Vodafone may invest over $2b in India
Pallab Bhattacharya, New Delhi
Fresh from its acquisition of India's fourth largest mobile phone operator Hutchinson Essar, British telecoms major Vodafone has said it would invest more than two billion dollars in India in the next couple of years."We will be investing over two billion dollars in India over the next two years. We want 100 million subscribers in a few years", Vodafone's Indian-born CEO Arun Sarin told reporters here on yesterday. This was Sarin's first visit to India since the British company announced last week that it would buy 67 percent stake for $11.1 billion in Hutchinson Essar. Sarin said Vodafone is interested in emerging markets and has plans to help the Indian government reach a target of 500 million subscribers by 2010. "We have plans to expand in rural areas in India. For me personally, this is a home-coming", said Sarin. Sarin said Vodafone wanted India's Essar conglomerate, owned by Ruia family, which owns 33 percent stake in the joint venture with Hutchinson, to remain a partner in the company after the acquisition. Hutchinson Essar commands 16 percent market share in India. Essar has insisted it had the first right of refusal in the sale of any stake in Hutchinson Essar but Sarin on Wednesday disagreed and said the Indian group does not have that right.
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