Vodafone India And Idea Merger: New Leadership Team Announced
Vodafone India Plc and Idea Cellular India have announced the completion of the merger. Post the merger, the top-level management will see a shakeup and the two telcos will join hands to take on the rising popularity of Reliance Jio. Mr Kumar Mangalam Birla will be the Non-Executive Chairman of the merged Company. The new CEO will be Balesh Sharma, the current Vodafone COO.
Vodafone Group Chief Executive, Vittorio Colao, and Aditya Birla Group Chairman, Kumar Mangalam Birla have said:
We are pleased to announce the proposed management team for the new company to be created through the merger of Vodafone India and Idea. The team has extensive operational experience and is an excellent blend of expertise from both companies.
We look forward to the completion of the merger and competing as one company in the marketplace.
According to a report, Vodafone and Idea will together invest about Rs. 60,000 crore in the next three years to upgrade its infrastructure. Both the companies will invest up to Rs 14,000 crore on capital expenditure. Bharti Airtel is miles ahead of the two companies when it comes to investment this year. Bharti Airtel is already spending around Rs 22,000 crore on capex for its India wireless business. Reliance Jio Infocomm Ltd’s spend on infrastructure has been higher this year.
A recent relief for the Indian telecom industry announced by the Government will also help this merger. The two companies will be able to retain spectrum in key markets and then significantly boost cashflows. More details about the merger will follow.