Interests to step into Cricket (IPL) and Aviation sectors caused to fall four major companies. The history of four companies like King Fisher, Sahara, Spice Jet and Deccan Chronicle had common reason in their down fall. Diversification may not work out for these four companies. All these four were tried to enter into Aviation sector and crashed like a plane.
Subrato Roy was failed to run Sahara planes and disposed them to other. Venkatarama Reddy from DC had formed Deccan Aviation but can’t able to buy not even one craft. Deccan Aviation had closed before it takes off. Everyone knows about the down fall of Vijay Maalya’s King Fisher. Banks for giving loans to King Fisher and employees for working in King Fisher have suffered.
Spice Jet is hardly running its services with all offers and discounts. Maran has lost the control on Spice Jet. Deccan Chargers had won the IPL trophy once and lost the team in later years. There were rumors that DC was failed to pay even for its players due to heavy losses. Sahara sponsored Pune warriors had no identity in IPL.
King Fisher had a team of Royal Challengers and incurred losses after running for years. Deccan Chargers is currently owned by Spice Jet. All these companies are suffering with huge NPAs that caused them ultimately as defaulters. Startup companies and young entrepreneurs should learn lessons from these stories.
