of Indian Premier League (IPL) is also owned by Vijay
Mallya

He owns private jets, yachts, a personalized Boeing 727, stud farms with around 200 horses, and
close to 250 vintage cars among others

Mallya joined politics in 2000 and joined the Janata Party. He is also a member of RajyaSabha, the
upper house of the Parliament of India.

Failure of KFA

In 2005, Vijay Mallya launched Kingfisher. Airlines began its operations in 2005 with its inaugural
flight from Mumbai to Delhi. Kingfisher Airlines was soon becoming an airline synonym with five star
air travel and was becoming famous among business travellers

in 2007, he bought the bleeding Air Deccan, India's first low-fare carrier, promoted by G.R. Gopinath.
In the end of 2007 Kingfisher Airlines had acquired 46% of Deccan Aviation in Air Deccan. 2008 was a
failing to pay its employees, Kingfisher Airlines was good year for the airlines as things went well.

Reason for Failure

The services of the airlines passengers: were appreciated by the travellers as the hospitality and
aircraft condition of the Airlines were above average., the airlines shifted to low-cost air traveling,
frequent basic changes made travellers lose interest in the airlines.

Mr. Mallya was too involved in the business and unlike his other two major businesses - the spirits
and beer segments - which were running smoothly under the managing director, this airline had no
long-term MD & CEO

One of the major reasons that contributed to the collapse was Recession that hit the world in 2008.
Recession had an indirect impact on the air travel occupancy in international routes, fuel prices,
airport charges ete. All these factors had a negative impact on the health of Kingfisher Airlines and
soon the airlines saw its downfall.

Operational costs of airline industry are very high compared to other industries, Airline companies
requires licenses for the routes, investment in the aircraft maintenance, salaries employees (which
are generally on high end), airport charges, huge taxes to the government.

After Kingfisher's plunge into luxury came the next thing that is a merger with Air Deccan, which was
a low cost airline. It is very simple to understand that frequent change in the business model is not
good as it gives no time to adjust in the existing business model. The same happened with kingfisher
as they had no time to stabilize in the market

Tag of Wilful Defaulter

In November 2015, SBI led by a consortium of 17 banks, declared Mallya a wilful defaulter 31for failing
to pay loans amounting to Rs. 70 billion taken by the defunct KFA

In January 2016, Mallya spent a whopping Rs. 95 million to get Australian cricketer Shane Watson to
play for his Royal Challengers Bangalore team in the ninth season of IPL

in December 2015, Mallya hosted a lavish party to celebrate his 60th birthday in Goa. The party was
attended by more than 200 people. And estimated to have cost more than US$2 million.

Mallya offered to pay Rs. 40 billion, the banks rejected the offer citing lack of clarity.

Uncertain Future of Vijay Mallya

Mallya fled to London on March 2, 2016. A month later, the Indian government revoked his passport
on the request of the Enforcement Directorate 34 (ED) after the agency registered a case of money-
laundering against Mallya

On May 2, 2016, Mallya resigned from the Rajya Sabha after the ethics panel of the house
recommended his termination over his wilful defaulter status

At a board meeting of the UB Group held in May 2016 that he chaired through video-conferencing,
Mallya described the money laundering allegations against him as baseless and said he was in
serious negotiations with the banks to repay the loans as soon as possible.