Subject-Corporate Strategy

Subject Code-MBA 205

Presented By-Sudipta Mishra
Student Code-BWU/MBA/21/053
Vodaphone

 CEO: Sunil Sood

 Headquarters: Mumbai
 Revenue: 425 billion INR (US$6.3 billion, 2015)
 Founded: 1994
 Parent organization: Vodafone
 Subsidiaries: Vodafone Mobile Services Limited, more
Idea

 CEO: Ravinder Takkar

 Headquarters: Gandhinagar, Gujarat
 Founded: 1995
 Revenue: 354 billion INR (2016, US$5.3 billion)
 Parent organizations: Aditya Birla Group
 Founders: Aditya Vikram Kumar Mangalam Birla
Vi Merger

 This merger was first announced in March 2017

 As per this merger, Vodafone holds a 45.2% stake,
Aditya Birla Group holds 26% and the remaining stakes
were held public.
 31st Aug 2018, the merger was completed and it is
announced as Vodafone Idea Limited.
Reasons For Merger

 Synergy benefits
 Expected to hold a strong position in the industry
 Handel the rising dominance of Reliance
 Hold a strong position
Impact Of Merger

 Impact On Telecom Industry

 Impact On Employee
 Impact On Customer
Challenges

 Idea prices started to drop.

 Shareprice of Idea declines from Rs. 97.70 on 20th
March 2017 to Rs. 81.81 on 6th Sep 2017.
 Struggling to survive in the industry.
Critical Analysis Of Vodafone Idea Case

 Acquisition of 4.9 per cent shares of Vodafone by Aditya Birla.

This would amount to a total of Rs. 3874 crore wherein each
share is worth Rs. 108. This would be helpful in increasing
the shareholding capacity of Idea to 26 per cent.
 Vodafone holds 45.1 per cent of the shares in the merger, Idea
would be allowed to buy another 9.6 per cent but at a cost of Rs.
130 per share in the period spread over the next four years.
However Idea is unable to come up equal to the shareholding
percentage of Vodafone.
Contd…..

The chairperson of the newly formed enterprise would be Kumar

Mangalam Birla. On the other hand, Vodafone had appointed the
Chief financial officer. As, after that new CEO was named under
both the companies.
Lastly, the promotors of both entities have the right to nominate
three members for the board. Also, there are 12 members out of
which 6 are independent on the board in the Vodafone case study of
Vodafone and Idea merger. 
THANK YOU