history edited

8/4/2019 History Edited

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5.00

AnnexuresForm No. TIAS-FRM-75

MINOR PROJECT REPORT ON

KINGFISHER

Submitted in partial fulfilment of the requirements

for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATIONto

GuruGobind Singh Indraprastha University, Delhi

Under the Guidance of Submitted byDr. R.K Sharma Akash Reddy

DEAN BBA-III Semester

Enrollment No. 01521301710

Session 2011 12


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Acknowledgement

I owe a great thanks to a many people who helped and supported me during the

writing of this project report.

My deepest thanks to Dr. R.K Sharma, the Guide of the project, for guiding and

correcting various documents of mine with attention and care. He has taken pains to go

through the project and make necessary correction as and when needed.

My deep sense of gratitude to Mr. Asim Sahore and Mr. G.N Suresh Rao (Zonal

Manager - AP Breweries Ltd.) for their unconditional support and guidance at every step of

this project. I would also like to thank my Institution, Tecnia Institute of Advanced Studies,

Rohini and all my faculty members without whom this project would have been a distant

reality. I also extend my heartfelt thanks to my family, friends and well wishers.

Date: _______________ (AKASH REDDY)


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Contents

S.No Topic Page No.1. Chapter1: Introduction and Company History 42. Chapter 2: Vision, Mission and Objectives of the Company 153. Chapter 3: Market Linkages 174. Chapter 4: Financial Linkages 235. Chapter5: Company Image 266. Chapter 6: Conclusion 297. References/Bibliography 30

LIST OF TABLES

Table No. Description Page No.

1. Company details at a Glance 4-52. FORCE INDIA Fact-file 17-183. Royal Challengers Bangalore Fact-file 194. Kingfisher Airlines Fact-file 21-225. NDTV Good Times Fact-file 226. Balance sheet of the company during the last 3 years 237. P&L sheet for the last 3 financial years 248. Cash flows of the company for the last 3 financial years 25

LIST OF PICTURES

Picture No. Description Page No.

1. Kingfisher Beer Logo 202. Kingfisher Calendar Model Hunt 203. Factors affecting the business of Kingfisher Airlines 274. SWOT (Strengths, Weaknesses, Opportunities and

Threats) Study

27


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Chapter1

HISTORY

Kingfisher Airlines was established in 2003. It is owned by the Bengaluru based UnitedBreweries Group. The airline started commercial operations in 9 May 2005 with a fleet of

four new Airbus A320-200s operating a flight from Mumbai to Delhi. It started its

international operations on 3 September 2008 by connecting Bengaluru with London.

On 7 June 2010 Kingfisher became a member elect of the Oneworldairline alliance when it

signed a formal membership agreement. A firm date to join the alliance will be announced

once the implementation process is underway; it possibly may take 18 to 24 months.

Table 1: Company details at a glance

Founded : 2003

Commenced operations : 9th May 2005

Hubs:

y Bengaluru International Airporty Chhatrapati Shivaji International Airport (Mumbai)

Secondary hubs:

y Indira Gandhi International Airport (Delhi)y Netaji Subhash Chandra Bose International Airport (Kolkata)

Focus cities:

y Chennai International Airporty Cochin International Airport (Kochi)y Pune International Airporty Rajiv Gandhi International Airport (Hyderabad)y Sardar Vallabhbhai Patel International Airport (Ahmedabad)


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ARTICLE OF ASSOCIATION

(adopted by special resolution passed on17th June 2010)

PRELIMINARY-

The regulations in the schedule to the Companies Regulations 1985 as in force at the date of

the incorporation of the Company shall notapply to the Company.

In these Articles, except where the subject or context otherwise requires:

i. Act means the Companies Act 2006 including any modification or re-enactment ofitfor the time being in force;

ii. Articles means these articles of association as altered from time to time byspecialresolution;

iii.Auditors means the auditors of the Company;iv.

The Board means the directors or any of them acting as the board of directors of

theCompany;

v. Certificated Share means a share in the capital of the Company that is notanuncertificated share and references in these Articles to a share being held

incertificated form shall be construed accordingly;

Frequent-flyer program : King Club

Airport lounge : Kingfisher Lounge

Alliance : Oneworld (future)

Subsidiaries : Kingfisher Xpress

Fleet size : 66 (+130 orders)

Destinations : 71

Company slogan : Fly The Good Times

Parent Company : United Breweries Group

Headquarters : Kingfisher House, Mumbai, Maharashtra

Key people : Vijay Mallya (CMD) and Sanjay Aggarwal (CEO)

Website : www.fl kin fisher.com


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vi.Clear Days in relation to the sending of a notice means the period excluding the dayonwhich a notice is given or deemed to be given and the day for which it is given or

onwhich it is to take effect;

SHARE CAPITAL AND LIMITED LIABILITY-

The liability of the members is limited to the amount, if any, unpaid on the shares held by

them. Subject to the provisions of the Companies Acts and without prejudice to any rights

attached to any existing shares or class of shares, any share may be issued with such rights or

restrictions as the Company may by ordinary resolution determine or, subject to and in

default of such determination, as the board shall determine.

VARIATIONOF RIGHTS-

Subject to the provisions of the Companies Acts, if at any time the capital ofthe Company is

divided into different classes of shares, the rights attached to anyclass may (unless otherwise

provided by the terms of allotment of the shares of thatclass) be varied or abrogated, whether

or not the Company is being wound up, either:

i. With the written consent of the holders of three-quarters in nominal value ofthe issuedshares of the class (excluding any shares of that class held astreasury shares), which

consent shall be in hard copy form or in electronicform sent to such address (if any)

for the time being specified by or on behalf of the Company for that purpose, or in

default of such specification to theoffice, and may consist of several documents, each

executed or authenticatedin such manner as the board may approve by or on behalf of

one or moreholders, or a combination of both.

ii. With the sanction of a special resolution passed at a separate general meetingof theholders of the shares of the class.

SHARE CERTIFICATES-

Every member, on becoming the holder of any certificated share (except a recognised person

in respect of whom the Company is not required by law tocomplete and have ready for


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delivery a certificate) shall be entitled, without payment,to one certificate for all the

certificated shares of each class held by him (and, ontransferring a part of his holding of

certificated shares of any class, to a certificate forthe balance of his holding of certificated

shares). He may elect to receive one or moreadditional certificates for any of his certificatedshares if he pays for every certificateafter the first a reasonable sum determined from time to

time by the board.

LIEN-

The Company shall have a first and paramount lien on every share (not beinga fully paid

share) for all moneys payable to the Company (whether presently or not) in respect of that

share.

CALLS ON SHARES-

Subject to the terms of allotment, the board may from time to time make calls on the

members in respect of any moneys unpaid on their shares (whether in respectof nominal

value or premium). Each member shall (subject to receiving at leastfourteen clear days

notice specifying when and where payment is to be made) pay tothe Company as required by

the notice the amount called on his shares.

FORFEITURE AND SURRENDER-

If a call or any instalment of a call remains unpaid in whole or in part after it has become due

and payable, the board may give the person from whom it is due not less than 14 clear days

notice requiring payment of the amount unpaid together withany interest which may have

accrued and any costs, charges and expenses incurred bythe Company by reason of such non-

payment. The notice shall name the place wherepayment is to be made and shall state that if

the notice is not complied with the sharesin respect of which the call was made will be liable

to be forfeited.


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TRANSFEROF SHARES-

Without prejudice to any power of the Company to register as shareholder a person to whom

the right to any share has been transmitted by operation of law, the instrument of transfer of a

certificated share may be in any usual form or in any otherform which the board mayapprove. An instrument of transfer shall be signed by oron behalf of the transferor and, unless

the share is fully paid, by or on behalf of thetransferee. An instrument of transfer need not be

under seal.

TRANSMISSIONOF SHARES-

If a member dies, the survivor or survivors where he was a joint holder, andhis personal

representatives where he was a sole holder or the only survivor of jointholders, shall be the

only persons recognised by the Company as having any title tohis interest. Nothing in these

Articles shall release the estate of a deceased member(whether a sole or joint holder) from

any liability in respect of any share held by him.

ALTERATIONOF SHARE CAPITAL-

All shares created by increase of the Company's share capital, byconsolidation, division or

sub-division of its share capital or the conversion of stockinto paid-up shares shall be:

i. Subject to all the provisions of these Articles, including without limitationprovisionsrelating to payment of calls, lien, forfeiture, transfer andtransmission.

ii. Unclassified, unless otherwise provided by these Articles, by the resolutioncreatingthe shares or by the terms of allotment of the shares.

GENERAL MEETINGS-

The board shall convene and the Company shall hold general meetings asannual general

meetings in accordance with the requirements of the Companies Acts.


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VOTES OF MEMBERS-

Subject to any rights or restrictions attached to any shares, on a vote on a resolution on a

show of hands:

i. Every member who is present in person shall have one vote.ii. Subject to paragraph.iii.Every proxy present who has been duly appointed by one or more members entitled to

vote on the resolution has one vote.

NUMBEROFDIRECTORS-

Unless otherwise determined by ordinary resolution, the number of directors(other than

alternate directors) shall be not less than two but shall not be subject toany maximum in

number.

APPOINTMENT AND RETIREMENTOFDIRECTORS-

At every annual general meeting one-third of the directors or, if their number is not three or a

multiple of three, the number nearest to one-third shall retire from office; but if any director

has at the start of the annual general meeting been in officefor three years or more since his

last appointment or re-appointment, he shall retire atthat annual general meeting.

DISQUALIFICATION AND REMOVAL OFDIRECTORS-

A person ceases to be a director as soon as:

i. That person ceases to be a director by virtue of any provision of the Act or isprohibited from being a director by law.

ii.

A bankruptcy order is made against that personiii.A composition is made with that persons creditors generally in satisfaction of that

persons debts.


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iv. A registered medical practitioner who is treating that person gives a written opinion tothe Company stating that that person has become physically ormentally incapable of

acting as a director and may remain so for more than three months.

v. By reason of that persons mental health, a court makes an order which whollyorpartly prevents that person from personally exercising any powers or rightswhich that

person would otherwise have.

vi. Notification is received by the Company from the director that the director isresigning or retiring from office, and such resignation or retirement has takeneffect in

accordance with its terms, or his office as a director is vacatedpursuant to Article 117.

vii.That person has been absent for more than six consecutive months withoutpermissionof the board from meetings of the board held during that periodand his alternate

director (if any) has not attended in his place during thatperiod and the board resolves

that his office be vacated.

viii.That person receives notice signed by not less than three quarters of the otherdirectorsstating that that person should cease to be a director. In calculatingthe number of

directors who are required to give such notice to the director-

a. An alternate director appointed by him acting in his capacity as such shall beexcluded.

b. A director and any alternate director appointed by him andacting in his capacity assuch shall constitute a single director for this purpose so that notice by either shall

be sufficient.

GRATUITIES, PENSIONS AND INSURANCE-

The board may (by establishment of, or maintenance of, schemes orotherwise) provide

benefits, whether by the payment of gratuities or pensions or byinsurance or otherwise, for

any past or present director or employee of the Companyor any of its subsidiary undertakings

or anybody corporate associated with, or anybusiness acquired by, any of them, and for anymember of his family (including aspouse, a civil partner, a former spouse and a former civil

partner) or any person whois or was dependent on him, and may (as well before as after he

ceases to hold suchoffice or employment) contribute to any fund and pay premiums for the

purchase orprovision of any such benefit.


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ACCOUNTS-

No member shall (as such) have any right to inspect any accounting records orother book or

document of the Company except as conferred by statute or authorisedby the board or by

ordinary resolution of the Company or order of a court of competent jurisdiction.

WINDING UP

If the Company is wound up, the liquidator may, with the sanction of a specialresolution of

the Company and any other sanction required by the Insolvency Act1986:

i. Divide among the members in specie the whole or any part of the assets oftheCompany and may, for that purpose, value any assets and determine how

thedivision shall be carried out as between the members or different classes

ofmembers.

ii. Vest the whole or any part of the assets in trustees for the benefit of theMembers.iii.Determine the scope and terms of those trusts,but no member shall be compelled to

accept any asset on which there is a liability.

iv. The power of sale of a liquidator shall include a power to sell wholly orpartially forshares or debentures or other obligations of another body corporate,either then already

constituted or about to be constituted for the purpose of carryingout the sale.

INDEMNITY-

Subject to the provisions of the Companies Acts, but without prejudice to anyindemnity to

which the person concerned may otherwise be entitled, every director orother officer of the

Company (other than any person (whether an officer or not)engaged by the Company as

auditor) shall be indemnified out of the assets of theCompany against any liability incurred

by him for negligence, default, breach of dutyor breach of trust in relation to the affairs of the

Company, provided that this Articleshall be deemed not to provide for, or entitle any such

person to, indemnification tothe extent that it would cause this Article, or any element of it, to

be treated as voidunder the Act or otherwise under the Companies Acts.


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MEMORANDUM OF ASSOCIATIONOFKINGFISHER

(effective 1stOctober 2009)

1. The name of the Company is Kingfisher.2. The registered office of the Company will be situated in England.

3. The liability of the Members is limited.

4. The share capital of the Company is 100,000 divided into two hundred thousandshares of

50p each**.

** By an ordinary resolution passed on 8th May, 1984, the authorised share capital of the

Company was increased to 57,500,000divided into 115,000,000 ordinary shares of50p each.

By an ordinary resolution passed on 30th May, 1985, the authorised share capital of the

Company was increased to125,000,000 divided into 250,000,000 ordinary shares of 50p

each.

By an ordinary resolution passed on 28th April, 1987, the authorised share capital of the

Company was increased to177,000,000 divided into 354,000,000 ordinary shares of 50p

each.

By an ordinary resolution passed on 3rd June, 1987, each ordinary share of 50p was

subdivided into two ordinary shares of 25 p each.By an ordinary resolution passed on 1st

June, 1994, the authorised share capital of the Company was increased to200,000,000

divided into 800,000,000 ordinary shares of 25p each.

By an ordinary resolution passed on 27th May 1998, each of the 800 million ordinary shares

of 25p each in the capital of theCompany, whether issued or unissued, were sub-divided into

two ordinary shares of12.5p each.

By an ordinary resolution passed on24

th

August2001, every one issued ordinary share of

12.5p each in the capital of theCompany was subdivided into 10 shares of1.25p in the capital

of the Company, and immediately consolidated into one ordinaryshare of 13.75 p in the

capital of the Company.


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By the same resolution passed on 24th August 2001, each of the authorised but unissued

ordinary shares of 12.5 p each in thecapital of the Company was consolidated into one

undesignated share of a nominal value equal to the aggregate nominalamount of the unissued

ordinary shares so consolidated, and immediately subdivided into such number of ordinaryshares of13.75p each as was equal to the nominal value of each undesignated share divided

by 13.75, with any fraction arising therefrom being cancelled.

By an ordinary resolution passed on 7th June 2002, the authorised share capital of the

Company was increased to475,000,000 divided into 3,454,545,454 ordinary shares of

13.75p each.

By an ordinary resolution passed on 4th July 2003, every one issued ordinary share of13.75

pence each in the capital of theCompany was subdivided into 7 shares of1 27/28 pence each

and forthwith upon such subdivision, every eight subdividedordinary shares were

consolidated into one new ordinary share of155/7 pence each in the capital of the Company.

By an ordinary resolution passed on 3rd June 2009, the authorised share capital of the

Company was increased to624,285,660 divided into 3,972,728,371 ordinary shares of 15

5/7.

WE, the several persons whose names, address and descriptions are subscribed,

aredesirous of being formed into a Company in pursuance of this Memorandum

ofAssociation and we respectively agree to take the number of shares in the capital of

theCompany set opposite our respective Name/Names, Addresses and Descriptions of

Number of Shares taken by each Subscriber/Subscribers.

PETER MICHAEL SHIRLEY ONE ANTHONY DENNIS MACALAY ONE

The Old Cottage 30 Stanhope Road

Waterend Lane London N6 5NG

Ayot green, Welwyn Solicitor

Herts. AL6 9BB

Solicitor


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DATED this 6th day of September1982

WITNESS to the above Signatures:

T.W. TURTLE

19 Grasmere Avenue

Merton Park

London SW19

Solicitor


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Chapter 2

VISION

A movement of Gods people, realising His kingdom worldwide.

People who pray for the coming of the Kingdom transform all spheres of life; address the

total need of the world and disciple nations.

MISSION

As an International Mobilising Movement we exist worldwide for the body of Christ in all its

different forms. Our calling, task and order are included in the following mission statement:

y To equip, coach and mentor leaders to mobilise others in a strategic Kingdommovement

y To facilitate ground level kingdom focused movements in and through strategicpartnerships in different spheres, settings and contexts.

y We therefore journey with Gods people from all nations, mobilising them toproclaim, model and teach His kingdom.

OBJECTIVES

1. We constitute a large, global group based in India. We associate with world leaders inorder to adopt technologies and processes that will enable a leadership position in a

large spectrum of activities.

2. We are focused on assuming leadership in all our target markets.3. We seek to be the most preferred employer wherever we operate.4. We recognize that our organization is built around people who are our most valuable

asset.

5. We will always be the partner of choice for customers, suppliers and other creators ofinnovative concepts.


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6. We will continually increase the long-term value of our Group for the benefit of ourshareholders.

7. We will operate as a decentralized organization and allow each business todevelopwithin our stated values.

8. We will be a major contributor to our National Economy and take full advantage ofour strong resource base.

9. We commit ourselves to the ongoing mission of achieving Scientific Excellence.10.Quality leadership is vital to the long-term success of the UB Group in an increasingly

competitive marketplace.

11.Building quality into our workplace, products and service is essential to a successfulfuture for our customers, employees, suppliers communities and shareholders.

12.The UB Group will work to provide products and services that always meet or exceedexpectations.

13.Management will commit resources and create an environment in which eachemployee can contribute skills, talents and ideas to a never-ending process of

improvement and innovation in all aspects of our business.

Dr. Vijay Mallya

Chairman


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C t

MARKET L NKAGE

Under t i secti n, we will be discussing and reviewing t e vari us lines of businesses

managed by t e UB Group- t e parent company of Kingfisher.

1 FOR E INDIAForce India Formula One Team Limited, trading as Force India F1, is a British based Indian

Formula Onemotor racing team. The team was formed in October 2007 when a consortium

led by Indian businessman Vijay Mallya and MichaelMol boughtthe SpykarF1team for

88 million. Force India F1 represents increased Indian participation within Formula One, with

Greater Noida set to host the first Indian Grand Pri in 2011. The Fdration Internationale

de l utomobile confirmed the change in name from Spykar to Force India on 24 October

2007.

Force India-Mercedes

Full name Force India F1 Team

Base Silverstone, England, UK

Team principal s) Vijay Mallya

2011Formula One season

Race drivers Adrian Sutil (GER)


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Paul diResta (GBR)

Test drivers Nico Hlkenberg (GER)

Chassis Force India VJM04

Engine Mercedes-Benz

Tyres Pirelli

Formula One World Championship Career

Debut 2008 Australian Grand Pri

Latest race 2011 European Grand Pri

Races competed 61

Constructors'

Championships0

Drivers'

Championships0

Race victories 0

Pole positions 1

Fastestlaps 1

2010 position 7th (68 points)

Tabl 2: Key-facts about FOR E INDIA


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2 ROYAL CHALLENGERSBANGALORERoyal Challengers Bangalore is a cricket team based in Bangalore that plays in the Indian

Premier League. The team is owned by Dr. Vijay Mallya, through his flagship firm UB

Group and coached by Ray Jennings

Team Anthem: The theme song of the team for the 2008 season was Jeetenge Hum Shaan

Se. The team anthem, Game for More was created for the 2009 season. The music was

composed by Amit Trivedi.

Table 3: Key-facts about ROYAL CHALLENGERSBANGALORE

Royal Challengers Bangalore

Coach Ray Jennings

Captain Daniel Vettori

Colours

Founded 2008

Home Ground M. Chinnaswamy Stadium

Capacity 55,000

Owner Dr. Vijay Mallya

Chief Executive Brijesh Patel

Manager Avinash Vaidya

Official Website www.royalchallengers.com


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3 KINGFISHER(BEER)Kingfisher beeris an Indian beer brewed by United Breweries Group. With a market share of

over 36%, itis India's largest selling beer, with 1 out of every 3 bottles of beer sold in India

being a Kingfisher brand. Itis currently available in 52 countries outside India.

Pic 1: KingfisherLogo

Slogan: KingfisherBeeris sometimes promoted as The King of Good Times.

4 CALENDARThe Kingfisher SwimsuitCalendar is another successful property the brand has developed

overthe years. Conceptualised along the lines ofthe Pirelli calendar, the Kingfisher Swimsuit

Calendaris a blend of fashion, fun and glamour. Overthe years, its unveiling has become one

ofthe most eagerly anticipated events in the Indian fashion calendar.

Pic 2: Kingfisher CalendarModel-Hunt


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5. KINGFISHERAIRLINESKingfisher Airlines is an airline group based in India. Its head office is Kingfisher House in

Vile Parle (East), Mumbai. Kingfisher Airlines, through its parent companyUnited Breweries

Group, has a 50% stake in low-cost carrier KingfisherRed.

Kingfisher Airlines is one of the seven airlines to be ranked as a 5-star airline by the

independent research consultancy firm Skytrax. Kingfisher operates more than 375 daily

flights to 71 destinations, with regional and long-haul international services. In May 2009,

Kingfisher Airlines carried more than a million passengers, giving itthe highest market share

among airlines in India.

KingfisherAirlines

IATA

IT

ICAO

KFR

Call Sign

KINGFISHER

Founded 2003

Commenced Operations 9thMay 2005

Hubs

Bengaluru International Airport

Chhatrapati Shivaji International Airport (Mumbai)

Secondary Hubs

Indira Gandhi International Airport (Delhi)

Netaji Subhash Chandra Bose Intl. Airport (Kolkata)

Focus Cities

Chennai International Airport

Cochin International Airport (Kochi)

Pune International Airport

Rajiv Gandhi International Airport (Hyderabad)

Sardar Vallabhbhai Patel Intl. Airport (Ahmedabad)

Frequent-flier Program King Club

Airport Lounge Kingfisher Lounge

Alliance OneWorld (future)

Subsidiaries Kingfisher Xpress

Fleet Size 66 (+130 Orders)

Destinations 71


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Company Slogan Fl Th G

Tim

ParentCompany United Breweries Group

Headquarters Kingfisher House, Mumbai, Maharashtra

Key People

Dr. Vijay Mallya (CMD)

Sanjay Aggarwal (CEO)

Table 4: Key-facts about KINGFISHERAIRLINES

6. NDTV GOOD TIMESNDTV Good Times is an India-based lifestyle television channelthatis owned by New Delhi

Television. The channelis ajoint venture between NDTV and Vijay Mallya's UB Group and

itlaunched in September 2007.

NDTV Good Times features programming catering to young, urban Indians with areas of

interest such as fitness, parenthood, travelling, marriage and leisure. Programming includes

talk shows, cooking shows, programs on fashion, health & wellness, technology and Indian

marriages.

NDTV Good Ti es

Launched 7th September 2007

Owned byNDTV

UB Group

Country India

SisterChannel(s)

NDTV India

NDTV 24x7

NDTV Profit

Website www.goodtimes.ndtv.com

Table 5: Key-facts about NDTV Good Ti es


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Chapter 4

FINANCIAL LINKAGES

Balance Sheet ofKingfisher Airlines

Sources Of Funds Mar '08 Mar '09 Mar '10

Total Share Capital 135.8 362.91 362.91

Equity Share Capital 135.8 265.91 265.91

Share Application Money 10.09 8.11 7.48

Preference Share Capital 0 97 97

Reserves 52.99 -2,496.36 -4,268.84

Revaluation Reserves 0 0 0

Net Worth 198.88 -2,125.34 -3,898.45

Secured Loans 592.38 2,622.52 4,842.43Unsecured Loans 342 3,043.04 3,080.17

Total Debt 934.38 5,665.56 7,922.60

Total Liabilities 1,133.26 3,540.22 4,024.15

Application Of Funds Mar '08 Mar '09 Mar '10

Gross Block 322.33 1,891.80 2,048.14

Less: Accum. Depreciation 43.55 316.29 493.62

Net Block 278.78 1,575.51 1,554.52

Capital Work in Progress 346.25 1,630.95 980.61

Investments 0 0.05

0.05

Inventories 48.64 147.25 164.88

Sundry Debtors 27.16 229.84 322.49

Cash and Bank Balance 5.84 49.41 50.91

Total Current Assets 81.64 426.5 538.28

Loans and Advances 832.49 3,640.42 4,604.31

Fixed Deposits 274.29 122.45 155.56

Total CA, Loans & Advances 1,188.42 4,189.37 5,298.15

Deferred Credit 0 0 0

Current Liabilities 687.31 3,814.63 3,908.03

Provisions 9.52 45.55 46.77

Total CL & Provisions 696.83 3,860.18 3,954.80

Net Current Assets 491.59 329.19 1,343.35

Miscellaneous Expenses 16.64 4.51 145.64

Total Assets 1,133.26 3,540.21 4,024.17

Contingent Liabilities 6,797.11 27,468.70 23,135.77

Book Value (Rs) 13.9 -83.88 -150.54

Table 6: Balance sheet of the company during the last 3 years


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Profit & Loss Account ofKingfisher Airlines

Income Mar '08 Mar '09 Mar '10

Sales Turnover 1,456.28 5,269.17 5,067.92

Excise Duty 0 0 0

Net Sales 1,456.28 5,269.17 5,067.92

Other Income 113.62 598.9 -333.3

Stock Adjustments 0 0 0

Total Income 1,569.90 5,868.07 4,734.62

Expenditure Mar '08 Mar '09 Mar '10

Raw Materials 43.79 51.19 40.89

Power & Fuel Cost 889.3 2,602.62 1,802.99

Employee Cost 244.96 825.42 689.38

Other Manufacturing Expenses 408.21 1,112.85 1,108.82Selling and Admin Expenses 180.39 1,062.74 1,067.54

Miscellaneous Expenses 14.81 167.55 108.58

Preoperative Exp Capitalised 0 0 0

Total Expenses 1,781.46 5,822.37 4,818.20

Mar '08 Mar '09 Mar '10

Operating Profit -325.18 -553.2 249.72

PBDIT -211.56 45.7 -83.58

Interest 434.44 2,029.33 2,245.59

PBDT -646 -1,983.63 -2,329.17

Depreciation 18.28 133.2 162.8

Other Written Off 18.31 38.39 54.49

Profit Before Tax -682.59 -2,155.22 -2,546.46

Extra-ordinary items -0.97 0 31.28

PBT (Post Extra-ord Items) -683.56 -2,155.22 -2,515.18

Tax -494.45 -546.38 -770.69

Reported Net Profit -188.14 -1,608.83 -1,647.22

Total Value Addition 1,737.67 5,771.17 4,777.31

Preference Dividend 0 0 0

Equity Dividend 0 0 0

Corporate Dividend Tax 0 0 0Per share data (annualised)

Shares in issue (lakhs) 1,357.99 2,659.09 2,659.09

Earning Per Share (Rs) -13.85 -60.5 -61.95

Equity Dividend (%) 0 0 0

Book Value (Rs) 13.9 -83.88 -150.54

Table 7: P&L sheet for the last 3 financial years


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Cash Flows ofKingfisher Airlines

Mar '08 Mar '09 Mar '10

Net Profit Before Tax -68

2.5

9 -2155

.21

-2417

.92Net Cash From Operating Activities -541.52 -645.78 -1665.09

Investing Activities 13.82 206.63 235.13

Net Cash (used in)/from Financing Activities -9.23 290.11 1464.55

Net (decrease)/increase In Cash and Cash Equivalents -536.93 -149.04 34.6

Opening Cash & Cash Equivalents 817.05 -320.91 171.87

Closing Cash & Cash Equivalents 280.12 171.87 206.47

Table 8: Cash flows of the organisation for the last 3 financial years


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26

Chapter5

COMPANYS IMAGE

United Breweries Limited(UBL) was founded on march 15, 1915, in Madras by Thomas

Leishman, a Scotsman, also its first managing director. UBL manufactured and sold only

bulk beer for troops of both the World wars.

The Companys brewing tradition has a legacy of nearly 130 eventful years. Along its

journey through the global alchohlic beverages, landscape, UBL has consistently influenced

business paradigms, beer drinking habits and conventional mindsets.

In this particular report we will discuss the grand image of UB groups one of the very most

important brand namely KINGFISHER which further has various other sub categories.

KINGFISHER AIRLINES:

Kingfisher Airlines Limited is termed as the first full frills- true value carrier.On may 8,

2005 the king of good times launched his Kingfisher airlines(KFA). The challenge for the

new airline was to stand out in the crowd specially when they had entrenched players like

Indian airlines & jet airlines.

LAUNCH STRATEGY:

Backed with an add budget of Rs. 25 crs, KFA began its add campaign a few weeks before

the launch, booking every possible touch point relevant to the business traveller. In mid

august, KFA launched its 2nd campaign Fredom from boring air travel to coincide with

Independence Day.Media analysts credit a large part of KFAs success to its flamboyant

promoter & his directly addressing the press & customers. Attractive cabin crew in designer

uniform, gourmet meals & personal screens for each seat add to the premium experience.

PRICING:

Kingfisher caters to both the premium and middle income group.


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Pic. 3: FACTORS AFFECTING THE BUSINESS OFKINGFISHER AIRLINES:

SWOT ANALYSIS

Pic. 4: SWOT Study

STRENGHTS

y Strong brand value andreputation in the minds of

customers.

y Quality of the service.y Route rationalization.y First airline to have a new

fleet of airbuses.

y Continuous innovations

WEAKNESSES

y Still a not-in-profitorganisation.

y High ticket pricing.y Facing a tough competition

from competitors.

OPPORTUNITIES

y The expanding tourismindustry.

y The non penetrated domesticmarket.

y International market.y

Untapped air cargo market.

THREATS

y Competitors.y Infrastructure issues.y Fuel price hike.y Tourism saturation.y

Economic slowdown.y Promotions and sponsorship

declining

POLITICAL FACTORS ECONOMICFACTORS

Open Sky PolicyContribution to the Economy

FDI Limits

Rising Cost of Air-Fuel

Investment in the sector


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The 4 Ps of the organisation

PRICE

The price segment that Kingfisher targets, is the higher income group orthe upper middle

class background.There are a few segments majorly for the youth and highLifestyle

segments.

Sec A, Sec B+ socio economic class mainly in the age group of 25-45 years are the main

segments for which there is a specific price offered by kingfisher.Some of the services

offered by Kingfisher do emphasize on their policy to target those segments which are willing

to pay for luxury.

PRODUCT

Currently the Kingfisher airline operates with aircrafts like the Airbus A320, A319-100 and

ATC-72.

After acquiring the Deccan kingfisher has started a new fleet known as KING

ISHER RED.

PEOPLE

The employees are considered as the Backbone of the brand. The company lays enormous

stress on the well-being of their staff. Some of the highlights of their people-centric approach

are:

y Extensive trainings for the Staffy Hospitality industry and consider their customer as guestsy Interpersonal skills, aptitude, and service knowledge

PLACE

Online booking: www.kingfisher.comOnline booking (3

rdparty): yatra.com, MakeMyTrip.com, ezeego1.com

Credit cards & debit cards payment

SMS / Call

Outlets in every major city and at every airport across the country


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Chapter 6

Conclusion

After detailed and thorough study of the popular brand of todays market, I would definitely

agree to join the KINGFISHER GROUP. I have gone through the financial status as well as

the market reputation of the company. People do believe the brand with closed eyes in

todays time. But for my own decision I have compared not only the financial position of last

3 years but also the public faith for the company. The most encouraging factor is its Brand

value and excellent quality service for the customers. KINGFISHER is the first company to

have a new fleet of the airbuses. Every year this company came out with new ideas and

innovations.

Overall view also shows that Kingfisher will still take some time to be a fully strong

organisation. The common mans conception about the airlines is that it is overtly expensive

and is further branded as A CARRIER FOR THE ELITE CLASS. In spite of having very

strong brand position, KINGFISHER has had to face very rich competition in the market.

Lately, a radical shift has been seen in the companys policy, after it acquired various low-

cost airlines and came up with attractive and competitive airfares.

Moreover, I believe there is strong international market that can be tapped by the company.

As we know, that thetourism industry is growing day-by-day, so Kingfisher can think of

expanding their business to cater to foreign tourists thereby bringing in foreign exchange for

the Indian market.

My overall view about the company is an excellent one and I will always be happy to be part

of this eminent organisation.

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