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| Vodafone’s Sarin: Desperate for
an Indian foothold |
The battle
for Hutchison Essar (HEL) could be Vodafone CEO Arun Sarin's toughest
battle ever. India is a market that Vodafone desperately needs
a strong foothold in. Its presence in India is restricted to a
10 per cent holding in Bharti Airtel that it acquired in 2005.
Increasing that holding does not look easy, which explains Vodafone's
interest in HEL. But already, there are murmurs among Vodafone
shareholders that the asking price of $20 billion (Rs 90,000 crore)
is too high. "Sarin is a rational bidder and is never known
to bid in a hurry," says a Mumbai-based investment banker.
For Sarin, 52, an alumnus of IIT Kharagpur, who took over his
current position at the world's largest mobile phone company in
2003, the last few years have been packed with action and controversy.
He came close to acquiring AT&T Wireless, which finally went
Cingular's way. Then, late last year, he sold his company's 25
per cent holding in Swisscom and also spoke of focussing on emerging
markets. Worryingly, he has been under fire from Vodafone's shareholders
for an indifferent performance in 2006 -a loss of £21.8
billion (Rs 1,89,660 crore) on revenues of £29.3 billion
(Rs 2,54,910 crore). Vodafone has over 190 million subscribers
globally but its presence in Asia is restricted to a 3.3 per cent
holding in China Mobile and the stake in Bharti. His problem:
the mature markets have a cellphone penetration level of about
90 per cent; this gives him very little headroom for growth. Clearly
then, HEL is critical for Sarin. With a subscriber base of over
23 million and a presence in 16 cellular circles, HEL will put
Vodafone back on the growth path. Given that India is the world's
fastest growing mobile telecom market, a robust presence here
is just what Sarin needs to face his detractors with confidence.
-Krishna Gopalan
NUMBERS
OF NOTE
1.4 million: The number of
people of Indian descent who live in Britain
Rs 26,000 crore: The amount
that 25 lakh NRIs from Kerala pump into the country's economy
every year
Rs 4,000 crore: The estimated
size of the fake medicine market in the country, according to
Assocham. This is almost 20 per cent of the total market for pharmaceuticals
in India
10-15 million: The number
of jobs the Indian retail sector is expected to generate over
the next five years
0.37 per cent: Percentage
of Indian GDP spent on higher education, compared to 1.41 per
cent in the US, 1.07 per cent in the UK and 0.5 per cent in China
$9 billion (Rs 40,500 crore):
Net FDI (foreign direct investment) flows as per BoP (Balance
of Payment) projections for 2006-07. It was $7.75 billion (Rs
34,875 crore) in 2005-06
$63 billion (Rs 2,83,500 crore):
The record FDI investment that China drew in 2006
$11 billion (Rs 49,500 crore):
The total value of the Indian wedding industry, which is growing
annually at 25 per cent
5,664: The number of women
in India who have passed the Common Proficiency Test (CPT), the
entry-level examination in the series to become a chartered accountant,
till date
$100 billion (Rs 4.5 lakh crore):
Total valuation of India's telecom sector. The turbo-charged
industry contributes 13 per cent to India's GDP figures
$100,000 (Rs 45 lakh): Value
of the jewel-studded soft-drink can that Pepsi will give away
to a lucky fan during the Super Bowl XLI halftime show. The design
for the sterling-silver can encrusted with 300 diamonds, 100 sapphires
and 100 rubies was inspired by past Super Bowl rings, as well
as by the Vince Lombardi Trophy for the winning Super Bowl team
NOTED
 ANNOUNCED:
By Kingfisher Airlines, a partnership deal with Toyota
Motorsport GmbH to enter the high-profile Formula 1 circuit. With
this two-year deal, Kingfisher Airlines will become an official
partner for the Toyota Racing Team.
BAGGED: By the
Taj Group of hotels, the deal to renovate and run Delhi-based
budget hotel Rail Yatri Niwas on a 15-year lease. The group will
add food courts within the complex and run the hotel under the
banner of its budget brand Ginger. The hotel will be closed for
renovations.
ANNOUNCED: By
GSM mobile telephony operators, the launch of mobile instant messaging
(MIM) services. Operators such as BSNL, MTNL, Bharti Airtel, Hutchison
Essar, Idea, Aircel, Reliance Telecom and Spice are expected to
commercially launch this service soon. Initially, MIM will be
offered only in English. The companies are working on expanding
the number of languages in which this service will be offered.
RECORDED: By
India's advertising industry, a growth of 23.4 per cent in 2006,
the highest in 10 years. According to monitoring agency TAM Media
Research, the industry closed the year with Rs 16,300 crore in
revenues against Rs 13,200 crore in 2005 (Rs 11,800 crore in 2004).
Radio, internet and the print media have posted the fastest growth
in ad revenues in 2006, with 58 per cent, 52 per cent and 24 per
cent growth, respectively.
INKED:
By Stanford University and IIM Bangalore, an agreement for a student
exchange programme. Under this, IIM Bangalore will send 16 students
to Stanford University's Graduate School of Business. The exchange
programme is expected to cost students between $1,800-2,000 (Rs
81,000-90,000). Reliance boss Mukesh Ambani has offered to pay
three-fourths of the students' travel costs.
 RAISED:
By the Ambani family, the promoter group shareholding in India's
biggest private sector company, Reliance Industries, to over 50
per cent. Their stake in RIL stands at 50.62 per cent at the end
of December, 2006, up from 49.92 per cent at the end of the September
quarter.
LALIT
MOHAN THAPAR
 |
| Oct 27, 1930 to Jan 17, 2007 |
Lalit
Mohan Thapar, or LMT, or Lalli-depending on how well you knew
him or where you figured in his circle of friends and acquaintances-died
as he had lived: as a fighter. True, he could not maintain the
pre-Independence eminence of the Thapar Group, which he took over
from father Karam Chand Thapar in 1962, but LMT, his friends and
critics alike (he had no enemies) will tell you, was different.
Balance sheets mattered, but friendships mattered more. And so
did the good life-the Scotch, the cigars, the horse races, the
dogs, the chalets and, of course, the company of beautiful people.
A member of India's industrial aristocracy, he made common cause
with his peers in the face of impending liberalisation. The so-called
"Bombay Club" of which LMT was a member, however, achieved
little of the level playing field it had set out to. The crowning
glory of his career will have to be the takeover of Sinar Mas,
an Indonesian company that, at one point, seemed poised to overrun
the India paper market.
An alumnus of Doon School, Thapar, who was one of India Inc's
finest dressers, was an engineer from the University of South
California. In the evening of his life, LMT, a bachelor, passed
on the baton to nephew Gautam.
-Aman Malik
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