VODAFONE IDEA LIMITED

General Overview –

 The Aditya Birla Group and the Vodafone Group have partnered to form
Vodafone Idea Limited. It is the top telecom service provider in India. The
company offers voice and data services throughout India on 2G, 3G, and 4G
platforms. The company is dedicated to providing excellent customer
experiences and creating a genuinely "Digital India" by enabling millions of
individuals to connect and forge a brighter future with the enormous
spectrum portfolio to meet the growing demand for data and voice. The
company is building infrastructure to roll out newer, more innovative
technologies, preparing retail and enterprise clients for the future with
cutting-edge services that are readily available through various digital
channels and have a significant physical presence. The Company is listed
on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in
India.

Shareholding pattern of the company –

Source- Economic Times

Management of the company –

VI is an emblem of skills and expertise in various fields. The diverse board of
Directors incorporates strategic leadership and management experience with
expertise in the industry sector, Financial and risk management, Governance
matters, International affairs experts, Social and Public Policies, etc.
 SWOT Analysis
Strengths-
Advertising: The brand has significantly benefited from celebrity brand ambassadors. Vi's
brand is evident on social media, on television, and in other media like banners, among
others.

Widespread infrastructure: Vi has expanded its infrastructure across the nation due to its
partnership with Airtel to construct the Indus Tower, assisting it in attracting new
consumers.

Unique marketing: The best huge data plans can be found at Vi. It offers consumers
excellent discounts, whether a post-paid unlimited data plan or a 100 GB package.

Great Deals: Vi is known for the best big data plans. Whether a post-paid unlimited
data plan or a 100 GB one, it continues to serve customers with great deals. Vi has a
complete edge over the market regarding big data plans.

Weaknesses-
Operations Outsourcing: Operations Outsourcing has assisted in lowering its prices.
Due to this, there is a chance that the business may become dependent on other
companies, which could have an impact on its operations.
High Debt: Vi has a significant amount of debt. Their acquisitions have shown poor
investments, high credit, and low profits.
Financial Losses: As a result of rising tariff rates and Sim consolidation, Vi is
currently experiencing significant financial losses. Additionally, the Indian
government has stopped assisting Vi and does not want to be in charge of the
telecom.
Licence and AGR: Large sum has to pay the government.

Opportunities-
Strategic Partnership: According to MNP, collaborating with smartphone
manufacturers will be the best course of action. Future fixed cash flows would be
guaranteed as a result, as would an expanded client base.
Market expansion: Given the fierce competition in the telecommunications sector
and the declining profit margins, the corporation will succeed in expanding into new
markets and developing economies.
Potential of the Present Market: Similar networks ought to be available even in rural
locations, where 4G service is now available. Adding to the infrastructure will also
improve connectivity. The corporation should strive to offer these services to most of
its regions because doing so would help it generate earnings and attract more
clients.

Threats-
Jio: Jio is a rival that offers clients quicker network services and has made significant
advancements in 5G technology. Due to its affordable prices and excellent internet
speed with little to no variations in internet speeds, Jio's ethernet cable services,
known as Jio Fibre, have attracted much attention.
Governmental Framework for Regulation: The stability of this market may be
threatened by the regular auctioning of the spectrum and changes to government
regulations because corporations with more considerable means are more likely to
benefit from these auctions.
Competition: Vi's business is severely harmed by the fluctuating pricing on the Indian
market and the rising margins. Reliance Jio had begun offering free calls and data a
few years back, which caused a massive disruption in the telecom sector, causing
other companies to reduce their prices.
Huge Losses: Vi shares fall by 8%, and a massive loss of user base due to
increasing plan prices and poor services in some areas. If such losses continue will
let Vi will face considerable challenges in keeping itself in the market.

Competitor Analysis-
Some of the major competitors of VI in the telecom industry are Reliance Jio
and Vodafone Idea.
The subscriber base of the following companies- 
Jio- At the end of May, Jio had a total subscriber base of 408.79 million .
Airtel- Airtel has a subscriber base of 326.18M
VI- Loss-making Vodafone Idea lost 759,258 more subscribers in May, further
shrinking its subscriber base to 258.45 million.
Reliance Jio continued to have the largest share of the wireless subscriber pie
at 35.69%, widening its gap with second-placed Airtel, which recorded a
market share of 31.62%. Vi's market share slipped further to 22.56%. (ET)

Conclusion-
Vodafone Idea needs to fastrack its fundraising process to sustain its business
from its competitor. Also, it needs to build and develop its infrastructure
vigorously.