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Rediff.com  » Business » Vodafone to invest $2 bn in India: Sarin

Vodafone to invest $2 bn in India: Sarin

Source: PTI
February 14, 2007 16:27 IST
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Vodafone CEO Arun Sarin on Wednesday said the company would invest $2 billion in India in the next couple of years, while on a personal note termed the Hutch-Essar win as a 'homecoming.'

"This (Hutch-Essar) is the biggest company in the Vodafone group in terms of subscriber base," he told reporters on his first visit to the national capital after announcing acquisition of India's fourth largest mobile player with 24.4 million customers.

Sarin, who was born in India and graduated from IIT-Khargapur, described the deal as a homecoming. "This is what we used to talk during the IIT days."

Having clinched the deal, Sarin is now intent on making Hutch-Essar the country's number one player with a target of 100 million customers.

At present, mobile leader Bharti Airtel has a subscriber base of over 33 million.

Vodafone, the world's largest mobile player in terms of revenue, has said it would bring in all incremental investment while ruling out an Initial Public Offer for raising funds from the market. "We have enough funds," Sarin said.

The transaction is expected to be completed in about two months, including obtaining all regulatory approvals.

While Vodafone had bid $11.1 billion for Hong Kong-based Hutchison Telecom's (HTIL) 67 per cent stake in the mobile venture, it actual stake acquisition would be only 52 per cent as the remaining 15 per cent is held by minority Indian shareholders who have opted to continue as partners.

Vodafone, which offered to buyout the 33 per cent stakeholder Essar from the venture at the same price as given to HTIL, said it would like it if the Indian conglomerate stay put as a partner.

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