Vijay Mallya may sell RCB stake to escape debt trap

July 10, 2012

vijay-mallya

Bangalore, July 10: After the financial turbulence at Kingfisher Airlines, Chairman Vijay Mallya's United Spirits is looking at reducing its debt and bringing back the good times. It may even sell its stake in its Indian Premier League (IPL) team Royal Challenges Bangalore (RCB).


Vijay Mallya's acquisition of the brand White & Mackay helped United Spirits reach the top of the global pyramid, but it came at a cost. Its debt has surpassed Rs 7,000 crore and the company is looking at monetising its non core assets to bring this down to manageable levels.


When the price is right, these assets could well include treasury stocks, a stake in United Breweries, and even a stake in its cricket franchise Royal Challengers Bangalore - all worth between Rs 1,500 and Rs 2,000 crore.


Ashok Capoor, President & MD, USL, said, "We have non core assets we can monetise anytime - treasury stocks, UBL stocks, Royal Challengers. But we will not do any selling at this stage. We will only sell when the price and timing are right to bring our debt down in the future.


That's not all. After touching 120 million cases in volume sales last fiscal, USL is now shifting focus to margins. So the sales target 200 million cases by FY 16 is taking a back seat. USL will drive brands that will contribute to revenues, even if they don't add to the volumes initially.


Ashok Capoor said, "We are chasing value, brands that are more premium and the trend is also towards premiumisation, so with that agenda I don't think we will do 200 million cases by FY 16. It will be less than that."


The company is also hoping that input costs will stabilise this year, making its job much easier.


In 2011, the prices of key input elements, extra neutral alcohol or ena and glass, rose significantly, forcing USL to opt for an aggressive, higher-than-usual, 3.5 per cent price hike. But USL says both ena prices and glass availability are improving this year and as they say - every drop counts.



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News Network
March 5,2020

New Delhi, Mar 5: Cricket's slow geographical expansion is turning out to be a blessing in disguise for the cash-rich Indian Premier League (IPL) which looks set to beat the dreaded novel coronavirus threat and go ahead as scheduled.

At a time when the number of recorded deaths because of the deadly outbreak across the globe is touching 3500 with a plethora of international sporting events getting cancelled, the IPL seems to be in a parallel universe where "all is well".

And there are multiple practical reasons why the T20 extravaganza will be held as per schedule. A major reason is the small number of countries that play the game and an even smaller fraction of overseas players, who will compete in the world's richest cricket league starting March 29 in Mumbai.

Till Thursday, the reported number of positive COVID-19 cases in India stood at 29, including 16 Italian tourists. However, none of the overseas recruits of eight IPL franchises have expressed any apprehensions about travelling to India.

Just over 60 players from cricket nations such as Australia, England, New Zealand, South Africa and the Caribbean islands comprise the elite foreign brigade and the reported positive cases of coronavirus in all these countries is next to none.

"The IOC is saying Olympics in Tokyo will be held as per schedule. In comparison, IPL is a minuscule tournament. If Olympics can be held, there's no reason why IPL can't be held," a BCCI official told PTI on conditions of anonymity.

STAR SPORTS FACTOR

The second and perhaps the biggest reason is broadcasters. Star Sports has bought the rights for Rs 16,347 crore (USD 2.55 billion) for a period of five years and their advertising revenues will take a huge hit if the tournament doesnt go ahead as planned. Former Delhi Daredevils CEO Hemant Dua explained the economics. "Look Star as well as BCCI has got everything insured. I don't know if there is any specific insurance cover for cancellation due to coronavirus but there is no chance of that happening if I read the situation properly," Dua told PTI.

GOVERNMENT GUIDELINES

The BCCI is also depending on the guidelines given by the government with regards to dealing with the health crisis.  "Every person availing international flights will be screened for coronavirus at the port of entry. That is the biggest health security measure. Obviously the BCCI will strictly adhere to any health advisory that government will issue," a Board official said.

But since there is an advisory that social gatherings are inadvisable at this point, won't it affect the league? "You will only come to know once the ticket sales start. If the stadiums are packed, that means people are coming but if stands are largely empty, then you can presume that people are wary.

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Agencies
July 7,2020

Mumbai, Jul 7: Australias second largest city Melbourne is set to go for another round of lockdown — for six weeks — from midnight Wednesday as the coronavirus has reared its ugly head in Victoria. And this has further confirmed that this years T20 World Cup in Australia is practically not possible. Even as the ICC keeps delaying the announcement, BCCI hopes that the official call will now be taken with this latest development.

Despite ICC's Financial and Commercial Affairs Committee (F&CA) chief Ehsan Mani as well as Cricket Australia making it clear time and again that hosting a T20 World Cup in the October-November window is practically impossible, the ICC hasn't made an official announcement and that hasn't impressed the Board of Control for Cricket in India (BCCI).

Speaking to media persons, a BCCI official said that it is only the ICC which has kept speaking about delaying the inevitable — announcing a postponement — even as Cricket Australia chairman Earl Eddings wrote to the international body that it looks highly unlikely that a T20 World Cup can be hosted in these trying times.

"As it is there were so many logistical difficulties and that is perfectly understandable. The Australian government has been addressing the public health issue efficiently and there are regulations in place which are crucial to address the challenges. In that background even Cricket Australia has been practical in their assessment of the situation.

"With this present situation where Melbourne is in lockdown, the ICC really must take the final call of closure on the issue if they have any concept of responsible decision making," the official said.

Not just CA chairman Eddings, but also Mani — who is also the PCB chief — recently told the media that the T20 World Cup cannot be held in a bio-secure environment.

"We have had a lot of discussions and the feeling is it (T20 World Cup) would not be possible this year. ICC has World Cups lined up in 2021 and 2023, so we have a gap year where we can adjust this event. God forbid if some player(s) falls ill or mishap occurs during the tournament, it will have a big impact and create panic in the cricket world and we can't take that risk. Having a bio-bubble environment is feasible for say a bilateral series like Pakistan in England, but it is very difficult when 16 teams are involved," he had said.

Cricket Australia's interim CEO Nick Hockley echoed the sentiments when he said the biggest challenge was to get the players from so many teams into the country.

"Our biggest challenge is getting 15 teams into the country. If I compare it with the prospect of a bilateral tour, you're talking about bringing one team in and then playing individual matches. But the prospect of bringing 15 teams in and having six or seven teams in one city at the same time, it's a much more complex exercise," he had said.

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News Network
January 8,2020

Indore, Jan 8: Former opener Gautam Gambhir is mighty impressed with the way K.L. Rahul batted during India's comfortable seven-wicket win over Sri Lanka in the second T20I and said it amazes him why the right-handed batsman can't play the same way in Tests. On Tuesday, Rahul top-scored with a 32-ball 45 as India chased down the meagre target of 143 with utmost ease at the Holkar Stadium.

"Rahul is in unbelievable form. It amazes me every time I see Rahul bat that why didn't he play the same way in Test cricket," Gambhir told the host broadcasters. "It's not about only white-ball cricket; it is about Test cricket too. He just got into a shell too much. With the kind of quality he posses, he is someone who can get you a 50-ball 100 in Test cricket as well. The kind of shots he has is superb," he added.

Shikhar Dhawan, who is making a return to the team after an injury lay-off, also contributed with a "rusty" 30-ball 32. Both Dhawan and Rahul are virtually playing for the second opener's slot for the World T20, with Rohit Sharma set to be one.

And Gambhir feels going by the current form, Rahul should be opening the batting alongside Rohit in Australia. "You can't compare IPL to international cricket. When you're playing for Delhi Capitals, you know there's no one waiting for the opportunity, but when you're playing for the country and you know there's someone who's actually can replace you, there'll always be pressure. And today it was shown who's in better form," Gambhir said.

The cricketer-turned-politician, however, exuded confidence that Dhawan will bounce back strongly in the next game. "Shikhar Dhawan looked rusty but it's a good thing that he got some runs under his belt. It will help him when he walks out to bat in the next game. Had he got out early, the pressure would have been more," he said.

India will play Sri Lanka in the final T20I in Pune on Friday before taking on Australia in a three-match ODI series beginning January 14 in Mumbai.

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