‘Reset’ of the Indian business environment: Anand Mahindra on Air India divestment


The Chairman of the Mahindra Group, Anand Mahindra, hailed the government’s divestment of Air India, calling it a “reset” to the Indian business environment.

“I can be accused of exaggerating the importance of this event, but I think this divestment amounts to a ‘reset’ of the Indian business environment. Yes, the government. is the distribution of a cash drain; But it also renews faith after decades in the potential effectiveness of the Pvt sector. Mahindra said in a tweet.

Rebuilding the image of Air India

Mahindra’s tweet cited a statement from Ratan Tata, Chairman Emeritus of Tata Sons, who said JRD Tata would have been thrilled if he was alive today with Air India returning to the Tata Group.

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“Air India, under the leadership of JRD Tata, at one point had a reputation as one of the most prestigious airlines in the world. Tatas will have the opportunity to regain the image and reputation she enjoyed in previous years. JRD Tata would have been delighted if he was with us today, ”Tata said.

Tata acknowledged that while it will take considerable effort to rebuild Air India, it will hopefully provide a strong market opportunity for Tata Group’s presence in the aviation industry. “Welcome, Air India! Said Tata.

Take back the reins

From January, the Tata group will take over the reins of Air India after 68 years, the government having decided to sell the national carrier to Talace Private Limited, a Tata Sons ad hoc vehicle. The airline was founded in 1932 by JRD Tata.

See also: “Welcome, Air India! “: Ratan Tata

The government had set the reserve price at 12,906 crore, while the Tata Sons special-purpose vehicle offered an enterprise value of 18,000 crore. The second bid was ₹ 15,100 crore.

Of the 18,000 crore, the government will get 2,700 crore in cash while the remaining amount will be in the form of debt transferred to the new entity. Thus, all of Air India’s 100% stake as well as AI’s stake in Air India Express Limited (AIXL) and AISATS will be returned to the new owner.

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