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The Vijay Mallya Chat

Hello from NYC guys. Whats shakin in here? man this is slow.. i am outta here!

Arav: uB have submitted a comprehensive rehabilitation proposal for Best & Crompton. I have personally sworn an affadavit in court that UB will contribute towards the rehabilitation and we have put down a deposit of rupees 50M. We can do nothing else at this stage but to wait for the banks and institutions to confirm their part of the deal. MohanM.: I firmly believe that all corporations have an obligation towards society. UB have built a hospital and school in our home city of Bangalore. We have also established a scientific research foundation and adopted a road. We are willing to do more if the government is willing to give us a chance. Some hard decisions need to be made in order to prevent Bangalore getting as congested as Bombay. I am sure that many corporations will happily contribute if encouraged by government. Vicky: Obviously prohibition hurts. Andhra Pradesh was a disaster for us. Haryana is not so much of a problem for us. Unfortunately prohibition is now being used as a political gimmick. I only wish states would use the substantial revenue contributed by the Spirits industry to fund much needed social welfare programs. Hotu: I have not been ousted from Dubai and continue to operate quite happily from there. Sultan Sulayem continues to be our sponsor. We had a disagreement which was settled amicably out of court. In business disputes are not uncommon. It is the outcome that is more important.

From Los Angeles: HAs UB supported venture projects, by providing capital? If not do you have plans? If you do, India or US?

Mr Mallya: Pardon me for saying this. But it is foolish of you to invest in the media business in India unless it is just for prestige and clout. None of the tycoons who have entered the media have done well, and your experience with Update is too wellknown to document here. So why enter the media now? Is it just for clout?

Shri Mallya, the first thing you did after taking over Blitz was to shut down Hindi and urdu Blitz. Was that fair?

Mr Mallya, how do you plan to improve your creditworthiness and credibility?

Are you a great belpiever in the Indian reform process? Do you think it will go far? Or will it be stymied by retrogade economic forces?

Mohan.M: it is a confirmed fact that there is medical evidence to prove that the consumption of alcohol in moderation reduces the risk of heart disease by about 50%. Unfortunately in India we cannot communicate this fact as the alcoholic beverages industry is under severe restriction. I have suggested to the government that restrictions on communication be lifted and that our industry will follow a strict code of conduct which would include educating the consumer. The consumption of anything including normal food items in excess is harmful to health. I cannot understand why only alcohol is singled out.

Regarding your question on how I run my companies, I have already answered a similar question confirming that I delegate a lot. Nevertheless I lead from the front as I understand that the responsibility buck stops with me. My operating managers participate in decision making but obviously the final word is mine and so is the responsibility.

Mr Mallya,why do you think Indian companies and managers are not competitive enough? Why are they frightened of competition? As one of the first Indian businessman to go global, you have a unique perception of this.

Hotu: I think Dubai is a great place with excellent facilities. It is quite obvious that local laws are in favor of locals. There is nothing wrong in this so long as foreigners are allowed to exist in a fair and unprejudiced way. I guess an ex-patriate needs to weigh the advantages and disadvantages and decide whether Dubai is the right place or not. For me, Dubai is fine.

MohanM: Great question on corruption. It isn't only up to businessmen but the responsibility lies with every Indian citizen as corruption does not begin and end with business alone. Regretfully, there is corruption even in issues such as getting a ration card for food.

In your opinion, which are the Indian industries that will flourish in the next ten years? Why do you say so?

Hotu: Your question is loaded. I make the wine, I live with my wife, I drive at 100 miles per hour, I breed and race horses (which win!), this may be intoxicating for you but not for me.

Ada: Mahatma Gandhi said a lot. I agree with many things he preached but I do not agree with his views on prohibition.

vijay:Thanks again, but let me ask you this, does your company in any shape or form involve itself in any kind of charity,scholarships, and such to give some thing back to the society in which it operates.For example do you have 'Mallya Foundation' to do these type of work.

Hotu: I was offered a price that represented 47 times earnings. Anywhere in the world this represents an offer that you cannot refuse unless you are a dud businessman who runs companies more on sentiment than on business sense.

Rakesh Rao: It is true that I have personally participated in marketing plans and new product launch plans but it is not true that I personally name every new product. The way we do things is that we first draw up a list of new names and then test these amongst potential customers. When we have more than one name to choose from after research is complete I make the decision.

Mr. Mallya: In retrospect, dont you feel you should have stuck to liquor industry and do a good job at your business, instead of diversifying hastily. Secondly, pl. improve your credit in U.K & other nations, should you make it unpopular for other businessmen of indian origin.

Mr. Mallya, Come on! Enough of this stiff upper-lip business stuff. Pl. show us ur lighter side by answering this question! Which came first - chicken or egg? Expecting some genuine good one!

Mohan.M: As an industrialist, my main agenda is to be known as one who cared about people and society while being financially successful. I do not wish to be known as a ruthless money maker at any cost.

Hey Vijay, What are you doing in San Fran any way, business?Or just hangin' out with the guys?Just curious is all.

How many companies does your empire straddle? What worries many of your admirers is that you are ambitious, far too ambitious for your own good. But that you lack staying power. It is not enough to found companies, you must also run them well.

Do you think you have done as much as your pa did? All your life I get the feeling that you are trying to match your pa. Is that right?

What do you hope to get by spnsoring the Benetton team? It may be mileage for you, but what use is it for your shareholders?

Vijay- Do you make any wines- chardonays, carbernets or rose? I know Grover started making a few wines recently.

Hotu: Manu Chhabria had already arrived with a bang (a la Dunlop) in India before I even met him.

Rakesh Rao: On an average a week every five or six weeks. It entirely depends on work priorities in different countries. Dubai is less hectic and I like it.

Murali: Corruption in India is the root cause of all our problems. If the same kind of money that politicians made for themselves were instead invested in social welfare and infrastructural development India would be a "Super Power." > >

Are there any Indian businessmen -- living please-- whom you admire?

i meant to say' cabernets'.

You turned 40 last December, so has that slowed you down?

Mallya: From this chat, it is clear that you get stuck with your puffy fans. I am sorry that you are not fair addressing others. If this is your way of dealing with people, uhhh... Wrong chat for me!!

Every nation including western countries there is some restriction on consuming alcohol? How you are going justify that you are concerned about society?

Veereshmalik: As I have said earlier I am personally satisfied that the FMSCI is performing well. There may be areas where improvement is required and we are quite prepared to listen. However, the job of any regulatory body is bound to be criticized in one way or the other.

Raj Yadav: Great to hear from L.A.! I am replying from San Francisco. UB is currently making acquisitions in the US, and support of venture projects isn't on the agenda right now as we have decided to focus in on our core business of alcoholic beverages.

Ravi Iyer: UB has a large investment in the health care industry in India. We also created a scientific research foundation and biotechnology certainly has a place within the overall scope of our activities, particularly research activities. >

Vijay- you said earlier, that you expect $10 billion per year to come to india by way of foreign investments-in line with what the Chitambaran is hoping-but how can this be? India,so far has only managed to eke out 2 billion per year for the last couple of years.I can't see it happening without drastic improvement in infrastructure.

Are you planning to diversify into critical and more important areas like power, Computers telecom ..

What happen to your bussiness if nations womens group standup to achive what andhra pradesh women groups achived?

We have heard that your loneliness as a child shaped your outlook. was it very painful growing up as an only child? Yopur saon appears to follow the same fate.

What kind of acquisitions are you making in the US? What industries if you don't want to be specific? From where is the funding coming from?

Bihari Babu: I only invested in the Blitz. I did not take it over. The decision to close down the Hindi Edition was taken by the existing management based on economic grounds.

LKB: Frankly, I do not know what you mean about Update. I never had anything to do with it. It was a publication started by the previous promoters of western India enterprises which we subsequently took over. Unfortunately, Update did not come with the company. Our current media investment plans have been carefully thought through both strategically and financially.

AL Wright: My credit worthiness and credibility need be assessed by those who wish to lend to me or invest with me. Are you suggesting that you wish to do one of these? If not, my financial status should not interest you. As far as I am concerned, I am more than happy and satisfied and so are those that are financially involved with me.

Abhu Ram: I personally hope that the reform process in India goes forward uninterrupted. The fundamentals are strong and the resources are enormous. We need good management and the will to take hard decisions. > KB: > I think that India can be globally competitive in certain industries but not > in all. In the past, we have not invested enough in research to create our > own technology and skill. Besides this, our government's fiscal policies do > not help Indian industry to become internationally competitive. >

Vijay- What do you think about our present fiscal and monetary policies? Are they progressive enough to attract both foreign and private investments,so that we can get out of this 'third world' status (or should i say 'emerging market')and move to become a developed country, sooner than later.

hey mr mallaya: Do you think your highly western culture including womanising can help you sustain your business in the long run..

Mohan.M: As I said earlier we have built a hospital and school in Bangalore. We have provided scholarships for students India as well. We do not have a formal foundation but we certainly look at individual requests.

AL Wright: Ambition can be perceived in many different ways. We do not have several companies merely hanging around within our network. Each company has a focused objective and contributes towards our market leadership in the businesses in which we operate. If you are referring to sick companies like Best & Crompton and MCF, these were taken over when government policies required investments in core sector industries and when the alcoholic beverages industry faced more government restrictions than ever before. Even today when we have decided to focus on our core competence areas people tell me that the alcoholic beverages industry is too much of a high risk in India. That is why we are successfully globalising our business.

Mohan.M: UB has a well established operation in San Francisco and we have just announced the acquisition of 5 breweries in the US. It is a lot of hard work for me here, much like being on the internet right now.

Abhu Ram: My job is to continue where my dad left off, not to compete with him.

Sandeep (cheep, cheep!): I like chicks. I don't like eggs. You figure it out as to which came first.

Fledgling: We are certainly focusing on our liquor business. If not, we would not be market leaders. As far as our international business is concerned, we have been very successful and have more than doubled shareholder value in less than 18 months. Maybe you should tell me more about my international credit worthiness.

Vijay-Thanks for answering many of my questions, I have to leave now, have fun in San Fran and all the best.

Hi Vijay are you there or your machine is still down? Like the Indian Industrialists who complain of the bureaucracy but support it in the back as they are afraid of competition.

Mohan.M: We do not make any good wines as yet. We will shortly.

AL Wright: We do not live in hope when we market our products. Our objective is globalisation. The ultimate test is the result. KingFisher sales went up 67% this year in the UK and Europe. Shareholders should be concerned about the performance of the companies brands and not about whom and what we sponsor. They say life begins at 40 and you ask whether this has slowed me down. Sorry, I am not yet in a wheelchair.

Nitin: We do not have any diversification plans. We are already poised to take advantage of opportunities in the power sector through UB Engineering Ltd. which is well known for its erection of power plants.

Mohan.M: I entirely agree that there have been more promises of foreign investment rather than actual dollars flowing in. The government needs to do something about it. Part of the ten billion dollars I talked about earlier needs to go into infrastructural development.

Mohan.M: India is one of the most attractive emerging markets in the world today. Many investors would love to come in, but are concerned about stability, no exit policy, excessive government expenditure, high interest rates and devaluation. Our finance minister is a highly capable man, but needs an undiluted mandate which may not be possible under the current composition of our government.

Abhu Ram: I do not regret my childhood. I had plenty of friends though I would certainly have liked a brother or sister. That's why I have three children.

Thanks everybody, I enjoyed it, sorry about my initial server problems, but this new experience was fun.

Hey Vijay, Any plans to enter indian politics? We need a few good men like u!