Mallya takes Rs 1.7-cr pay package from US brewery firm

London/Washington, Apr 17, 2016, (PTI): Beleaguered liquor baron Vijay Mallya got a pay package of over Rs 1.7 crore last year from his US-based brewery firm that itself is struggling for funds and has been served ‘default’ notices by lenders.

More than half of Mallya’s total package for 2015 has been paid by California-based Mendocino Brewing Company Inc to him for “promoting” the company’s beer brands.

Mallya serves as Chairman of the board of directors of the company, which has an exclusive licence to brew and distribute Kingfisher Premium Lager in various countries. Besides, it produces and sells a number of craft beer brands.

United Breweries Holdings Ltd (UBHL), the holding firm of Mallya-led UB Group, is the “indirect majority shareholder” of Mendocino Brewing Company (MBC).

In its annual Form 10-K filing for the year 2015, submitted with the US markets regulator SEC, MBC has disclosed that Mallya was paid a total compensation of USD 256,900 (about Rs 1.71 crore), unchanged from the previous year.

“Vijay Mallya, Chairman of the Board, is paid USD 120,000 per year by MBC for services rendered as Chairman, and 89,600 British pound per year (approximately USD 136,900) by UBIUK for promoting our products in the Foreign Territory outside the United Kingdom,” it said.

Mendocino’s North American operations primarily consist of brewing and marketing proprietary craft beers. Its foreign operations are conducted through wholly-owned subsidiary United Breweries International UK Ltd (UBIK) and a step-down unit Kingfisher Beer Europe Ltd.

The two largest shareholders of Mendocino are United Breweries America (UBA) and Inversiones, both of which are controlled by Rigby International Corp, a company registered in the British Virgin Island.

Rigby, in turn, is a wholly-owned subsidiary of UBHL.

Mallya, who is at the centre of a major controversy for the huge loan defaults by his group in India, controls over 68 per cent shareholding held through UBHL in Mendocino.

However, MBC does not appear to be doing well financially and has requested for funds from the parent, while options being explored include merger and asset sale.

As of December 31, 2015, it had cash and cash equivalents of USD 129,600, an accumulated deficit of USD 17,395,600, and a working capital deficit of USD 11,601,700 due to incurred losses and reclassification of debts owing to MB Financial as result of a default.

Mallya’s business empire once included companies across liquor, fertilisers and airline businesses among others. His financial troubles began to mount after erstwhile Kingfisher Airlines had to be grounded under big losses and huge debt.

While lenders in India are seeking to recover total dues worth over Rs 9,000 crore from him, Mallya recently signed a lucrative exit deal with Diageo, to whom he had earlier sold a majority stake in United Spirits, and said he intended to spend more time in England.

Interestingly, his no-compete agreement with Diageo excludes the UK market.

In addition, the book value of Mendocino’s assets was lower than the book value of liabilities on December 31, 2015.

Mendocino said its “current revenue from operations are insufficient to meet the working capital needs of the company over the next 12 months”.

“The company has requested UBHL to make a capital infusion. If UBHL is unwilling or unable to infuse additional capital, the company will seek capital from other sources, including outside investors. If sufficient capital for working capital needs is not obtained, the company may sell some of its operating assets,” it said.

In December 2015, Mendocino hired Gordian Group as an investment banker to explore “certain strategic and financial options and transactions” including for possible debt or equity capital financing, merger, consolidation, joint venture or other business combination involving, or “sale of substantially all or a material portion of the assets”.

The company’s gross sales fell by 8 per cent to USD 31.2 million in 2015, while net loss was down 25 per cent at USD 1.15 million.


  1. When is Vijay Mallya coming to India or has the government to initiate deportation formalities.

    This chor has run away by ripping banks and not paying the Kingfisher employees their salaries.

    He should be deported and put in the slammer and periodically visited by Kingfisher models to boost his morale.

  2. More than anything, this episode shows how our leaders, police, judiciary, govt sector and media continue to be dominated by a bunch of incompetent people. This entire Kingfisher thing didn’t happen overnight. It was a public knowledge that he owed huge amounts of money to banks and employees. This was going on for a few years now!! Still, our officials and media focused on wrong priorities. They were too busy inventing imaginary attacks on minority and non-existing ‘intolerance’!!!

    Finally, I should point out how Londonistaan continues to play dirty tricks by providing these criminals a safe harbor!! They think it is funny when they do it countries like India. The bad karma is catching up with West.

  3. At long last and after hectic bargaining, India has placed orders for 36 Rafale fighter jets at $ 8.8 billion price tag, after Mr. Manohar Parikkar (and his team) managed to scale it down from $ 12 billion, which the French were initially expecting and insisting on. This means, Mr. Parikkar has saved $ 3,200 million for the exchequer, which is quite a lot of change.

    These achievements are phenomenal and we, as Indians, should acknowledge the good deeds of any person who helps his country in a significant way and not fret over the fact that Amitabh Bachchan sneezes due to cold after having had a milk shake or Sachin Tendulkar wears a small flag on his helmet or on shirt while meeting the Duke and Duchess of Cambridge. It is people who have limited knowledge of films or cricket that have raised them on pedestals. Patriotism is shown by actions in the moments of crises and not by sham utterances and displays.

    When Mr. Parikkar was the Chief Minister of Goa, he had uttered the words in Goan Konkanni something on these lines, “Awn khainya, anikonak khawnchayak dina,” and he really meant it. Mr. Narendra Modi uttered the same words in Hindi much later, i.e. Main nahin kahoonga, aur na kisiko khaneko doonga,” but his actions after being the Prime Minister showed that they were merely the utterings or rantings of a braggart, for the simple reason when quite a number of his politicians were caught in the wrong, he could have despatched them on camels’ back with pouches of water, but did not do anything because of party’s unity and image and in compliance of his idealogical masters’, i.e. R.S.S. diktats.

    The very fact that Mr. Parikkar is a graduate of I.I.T., Mumbai and is a qualified metallurgist speaks volumes. Every year, there are over 700,000 applicants appearing for their entrance exams and only 3,500 get selected. This is the toughest exam to get an entry into an engineering institution anywhere in the world.

    I.I.T. Engineers are considered the world’s best and many Americans and others have visited their campuses to find out what makes them superior to M.I.T., Yale, Harvard, Cornell and others. In short, Mr. Parikkar is not a product of Champaklal, Mansuklal, Montu, Pedro, Puttuswamy, Muttuswamy or other run-of-the-mill institutes or regional colleges.

  4. Original R. Pai,

    Simi Garewal had not only interviewed Vijay Mallya, but much later his son, Siddharth.

    Vijay Mallya is just the opposite of his father, who was very money and cost conscious and led a disciplined life. Vijay Mallya could be compared with BCCI, as both these entities attract people who either want to make money by hook or crook or have a good time, free of cost.

    Quite a number of today’s Bollywood heroines have posed for the Kingfisher calendar. No decent lady will either opt for posing for Kingfisher calendar or acting in Bollywood films, unless their objective is to make money.

    Yes, it is a glamorous world, but also a surreal one and a female has to make lots of compromises to make it to the top.

  5. I have heard today on the electronic media that a non-bailable warrant has been issued against Vijay Mallya and soon a “Red Corner” will be issued to Interpol to arrest and deport him.

    However, my only fear is that he may approach some banana republic with whom India does not have extradition treaty and with his sheer money power he may be able bulldoze them to grant him citizenship and passport. He may not have enough money to clear his entire debts in India, but then if he is able to avoid paying off his debts in India, then he is still a billionaire to attract a small country to grant him citizenship.

    I would not be surprised, if he applies for and gets citizenship of Monaco and host parties and invites Prince Albert. Pakistan may welcome him, if he keep Gen. Rahil Sharif in good humour and contented by paying the monthly haftas or fat envelopes and in return be provided with a brand new passport, swanky house, cars and round-the-clock security.

    We have to keep our fingers crossed and watch the developments. If he is deported and put in the slammer, then he can have ample free time to write a book, “How to rip off the banks, have grand parties and buy properties abroad.” That book will be much sought out by all crooks and scoundrels who do not tread the path of righteousness, but prefer to cheat, fraud or dupe people and make money by hook or crook.

    When he is deported to India, all Kingfisher calendar models should be there to welcome him at the airport with their heart warming and melting smiles, so that his spirits soar (without actually having any spirits) momentarily.

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