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Force India`s loss races to 33.4 million pounds
Losses of the Force India Formula One team, owned by liquor baron Vijay Mallya, has increased by 21 million pounds to 33.4 million pounds post-tax in 2008, media reported quoting recently-filed accounts on Monday.
London: Losses of the Force India Formula One
team, owned by liquor baron Vijay Mallya, has increased by 21
million pounds to 33.4 million pounds post-tax in 2008, media
reported quoting recently-filed accounts on Monday.
In 2008, Mallya and the team`s co-owner, former Spyker
Cars chief executive Micheil Mol, gave Force India a loan of
27.6 million pounds to keep it on track.
The duo bought the Northamptonshire-based team in October
2007 and the following year its turnover increased 27.3 per
cent to 37 million pounds.
However, this boost was far exceeded by the 74.4 per cent
rise in total costs of 69.6 million pounds, reported the Daily
Telegraph.
The team`s bank loans increased by 14.9 million pounds to
plug the gap but even this was not enough with Mallya`s
Kingfisher airlines also directly investing 2.5 million pounds
in sponsorship and a further one million pounds coming from
Whyte & Mackay, his scotch whisky company.
Despite the increased spending, the team finished 10th in
2007 and ended in the penultimate place in the standings the
following year.
Force India`s 2009 accounts are unlikely to be rosier as
it lost sponsorship last year from ICICI bank and Kanyan
Capital -- two firms believed to have been paying a total of
USD 6 million.
This year, the loss of Indian conglomerate Reliance from
its sponsorship roster will also put a big dent in its
revenues and may mean it needs even more fuel from its owners,
the report said.
PTI
PTI