Media Releases


Merger of Idea Cellular and Vodafone India completed - A new Champion for Digital India is born!

Simple sheet

Aug 31 2018
Vodafone Idea Limited is India’s largest telecom service provider with over 408 million subscribers, #1 RMS in 9 circles, broadband network of 340,000 sites, widest distribution reach with 1.7 million retail outlets. Both Vodafone and Idea brands to continue. 

- Vodafone Idea Limited – An Aditya Birla Group & Vodafone Group partnership - becomes operational as India’s leading telecom service provider with a subscriber base of over 408 million.

- New Board of Directors comprising 12 Directors (including 6 Independent Directors) constituted, with Mr. Kumar Mangalam Birla as the Chairman. 

- The Board has appointed Mr. Balesh Sharma as the CEO.

- Pan India Revenue Market Share (AGR) of 32.2%, and a #1 position in 9 circles.

- Growing broadband network (3G+4G) with over 340,000 broadband sites covering 840 million Indians. 

- Largest voice network with over 200,000 unique GSM sites4 to cover over 1.2 billion Indians (92% population coverage).

- Large spectrum portfolio of ~1850 MHz and an adequate number of broadband carriers, to provide superior consumer experience across 2G, 3G and 4G platforms.

- Widest distribution reach with over 1.7 million retailers and ~15,000 branded stores to service customers. 

- Both Vodafone and Idea brands, which have strong consumer affinity across metro, urban, rural and deep interior markets, will continue to operate. 

Financial Highlights

- Merger is expected to generate Rs. 140 billion annual synergy, including opex synergies of Rs. 84 billion, equivalent to a net present value of approximately Rs. 700 billion.

- The equity infusion of Rs. 67.5 billion at Idea and Rs. 86 billion at Vodafone coupled with monetization of standalone towers of both companies for an enterprise value of Rs. 78.5 billion, provides the company a strong  cash balance of over Rs. 193 billion post payout of Rs. 39 billion to the DoT. 

- Additionally, the Company has an option to monetise an 11.15% stake in Indus, which would equate to a cash consideration of Rs. 51 billion. 

- As at 30 June 2018, net debt was INR 1092 billion. 


On the occasion of the merger, Mr. Kumar Mangalam Birla, Chairman Aditya Birla Group and Vodafone Idea Limited, said, “Today, we have created India’s leading telecom operator.  It is truly a historic moment.   And this is much more than just about creating a large business.  It is about our Vision of empowering and enabling a New India and meeting the aspirations of the youth of our country.  The “Digital India”, as our Honourable Prime Minister describes it, is a monumental nation- building opportunity.  As Vodafone Idea, we are partnering in this initiative by building a formidable company of international repute, scale and standards.”

Vodafone Idea will accelerate India’s progression towards a digital economy, enabling millions of citizens to connect to the digital revolution and build a better tomorrow. We will continue to offer a wide variety of digital services and solutions under both of our popular and loved brands (Vodafone and Idea). Services - including Voice, Data, Mobile payments, IoT, advanced enterprise offerings and entertainment – will all be conveniently accessible via digital channels and extensive on-ground presence of 15,000 branded stores and 1.7 million retail touchpoints across the country.

Welcoming customers to India’s leading telecom network, Mr. Balesh Sharma, CEO, Vodafone Idea Limited, said, “As India’s leading telecom operator with two popular and loved brands, the company has the scale and resources to ensure sustainable customer choice and introduce new technologies. We are committed to offer both our retail and enterprise customers an excellent experience while fulfilling their evolving digital and connectivity needs via new products, services and solutions. We will offer them more network coverage, more value and more excitement. My team and I look forward to your continuing support and invite you to enjoy the Vodafone Idea experience.”

The merger brings together Vodafone India and Idea Cellular, two of India’s leading operators who played a key role in making mobile the most popular mode of communication and drove the telecom revolution across the country. The combined company is designed to be agile, digitally savvy and future fit. It is a professionally run world class organization, combining the best from both Vodafone India and Idea Cellular. The company is committed to create a truly ‘Digital India’ by enabling millions of citizens to connect, join the digital revolution and build a better tomorrow. It will accelerate India’s progression towards a digital economy with a portfolio of quality products and services on offer under both its popular and loved brands - Vodafone and Idea.

With 1850 MHz of total spectrum holding, over 200,000 unique GSM sites and ~235,000 kms of fibre, the merged company offers superior voice and broadband connectivity across the country, covering 92% of the population and reaching nearly 500,000 towns and villages. This extensive infrastructure will allow customers to remain confidently connected across the country and enjoy uninterrupted services even as it integrates and optimizes its network in a phased manner across circles.

In addition to superior quality voice and data service experience, customers will enjoy a variety of digital services and solutions including mobile payments, Internet of Things (IoT), advanced enterprise offerings and entertainment, conveniently accessible via digital channels as well as extensive on-ground presence through ~15,000 branded outlets and ~1.7 million retail touchpoints across the country. Vodafone Idea will continue to invest in developing world-class infrastructure and introduce newer and smarter technologies - IoT, high speed and secure leased lines, digital wallets, MIMO and cloud services. As the trusted partner for Indian enterprises, it will empower businesses with future-ready products and services to help them scale up, become more efficient and tap new, emerging opportunities in the digital era.

The Company draws on support from its two largest shareholders – Vodafone Group Plc and Aditya Birla Group – to drive excellence and value creation from this merger.

About Vodafone Idea Limited

Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership. It is India’s leading telecom service provider with over 408 million customers and revenue market share of 32.2% (Q1FY19). With a large spectrum portfolio and number of broadband carriers to support the growing demand for data and voice, the company is committed to deliver delightful experiences to customers and contribute towards creating a truly ‘Digital India’ by enabling millions of citizens to connect and build a better tomorrow. It is developing world-class infrastructure to introduce newer and smarter technologies, making both retail and enterprise customers future ready with innovative offerings conveniently accessible through an ecosystem of digital channels as well as extensive on-ground presence.

Vodafone Idea Limited continues to remain listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).  For more information, please visit: www.vodafoneidea.com

About Aditya Birla Group

A US $44.3 billion corporation, the Aditya Birla Group is in the League of Fortune 500 companies. Anchored by an extraordinary force of over 120,000 employees, belonging to 42 nationalities.  Aon Hewitt, a reputed global consulting firm, in the ‘Best Employers 2018’ study conducted by them, have named Aditya Birla Group as the ‘Best Employer’ in India.  Over 50% of the Group’s revenues flow from its overseas operations in 35 countries. In the last 20 years, the Group has grown 20 times marking major milestones. For more information, please visit: www.adityabirla.com

About Vodafone Group

Vodafone Group is one of the world’s largest telecommunications companies and provides a range of services including voice, messaging, data and fixed communications. Vodafone Group has mobile operations in 25 countries, partners with mobile networks in 46 more, and fixed broadband operations in 18 markets. As of 30 June 2018, Vodafone Group had 534.5 million mobile customers and 19.9 million fixed broadband customers, including India and all of the customers in Vodafone’s joint ventures and associates. For more information, please visit: www.vodafone.com

Notes

Vodafone Group Plc owns a 45.2% stake and Aditya Birla Group owns a 26.0% stake, both on fully diluted basis.

As per quarterly disclosures by Idea and Vodafone

Market share based on VLR subscribers as of June 30, 2018 as reported by TRAI, Adjusted Gross Revenue (AGR) including wireline revenue, as reported by TRAI for the quarter ending June 30, 2018. 

Total GSM site count is approximately 270,000 as of June 30, 2018 including overlapping sites.

As per Vodafone- Idea merger announcement on March 20, 2017.

As of June 30, 2018 after adjustments for Rs. 39 billion payment towards differential between the entry fee paid and market price of 4.4 MHz spectrum, made to the DOT and Rs. 86 billion of equity funding contributed by Vodafone Group, in accordance with the terms of the merger agreement.

Based on Bharti Infratel’s 60 trading day VWAP of Rs. 291 as at 30 August 2018 and after applying a 10% discount to the implied Bharti Infratel March 2018 LTM EBITDA multiple of 7.5x

For enquiries, please contact:

Investor Relations

investorrelations@vodafoneidea.com

Tel: +91 9594003439

Media Relations

sudeep.bhalla@vodafoneidea.com

Tel: +91 9820018766

ANNEXURE

Details of Board of Directors and Senior Leadership Team

Vodafone Idea Limited: Board of Directors

Kumar Mangalam Birla

Chairman

Debnarayan Bhattacharya          

Non-Executive Director

Himanshu Kapania         

Non-Executive Director

Ravinder Takkar              

Non-Executive Director

Thomas Reisten              

Non-Executive Director

Vivek Badrinath

Non-Executive Director

Arun Kumar Adhikari    

Independent Director

Arun Thiagarajan            

Independent Director

Ashwani Windlass           

Independent Director

Doug Baillie       

Independent Director

Tarjani Vakil       

Independent Director

Uday Khanna    

Independent Director

 

Vodafone Idea Limited: Leadership Team

Balesh Sharma

Chief Executive Officer

Akshaya Moondra           

Chief Financial Officer

Ambrish Jain     

Chief Operations Officer

Nick Gliddon     

Chief Enterprise Business Officer

Manish Dawar   

Chief Integration Officer

Sashi Shankar   

Chief Marketing Officer

Vishant Vora      

Chief Technology Officer

Suvamoy Roy Choudhury           

Chief Human Resource Officer

Kavita Nair         

Chief Digital Transformation Officer

Navanit Narayan             

Chief Strategy Officer

P Balaji 

Chief Regulatory & Corporate Affairs Officer

Kumar Das         

Chief Legal Officer

Rajesh Srivastava            

Chief Commercial Officer



Oct 23 2018

Coca-Cola partners with Vodafone Idea & eBest IoT to introduce Connected Coolers

A smart and efficient fleet of coolers powered by Internet of Things (IoT) provides valuable insight into consumer behaviour

Connected Coolers will be on display at the Vodafone Idea stall at IMC2018 in Aerocity, New Delhi from 25-27th Oct’18

New Delhi, October 25, 2018: Coca-Cola India, one of the country’s leading beverage companies, has collaborated with Vodafone Idea Business Services, the enterprise arm of Vodafone Idea Limited, the largest telecommunications service provider in India and eBest IoT, to introduce state-of-the-art Connected Coolers across the country. The IoT enabled fleet of Connected Coolers will enable Coca-Cola to understand consumer behaviour and use the insights to enhance consumer experience.

Under the partnership, Connected Coolers will be powered by Vodafone SuperIoT – an industry-first solution that enables end-to-end management of device, application, connectivity, service platform, support and security. The technology will also equip Coca-Cola’s partners to manage inventory, sales tracking, monitor usage pattern and track locations, thus enabling them to increase sales and enhance customer experience

Commenting on the collaboration, Sanjay Rawal, Chief Information Officer for Coca-Cola India and South-West Asia said, “Coca-Cola’s portfolio is expanding, and we are harnessing the power of technology to get consumer insights which can help us engage better with our consumers and provide choices tailored to their location and behaviour. The connected cooler is the next milestone in our journey towards digitizing the marketplace and establishing a connected environment with our consumers. We are delighted to have partners like Vodafone Idea Business Services and eBest IoT.”

To ensure that customers get the best taste, this IoT solution has turned static cabinets into intelligent assets through a sensor that detects temperature, humidity and door closing/opening and helps maintain the quality of the bottle of Coke delivered to the customer.

Announcing the partnership with Coca-Cola India, Nick Gliddon, Chief Enterprise Business Offer, Vodafone Idea Business Services said, “Vodafone Idea Limited is extremely pleased to partner with a global leader like Coca-Cola India to bring the benefits of Internet of Things closer to the consumers. As organisations embark on their digital journey, collaborations like this will enable them to harness the power of IoT, driving innovation and growth. I am confident that the introduction of Connected Coolers is the beginning of Coca-Cola’s journey in building a digital ecosystem for deepening their engagement with the Indian consumers.”

Karan Bakshi, Chief Executive Officer at ebest IoT said, “We are extremely happy to partner with Coca-Cola India for our Connected Retail Solution. We are confident that our solution will provide relevant insights to Coca-Cola and help them realize better ROI on their Cooling assets”

The pilot for the Connected Coolers has been successfully completed and they will be introduced in phased manner across the country.

About Coca-Cola India 

Coca-Cola India is one of the country’s leading beverage companies, offering a range of healthy, safe, high quality, refreshing beverage options to consumers. Since its re-entry in 1993, the company has been refreshing consumers with its beverage products - Coca-

Cola, Coca-Cola Zero, Diet Coke, Thums Up, Thums Up Charged, Fanta, Fanta Green Mango, Limca, Sprite, Sprite Zero, Maaza, VIO flavoured milk ‘Almond Delight’ and ‘Kesar Delight’, Minute Maid range of juices, FUZE tea, Georgia and Georgia gold range of hot and cold tea and coffee options, Aquarius, Schweppes, SmartWater, Kinley and Bonaqua packaged drinking water and Kinley Club Soda. The Company along with its owned bottling operation and other bottling partners, through a strong network of over 2.6 million retail outlets, touches the lives of millions of consumers, at a rate of more than 500 servings per second. Its brands are some of the most preferred and most sold beverages in the country – Thums Up and Sprite – being the top two selling sparkling beverages.

The Coca-Cola India system provides direct employment to 25,000 people and indirect employment to more than 150,000 people. The Coca-Cola system in India is contributing in its own small way to building sustainable communities through community initiatives like Support My School, VEER, Parivartan and Unnati and by reducing its own environmental footprint. For further information on the company's India operations and its products, please visit: www.coca-colaindia.com and www.hindustancoca-cola.com.Follow us on twitter at twitter.com/CocaCola_Ind, or on facebook.

About Vodafone Idea Limited

Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership. It is India’s leading telecom service provider with over 408 million customers and revenue market share of 32.2% (Q1FY19). With a large spectrum portfolio and number of broadband carriers to support the growing demand for data and voice, the company is committed to deliver delightful experiences to customers and contribute towards creating a truly ‘Digital India’ by enabling millions of citizens to connect and build a better tomorrow. It is developing world-class infrastructure to introduce newer and smarter technologies, making both retail and enterprise customers future ready with innovative offerings conveniently accessible through an ecosystem of digital channels as well as extensive on-ground presence. Vodafone Idea Limited continues to remain listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). For more information, please visit: www.vodafoneidea.com

 

For Further Information, please contact:

 

Adfactors PR | teamvodafonemum@adfactorspr.com

Kaveri Singh

M: 9871030182

E-mail: Kaveri.singh@mslgroup.com

Kaavya Narain

M: 9999633335

E-mail: kaavya.narain@mslgroup.com



Oct 22 2018

iPhone XR ARRIVES AT VODAFONE IDEA ON OCT 26TH

- Pre-book started – enjoy 48 hour home delivery in select cities post the sale starts

- Vodafone and Idea post-paid customers can avail of lost cost EMI options and enjoy additional benefits of a 20% discount on rental for a year

 - Enjoy same benefits on the purchase of newly launched iPhone XS and iPhone XS Max

Vodafone Idea Limited, India’s largest telecommunications service provider, today announced it will offer iPhone XR, bringing the latest iPhone innovations to more people. Customers will now be able to pre-order iPhone XR on Vodafone.in & Ideacellular.com. The iPhone XR will also be available for purchase starting on Friday, October 26, 2018. For complete pricing details, please visit Vodafone.in & Ideacellular.com

iPhone XR integrates breakthrough technologies from iPhone XS in all-screen glass and aluminium design featuring a 6.1-inch Liquid Retina display, the most advanced LCD in a smartphone, with wide colour support and True Tone for a more natural viewing experience. iPhone XR brings the smartest and most powerful chip in a smartphone with A12 Bionic, a next-generation Neural Engine built for advanced machine learning in everything from photography to augmented reality, the TrueDepth camera system, faster Face ID, an advanced camera system that creates dramatic portraits using a single camera lens, long all-day battery life and six beautiful finishes; white, black, blue, yellow, coral and RED. This new design is splash and water resistant with a rating of IP67 and protects against everyday spills including coffee, tea and soda.

Vodafone Idea Limited has introduced exciting offers for Vodafone Red and Idea Nirvana customers. Customers with a rental plan of INR 499 and above can buy the new iPhone on Vodafone.in & Ideacellular.com and avail a 48 hour home delivery in select cities post the sales start and 20% rental discount for 1 year.  Additionally, the customers can also avail of low cost EMI options to pre-order the iPhone XR. Customers can enjoy the same benefits on the purchase of newly launched iPhone XS and iPhone XS Max that are available for immediate purchase.

*iPhone XR is splash-, water- and dust-resistant, and was tested under controlled laboratory conditions with a rating of IP67 under IEC standard 60529 (maximum depth of 1 meter up to 30 minutes). Splash, water and dust resistance are not permanent conditions, and resistance might decrease as a result of normal wear. Do not attempt to charge a wet iPhone; refer to the user guide for cleaning and drying instructions. Liquid damage not covered under warranty.

About Vodafone Idea Limited

Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership. It is India’s leading telecom service provider with over 408 million customers and revenue market share of 32.2% (Q1FY19). With a large spectrum portfolio and number of broadband carriers to support the growing demand for data and voice, the company is committed to deliver delightful experiences to customers and contribute towards creating a truly ‘Digital India’ by enabling millions of citizens to connect and build a better tomorrow. It is developing world-class infrastructure to introduce newer and smarter technologies, making both retail and enterprise customers future ready with innovative offerings conveniently accessible through an ecosystem of digital channels as well as extensive on-ground presence. Vodafone Idea Limited continues to remain listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). For more information, please visit: www.vodafoneidea.com

For Further Information, please contact:

Vodafone India | indiacorpcomm@vodafone.com



Oct 15 2018

VODAFONE & IDEA CUSTOMERS CAN NOW SAVE 50% ON MONTHLY BILLS WITH CITIBANK CREDIT CARD

Vodafone Idea Limited, the largest telecom service provider in India, today announced a partnership with Citibank offering a unique proposition to its post-paid customers. In a first-of-its-kind offer, Vodafone and Idea post-paid customers can avail up to 50% discount on their monthly rental bills.  

 

To avail this offer, a customer simply has to apply for a new Citibank credit card and spend just INR 4000 within 60 days of the card issuance. Vodafone and Idea customers using Vodafone Red or Idea Nirvana plans of INR 399 & higher can enjoy a value proposition of cashback worth INR 2400 for a year on their post-paid rentals. The cashback would be offered at a rate of Rs. 200 per month for 12 bills.

Vodafone and Idea post-paid customers can apply for the new CitiBank credit card via My Vodafone App/ My Idea App, Vodafone and Idea website or Citibank website to avail the cashback offer.

About Vodafone Idea Limited

Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership. It is India’s leading telecom service provider with over 408 million customers and revenue market share of 32.2% (Q1FY19). With a large spectrum portfolio and number of broadband carriers to support the growing demand for data and voice, the company is committed to deliver delightful experiences to customers and contribute towards creating a truly ‘Digital India’ by enabling millions of citizens to connect and build a better tomorrow. It is developing world-class infrastructure to introduce newer and smarter technologies, making both retail and enterprise customers future ready with innovative offerings conveniently accessible through an ecosystem of digital channels as well as extensive on-ground presence. Vodafone Idea Limited continues to remain listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). For more information, please visit: www.vodafoneidea.com

 

For Further Information, please contact:

Adfactors PR | teamvodafonemum@adfactorspr.com

Genesis Burson-Marsteller | natasha.gerald@bm.com



Sep 25 2018

Vodafone Idea Partners PayTM to delight its Prepaid Customers

Customers using Vodafone and Idea branded prepaid services to enjoy cashback up to Rs. 25 and get exciting vouchers worth Rs. 375

Vodafone Idea Limited, the largest telecom service provider in India, today announced a partnership with Paytm, India’s largest digital payments company, to offer a unique proposition to its prepaid customers. This partnership offers Vodafone and Idea customers exclusive cashback offers and exciting vouchers on recharging through Paytm.

Vodafone and Idea prepaid customers who transact for the first time on Paytm, can avail an assured cashback of Rs. 25 on a minimum recharge of Rs. 149 done through Paytm while existing Paytm users can enjoy cashback of Rs. 20. Additionally, customers will get vouchers worth Rs. 375 from Paytm which can be used to buy movie tickets and to shop on Paytm Mall.

Vodafone Idea Limited is committed to create a truly ‘Digital India’ by enabling millions of citizens to connect, join the digital revolution and build a better tomorrow. It will accelerate India’s progression towards a digital economy with a portfolio of quality products and services on offer under both its popular and loved brands - Vodafone and Idea.

About Vodafone Idea Limited

Vodafone Idea Limited is an Aditya Birla Group and Vodafone Group partnership. It is India’s leading telecom service provider with over 408 million customers and revenue market share of 32.2% (Q1FY19). With a large spectrum portfolio and number of broadband carriers to support the growing demand for data and voice, the company is committed to deliver delightful experiences to customers and contribute towards creating a truly ‘Digital India’ by enabling millions of citizens to connect and build a better tomorrow. It is developing world-class infrastructure to introduce newer and smarter technologies, making both retail and enterprise customers future ready with innovative offerings conveniently accessible through an ecosystem of digital channels as well as extensive on-ground presence. Vodafone Idea Limited continues to remain listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). For more information, please visit: www.vodafoneidea.com

For Further Information, please contact:

Adfactors PR | teamvodafonemum@adfactorspr.com

Genesis Burson-Marsteller | natasha.gerald@bm.com



Jun 04 2018

Idea Cellular receives DoT approval for increase in FDI limit to 100%

Idea Cellular Ltd. has received approval on its application to increase Foreign Direct Investment (FDI) limit in the company to 100%, from the current 67.5%, from the Department of Telecom (DoT) today.

The approval is for total foreign investment upto 100% in Idea Cellular Ltd., and total indirect FDI in its relevant subsidiaries – Aditya Birla Telecom Ltd. and Idea Cellular Infrastructure Services Ltd.

The FDI approval is a major milestone in the merger process of Vodafone India with Idea Cellular, and follows other statutory approvals already received from the SEBI, NSE, BSE, CCI and NCLT Mumbai and NCLT Ahmedabad.

The merger of Vodafone India with Idea Cellular is in the final leg of regulatory approvals and is expected to complete in H1CY18, subject to the final approval from the DoT.



May 31 2018

Idea Cellular announces completion of sale of standalone tower business to ATC Telecom Infrastructure Private Limited

Idea Cellular (“Idea”), today announced the completion of sale of its pan-India standalone tower business, by way of divesting its entire stake in ICISL (100% subsidiary of Idea), to ATC Telecom Infrastructure Private Limited (“ATC”). The transaction has been closed with an enterprise value of Rs. 40 billion for approximately 9,900 standalone towers.

Vodafone’s sale of its standalone tower business to ATC has already been completed earlier for an enterprise value of Rs. 38.5 billion. Post the completion of Vodafone India and Idea merger, ~6,300 co-located tenancies of the two operators on the combined standalone tower portfolio will collapse into single tenancies over a period of two years without the payment of exit penalties. Both Vodafone India and Idea as customers, and ATC as a vendor, have agreed to treat each other as long-term preferred partners, subject to existing arrangements.

The receipt of both these proceeds prior to completion was anticipated and provided for, in the Vodafone India and Idea merger agreement and hence would not affect the agreed terms of the merger, including the amount of debt which Vodafone will contribute to the combined entity at the closing of merger transaction.

With this both Idea and Vodafone India have now monetised the standalone tower assets for a total enterprise value of Rs. 78.5 billion, as per the timelines provided at the time of the announcement in November 2017, strengthening the financial position of the merged entity.



Mar 22 2018

Vodafone Group and Aditya Birla Group announce the proposed new leadership team of the merger between Vodafone India and Idea Cellular

Vodafone Group Plc and Idea Cellular today announced the proposed leadership team of the combined business, which will come into effect after the merger has been completed. This is in line with the original merger announcement of 20 March 2017, which said that the management team of the combined business would be confirmed prior to closing.

Vodafone and Idea continue to make good progress in securing the required regulatory approvals for the merger, in keeping with the Modi Government’s commitment to improve the ease of doing business in India, and completion is expected to be in the first half of the current calendar year.

The existing leadership teams of Idea Cellular and Vodafone India will continue to manage their separate businesses and be accountable for each company’s operational performance until the merger becomes effective. It is only upon completion of the merger that the two businesses will cease to operate as distinct and competing entities.

Mr Kumar Mangalam Birla will be the Non-Executive Chairman of the merged Company. The composition of the proposed leadership team of the new company is as follows:

CEO - Balesh Sharma (currently Chief Operating Officer of Vodafone India). Balesh Sharma will be responsible for the combined business’s strategy and its execution as well as driving integration.

The following positions will report to the CEO:

 CFO - Akshaya Moondra, currently Chief Financial Officer at Idea.

 COO - Ambrish Jain, currently Deputy Managing Director at Idea, will be responsible for Circles Operations and Service Delivery.

 Nick Gliddon, currently Director – Vodafone Business Services at Vodafone India, will be responsible for the Enterprise Business.

 Manish Dawar, currently CFO of Vodafone India, will have overall responsibility for integration planning, governance and execution.

 Sashi Shankar, currently Chief Marketing Officer at Idea, will be responsible for Marketing and Brand strategy for the consumer business.

 Vishant Vora, currently Chief Technology Officer of Vodafone India, will have responsibility for networks and overall technology strategy.

 Prakash Paranjape, currently Chief Information Officer at Idea, will be responsible for the company’s IT operations.

 Suvamoy Roy Choudhury, who leads Vodafone India’s Human Resources, will be responsible for the Human Resourcesfunction.

 Kavita Nair currently the Associate Director, Commercial Operations, at Vodafone India, will lead digital transformation across all functions.

 Navanit Narayan, currently Chief Service Delivery Officer at Idea, will be in charge of Strategy.

 P Balaji, currently Vodafone India’s Head of Regulatory, External Affairs and CSR, will be responsible for Corporate and External Affairs.

 Kumar Das, currently Vodafone India’s General Counsel, will lead the legal function.

 Rajesh Srivastava, currently Chief Commercial Officer at Idea will hold charge of the Procurement Function. 

Anil Tandon and Rajat Mukherjee, currently Head of Technology and Head of Corporate Affairs of Idea will be full time advisers to the merged business in their respective areas of expertise, working closely with Vishant and Balaji, respectively. Both companies would like to express their immense gratitude to Himanshu Kapania and Sunil Sood for their successful leadership of Idea Cellular and Vodafone India respectively. They will continue in their current roles until such time as the merger completes. The commercial, operational and strategic experience of Sunil Sood and Himanshu Kapania are extremely important to both businesses and their support will be invaluable during the initial phase of the integration once the merger completes. Sunil Sood will join the Vodafone Group AMAP Leadership Team and also help governance through Board memberships. The Aditya Birla Group intends to nominate Himanshu Kapania as non-executive Board member of the merged entity.

Vodafone Group Chief Executive, Vittorio Colao, and Aditya Birla Group Chairman, Kumar Mangalam Birla, 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.” 



Mar 20 2018

Merger of Vodafone India and Idea: creating the largest telecoms operator in India

Vodafone to combine its subsidiary Vodafone India (excluding its 42% stake in Indus Towers) with Idea, which is listed on the Indian Stock Exchanges.

Highly complementary combination will create India’s largest telecoms operator1 with the country’s widest mobile network and a strong commitment to deliver the Indian government’s ‘Digital India’ vision.

Sustained investment by the combined entity will accelerate the pan-India expansion of wireless broadband services using 4G/4G+/5G technologies, support the introduction of digital content and ‘Internet of Things’ (IoT) services as well as expand financial inclusion through mobile money services for the benefit of Indian consumers, businesses and societyas a whole.

Merger of equals with joint control of the combined company between Vodafone and the Aditya Birla Group, governed by a shareholders’ agreement.

The merger ratio is consistent with recommendations from the joint independent valuers. The implied enterprise value is INR828 billion (US$12.4 billion) for Vodafone India and INR722 billion (US$10.8 billion) for Idea excluding its stake inIndus Towers, valuing Vodafone India at 6.4x EV/LTM EBITDA and Idea excluding its stake in Indus Towers at 6.3xEV/LTM EBITDA2.

Substantial cost and capex synergies with an estimated net present value of approximately INR670 billion (US$10.0billion) after integration costs and spectrum liberalisation payments, with estimated run-rate savings of INR140 billion (US$2.1 billion) on an annual basis by the fourth full year post completion3.

Vodafone will own 45.1% of the combined company after transferring a stake of 4.9% to the Aditya Birla Group for circa INR39 billion (circa US$579 million) in cash concurrent with completion of the merger. The Aditya Birla Group will then own 26.0% and has the right to acquire more shares from Vodafone under an agreed mechanism with a view to equalising the shareholdings over time.

If Vodafone and the Aditya Birla Group’s shareholdings in the combined company are not equal after four years, Vodafone will sell down shares in the combined company to equalise its shareholding to that of the Aditya Birla Group over the following five-year period.

Until equalisation is achieved, the voting rights of the additional shares held by Vodafone will be restricted and votes will be exercised jointly under the terms of the shareholders’ agreement.

Vodafone India will be deconsolidated by Vodafone on announcement and reported as a joint venture post-closing, reducing Vodafone Group net debt by approximately INR552 billion (US$8.2 billion) and lowering Vodafone Group leverage by around 0.3x Net Debt/EBITDA4. The transaction is expected to be accretive to Vodafone’s cash flow5 from the first full year post-completion.

The transaction is expected to close during calendar year 2018, subject to customary approvals.



Nov 13 2017

American Tower to acquire the standalone tower businesses of Vodafone India and Idea Cellular

Vodafone India and Idea Cellular Limited (“Idea”)1 have separately agreed to sell their respective standalone tower businesses in India to ATC Telecom Infrastructure Private Limited (“ATC TIPL”, formerly Viom)2 for an aggregate enterprise value of INR78.5 billion (US$1.2 billion)3.

 Vodafone India and Idea Cellular Limited (“Idea”) 1 have separately agreed to sell their respective standalone tower businesses in India to ATC Telecom Infrastructure Private Limited (“ATC TIPL”, formerly Viom)2 for an aggregate enterprise value of INR78.5 billion (US$1.2 billion)3 .

 The standalone tower businesses of Vodafone India and Idea are pan-Indian passive telecommunication infrastructure businesses, comprising a combined portfolio of approximately 20,000 towers with a combined tenancy ratio of 1.65x as at 30 June 2017.

 Idea will sell its entire stake in ICISL and Vodafone India will sell a business undertaking to ATC TIPL.

 Both Vodafone India and Idea as customers, and ATC TIPL as a mobile network infrastructure provider, have agreed to treat each other as long-term preferred partners, subject to existing arrangements. The parties will work together to further the expansion of high speed mobile networks in India.

 After Vodafone India and Idea have completed their merger, ~6,300 co-located tenancies of the two operators on the combined standalone tower businesses will collapse into single tenancies over a period of two years without the payment of exit penalties4 .

 This transaction follows the Vodafone India / Idea merger announcement of 20 March 2017 whereby the parties announced their intention to sell their individual standalone tower businesses to strengthen the balance sheet of the combined business.

 In the event that the completion of the sale of the standalone tower businesses precedes the completion of the proposed merger of Vodafone India and Idea, Vodafone India will receive INR38.5 billion (US$592 million) and Idea will receive INR40.0 billion (US$615 million)5 . The receipt of these proceeds prior to completion was anticipated and provided for in the merger agreement and hence would not affect the agreed terms of the Vodafone India and Idea merger, including the amount of debt which Vodafone will contribute to the combined company at completion6.

  Completion of the transaction is subject to customary closing conditions and receipt of necessary regulatory approvals, and is expected to take place during the first half of calendar year 2018.



Jul 24 2017

CCI approves proposed merger of Vodafone India, Vodafone Mobile Services Ltd., and Idea Cellular

Idea Cellular is pleased to confirm receipt of the letter from the Competition Commission of India dated 24th July 2017, according approval to the proposed merger of Vodafone India, Vodafone Mobile Services Limited, and Idea Cellular under sub section (1) of section 31 of the Act. 

The transaction is expected to close during calendar year 2018 subject to customary approvals.



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