Vodafone to invest $2bn in India operations

Vodafone to invest $2bn in India operations
PTI
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First Published: Sat, May 26 2007. 12 07 AM IST
Updated: Sat, May 26 2007. 12 07 AM IST
New Delhi: Britain’s Vodafone Plc. said it has informed the Union government of its intention to invest $2 billion (Rs8,200 crore) on its Indian operations in the very first year of its operation here.
Thanking finance minister P. Chidambaram for his help in gaining approval for acquisition of a majority stake in mobile services operator Hutch-Essar, Vodafone CEO Arun Sarin, in a letter, said, “Following your approval, we have closed the transaction with Hutchison, and Vodafone now has the management control of Hutch Essar.”
The company will be renamed Vodafone Essar and will market services using the Vodafone brand in due course, Sarin reportedly told the finance minister.
Showing his excitement at the opportunity to play a greater role in the Indian market, the CEO of Newbury-based Vodafone has written that in the first year of its operations, the company would make new capital investments of nearly $2 billion to introduce low-cost handsets to help accelerate its penetration.
The company will also put in place network-sharing arrangements with Bharti (and others if they wish to join) to accelerate rural coverage and bring the benefits of its global enterprise services to Indian customers. Sarin also stated that Vodafone plans an India-focused charitable foundation. “We look forward to our future in India with confidence,” he is believed to have said.
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First Published: Sat, May 26 2007. 12 07 AM IST
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