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Q.

Brand valuation of Kingfisher crashes to zero from Rs 2500 crores two years ago----news. What went wrong to a shrewd business man like Vijay Mallya? Your views?

Asked by Good Citizen, 14 Feb '13 09:39 pm
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Answers (7)

1.

It was bound to happen with the ways he adopted in splashing out huge amounts of money on IPL parties, Formula One racing team & other such ventures of his which made him loose focus from his business. He got complacent in his management of Kingfisher airlines which was quite well managed by him in the process of making it big in sports via IPL & Formula One!!
Answered by dharamender nebhnani, 17 Feb '13 08:25 pm

 
  
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2.

Vijay Mallya is a flamboyant person who created a brand image of himself as a shrewd business man. In reality Mallya was not all that sharp as a businessman. He had positioned Kingfisher as a Luxury airline and created a good brand image in that segment. But he blundered by taking over a low fare no frills attached airlines like Air Deccan which was already sick and merging it with a luxury airline like Kingfisher. If at all he wanted to expand Kingfisher he should have done it by buying another luxury brand airline like NEPC that was already on the blocks and not a Aam Admi airlines like Air Deccan. In fact Capt Gopinath turned out to be a shrewder businessman than Vijay Mallya. Gopinath did to airlines industry what Shivasankaran did to computer hardware industry. Skim the market with low pricing. When competition follows suit just exit the market by dumping the business with its accumulated losses to some joker of a businessman who is focused on self image building rather than buil ...more
Answered by Shyam, 15 Feb '13 01:55 pm

 
  
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3.

Throwing good money after bad when not dealing with pennies but in millions.. does not point to negligence or inefficiency but someone was on the take and personally able to make something at the cost of sinking the lenders who had a stake. What were the auditors doing when flags must have been raised on NPAs crossing the Rubicons of volume and time, which automatically triggers recovery actions.. This system works for small scale businesses and individual borrowers. How come it can fail in a case which stares them in the face.. Auditors and regulators of banks too need to be hauled over coals for what is obviously an intentional and conspiratorial lapse.

Lessons:
1) Don't become over ambitious to rule the business world.
2) Stick to the basics and play with cards in hand and not in bunch (With banker's money)
3) Show-off gimmicks is like a bubble, live is small .
4) There is no end to hoarding of money.
Mallay will be another story of Rags to riches and back to rags.
Answered by Mohammed asim nehal, 16 Feb '13 01:35 pm

 
  
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4.

In 2011, Kingfisher and Air India were the most trusted brands in the Indian Aviation Industry. and Kingfisher was far ahead of Air India in the list. But in 2013, Kingfisher has dropped out of the list. The brand valuation is done based on the trust the Companies enjoy among the consumers. Reason for the total lack of trust among the consumers are the inability of the KF Airlines to repay the debts and also stick on to the managements commitment to pay the huge arrears of salary to the staff.
To sum up in a single sentence,the total lacking of fiscal discipline and sound and prudent financial administration is the reason for the downfall of the KF Airlines
Answered by thampy chacko, 14 Feb '13 10:10 pm

 
  
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5.

Resentment, Protests, & non Participation of the employees is the deciding reason perhaps in bringing the Brand valuation of Kingfisher to zero from Rs 2500 crores two years ago
Answered by jack slater, 14 Feb '13 09:48 pm

 
  
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6.

Participation in IPL franchise and bad management.....are the two major drawbacks confronted by Malya's KingFisher Airlines.....that brought down the corporation from crowns to rags.....
Answered by Pradipta pati, 14 Feb '13 09:44 pm

 
  
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7.

Many things involved
1) extravagance
2) Poor admin
3) lack of concentration
4) over confidence
5) swallowed poor low cost airline air deccan
Above all mismanaged funds and invested in cricket that too betting losing horse !!!
So he must face the consequences
I didn't mention about stories of his son
That's mega story
Answered by sigma, 14 Feb '13 09:43 pm

 
  
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