- published: 23 Apr 2013
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A debt is an obligation owed by one party (the debtor) to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.
A debt is created when a creditor agrees to lend a sum of assets to a debtor. Debt is usually granted with expected repayment; in modern society, in most cases, this includes repayment of the original sum, plus interest.
In finance, debt is a means of using anticipated future purchasing power in the present before it has actually been earned. Some companies and corporations use debt as a part of their overall corporate finance strategy.
The word comes from the French dette and ultimately Latin debere (to owe), from de habere (to have). The letter b in the word debt was reintroduced in the 18th century, possibly by Samuel Johnson in his Dictionary of 1755 – several other words that had existed without a b had them reinserted at around that time.
Vijay Mallya (Kannada: ವಿಜಯ್ ಮಲ್ಯ; born on December 18, 1955 in Calcutta, West Bengal, India) is an industrialist and a second-time member of India's parliament. He is the chairman of the UB Group – one of India's largest conglomerates,[citation needed] with diverse interests in brewing, distilling, aviation, pharmaceuticals, real estate, engineering, fertilizers, biotechnology and information technology.
He is the son of industrialist Vittal Mallya. He took over as the chairman of the company at the age of 28 after his father's sudden demise in 1983.
Mallya attended the La Martiniere, Calcutta boys school, and graduated with a Bachelor in Commerce degree from St. Xavier's College, Kolkata. While in college, Mallya was interning in his family businesses. After he graduated, he interned at the American part of Hoechst in the United States.[not in citation given]
At the time of his father's death, Mallya was unanimously elected Chairman of United Breweries. As part of his modernisation bid, he consolidated the various companies under one umbrella group called the "UB Group", spun off non-core and loss-making businesses and focused on the core business of beverage alcohol.Kingfisher beer controls more than 50 per cent market share of India's beer market. The beer is available in 52 countries outside India and leads the way among Indian beers in the international market.United Spirits Ltd, the flagship of the UB Group, has achieved the historic milestone of selling 114 million cases, becoming the largest spirits company in the world by volume.