Kumar Mangalam Birla has reportedly been appointed as the non-executive chairman of Vodafone Idea Limited (Vi), as the telecom operator looks to revive its business after years of financial stress caused by intense market competition and liabilities linked to adjusted gross revenue (AGR) dues.
Birla said India continues to present a strong telecom opportunity, driven by the government’s Digital India vision. He added that Vi’s revival reflects efforts to maintain a competitive three-player private telecom market, supported by its workforce and subscriber base of nearly 200 million users.
Birla said India continues to present a strong telecom opportunity, driven by the government’s Digital India vision. He added that Vi’s revival reflects efforts to maintain a competitive three-player private telecom market, supported by its workforce and subscriber base of nearly 200 million users.
He also highlighted improving operational performance at the company, backed by a capital expenditure plan of nearly $5 billion, and expressed confidence that Vodafone Idea would continue contributing to India’s telecom sector and overall economic growth.Birla succeeds Ravinder Takkar, who has stepped down as chairman and will now serve as vice chairman while continuing as a non-executive director. The changes came into effect from May 5 following board approval, according to an exchange filing.
Birla had earlier resigned as non-executive chairman in 2021 amid mounting financial pressure on the company.
Vodafone Idea, a joint venture between the Aditya Birla Group and Vodafone Group, was formed to tackle increasing tariff competition after Reliance Jio entered the telecom sector in 2016. However, the company later faced major financial challenges following the 2019 Supreme Court ruling on AGR dues.Last month, the government reduced Vi’s AGR liabilities by 27 per cent to Rs 64,046 crore and granted a 10-year moratorium on repayments, offering major relief to the company’s cash flows.