Mallya Picks Bulk Holding In Asian Age, Calcutta

Liquor baron Vijay Mallyas Calcutta roots seem to have prompted him into yet another acquisition in the city. Mallya has quietly picked up the majority stake in the Calcutta edition of the multi-edition newspaper, The Asian Age. The edition was earlier controlled by S S (Tutu) Bose, who belongs to the family which owns the famous stevedore firm E C Bose & Co.

Confirming the acquisition to Business Standard, Mallya said: Last week, I signed the deal with Tutu Bose, and I now own a majority stake in The Asian Age, Calcutta. A source close to Bose said that Mallya now owns 74 per cent of the stake and Bose retains 26 per cent. However, sources declined to reveal the total size of the deal.

 

Mallya is also in control of the Bangalore edition of The Asian Age.

We had earlier thought of having a partner for The Asian Age, as managing two newspapers is no easy matter, said the source. The family also owns the Bengali daily, Sambad Pratidin, whose circulation has crossed over 2.5 lakh. Mallya will mainly be overseeing the operations of The Asian Age Calcutta, though the Bose family will continue to have a say in its matters. After all, the newspaper was our baby, said the source. The source admitted that The Asian Age, with its circulation of just over 1.3 lakh, is not yet profitable.

No newspaper can be profitable in such a short time, he said. The printing press and the newspapers office premises at Prafulla Sarkar Street in central Calcutta will remain under the Bose family.

However, The Asian Age can only benefit with Mallya stepping into the scene, with his Rs 3,200 crore UB Group behind him. We are looking forward to reaching new heights with this partnership, said the source.

Mallyas association with Tutu Bose extends beyond The Asian Age. Mallya has taken 50 per cent stakes in the two immensely popular football teams, the Tutu Bose-controlled Mohun Bagan Club and its traditional rival, East Bengal. The name of the two new companies are United Mohun Bagan Football Team Private Ltd and United East Bengal Football Team Pvt Ltd.

It is believed that while East Bengal will play as Kingfisher East Bengal, Mohun Bagan team will retain its original name, but will be wearing the McDowell logo on its jersey.

Mallya, at a press conference, while allaying fears of match-fixing between the two teams, admitted that apart from popularising football through corporatisation, the UB Group is also looking at advertising its brands through sponsorship.

In Delhi there is a ban on advertising liquor, and this is one of the various avenues that we have been considering, where we can make our products known, said Mallya.