The self-proclaimed ‘King of Good Times’ is in distress. Despite earlier media reports about his reluctance to sell 'family silver', Diageo Plc of the UK is set to pick up a 51% stake in Vijay Mallya-promoted United Spirits Ltd (USL) this week, in a $2 billion (Rs 10,820 crore) deal that is being seen as the liquor baron's bid to bail out the ailing Kingfisher Airlines.
ALSO READ: Mallya under Sebi lens
Mallya has already lost $300 million in personal wealth and, along with it, the billionaire tag. The man is now worth $800 million, down from $1.1 billion as per the 2011 Forbes Billionaire list. His rank fell to 73rd this October, from 49th place last year, even as his airline still struggles to battle a mountain of debt and striking workers.
“The King of good times (as Mallya is known) is having nothing but bad times lately. His (Mallya's) Kingfisher Airlines, weighed down by what is believed to be $2 billion in debt, had its license suspended in mid-October after it apparently failed to address the Indian regulator's concerns about its ability to operate," Forbes said.
And now his airline risks losing its licence for good if Mallya does not come up with a revival plan by December-end.
| Fluctuating Fortunes | ||
| Rank | Year | Net Worth |
| 73 | 2012 | $800 mn |
| 49 | 2011 | $1.11 bn |
| 44 | 2010 | $1.45 bn |
| NA | 2008 | $390 mn |
| 40 | 2007 | $1.6 bn |
| 31 | 2006 | $1.3 bn |
| 28 | 2005 | $950 mn |
| Source: Forbes | ||
According to Reuters, the tycoon, who said on Twitter that he was relieved to no longer be a billionaire on the latest Forbes list because it might lessen some of the envy directed at him, defended the management of the company.
He said there were many reasons for Kingfisher's predicament, but laid much of the blame on taxation and the Indian government.
In 1983, Vijay Mallya succeeded his father as chairman of the UB group. The group included pharmaceuticals, petrochemicals, paints, agrochemicals, food products and carbonated beverages and many other businesses. He restructured the UB group.
In March 2005, the swashbuckling liquor baron finally got what he wanted some 20 years back --Shaw Wallace. McDowell & Company, the flagship of the United Breweries Group, inked a deal with Jumbo World Holdings Limited (JWHL) in Dubai to acquire Shaw Wallace & Co Limited
He also bought papers (The Asian Age, Cine Blitz), bought and sold a television company, bought football teams and created the “Royal Challengers” Indian Premier League cricket team. With an avid interest in car racing, horse racing and flying, Mallya lavishly indulged these passions. He owned a car racing team (Force India) and at present he is a co-0wner with Subrata Roy Sahara.
He became a member of parliament for the Rajya Sabha and developed excellent contacts with a range of politicians.
His worst decision was the purchase of the loss-making Air Deccan, with no brand image and few assets just when the market was about to dip.