VSNL to merge, restructure 50 group firms

Tata Group company Videsh Sanchar Nigam (VSNL) is planning to merge nearly half its subsidiaries with itself as part of a major restructuring exercise.

VSNL, which currently has over 50 international subsidiaries, has already begun the process of restructuring to reduce the number of subsidiaries to 30.

The majority of the companies came into the VSNL fold after the acquisition of Bermuda-based Teleglobe International Holdings in February this year. The companies were formed to comply with existing laws that stipulated the formation of such country specific subsidiaries to carry out operations.

"The rationalisation exercise is expected to result in a simpler structure that can be managed more easily without compromising on operational efficiencies," Srinivasa Addepalli, corporate strategy head of VSNL, told PTI.

The restructuring exercise will be completed within nine months, he said. He, however, did not specify which subsidiaries that would be merged with the parent company.