Vodafone India has grown significantly since acquiring a majority stake in 2007. It is now India's second largest mobile company by revenue. Vodafone aims to strengthen its presence in seven circles where it recently began operations, grow its enterprise business, and increase its focus on data. While it plans an IPO in 2013, the timing will depend on market stability. Vodafone has benefited from spectrum reauctioning and number portability, but faces challenges from increased competition in the Indian mobile market.
1. “WE WOULD LOVE TO BE
THE NEW HUL”
Marten Pieters, Vodafone India CEO
OUTLOOK BUSINESS Cover Story
Mach03,2012
By RASHMI K PRATAP
PRESENTED BY
SYED SAMI UDDIN
NEERAJ PANT
NISHANT
ABHISHEK SHUKLA
2. THE ARTICLE IS DIVIDED INTO
THE STORY OF VODAFONE
THE STRONG BEGINNING
THE INSIDE STORY
LISTENING AT LEISURE
NEW FOCUS AREAS
SHORT IN THE ARM
Mumbai, March 5, 2008
WFA/ISA - Global Advertiser Conference 2
3. THE STORY OF VODAFONE INDIA
1992 Hutchison Whampoa and Analjit Singh’s Max Telecom
set up HUTCHISON MAX TELECOM
1995 Hutchison Max starts cellular services in Mumbai under
Max Touch brand
2000 Acquisition of Delhi operations and entry into Kolkata &
Gujarat through Essar, Orange brand replaces Max Touch
2005 Buys BPL Mobile operations except Mumbai
2006 ORANGE RE-BRANDED AS HUTCH; Hutch decides to exit
2007 Vodafone buys 67% for $10.9 billion; Hutch rebranded as
Vodafone
2011 VODAFONE buys out ESSAR
4. THE STRONG BEGINNING
February 2007 Vodafone Plc. agreed to acquire a 67% stake in Hutchison
India.
After 2 months of acquisition the company was renamed as Vodafone
Essar that costed company 250cr.
OGILVY & MATHER launches “Hutch is now Vodafone” Campaign
MAGIC BOX had a handset, CHOTA RECHARGE launched
IN 2009 OGILVY& MATHET Created ZOOZOO And established brand
identity what today Vodafone is
Zoozoo’s were introduced during 2009 IPL with 29 films as a result they
wrere an instant hit and brand recall and customer connect went up.
5. THE INSIDE STORY
Vodafone is now INDIA’S SECOND-LARGEST mobile company by
revenues
VODAFONE’S sharing strategy with Rivals proved to be a big asset(INDUS
TOWERS).
20% increase in revenue over FY11
realization per minute (RPM), from 59 paise in Q2 to 61 paise in Q3
Vodafone, as well as Hutchison when it controlled the Indian firm, had to
give huge payouts to employees to COMPENSATE them for not bringing
out an IPO and delaying stock options exit
6. LISTING AT LEISURE
• Vodafone to bring IPO in 2013 says Vodafone Plc CEO Vittorio Colao
• But the timing of IPO is not certain since market needs to be stable for
IPO
• Most investors are guessing Vodafone to be market value of Rs 55,000-
60,000 crore almost similar to Airtel and Idea
• can Vodafone overtake Idea.
7. NEW FOCUS AREAS
Vodafone’s priorities for the next few years are
strengthening presence in SEVEN C CIRCLES( circles where Vodafone
began operations just three years ago).
growing the ENTERPRISE BUSINESS
building up the data BUSINESS.
A CENTRE OF EXCELLENCE has been set up in
BENGALURU, which continuously monitors potential areas where people
could be using data on mobile.
8. SHORT IN ARM
The cancellation of 122 spectrum licences and reauction.
Competition would be reduced on reauction
Main beneficiaries would Airtel and Vodafone
Vodafone and Idea have highly benifited with MNP (mobile number
portability)