19.2.07

Vodafone Marches Across India


An uneasy friendship

We know Vodafone recently bought Hutchinson's stake in Hutch Essar Limited, India's fourth biggest mobile operator, but we still don't know who and how this venture will be run.

Arun Sarin, India-born Vodafone's CEO, tours India in the private jet, and tries to convince Essar's representatives ''this is fair game''.
Shareholder agreement is still unsigned.

Vodafone has already committed to invest two billion dollars in a "couple of years" for expansion of Hutch-Essar in India as part of efforts to become the country's largest mobile operator with a target of 100 million subscribers.

Emerging market rings.

According to Hindustan Times and given Sarin's quote there:

"ROIC (Return on Investment Capital) test met in year five and Internal Risk of Return would be around 14 per cent,”

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