Kumar Birla back as Vodafone Idea’s non-exec Chair amid turnaround attempt

Mumbai: Kumar Mangalam Birla was named non-executive chairman of Vodafone Idea (Vi), which is attempting a turnaround after years of financial strain triggered by intense competition and regulatory liabilities such as adjusted gross revenue (AGR) dues.“India’s telecom opportunity remains deeply compelling, anchored around the government’s bold Digital India vision,” Birla told ET. “The revival of Vodafone Idea reflects a clear intent to sustain a healthy three-player private market, reinforced by the commitment of over 10,000 employees and the continued trust of nearly 200 million consumers.”

Read more: Vodafone Idea eyes ₹25,000 crore SBI-led funding after AGR relief
The Aditya Birla Group chairman added that Vi’s operational metrics are beginning to show tangible improvement.“This momentum is supported by a significant capital expenditure programme of approximately $5 billion,” Birla said. “I remain confident that Vodafone Idea will play a meaningful role in shaping India’s telecom landscape and contributing to the country’s broader growth narrative.”

Birla will replace Vodafone Group veteran Ravinder Takkar, who has stepped down from the role and will continue as a non-executive director and assume the position of vice chairman. The changes, effective May 5, were approved by the company’s board, according to an exchange filing.

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In 2021, Birla had resigned as non-executive chairman amid financial stress at the company.Takkar will continue as a non-executive director and assume the position of vice chairman. The changes, effective May 5, were approved by the company’s board, according to an exchange filing.

In 2021, Birla had resigned as non-executive chairman amid financial stress at the company.

A government rescue programme involving conversion of dues into equity, a moratorium and most recently a reduction in the money owed following a recalculation has helped the company survive.

With the company out of the woods, the appointment is also seen as a move to boost investor and lender confidence, especially as Vi works to secure ₹25,000 crore debt funding and aims for double-digit annual revenue growth and boost ebitda threefold in three years.

Vi, a joint venture between the Aditya Birla Group and Vodafone Group, was formed to tackle tariff wars unleashed by Reliance Jio’s entry in 2016. But India’s third-largest telco by market share came under pressure after the Supreme Court’s 2019 ruling on AGR dues.

Last month, the government slashed Vi’s AGR dues by 27% to ₹64,046 crore and allowed a 10-year moratorium on repayments, providing cash flow relief.