Image Credits opindia.com
- Betting on people - Rakesh Junjunwala knows that the airline business is one of the most challenging businesses to run; hence he surrounded himself with industry experts such as Aditya Ghosh & Vinay Dube. Aditya Ghosh was president of Indigo airlines. He turned around the company completely & made it profitable in his tenure company's market share grew from 15% to 48%. Similarly, Vinay Dube also played a vital role in Jet airways. Mr. Aaditya Ghosh owns a 10% stake in a company & Mr. Vinay Dube owns 15%. He is CEO of a company.
“Always go against tide. Buy when others are selling and sell when others are buying.”
Rakesh Jhunjhunwala
- It's a meager risk investment for Rakesh Junjunwala. He is investing 260 crores which is even less than 1% of his net worth as his net worth right now more than 30,000 crores. 2 Almost no-risk investment - That's right, it might be challenging to believe, but it's the truth. So even if this venture fails, it's not going to affect Mr. Junjunwala at all.
- Strategic Investors - Aakasa manage to get some big names to invest in them, such as Airbnb & PAR capital. These investors will not only provide the company the capital, but also they will help them to grow.
- IF we remove the one year of covid pandemic, the passengers had increased 12% compounded for the last 5 years. 4 Growing market- A lot of people think airline companies are making losses because there is less demand for air travel that is further from the truth. Also, there are more than ten airports currently in the making in-country. & it will grow for a decade or two that creating a massive opportunity for the whole sector.
- The company is planning to purchase 70 planes in the next 4 years. 5Long term plan - We all know that Mr. Rakesh Junjunwala is a very good trader but he created most of his wealth by investing long term, Titan,Crisil, Lupin are some examples RJ holds them for more than decade. He is doing same thing with Aakasa he is in no rush to make quick bucks on his investment, he is in it for the long term, which shows the commitment of Mr. Junjunwala towards its investment.
Pratik Kale
CIO ROHA Associates
https://www.linkedin.com/in/pratik-kale-724a40107/
https://twitter.com/kpratik28
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