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Former non-executive chairman of Vodafone India, Analjit Singh, will not invest in the telecom sector again.
“No, I will not come back in telecom. I am done with telecom as an investor,” Singh said on the sidelines of the launch of a book.
Singh, founder and chairman of Max India, exited from Vodafone India in March by selling his entire stake to its parent company, the UK-based Vodafone.
He and wife Neelu jointly held 24.65 per cent stake in Vodafone India through Scorpio Beverages Pvt Ltd, which according to sources, was paid Rs 1,241 crore. Singh was the face of the company and held talks with the Union government in the Vodafone tax case, estimated to be around Rs 20,000 crore with interest and penalties.
Singh said in India the execution risk was much higher than in any other country and touched upon the retrospective tax amendment by the Union government, after a Supreme Court order in the Vodafone tax case came in favour of the company.
“Those are goofy things. The retrospective judgement, etc, but fortunately there aren’t many examples of retrospective taxes. To the contrary, I can tell you if you look at the same company and same example. Hutchison sold, Vodafone bought, a Rs 11-billion transaction happened,” Singh said.
He added that there are more example of people who have succeeded, than those who have failed.
"Those who have executed well and have found markets and understood India like Unilever, McDonalds are successful. Today you can sell. I can sell my company to a foreigner. A deal can be done. The market will transact them. Understanding 'in India' is very critical," Singh said.
He said that 100 per cent Foreign Direct Investment in the telecom sector is a very good step taken by government.
"India can now say to the rest of the world that we have a sector where 100 per cent FDI is allowed. That's good for India. I am one joker in this game. I can take money and do 10 different things," Singh said.
