Vodafone India Ltd.

ORGANIZATIONAL PROFILE :
NAME : VODAFONE Founded 1983 as Racal Telecom, independent 1991 Headquarters Newbury, England, UK CEO : Key people Arun Sarin CHAIRMAN : Sir John Bond DEPUTY CHAIRMAN : John Buchanan, Deputy Chairman Website www.vodafone.com

Vodafone is a mobile network operator headquartered in Newbury, Berkshire, England, UK. It is the largest mobile telecommunications network company in the world by turnover and has a market value of about 100 billion (December 2007). Vodafone currently has equity interests in 25 countries and Partner Networks (networks in which it has no equity stake) in a further 39 countries. The name Vodafone comes from Voice data fone, chosen by the company to "reflect the provision of voice and data services over mobile phones." At 31 January 2007 Vodafone had 200 million proportionate customers in 25 markets across 5 continents. ("Proportionate customers" means, for example, that if Vodafone has a 30% stake in a business with a million customers, that is counted as 300,000). On this measure it is the second largest mobile telecom group in the world behind China Mobile. The eight markets where it has more than ten million proportionate customers are the United Kingdom, Germany, India, Italy, Spain, Turkey, Egypt and the United States. In the U.S., these customers come via its minority stake in Verizon Wireless, and in the other seven markets Vodafone has majority-controlled subsidiaries. On 30 May 2006, the company announced a loss before tax of 14.9 billion for 2005, the biggest loss in British corporate history. The loss for the year from continuing operations was 17.2 billion and the bottom line loss for the financial year was 21.8 billion.

The company was pushed into loss by impairment charges of 23.5 billion, which related to the acquisition of Mannesmann several years earlier, and losses of 4.6 billion in relation to its discontinued business in Japan. At an operating level it remained highly profitable, with an operating profit on continuing operations of 9.4 billion before impairment costs. Vodafones original logo was used until the introduction of the speech mark logo in 1998. In 1982 Racal Electronics plc's subsidiary Racal Strategic Radio Ltd. won one of two UK cellular telephone network licenses. The network, known as Racal Vodafone was 80% owned by Racal, with Millicom and the Hambros Technology Trust owning 15% and 5% respectively. Vodafone was launched on 1 January 1985. Racal Strategic Radio was renamed Racal Telecommunications Group Limited in 1985. On 29 December 1986 Racal Electronics bought out the minority shareholders of Vodafone for GB110 million. In September 1988 the company was again renamed Racal Telecom and on 26 October 1988 Racal Electronics floated 20% of the company. The flotation valued Racal Telecom at GB1.7 billion. On 16 September 1991 Racal Telecom was demerged from Racal Electronics as Vodafone Group. In July 1996 Vodafone acquired the two thirds of Talkland it did not already own for 30.6 million. On 19 November 1996, in a defensive move, Vodafone purchased Peoples Phone for 77 million, a 181 store chain whose customers were overwhelmingly using Vodafone's network. In a similar move the company acquired the 80% of Astec Communications that it did not own, a service provider with 21 stores. In 1997 Vodafone introduced its Speechmark logo, as it is a quotation mark in a circle; the O's in the Vodafone logotype are opening and closing quotation marks, suggesting conversation. On 29 June 1999 Vodafone completed its purchase of AirTouch Communications, Inc. and changed its name to Vodafone airtouch plc. Trading of the new company commenced on 30 June 1999. To approve the merger, Vodafone sold its 17.2% stake in E-Plus Mobilefunk. The acquisition gave Vodafone a 35% share of Mannesmann, owner of the largest German mobile network.

On 21 September 1999 Vodafone agreed to merge its U.S. wireless assets with those of Bell Atlantic Corp to form Verizon Wireless. The merger was completed on 4 April 2000. In November 1999 Vodafone made an unsolicited bid for Mannesmann, which was rejected. Vodafones interest in Mannesmann had been increased by the latter's purchase of Orange, the UK mobile operator. Chris Gent would later say Mannesmann's move into the UK broke a "gentleman's agreement" not to compete in each other's home territory. The hostile takeover provoked strong protest in Germany and a "titanic struggle" which saw Mannesmann resists Vodafones efforts. However on 3 February 2000 the Mannesmann board agreed to an increased offer of 112bn, then the largest corporate merger ever. The EU approved the merger in April 2000. The conglomerate was subsequently broken up and all manufacturing related operations sold off.

Hutch Becomes Vodafone : In one of the biggest brand transition exercises in recent times, Hutch, Indias fourth-largest mobile service provider will be renamed Vodafone. Vodafone is spending somewhere in the region of Rs 250 crore on this high-profile transition.

Vodafone has acquired 67 per cent in Hutchison Essar from Hong Kong-based Hutchison Whampoa, and completed the acquisition of Hutchison Essar in May 2007. The brand change that will touch 3.5 crore customers and four lakh shops and employees will be executed through a media blitz and the pug, which had become famous with its network advertisement, will remain.

''This marks a significant chapter in the evolution of Vodafone as a dynamic and ever-growing brand. The brand change over the next few weeks will be unveiled nationally through a high profile campaign covering all important media,'' a news agency quoted the company statement as saying.

Leading broadcaster Star India has entered into an exclusive deal with Vodafone Essar for the latter's re-branding campaign to Vodafone from Hutch. Financial Results

From its 31 March 2006 year end onwards Vodafone will report its results in accordance with International Financial Reporting Standards (IFRS). It has issued results amended to IFRS standards for its 31 March 2004 and 31 March 2005 year ends for information purposes, and these are shown in the first table below.

Vodafone has some large minority stakes, which are not included in its consolidated turnover. In order to provide additional information on the overall scale and growth trends of its business it publishes "proportionate turnover" figures and these are included in the tables below. For example, if a business in which it owns a 45% stake has turnover of 10 billion that equals 4.5 billion of proportionate turnover for Vodafone. Proportionate turnover is not an official accounting measure and Vodafones proportionate turnover should be compared with other companies' statutory turnover.

Vodafone also produces proportionate customer number figures on a similar basis, eg. if an operator in which it has a 30% stake has 10 million customers that equals 3 million proportionate Vodafone customers.

This is a common practice in the mobile telecommunications industry Losses for year to 31 March 2006 reflect write downs of assets, principally in relation to the Mannesmann acquisition. Proportionate turnover includes 7,100 million from discontinued operations.

Growth of Hutchison Essar (1992-2005): In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994 was awarded a licence to provide mobile telecommunications services in Mumbai (formerly Bombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singh of Max still holds 12% in company.

By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa had acquired interests in six mobile telecommunications operators providing service in 13 of India's 23 licence areas and following the completion of the acquisition of BPL that number increased to 16. In 2006, it announced the acquisition of a company that held licence applications for the seven remaining licence areas.

In a country growing as fast as India, a strategic and well managed business plan is critical to success. Initially, the company grew its business in the largest wireless markets in India - in cities like Mumbai, Delhi and Kolkata.

In these densely populated urban areas it was able to establish a robust network, well known brand and large distribution network -all vital to long-term success in India. Then it also targeted business users and high-end post-paid customers which helped Hutchison Essar to consistently generate a higher Average Revenue Per User ("ARPU") than its competitors.

By adopting this focused growth plan, it was able to establish leading positions in India's largest markets providing the resources to expand its footprint nationwide.

In February 2007, Hutchison Telecom announced that it had entered into a binding agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loan interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and interests) of approximately US$11.1 billion or HK$87 billion.

1992: Hutchison Whampoa and Max Group established Hutchison Max

2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through ESSAR acquisition

2001: Won auction for licences to operate GSM services in Karnataka, Andhra Pradesh and Chennai

2003: Acquired AirCel Digilink (ADIL - Essar Subsidiary) which operated in Rajastan, Uttar Pradesh East and Haryana telecom circles and renamed it under Hutch brand

2004: Launched in three additional telecom circles of India namely 'Punjab', 'Uttar Pradesh West' and 'West Bengal'

2005: Acquired BPL, another mobile service provider in India

2008: Vodafone acquired Dishnet Wireless, a service provider in Orissa and has successfully launched its services in the following circle.

2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2G network.

Hutch was often praised for its award winning advertisements which all follow a clean, minimalist look. A recurrent theme is that its message Hello stands out visibly though it uses only white letters on red background.

Another recent successful ad campaign in 2003 featured a pug named Cheeka following a boy around in unlikely places, with the tagline, Wherever you go, our network follows. The simple yet powerful advertisement campaigns won it many admirers.

Vodafone India (formerly Vodafone Essar) is a leading provider of wireless telecom services in India, serving more than 140 million subscribers. Vodafone Essar also caters to corporate customers with wireless email and other services. In a 2011 move to firm up its position in the region, UK-based telco Vodafone paid $5 billion to buy out partner Essar Group in what was formerly a joint venture, raising its stake to 75% in Vodafone Essar. Later that year Vodafone sold about 5% to India-based Piramal Healthcare for $640 million, reducing its ownership stake to comply with trade regulations for foreign ownership in India. The company name was subsequently changed to Vodafone India. Weve come a long way since making the first ever mobile call in the on 1 January 1985. Today, more than 403 million customers around the world choose us to look after their communications needs. In 25 years, a small mobile operator in Newbury has grown into a global business and the seventh most valuable brand in the world. We now operate in more than 30 countries and partner with networks in over 50 more. In an increasingly connected world, its no longer just about being able to talk and text. Our network allows people to share images and videos as soon as theyre captured; to share thoughts and feelings as soon as theyre created. And because we now do more than just mobile in many markets, more customers look to Vodafone for great value in their fixed line and broadband services too. Vodafone understands that businesses need a communications partner with solutions that scale and adapt as their business needs change. They may need a few smart phones for voice and email on the move. Or they may require a fully integrated solution that enables sharing of documents, video conferencing and access to corporate applications from any location. Whatever their size and whatever their need, we are constantly looking for new, innovative ways to help our business customers grasp every opportunity in a simple and straightforward way.

Our commitment to the community in which we operate extends beyond the products and services we offer. The cornerstone of our commitment to global social investment is the Vodafone Group Foundation. Funded by annual contributions from the Vodafone Group, the Foundation and its network of 27 country foundations supports the community involvement activities of Vodafone and funds selected global initiatives directly. True to our origins, Vodafone has always committed to deliver useful and inspiring innovation. In 1991 we enabled the worlds first international mobile roaming call. In 2002, with Vodafone Live! we set a new standard for mobile communications with internet access on the move. Fuelled by the desire for sustainable innovation, we recently introduced Vodafone Money Transfer which allows customers in emerging markets to send and receive money safely and easily using their mobile phone. Weve also caused a stir in the industry with the Vodafone 150 our most affordable ultra low cost handset yet. Were a brand that loves change if its not happening naturally then were creating it ourselves. Its in our DNA to push forward, to create a better future, to never rest and find new ways that help people communicate. Thats the lifeblood that runs throughout Vodafone. We are driven to empower people. To find that spark that empowers you is why we are in business. Thats what we mean when we say power to you. Description:
Vodafone Essar started its operations in India in 1994 and is under the Vodafone Group. The company Vodafone Essar Limited has become one of the leading companies in the telecom sector in India due to its high standard of services that it provides to its customers. The company Vodafone Essar has its operations in 16 telecom circles of the country, which covers around 86% of the customer mobile base in India. The company offers both postpaid and prepaid GSM cellular mobile coverage all across world.

Company Analysis:
According to the Individual - Audited financial statement for the Year of 2011, total net operating revenues increased with 7.43%, from INR 3,319.6 tens of millions to INR 3,566.17 tens of millions. Operating result decreased from INR 1,107.88 tens of millions to INR 925.65 tens of millions which means -16.45% change. The results of the period reached INR -1,079.62 tens of millions at the end of the period against INR 250.32 tens of millions last year. Return on equity (Net income/Total equity) went from 2.59% to -12.67%, the Return On Asset (Net income / Total Asset) went from 1.77% to -5.58% and the Net Profit Margin (Net Income/Net Sales) went from 7.54% to -30.27% when compared to the same period of last year. The Debt to Equity Ratio (Total Liabilities/Equity) was 226.98% compared to 146.47% of last year. Finally, the Current Ratio (Current Assets/Current Liabilities) went from 7.29 to 6.99 when compared to the previous year.