Kingfisher - whats their game plan

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MALLYA PUMPS IN £20M TO FUEL FORCE INDIA’S F1 DRIVE

NDIAN tycoon Vijay Mallya has ploughed about £20 million into his loss-making Formula One team in a bid to boost its performance.

Silverstone-based Force India team’s accounts show Watson Limited, Mallya’s personal investment vehicle, loaned it £6.85 million, while his Kingfisher Airlines and beer and spirits businesses provided it with £13 million in sponsorship money.

The new F1 season begins this week with the Australian Grand Prix in Melbourne.


Force India, which finished in sixth place last year, has improved each season. However, that improvement has not translated into profits.

The figures show its net loss narrowed from £40.3 million to £26.7 million in the year ending December 31, 2010, as turnover increased by £17 million to £48.5 million thanks to the sponsorship boost.

Bank debt was pared down by £1 million, leaving a total of £8.2 million outstanding. Mallya’s drinks brands, which include Whyte & Mackay whisky, provided £6.7 million, more than double the previous year, while Kingfisher’s sponsorship increased 71 per cent to £6 million.

Kingfisher is listed on the Bombay Stock Exchange and is majority owned by the Mallya-controlled UB Group.

It has debt of 65 billion rupees (£790 million) and has posted 17 straight quarterly losses.

To combat this, it has cut flights and is looking for a white knight to provide it with enough capital to avoid bankruptcy.

Express.co.uk - Home of the Daily and Sunday Express | City & Business :: Mallya pumps in £20m to fuel Force India’s F1 drive