'Don't write us down, a revival is around the corner': Kumar Mangalam Birla on Voda Idea

NEW DELHI: In one of the most direct statements on Vodafone Idea ’s struggling telecom business , promoter Kumar Mangalam Birla on Tuesday said that the ailing company’s revival is “around the corner” and dismissed doubts over the success of the turnaround plans.

“We have been written off in the past as well… we will unveil our plans in the next six months,” Birla said on the sidelines of the India Mobile Congress (IMC) when asked about doubts in a section of the investor community about revival efforts.

Vodafone Idea had seen its shares crash after the Supreme Court last month rejected a curative petition filed by the company — and Bharti Airtel — over recalculation of the AGR dues . The company will need to cough up nearly Rs 70,000 crore to the department of telecom due to the decision, and its total outstanding to the exchequer stands at around Rs 2.1 lakh crore that includes spectrum payments and license fee.

Birla said that plans and investments are in place to improve the company’s network and standing in the business.

He said that the company has raised Rs 18,000 crore through a follow on public offer (FPO) that was oversubscribed seven times. “This response was an emphatic endorsement of the potential of the Indian telecom sector… The fundraiser enabled the company to kickstart its capex cycle again.”

After the stock hammering post the SC judgement, Vodafone Idea had announced total investments of up Rs 55,000 crore into the business, including Rs 30,000 crore on network equipment purchase from Nokia, Ericsson, and Samsung.

“These are all key steps that will place the company on a more secure footing and ensure that it remains dynamic and competitive… I am a firm believer in the transformative power of India’s telecom sector and I see it as a bridge to a more connected, empowered and prosperous area.”