Ambani once had a stake in the airline sector, had a stake in this company; Then why did you leave the business?

Reliance In Aviation Sector: The country’s largest domestic airline company IndiGO (IndiGO Crisis) is facing a huge crisis these days. People are worried due to the collapse of the systems of the airline which has 65 percent share in the Indian market. Amidst this crisis, it is being discussed that to end the monopoly of Indigo, industrialists like Mukesh Ambani should also come into this sector. However, there are very few people who know that Mukesh Ambani’s Reliance had also once done business in this sector.

After knowing this, people will try to know in which airline company Mukesh Ambani’s Reliance was last doing its business and why he had to leave the aviation sector. Today we will tell you the same story as to why Reliance separated itself from this sector. Let us know everything in detail.

Reliance’s entry into aviation sector in 2010

Mukesh Ambani-led Reliance Industries in April 2010 became “strategic investor” in Deccan 360, a cargo airline founded by Captain Gopinath. Entered the aviation sector as a. According to reports at that time, Reliance had bought a stake between 26 percent and 50 percent. Through Deccan 360, Reliance had invested about Rs 115 crore as a strategic move to strengthen its retail operations logistics. At that time, RIL Chairman and MD Mukesh Ambani had said in a statement that we believe that our collaboration with Deccan 360 will bring a big change in the field of logistics in India.

The story of the sinking of Deccan 360 airline

Deccan 360 faced a lot of problems in business and funding, which led to huge losses. Its cargo operations, which used three Airbus 310s, ceased in May 2011 as lessors repossessed the aircraft due to lack of business volume. Since Deccan 360’s operations were not going as per plan, RIL had subsequently discontinued the investment and was believed to have expressed its desire to exit the company or reduce its stake.

In September 2011, RIL closed its investment in Deccan 360. Mukesh Ambani A transaction was made to transfer the personal investment portfolio of Rs. The company then looked for new buyers and funding, but around that time RIL’s original support had almost ended.

Also read: Pakistan is on the verge of starvation… yet why was the IMF kind, gave a loan of so many billion dollars?

This is how Reliance exited Deccan 360

Subsidiary company of RIL Reliance Industrial and Investments Holding Limited has written off 90% of its investment of around Rs 107 crore in Deccan 360, giving a clear indication of its exit from this venture. In effect, Reliance converted its stake from a strategic corporate investment to a personal investment and then when the venture failed, it exited by writing off the investment rather than making a clean sale.