Tag: Ratan Tata

Ratan Tata welcomes Air India passengers with special message; here’s what he said

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A week after Air India ended back in the hands of Tata Group, veteran industrialist Ratan Tata on Wednesday welcomed passengers of the ‘Maharaja’ with a special message.

“The Tata Group welcomes Air India’s new customers and is excited to work together to make Air India the airline of choice in terms of passenger comfort and service,” Ratan Tata, chairman emeritus of Tata Sons, said in a voice note that was widely circulated after the carrier posted it on its official Twitter handle.

#FlyAI: A warm welcome extended by Mr Ratan Tata, Chairman Emeritus, Tata Sons, Chairman Tata Trusts, to our passengers onboard Air India flights. pic.twitter.com/MkVXEyrj3J

— Air India (@airindiain) February 2, 2022

Also read: Air India officially handed over to Tata Group; N Chandrasekaran says ‘happy to have it back’

Last week, Tata Group regained control of Air India which was founded as Tata Airlines by former chairman of Tata Sons JRD Tata in 1932. The airline was renamed Air India when it became a public limited company in 1946.

JRD Tata remained as Air India chairman until 1978. Ratan Tata was at the helm of Air India between 1986 and 1989.

Talace, a subsidiary of the Tata group’s holding company, had emerged as the highest bidder in the divestment process and bought Air India for Rs 18,000 crore.

Last week,  Air India pilots welcomed flyers with a special announcement informing them about the change of ownership.

“Welcome aboard this historic flight, which marks a special event. Today, Air India officially becomes a part of the Tata group again, after seven decades,” the pilots said.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Air India back to the Tatas, takes off with ‘renewed passion’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Maharaja is back to its founder. The Tata Group completed the takeover of Air India on January 27 and the airline ceased to be a government undertaking.

“Totally delighted that the takeover process of Air India is complete. We are very happy to have Air India back in the Tata Group. We look forward to working with everyone in creating a world-class airline,” Tata Sons chairman N Chandrasekaran told journalists at Air India headquarters in New Delhi after the takeover ceremony. The ceremony was attended by senior bureaucrats, executives from Air India and the Tata Sons Group.

Industry experts and senior officials are united in the view that had Air India not got a buyer in this round of divestment, it would have meant the shutdown of the loss-making airline. But, seven decades later it is a homecoming for Air India, founded originally as Tata Airlines.

Also Read: View: What does the budget hold for aviation sector?

Tata Airlines was founded by renowned industrialist and former chairman of Tata Sons JRD Tata in 1932. The airline was renamed Air India when it became a public Iimited company in 1946. JRD Tata, a noted aviator, himself operated the first flight of Tata Airlines from Karachi to Mumbai, then Bombay, in 1932.

JRD Tata remained as Air India chairman until 1978 and even Chairman Emeritus of Tata Sons Ratan Tata was also at the helm of Air India between 1986 and 1989. Hence, Air India and the Tatas have a long shared history and it was only fitting that they reclaimed the Maharaja airline after emerging as the highest bidder in the divestment process and bought Air India for Rs 18,000 crore.

With Air India, the Tata Group has also received a 100 percent stake in its subsidiary low-cost carrier Air India Express, which focuses on short-haul international operations especially in the Middle East market, and complete 50 percent share of Air India in the joint venture Air India SATS, which provides airport services on the ground and cargo handling.

Also Read: Rakesh Jhunjhunwala-backed Akasa Air likely to start flights in late May or early June, says CEO Vinay Dube

With this transaction, the Tata Group now has four airlines in its umbrella- full-service carriers Vistara and Air India, and budget airlines AirAsia India and Air India Express. It is largely expected that there will be a combination of synergies between Air India and Vistara and between AirAsia India and Air India Express and a more streamlined aviation structure will emerge but the Tata Group is yet to provide clarity in this regard.

Day one for Air India under the Tata Group kick-started with a fresh welcome message by the pilots for the passengers departing on flights scheduled for January 28. “…welcome aboard this historic flight, which marks a special event. Today, Air India officially becomes a part of the Tata Group again, after seven decades. We look forward to serving you on this and every Air India flight with renewed commitment and passion,” the message read.

In line with this in-flight message, it is learnt that the new management aims to immediately work on the customer experience and on-time performance of the airline. The cabin crew has been asked to be more presentable and a detailed SOP on grooming and interaction with passengers and ground staff is being prepared.

Also Read: 5G flight disruption eases as Emirates blasts US rollout

The airline has also brought in changes to its in-flight menu and an extensive culinary experience is in the pipeline for Air India flyers. The airline has been particularly asked to improve its on-time performance, which has been the worst as per the latest government data. There are also plans to revamp the aircraft interiors and fleet but as per officials, there are no disruptive plans or major changes in the pipeline and the revamping will take place as smoothly as possible.

The Tatas also took onboard nearly 13,500 permanent and contractual employee strength of Air India and Air India Express. The government had clarified in October 2021 that the Tata Group will be mandated to retain all permanent employees for a minimum period of one year.

Post that, employees can be offered voluntary retirement. The government had also said the employees will be given gratuity, provident fund benefits and post-retirement medical benefits of employees will be protected by the government.

Also Read: Unreasonable 21% indirect taxes resulting in chronically ill civil aviation industry: IndiGo CEO

“In accordance with the applicable laws, the qualified bidder, post disinvestment, shall continue to provide Gratuity benefits and PF benefits to the employees. The arrangement with the employees and Life Insurance Corporation of India for administrating the existing Air India and Indian Airlines employee’s Self Contributory Superannuation Pension Fund Trust will continue. Further, with regard to the medical benefits, they are to be made available to the retired and eligible retiring AI beneficiaries by the government,” minister of state for civil aviation General (Dr) VK Singh (Retired) told Lok Sabha in a written reply on December 16.

It is learnt that the new management committee of Air India has retained all four directors of the former board of Air India, Director Finance Vinod Hejmadi, Director commercial Meenakshi Mallik, Director HR Amrita Sharan, and Director Operations Captain RS Sandhu.

The management committee is currently being steered by Tata Sons senior vice president Nipun Aggarwal and the committee is set to add more independent directors and the CEO in some time but until these executives complete their clearances, it will be a four-member committee led by Aggarwal to oversee the airline’s operations.

Also Read: Heading to the airport? Check the new ‘one handbag’ rule for passengers

With the second-largest fleet under its wings, it remains to be seen what kind of flight Air India takes under the Tata reins.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Air India officially handed over to Tata Group; N Chandrasekaran says ‘happy to have it back’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Central government on Thursday officially handed over Air India to Tata Group. The transaction covers three entities – Air India, Air India Express and AI SATS.

Tata Sons chairman N Chandrasekharan said the group is very happy to have Air India back in its fold.

“We are excited to have Air India back in the Tata Group and are committed to making this a world-class airline. I warmly welcome all the employees of Air India, to our Group, and look forward to working together,” he said.

Also Read – Tata’s Air India takeover: What changes, what does not

Ratan Tata expressed his thankful recognition to the government and its various departments for the successful completion of this important transaction, a company release said.

The group also said it philosophically agrees with “the Prime Minister’s vision for the aviation sector, of making it affordable and ensuring it contributes to boosting ‘Ease of Living’ for citizens”.

Following the official handover, Air India said it’s looking forward to a shared mission of serving the nation.

“#FlyAI: A brand new chapter unfolds for Air India as part of the Tata Group. Two iconic names come together to embark on a voyage of excellence. Looking forward to soaring high propelled by our rich legacy & a shared mission to serve our Nation. Welcome Aboard.
@TataCompanies,” the airlines tweeted.

#FlyAI: A brand new chapter unfolds for Air India as part of the Tata Group.

Two iconic names come together to embark on a voyage of excellence.

Looking forward to soaring high propelled by our rich legacy & a shared mission to serve our Nation.

Welcome Aboard. @TataCompanies pic.twitter.com/iCVh5ewI7q

— Air India (@airindiain) January 27, 2022

After a competitive bidding process, the government had on October 8 last year sold Air India to Talace Private Limited — a subsidiary of the Tata Group’s holding company — for Rs 18,000 crore. Air India was started by the Tata Group in 1932 but after the country got independence, the then Prime Minister Jawaharlal Nehru nationalised it in 1953.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ratan Tata turns 84: Lesser-known facts about the business tycoon

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Well-known industrialist and philanthropist, Ratan Naval Tata, turns 84 today. Under Ratan Tata, the salt-to-software conglomerate grew by more than 40 times—from $5.7 billion in 1991 to around $103 billion in 2016. He also led historical mergers for his company including the Land Rover Jaguar and Tetley Tea deals. The chairman emeritus of the Tata Group, Ratan Tata is also well known for his philanthropy.

Some lesser-known facts about Ratan Tata

• Ratan Tata’s father was adopted by Ratanji Tata

Naval Tata, Ratan Tata’s father, was raised in an orphanage and was later adopted by Ratanji Tata. Naval Tata was also biologically related to the Tata family—his biological maternal grandmother was the sister of Hirabai Tata, wife of Jamshedji Tata.

On December 28, 1937, Ratan Tata was born in Surat, Gujarat. However, when he was 10 years old, his parents—Naval and Sooni Tata—separated. Thereafter, he was raised by his grandmother Navajbai Tata, the widow of Ratanji Tata.

• Ratan Tata’s first job was shovelling limestone

Despite being the scion of the Tata Group, Ratan Tata had a humble beginning. After receiving his college education from Harvard Business School, he was offered a job by IBM but he chose to join the family business. He started with Tata Steel and worked on the shop floor where he would shovel limestone into the furnace. At times, he would be in charge of handling the furnace.

• Ratan Tata, an architect  

While it is well known that Ratan Tata is a skilled pilot, not many know he is also an alumnus of the Cornell University College of Architecture. In fact, Ratan Tata practised as an architect for two years before joining the family business.

• Tata Hall in Harvard Business School

Ratan Tata pooled in a sum of $50 million to construct an executive centre at the Harvard Business School. As a gesture of gratitude, the Harvard Business School named the centre Tata Hall after him.

• Key milestones

It is well known that Ratan Tata delivered on his promise of an affordable Nano car. But his career is packed with much bigger achievements in terms of profitability. Under his leadership, a joint venture was formed between the Tata Group and American International Group Inc. He also designed and launched the Indica car, which was India’s first indigenously developed car. Ratan Tata also acquired VSNL, which was India’s top international telecom service provider of its time.

• Ratan Tata is ‘Sir’ Ratan Tata

Ratan Tata was awarded the Honorary Knight Commander of the Order of the British Empire in 2009. And the Honorary Knight Grand Cross of the Most Excellent Order of the British Empire in 2014 for his instrumental role in improving ties between India and England.

• Loves dogs and cars

Ratan Naval Tata loves his cars. He has a high-end collection of cars, including Ferrari California, Cadillac XLR, Land Rover Freelander, Chrysler Sebring, Honda Civic, Mercedes Benz S-Class, Maserati Quattroporte, Mercedes Benz 500 SL, Jaguar F-Type, and Jaguar XF-R, among others.

Besides cars, Ratan Tata also has great affection for dogs. The Bombay House, which is the headquarters of Tata Sons, has a tradition of letting stray dogs in during rain spells. The property even has a play area—with toys, food, and water—for dogs.

• Close to getting hitched

Ratan Tata is unmarried but he has admitted he came close to tying the knot four times in his life. He couldn’t go ahead for various reasons.

Also Read | This Ratan Tata-backed startup will deliver diesel at your doorstep

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

This Ratan Tata-backed startup will deliver diesel at your doorstep

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Repos Energy, a startup backed by Ratan Tata, has now launched a mobile petrol pump that will allow corporate entities and individuals to order doorstep diesel delivery. The company announced the launch of Repos 2.0 Beta mobile petrol pump. Beta will travel through multiple cities across India to generate brand recognition. 

The mobile petrol pump has a capacity of up to 3,000 litres, but can also fulfil  orders as small as 100 litres to customers. Users can book their required amount through the Repos app. 

Read more: COVID-19 impact: Doorstep fuel delivery companies are on a customer acquisition spree

Chetan Walunj, co-founder, Repos Energy, said, “We are excited about getting on to the next level of growth in our journey so far. There is going to be a growing demand for fuels in the coming years, and we need to be prepared with efficient delivery services preventing wastage and ensure it is monitored and systematic at the same time. The Beta model is the culmination of countless hours of  effort in building a robust framework, and we have done a lot to ensure that the organisation has built a solid base. It is now time for an energy distribution revolution.”

The brand envisions Beta being used by petrol pump operators to increase their reach, especially in remote regions of the country. The mobile pump will also allow operators to cater to rapidly rising demand in various key sectors. Beta comes with features like geo-fencing and GPS trackers, and the ‘Break Interlock’ feature which prevents spills from occurring. 

Repos Energy, which was founded three years ago, had earlier indicated that it was planning on manufacturing and selling 3,200 mobile petrol pumps in FY21. 

Co-founder Aditi Bhosale Walunj had said: “We have a fleet of 320 vehicles out of which over 100 are fully operational and working to deliver fuel across India. But now, our target is to build and sell 3,200 RMPPs in one year.”

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Funding Rundown: Mensa becomes India’s fastest unicorn, WonderChef raises $20 mn from Sixth Sense Ventures

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Here’s a list of the top startup deals of the day

Unicorn in 6 months: Mensa Brands gets backing from Alpha Wave, Prosus in new round

In what is so far the fastest unicorn story in the country, Mensa Brands, a house of brands which acquires and invests in online-first brands, on the lines of the popular American startup Thrasio, has announced its Series B fundraise of US$135 million, and has turned a unicorn in just six months since starting operations.

The round was led by Alpha Wave Ventures  of Falcon Edge Capital with participation from all existing investors – Accel Partners, Norwest Venture Partners and Tiger Global Management. Prosus Ventures (Naspers) also invested in Mensa in this latest funding round. Mensa has raised a total of more than $300 million in equity and debt since starting its journey in May this year.

“We will continue to raise more capital. But we are profitable in the first six months and also paid advance tax in first quarter of operations, ” Ananth Narayanan, Founder and CEO, Mensa Brands, told CNBC TV 18. Narayanan was previously CEO of Myntra, Co-Founder and CEO at Medlife

The company has partnered with 12 brands, and says that majority of them are growing at 100% YoY since their integration with Mensa.

“Mensa is trying to build a global, tech-led house of brands,” Narayanan said. “Some brands like Karagiri have started global operations. Another brand Folkculture does 60% of sales in US through Amazon.com,” he added.

The roll-up model, also popularly referred to as the Thrasio model, has seen frenetic activity in India in recent months.

WonderChef raises $20 M in funding led by Sixth Sense Ventures

Cookware and kitchen appliances brand Wonderchef has raised close to $20 million in a funding round led by Sixth Sense Ventures. Other investors who participated in the round include Godrej Family office, Malpani group and a few HNIs.

The round was a combination of primary and secondary investment. Mauritius-based investment firm Capvent, which had invested in the company in 2015, exited in this round.

The primary capital raised will be used forstrengthening online presence and capability, expanding and deepening distribution network, and enhancing branding initiatives, the company statement said.

Founded in 2009 by Ravi Saxena, Wonderchef sells over 600 products across cookware and kitchen appliances categories through its omni-channel distribution network. Over the last three years, the increased focus on being ‘Digital-First’ has led to a jump in revenue share of online sales from 20 percent earlier to 50 percent now, the company said.

GuardianLink.io raises $12 M in Series A round led by Kalaari Capital

GuardianLink.io, an NFT ecosystem technology framework, has raised Series A funding of $12 million led by Kalaari Capital and other private investor group.

The funding will be deployed to expand the startup’s Singapore and Japan-based design labs, strengthen creative development capabilities and deepen its curative NFT (non-fungible tokens) packaging foundation, the company said.

NFTs are a form of crypto asset in which each token is entirely unique. They can be used as a digital certificate of authenticity for any asset, digital or physical. NFTs are currently ruling the ‘emotional’

commerce space with Brands, Artists, Filmmakers, and Athletes actively becoming a part of the digital asset revolution.

Founded by Keyur Patel, Ramkumar Subramaniam, Kameshwaran Elangovan and Arjun Reddy, GuardianLink is currently supporting over 40 NFT marketplaces globally. The startup had launched its first NFT marketplace framework in 2020.

The brand’s first major NFT launch in India was of veteran actor Amitabh Bachchan, one of the highest grossing NFT Auctions in India surpassing $1 Million mark.

The funding round also marks Kalaari Capital’s first-ever investment into the fast-growing NFT space.

“Metaverse-based economy will be a key disruptor and NFT’s are going to play an instrumental role in powering the digital economy of the future. The applications will extend across major industries including Gaming, Fashion and Retail,” said ani Kola, Managing Director, Kalaari Capital.

Clinikk raises $4 M in pre-Series A round led by MassMutual Ventures

Clinikk, a Bengaluru-based insurtech and healthtech startup, has raised $4 million in pre-series A funding led by MassMutual Ventures, with participation from Kunal Shah (Founder, Cred), Rohit M.A. (Co-founder and MD of Cloudnine Hospitals), Anjali Bansal (Founder, Avaana Capital), Stanford Angels, and other prominent individual investors.

Existing investors Times Internet Group, EMVC, 500 Startups’ Southeast Asia-focused 500 Southeast Asia, and WEH Ventures also joined the round.

Clinikk had raised $2.4 million in seed capital prior to this fundraise, bringing their total funds raised to $6.4 million.

With this fundraise, Clinikk plans to consolidate its full-stack product offering and increase its footprint in Bengaluru and other cities. It will also invest in product development and hiring key team members.

Founded in 2018, Clinikk is trying to implement a managed-care model by integrating out-patient care and health insurance.

DGV Bharat raises $3 M in pre-Series A funding led by Info Edge Ventures & Omnivore

Digivriddhi Technologies (DGV Bharat), a dairy-focused neo-banking startup, has raised $3.1 million in pre-Series-A funding from Info Edge Ventures and Omnivore. Through its digital platform, DGV wants to provide India’s dairy farmers access to formal banking and financial services.

DGV is currently working with some of dairy co-operatives to provide payments, liabilities, and asset products through its partnership with Federal Bank.

“DGV is building a Neo-banking platform for these dairy farmers by digitizing the entire payment stack using Aadhaar, National Payment Switch and Micro ATM technology with plans to build various financial products customized to credit, insurance and other needs of these farmers,” said Kitty Agarwal, Partner, Info Edge Ventures.

Ratan Tata-backed startup Bombay Hemp Company (Boheco) raises $2M

Ratan Tata-backed Bombay Hemp Company (Boheco) has raised $2 million from the family offices of Achin Kochar of the Vi-John Group, Riteesh Mohan Bakshi and Raghav Mohan Bakshi. The startup supplies premium hemp (cannabis or marijuana) leaf extract and industrial hemp products.

Bombay Hemp is among the startups studying the medical use of hemp. Its seed round investors included Ratan Tata, chairman of Tata Trusts and chairman emeritus of Tata Sons and Rajan Anandan, ex-managing director of Google India and currently managing director of Sequoia Capital and Surge.

Boheco chief executive Chirag Tekchandaney told PTI that his company has secured investment commitments for $2.5 million, but only USD 2 million has a firm commitment.

Before this funding round, Bombay Hemp had concluded a pre-series-A offering of $750,000, with the participation of the Arphi Electronics, AngelList Trust, a syndicate led by IIM-Kozhikode alumni fund and Prakhar Agarwal of Adept Ventures, and several other HNIs.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Storyboard | Brand Air India ready to fly again?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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It’s a homecoming of Maharajah after Tata Group on Friday announced that it has won the bid for Air India for Rs 18,000 crore. The debt-laden national carrier returned to its founders Tata Sons, ending a decade-long struggle to the divestment. The airline, founded in 1932, was the pride and joy of JRD Tata.

The transaction is expected to close by the end of December 2021, said Tuhin Kant Pandey, DIPAM Secretary. Pandey said the government will get Rs 2,700 crore cash from Tata for the sale of its 100 percent stake.

In an emotional note, Tata Sons chairman emeritus Ratan Tata tweeted, “Welcome back, Air India,” further adding, “While admittedly it will take considerable effort to rebuild Air India, it will hopefully provide a very strong market opportunity to the Tata Group in the aviation industry.”

Air India has gone through a tumultuous journey scaling new highs till the 70s when it was looked up to by other airlines, having even trained the Singapore Airlines staff. Its brand mascot, the Maharajah, once was a metaphor for Air India service – one could expect to be treated like royalty. However, once JRD Tata, the founder and then still chairman of Air-India, was ingloriously removed from the chairman’s role, on February 1, 1978, the fateful fall of the airline started.

Despite its multiple shortfalls in terms of lack of high-quality in-flight service, an outdated fleet of aircraft, and lack of technology advancement (such as onboard entertainment), Air India still manages to piggyback on its glory days. Many brand experts Storyboard spoke to recall fond memories associated with the airline and are hopeful for a brand overhaul.

Also read: Storyboard | A rebirth for Air India and its Maharajah?

“There is a compelling current of emotion – that of a homecoming. Of a journey deemed expansive and arduous in parts and now finding a safe harbour of a kind,” says Prasoon Joshi, lyricist and chairman of McCann Worldgroup Asia Pacific. In his view, the Brand stands once again at a take-off point: “Deliciously poised between tradition and reinvention, the Maharaja this time around is perhaps not here to serve but also to rule – the skies. Congratulations to the Tatas and respect for the government for this bold and welcome move.”

Bringing efficiency and accountability

A lot works for brand Air India as it is synonymous with nationalism and nostalgia; at the same time, there are certain codes (services and agility) that need reenergizing. Senior advertising and media executives believe that Tata needs to immediately look at amalgamating past glory and future-led technologies to make ‘Air India’ a competitive homegrown but truly world-class brand. Air India, which has received a bad rap for its service, needs to signal a change and communicate to customers that it has changed for good.

Dheeraj Sinha, the CEO and chief strategy officer – South Asia, Leo Burnett, highlights that Air India needs a signification of new intent, especially with a commitment to service quality which has held the brand back in the past.

“Those corrections need to be communicated well. Air India, as a brand, has a lot of power, strength, and equity of its own. The clever task would be of retaining some of the semiotics of what made the brand memorable in people’s minds and adding a bit of new. It is a mixing of past and future,” he adds.

The airline returning to Tata also translates into brand being handled with care and efficiency. The severe trust deficit among customers is also expected to be regained.

The co-founder of iconic Indian design firm Ray and Keshavan, Sujata Keshavan believes that Tata’s management will be able to run Air India more competently and efficiently and raise the airlines’ standards to match the expectations of today’s international traveller.

“The Air India brand comes with an impressive legacy and name recognition that takes years to build. It has enormous potential to be reinvented and revitalised,” adds Keshavan, who is now founder of Varana, a London-based fashion house. With good execution, Air India has the potential “to become a great Indian super brand, comparable to the world’s best”.

Scripting The Maharajah’s grand comeback

Despite the call for an overhaul, there has been a clear consensus on retaining Air India’s much loved mascot – the ‘Maharajah’. Created in the 1940s by the legendary marketing man and Air India’s commercial director Bobby Kooka, the Maharajah remains one of India’s most recognisable and loved mascots. This portly figure in regal garb has held a special place in the hearts of the country’s citizens for years.

“We all grew up with the Maharajah and it’s an iconic brand known for treating his guests like royalty. The welcoming Maharajah was a memorable and charming mascot. They must retain it. It is unique to India’s history,” says Raj Nayak, founder of House of Cheer.

At a time of brand changeover, contemporising it is always a good idea says Bobby Pawar, chairman and chief creative officer, Havas Group India. Though he is quick to add that Air India is a national carrier so there’s a pride attached to it from its own staff as well as citizens and that sentiment needs to be handled preciously and delicately.

“However, there are people who were not happy with the brand at some point of time. So Tatas should definitely signal a change. The brand mascot must be retained but it needs to be contemporized with the times,” Pawar notes.

On the other hand, industry veteran Madison World’s chairman Sam Balsara, believes that the “Maharajah does not fit into the scheme of things” in the current world. The brand needs to be “repositioned as a modern, state of the art airline that is super-efficient and customer-service focussed,” says Balsara, who also thinks that the move will do good to brand India as well. An airline, after all, is “the nation’s ambassador.”

Taking the brand to new heights

According to digital and new-age brand transformational companies, the Maharajah could make a comeback with a touch of modern designing. Harshil Karia, the founder of digital agency Schbang India, believes that, given Tata’s penchant for design, one is likely to see Air India become a lot fresher.

“The Maharajah is a unit which has high equity. I see the Maharajah having the potential to be reborn for the digital age. A mascot who has a unique point of view that represents the viewpoint of a rising India,” shares Karia.

Rayomand J Patell, the chief creative officer of digital shop Idealake, believes “the Maharajah is immortal”. “You can try to kill him off all you want as they did in 2007, but sometimes consumers decide what a brand is and in this case, they never loved the rays of the sun design as much as the affable Maharajah around whom Bobby Kooka and Team JWT did decades of stellar work.” Now the brand is coming back home, Patel says, “They (Tatas) just have to refurb the planes, the brand is already flying high again.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Air India under Tatas will see very good days, says NITI Aayog’s Amitabh Kant

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Niti Aayog chief executive officer (CEO) Amitabh Kant on Friday said flagship national carrier Air India under Tata Group will see very good days after the Tata Sons won the bid to acquire debt-laden state-run airline.

Kant said, “I think the government has undertaken an extremely innovative approach for the disinvestment of Air India. The state-run airline was a very, very complex exercise, and if you have disinvested Air India successfully, then I think the rest of the disinvestment to follow will be far easier.”

He added, “One must understand that the per capita usage in terms of aviation is still very, very low in India. It is just 0.1 to say, whereas in the US, it is 2.71 and in the UK is 2.4. So the good days of civil aviation have yet to begin and therefore, I am sure with very good and professional management, Air India will do extremely well. I think India will become the hub of air traffic.”

Also Read: Global aviation industry to lose $201 billion between 2020-22 due to COVID-19 crisis: IATA DG

Rajiv Pratap Rudy, the former minister, said, “One of the best decisions which the government has ever made, for me as a part of the aviation industry, I would say this is a great decision. The aviation industry across the world in the last two years has made a loss of $201 billion. Even in that situation if the company has come forward to bid for it, we must appreciate the gesture. It is an Indian company which has come, it is a company which has a long-standing, it is a company which has gone across the world. So I think it is a phenomenal decision. It is a monumental decision taken by the government.”

Ameya Joshi, aviation analyst said, “Air India does have a lot of assets which may not have a tangible value per se but when you look at slots and bilaterals, these are things which have value. If you look at any of the congested airports worldwide be it Hong Kong, London, Heathrow, all these places are slot constrained. Even in Delhi, it is very difficult to get a slot. So the moment you have this combined power together, the Tata Group airlines, now four of them will have more slots in Delhi than IndiGo. With this deal, the market share would be somewhere around 26 percent for the Tata Group airlines.”

On capital required to revive the airline, Devesh Agarwal, chief analyst of Bangalore Aviation said, “Last week, I had estimated at about Rs 25,000 crore.  But Tatas will be forced to keep all their India staff on for at least one year, I don’t see too much of that Rs 7,300 crore annual loss reducing, so you can add that to the Rs 25,000 crore and Rs 18,000 crore, so the Tatas are looking at least Rs 50,000 crore over the next five years is my guess.”

Also Read: Domestic air passenger traffic grows 2-3% to about 69 lakh in September: Icra

R Gopalakrishnan, former director of Tata Sons said, “It is an emotional moment for everybody in Tata, as this is our little daughter who was born in 1931 when Lord Willingdon was the Governor-General of India, and she is coming back at the age of 89. So it’s an emotional moment. In between, our daughter has had many adventures but she is our daughter so she’s coming home.”

When asked how do you see the process moving forward from here Gopalakrishnan said, “I don’t know the details as I’m now retired six years ago. I’m sure my successors and colleagues have done their homework and they have a plan, but it should be in my view, a long and arduous path, but I’m sure it has a good plan.”

Mark Martin, founder and CEO of Martin Consulting said, “We are going to see an Air India structured now on the lines of Lufthansa Group AG where you have a parent holding company operating multiple airlines. Lufthansa owns Austrian Airlines, Swiss Air, it has a partnership in Turkey with SunExpress, and so the Air India of now is going to be an Air India with no roadblocks, no stops, no bureaucracy, no restrictions, no financial holdups and no ministerial approval. So this is going to be an Air India driven by extremely passionate Tata.”

Also Read: Air India sale will affect us, says Emirates President Tim Clark

For the full interview, watch the accompanying video…

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Air India returns to Tatas: From bid size, future of employees to Maharaja logo, here are key highlights

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Tata Group is taking over the debt-laden national carrier Air India as it has emerged with the winning bid of Rs 18,000 crore for the buyout of the ‘Maharaja.’ As reports kept doing the rounds, life has come full circle for the Tatas, as the group has again become the owner of Air India after it sold the airline to the government earlier in 1946.

Air India returns ‘home’

Soon after the announcement, Tata Sons chairman emeritus Ratan Tata tweeted, “Welcome back, Air India,” along with an old photograph of the company’s former chairman JRD Tata getting down from an Air India aircraft.

Welcome back, Air India 🛬🏠 pic.twitter.com/euIREDIzkV

— Ratan N. Tata (@RNTata2000) October 8, 2021

Air India was founded as Tata Airlines by JRD Tata in 1932 and was renamed Air India when it became a public limited company in 1946. JRD Tata remained as Air India chairman until 1978 and even Ratan Tata was at the helm of Air India between 1986 and 1989.

From the bid size to the future of employees, here are key highlights of Air India’s homecoming

Divestment process

The process for disinvestment of Air India and its subsidiaries commenced in June 2017 but the first round did not elicit any Expression of Interest, though the Tata group was then also at the forefront of buying a stake in the national carrier and even in 2001.

The process recommenced on 27 January 2020. The timelines had to be extended due to the COVID-19 pandemic. In April 2021, the government asked potential bidders to put in financial bids. The last day for placing financial bids was September 15 this year.

In view of the excessive debt and other liabilities of Air India arising out of huge accumulated losses, the bidding construct was revised in October 2020 to Enterprise Value (EV) to allow prospective bidders an opportunity to resize the balance sheet and increase chances of receiving bids and competition.

Also Read | Storyboard: A rebirth for Air India and its Maharajah?

The EV construct allowed the bidders to bid on the total consideration for equity and debt instead of a pre-determined, fixed debt with minimum cash consideration of 15 percent for equity.

How much will Tatas pay to buy Air India? 

The government will sell a 100 percent stake in the airline to Tatas. This also includes 100 percent holding in AI Express Ltd and 50 percent holding in Air India SATS Airport Services.

Tata Sons’ special purpose vehicle (SPV) Talace Pvt Ltd’s bid of Rs 18,000 crore comprises taking over Rs 15,300 crore debt and paying the rest in cash.

The transaction does not include non-core assets including land and building, valued at Rs 14,718 crore, which are to be transferred to the government’s holding company AIAHL.

Also Read: Tata’s back in Air India cockpit

The second bid was submitted by SpiceJet Chairman and Managing Director Ajay Singh, who took part in the process in a private capacity and put a bid of Rs 15,100 crore.

As of August 2021, Air India has a combined debt Rs 61,562 crore. Tatas will take over Rs 15,300 crore worth of debt and the remaining Rs 46,262 crore will remain with Air India asset holding company. Currently, Air India is incurring losses of Rs 20 crore a day.

Future of Air India employees

According to the Ministry of Finance, Tatas will have to retain all employees of Air India for one year. If the group sacks anyone in the following year, the employees need to be offered voluntary retirement. All employees will get gratuity and provident fund and post-retirement medical benefits.

Also Read | 20 years later: India’s CPSE privatisation off to ‘Maharaja’ start

Air India currently has over 12,000 employees, out of these over 8,000 are permanent and more than 4,000 contractual employees. Meanwhile, Air India Express has 1,434 employees. On average, 1,000 permanent employees are set to retire every year

What happens to the Maharaja logo?

Air India brand has eight logos that will go to the bid winner. Tatas cannot transfer the Air India brand for at least five years and post this period, the group can transfer the brand to only a legally Indian person or group.

What’s next?

The next step will be to issue the Letter of Intent and then sign the Share Purchase Agreement following which, the conditions precedent would need to be satisfied by Talace Pvt Ltd, Air India and the government. The transaction is expected to be completed by December 2021.

According to the share purchase agreement, Tata group is allowed to merge the airline among its own airlines. However, there is a 3-year business continuity clause that states the new owner will have to continue the business for three years.

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Storyboard | A rebirth for Air India and its Maharajah?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

For an airline that once upon a time was looked up to by other airlines and even trained the Singapore Airlines staff, the airline has seen some anxious moments over the last decade. The Maharajah was a metaphor for Air-India service – you could expect to be treated like royalty – but government organisations have never been known for good service. Perhaps what prompted the privatization of BOAC into British Airways back in 1974.

Once upon a time known for its exemplary service the airline has been in slow decline since the late 70s if not earlier. A victim of babudom at its best, the airlines best CEOs included stalwarts like Yogendra Deveshwar, the longest-serving CEO of ITC, one of our most admired companies, who often found their hands tied down by the aviation ministry. Perhaps its most fateful fall started when JRD Tata the founder and then still Chairman of Air-India was ingloriously removed from the Chairman’s role, on February 1, 1978. The then Prime Minister Morarji Desai was looking for a scapegoat for one of the greatest air tragedies of all time when its first Boeing 747 plunged into the sea off the coast of Bandra in Mumbai on January 1, 1978 killing all 213 passengers and crew. The accident itself was however was attributed to pilot error.

Increasingly the upper-class air travellers who once upon a time wore their Air-India baggage tags proudly (it was atma nirbhar with a huge dose of pride) began looking for other airlines to reflect their status. Certainly, in the 80s it then became fashionable to fly British Airways, Cathay and Singapore Airlines.

When news broke through Ratan Tata’s Twitter handle, that the Tata bid had been accepted by the Government, it felt like there had been some divine justice in returning Air India to its founders.

If the airline has been in trouble for a long time now so has its enduring and famous mascot the Maharajah, who probably accounts for a large part of the Air-India brand equity. Recalls Ivan Arthur National Creative Director of HTA (now Wunderman Thompson) “He was no commercial mascot. He became a national figure, Much loved and respected.” Time was when every middle-class home in India proudly displayed a little toy Air India Maharajah in their living room showcases along with other curios.

“We call him a Maharajah for want of a better description. But his blood isn’t blue. He may look like royalty, but he isn’t royal. He is capable of entertaining the Queen of England and splitting a beer with her butler. He is a man of many parts: lover boy, sumo wrestler, pavement artist, vendor of naughty post cards, Capuchin monk, Arab merchant….” is what SK ‘Bobby’ Kooka the Commercial Director of Air India is once known to have said. (Mr Kooka was later Chairman of HTA, Air India’s advertising agency)

Often the Maharajah took the blame for Air India misdeeds. His association with Air India was so strong that he had almost become the airlines’ alter ego. He was called names and accused of not being ‘in’ with the times, just because Maharajahs as we know went out of favour with the abolition of the privy purses. But in fact, the Maharajah enthralled his audiences all over the country and became an inseparable part of the Air India brand image and personality. And most of all he was an entertainer. He made people smile with his inimitable wit and humour. The magic behind the Maharajah was that his commentary would always have something to do with current topics touching a nerve with its audience. He had a different take on every event that made the news. And that is what kept him and brand Air India current in everyone’s minds.

The truth was that it was not the Maharajah that was out of sync with the times but the airline itself. Declining standards of service, ageing aircraft, the burden of excess staff, low productivity, and a decline in its customer-centricity, had meant that it was not the preferred airline for the upper-class air traveller as it once used to be.

Now that the Government has accepted the Tata bid, Air India has come full circle. And perhaps given their historical attachment to Air India and its mascot, the Maharajah might not have to take his final bow just yet. May Air India’s and the Maharajah’s glory be retrieved.

Long live the King!

—Prabhakar Mundkur is a veteran ad person, commentator and writer.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow