Partnership of Vodafone and Essar
March 15, Finally, Vodafone and Essar group agreed to run Hutch-Essar jointly. Hutch-Essar is the country’s fourth largest cellular service provider. The company would be named as Vodafone Essar. Ravi Ruita will be appointed as Chariman and Arun Sarin will be Vice Chairman.
Both the companies said that they had agreed on partnership terms, as per it Vodafone would have operational control of Vodafone Essar while Hutch-Essar would have rights consistent with its shareholdings, including proportionate Board representation.
Arun Sarin, CEO, Vodafone said that Hutch-Essar had played a key role in transforming that business into a leading Indian mobile operator. He said that they looked forward to leveraging that experience and working with their partners as vodafone entered tis next phase of growth in the attractive Indian telecomunications market.
Arun Sarin and Hutch-Essar Group Vice Chairman Ravi Ruia met telecom minister Dayanidhi Maran. They also met commerce minister Kamal Nath. Kamal Nath said Vodafone’s investments would bring synergies and technical expertise to India.
He announced a three-pronged strategy to accelerate capital expenditure on network infrasturcture, to improve suite of products and services and provide innovative services such as money transfer via mobile.
