Follow

What is the costly error made in Indian history?

 What historical mistake cost India a lot of money?



Vijay Mallya was only 27 years old when he took over the company. His father's business, "United Breweries," which owns various brands, including Kingfisher, was struggling at the time of his death. Kingfisher beer production was reduced by three of its five plants, and sales of hard liquor (whiskey, rum, etc.) were also down.


In the first five years after taking over the firm, Vijay Mallya not only reopened three shuttered facilities but also established two new factories in South India. Following this, Vijay Mallya created several new Hard Liquor businesses, acquired some new brands, and gave them a huge boost in popularity. Royal Challenge, DSP, Officers Choice, Antiquity, and other names are some of the names of the brands.



In addition to Kingfisher, Mallya purchased London Pilsner and Haywards 5000 and turned them become household names.


Mallya invested in the Kingfisher Calendar, Formula 1 racing, the Indian Premier League (IPL), cricket, and other ventures to further boost the Kingfisher brand.


Mallya oversaw the management of the paint company Berger Paints and the chemical company Mangalore Fertilizers in addition to this.


At the age of 27, Vijay Mallya transformed the $20 billion corporation he had into a $25,000 billion mega-empire in just three years! 30 years of age.


But after making a mistake that caused his 25 years of hard work to be lost, Vijay Mallya, who was in debt, was labelled a fugitive and you are aware of his current situation. just one


He made an investment in the aviation industry.


The airline sector has relatively slim profit margins. Additionally, this is a highly serious business where profit margin is obtained by making fantastic use of every opportunity to save money.


However, Vijay Mallya became involved in branding Kingfisher by placing the burden of running the airline on the CEO and other top executives.


Put the blame now on management, yet he still managed to overtake Air India. Kingfisher began flying on routes that weren't lucrative, and passengers began receiving individualised services like in-flight entertainment and complimentary miles. He was also found to be carrying a pair of headphones.


Because of its extremely high costs and limited earnings, Kingfisher Airlines has never been able to turn a profit.


When Indian Oil refused to supply Kingfisher with jet fuel, the loan was doubled. They suddenly found themselves unable to cover their jets' parking costs. After being paid nothing for ten months, the pilot and the other employees all started to leave.


Banks then ceased lending as well.


And as soon as everyone saw, chaos ensued. Kingfisher Airlines is to blame for United Breweries' out of control behaviour. One of the rare expensive errors in Indian history is this one.

Subscribe For Latest Information






Comments

This Blog is protected by DMCA.com

Subscribe

Enter your email address:

Delivered by FeedBurner

Email Subscription

Enter your email address:

Delivered by FeedBurner

EMAIL SUBSCRIPTION