NEW DELHI: Vodafone has reached an agreement with the Essar Group on the Hutch deal.
“The new company will be known as Vodafone-Essar and Ravi Ruia has accepted to be the chairman of the new board,” Vodafone chief Arun Sarin announced here today.
“Analjit Singh and Asim Ghosh who hold stakes in the company on their personal level will continue to do so, and Asim will continue to be the CEO of the new company,” he added.
The UK-based mobile giant is optimistic about doubling its profits from the emerging markets in the next couple of years.
Sarin said that the firm is looking forward to boost its profits from the emerging markets across the globe.
Earlier, he announced that Vodafone has reached a deal with Essar on the Hutch deal and the new company will be known as Vodafone Essar.
“Currently around 10 to 15 per cent of our profits come from the emerging markets and we are targeting to double it in a couple of years,” Sarin informed. He, however, did not reveal the expected time required to meet the target.
Highlighting on the brand name and the logo of the renamed brand Vodafone Essar, Sarin said that they are in the process of finalizing the plans. He said that once the deal is formalized the new company would be coming up with the new logo. “In this process we do not want to lose the brand equity,” Sarin said.
He said that the company has no plans to go for an IPO in the next two years.
Ravi Ruia, vice-chairman, Essar said that it would be the most valuable company in India. He said that by partnering with Vodafone, the company has created further value in the business.
“It is the largest foreign investment in the country as well as the entire Asia market,” Ruia said.
Ruia said that they are expecting to receive the Foreign Investment Promotion Board (FIPB) approval in 20 days. The company has already furnished the requisite documents to FIPB.
Earlier, Ruia met Dayanidhi Maran, the Minister for Communications and IT, to update him on the deal.
He had also reportedly met the Union Finance Minister, P. Chidambaram. Indications are that he spoke about the FIPB clearance.
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