5.

00

Annexures
Form 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 ADMINISTRATION

to

Guru Gobind Singh Indraprastha University, Delhi

Under the Guidance of Dr. R.K Sharma DEAN

Submitted by Akash Reddy BBA-III Semester Enrollment No. 01521301710

Session 2011 12

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)

Contents
S.No
1. 2. 3. 4. 5. 6. 7.

Topic
Chapter 1: Introduction and Company History Chapter 2: Vision, Mission and Objectives of the Company Chapter 3: Market Linkages Chapter 4: Financial Linkages Chapter 5: Company Image Chapter 6: Conclusion References/Bibliography

Page No.
4 15 17 23 26 29 30

LIST OF TABLES

Table No. 1. 2. 3. 4. 5. 6. 7. 8.

Description
Company details at a Glance FORCE INDIA Fact-file Royal Challengers Bangalore Fact-file Kingfisher Airlines Fact-file NDTV Good Times Fact-file Balance sheet of the company during the last 3 years P&L sheet for the last 3 financial years Cash flows of the company for the last 3 financial years

Page No. 4-5 17-18 19 21-22 22 23 24 25

LIST OF PICTURES Picture No. 1. 2. 3. 4. Description Kingfisher Beer Logo Kingfisher Calendar Model Hunt Factors affecting the business of Kingfisher Airlines SWOT (Strengths, Weaknesses, Opportunities and Threats) Study Page No. 20 20 27 27

Chapter 1
HISTORY Kingfisher Airlines was established in 2003. It is owned by the Bengaluru based United Breweries 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 Commenced operations Hubs:
y y

: 2003 : 9th May 2005

Bengaluru International Airport Chhatrapati Shivaji International Airport (Mumbai)

Secondary hubs:
y y

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

Focus cities:
y y y y
y

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

Frequent-flyer program Airport lounge Alliance Subsidiaries Fleet size Destinations Company slogan Parent Company Headquarters Key people Website

: King Club : Kingfisher Lounge : Oneworld (future) : Kingfisher Xpress : 66 (+130 orders) : 71 : Fly The Good Times : United Breweries Group : Kingfisher House, Mumbai, Maharashtra : Vijay Mallya (CMD) and Sanjay Aggarwal (CEO) : www.flykingfisher.com

ARTICLE OF ASSOCIATION (adopted by special resolution passed on17th June 2010)

PRELIMINARYThe 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 of itfor the time being in force; ii. Articles means these articles of association as altered from time to time by specialresolution; 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 not anuncertificated share and references in these Articles to a share being held incertificated form shall be construed accordingly;

vi. Clear Days in relation to the sending of a notice means the period excluding the day onwhich 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 LIABILITYThe 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.

VARIATION OF RIGHTSSubject 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 issued shares 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 the holders of the shares of the class.

SHARE CERTIFICATESEvery 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

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 certificated shares if he pays for every certificateafter the first a reasonable sum determined from time to time by the board.

LIENThe 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 SHARESSubject 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 SURRENDERIf 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 nonpayment. 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.

TRANSFER OF SHARESWithout 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 may approve. 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.

TRANSMISSION OF SHARESIf 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.

ALTERATION OF SHARE CAPITALAll 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 limitationprovisions relating to payment of calls, lien, forfeiture, transfer andtransmission. ii. Unclassified, unless otherwise provided by these Articles, by the resolutioncreating the shares or by the terms of allotment of the shares.

GENERAL MEETINGSThe board shall convene and the Company shall hold general meetings asannual general meetings in accordance with the requirements of the Companies Acts.

VOTES OF MEMBERSSubject 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.

NUMBER OF DIRECTORSUnless 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 RETIREMENT OF DIRECTORSAt 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 OF DIRECTORSA 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 is prohibited from being a director by law. ii. A bankruptcy order is made against that person iii. A composition is made with that persons creditors generally in satisfaction of that persons debts.

iv. A registered medical practitioner who is treating that person gives a written opinion to the 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 whic whollyor h partly 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 is resigning 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 withoutpermission of 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 otherdirectors stating that that person should cease to be a director. In calculatingthe number of directors who are required to give such notice to the directora. An alternate director appointed by him acting in his capacity as such shall be excluded. b. A director and any alternate director appointed by him andacting in his capacity as such shall constitute a single director for this purpose so that notice by either shall be sufficient.

GRATUITIES, PENSIONS AND INSURANCEThe 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 any member 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.

ACCOUNTSNo 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 of theCompany 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 for shares 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.

INDEMNITYSubject 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.

MEMORANDUM OF ASSOCIATION OF KINGFISHER (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 of 50p 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 25p 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 of 12.5p each. By an ordinary resolution passed on 24th August 2001, every one issued ordinary share of 12.5p each in the capital of theCompany was subdivided into 10 shares of 1.25p in the capital of the Company, and immediately consolidated into one ordinaryshare of 13.75p in the capital of the Company.

By the same resolution passed on 24th August 2001, each of the authorised but unissued ordinary shares of 12.5p 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 ordinary shares 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 of 13.75 pence each in the capital of theCompany was subdivided into 7 shares of 1 27/28 pence each and forthwith upon such subdivision, every eight subdividedordinary shares were consolidated into one new ordinary share of 15 5/7 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 The Old Cottage Waterend Lane Ayot green, Welwyn Herts. AL6 9BB Solicitor

ANTHONY DENNIS MACALAY ONE 30 Stanhope Road London N6 5NG Solicitor

DATED this 6th day of September 1982

WITNESS to the above Signatures: T.W. TURTLE 19 Grasmere Avenue Merton Park London SW19 Solicitor

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 Kingdom movement

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

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

OBJECTIVES 1. We constitute a large, global group based in India. We associate with world leaders in order 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 of innovative concepts.

6. We will continually increase the long-term value of our Group for the benefit of our shareholders. 7. We will operate as a decentralized organization and allow each business todevelop within our stated values. 8. We will be a major contributor to our National Economy and take full advantage of our 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 successful future for our customers, employees, suppliers communities and shareholders. 12. The UB Group will work to provide products and services that always meet or exceed expectations. 13. Management will commit resources and create an environment in which each employee 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

C
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.

FOR E INDIA

Force 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 Michael Mol bought the Spykar F1 team 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 Base Team principal s)

Force India F1 Team Silverstone, England, UK Vijay Mallya

2011 Formula One season Race drivers

Adrian Sutil (GER)

Paul di Resta (GBR) Test drivers Chassis Engine Tyres Nico Hlkenberg (GER) Force India VJM04 Mercedes-Benz Pirelli

Formula One World Championship Career Debut Latest race Races competed Constructors' Championships Drivers' Championships Race victories Pole positions Fastest laps 2010 position 2008 Australian Grand Pri 2011 European Grand Pri 61

0 1

7th (68 points)

Tabl 2: Key-facts about FOR E INDIA

ROYAL CHALLENGERS BANGALORE

Royal 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. Royal Challengers Bangalore

Coach Captain Colours Founded Home Ground Capacity Owner Chief Executive Manager Official Website

Ray Jennings Daniel Vettori

2008 M. Chinnaswamy Stadium 55,000 Dr. Vijay Mallya Brijesh Patel Avinash Vaidya www.royalchallengers.com

Table 3: Key-facts about ROYAL CHALLENGERS BANGALORE

KINGFISHER (BEER)

Kingfisher beer is an Indian beer brewed by United Breweries Group. With a market share of over 36%, it is India's largest selling beer, with 1 out of every 3 bottles of beer sold in India being a Kingfisher brand. It is currently available in 52 countries outside India.

Pic 1: Kingfisher Logo Slogan: Kingfisher Beer is sometimes promoted as The King of Good Times.

CALENDAR

The Kingfisher Swimsuit Calendar is another successful property the brand has developed over the years. Conceptualised along the lines of the Pirelli calendar, the Kingfisher Swimsuit Calendar is a blend of fashion, fun and glamour. Over the years, its unveiling has become one of the most eagerly anticipated events in the Indian fashion calendar.

Pic 2: Kingfisher Calendar Model-Hunt



5. KINGFISHER AIRLINES Kingfisher Airlines is an airline group based in India. Its head office is Kingfisher House in Vile Parle (East), Mumbai. Kingfisher Airlines, through its parent company United Breweries Group, has a 50% stake in low-cost carrier Kingfisher Red. 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 it the highest market share among airlines in India. Kingfisher Airlines

IATA IT Founded

ICAO KFR 2003 9th May 2005

Call Sign KINGFISHER

Commenced Operations Hubs

Bengaluru International Airport Chhatrapati Shivaji International Airport (Mumbai) Indira Gandhi International Airport (Delhi) Secondary Hubs Netaji Subhash Chandra Bose Intl. Airport (Kolkata) Chennai International Airport Cochin International Airport (Kochi) Focus Cities Pune International Airport Rajiv Gandhi International Airport (Hyderabad) Sardar Vallabhbhai Patel Intl. Airport (Ahmedabad) Frequent-flier Program Airport Lounge Alliance Subsidiaries Fleet Size Destinations King Club Kingfisher Lounge OneWorld (future) Kingfisher Xpress 66 (+130 Orders) 71

Company Slogan Parent Company Headquarters Key People

Fl Th G Tim United Breweries Group Kingfisher House, Mumbai, Maharashtra Dr. Vijay Mallya (CMD) Sanjay Aggarwal (CEO)

Table 4: Key-facts about KINGFISHER AIRLINES

6. NDTV GOOD TIMES NDTV Good Times is an India-based lifestyle television channel that is owned by New Delhi Television. The channel is a joint venture between NDTV and Vijay Mallya's UB Group and it launched 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 Owned by Country

7th September 2007 NDTV UB Group India NDTV India NDTV 24x7 NDTV Profit

Sister Channel(s)

Website

www.goodtimes.ndtv.com Table 5: Key-facts about NDTV Good Ti es





 

Chapter 4
FINANCIAL LINKAGES Balance Sheet of Kingfisher Airlines Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Secured Loans Unsecured Loans Total Debt Total Liabilities Mar '08 135.8 135.8 10.09 0 52.99 0 198.88 592.38 342 934.38 1,133.26 Mar '09 362.91 265.91 8.11 97 -2,496.36 0 -2,125.34 2,622.52 3,043.04 5,665.56 3,540.22 Mar '10 362.91 265.91 7.48 97 -4,268.84 0 -3,898.45 4,842.43 3,080.17 7,922.60 4,024.15

Mar '08 Mar '09 Mar '10 Application Of Funds 322.33 1,891.80 2,048.14 Gross Block 43.55 316.29 493.62 Less: Accum. Depreciation 278.78 1,575.51 1,554.52 Net Block 346.25 1,630.95 980.61 Capital Work in Progress 0 0.05 0.05 Investments 48.64 147.25 164.88 Inventories 27.16 229.84 322.49 Sundry Debtors 5.84 49.41 50.91 Cash and Bank Balance 81.64 426.5 538.28 Total Current Assets 832.49 3,640.42 4,604.31 Loans and Advances 274.29 122.45 155.56 Fixed Deposits 1,188.42 4,189.37 5,298.15 Total CA, Loans & Advances 0 0 0 Deferred Credit 687.31 3,814.63 3,908.03 Current Liabilities 9.52 45.55 46.77 Provisions 696.83 3,860.18 3,954.80 Total CL & Provisions 491.59 329.19 1,343.35 Net Current Assets 16.64 4.51 145.64 Miscellaneous Expenses 1,133.26 3,540.21 4,024.17 Total Assets 6,797.11 27,468.70 23,135.77 Contingent Liabilities 13.9 -83.88 -150.54 Book Value (Rs) Table 6: Balance sheet of the company during the last 3 years

23

Profit & Loss Account of Kingfisher Airlines Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses Mar '08 Mar '09 Mar '10 1,456.28 5,269.17 5,067.92 0 0 0 1,456.28 5,269.17 5,067.92 113.62 598.9 -333.3 0 0 0 1,569.90 5,868.07 4,734.62 Mar '08 Mar '09 Mar '10 43.79 51.19 40.89 889.3 2,602.62 1,802.99 244.96 825.42 689.38 408.21 1,112.85 1,108.82 180.39 1,062.74 1,067.54 14.81 167.55 108.58 0 0 0 1,781.46 5,822.37 4,818.20 Mar '08 Mar '09 Mar '10 -325.18 -553.2 249.72 -211.56 45.7 -83.58 434.44 2,029.33 2,245.59 -646 -1,983.63 -2,329.17 18.28 133.2 162.8 18.31 38.39 54.49 -682.59 -2,155.22 -2,546.46 -0.97 0 31.28 -683.56 -2,155.22 -2,515.18 -494.45 -546.38 -770.69 -188.14 -1,608.83 -1,647.22 1,737.67 5,771.17 4,777.31 0 0 0 0 0 0 0 0 0 2,659.09 -61.95 0 -150.54

Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) 1,357.99 2,659.09 Earning Per Share (Rs) -13.85 -60.5 Equity Dividend (%) 0 0 Book Value (Rs) 13.9 -83.88 Table 7: P&L sheet for the last 3 financial years

24

Cash Flows of Kingfisher Airlines

Mar '08 -682.59 -541.52 13.82 -9.23 -536.93 817.05 280.12 Mar '09 -2155.21 -645.78 206.63 290.11 -149.04 -320.91 171.87 Mar '10 -2417.92 -1665.09 235.13 1464.55 34.6 171.87 206.47

Net Profit Before Tax Net Cash From Operating Activities Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents

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

25

Chapter 5
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.

26

Pic. 3: FACTORS AFFECTING THE BUSINESS OF KINGFISHER AIRLINES: POLITICAL FACTORS ECONOMIC FACTORS Contribution to the Economy Open Sky Policy Rising Cost of Air-Fuel FDI Limits Investment in the sector

SWOT ANALYSIS STRENGHTS y Strong brand value and reputation in the minds of customers. y Quality of the service.
y Route rationalization. y First airline to have a new

WEAKNESSES
y Still a not-in-profit

organisation.
y High ticket pricing. y Facing a tough competition

from competitors.

fleet of airbuses.
y Continuous innovations

OPPORTUNITIES
y The expanding tourism industry. y The non penetrated domestic market. 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

Pic. 4: SWOT Study

27

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 y y

Extensive trainings for the Staff Hospitality industry and consider their customer as guests Interpersonal skills, aptitude, and service knowledge

PLACE Online booking: www.kingfisher.com Online booking (3 rd party): 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 lowcost 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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