Hutch-Essar: Vodafone to bring low-cost handsets

Vodafone will introduce ultra low-cost handsets, and bring Vodafone live! to India.

Arun Sarin, CEO, Vodafone, said the Hutch-Essar deal adds value and transforms the company to emerging markets.

The company, which now gets around 20% revenue from the emerging markets, will see the share rise to one-third by 2012.

Andy Halford, CFO, Vodafone, said return on invested capital (ROIC) test met in Year 5, and internal rate of return (IRR) would be around 14%.

Hutch-Essar will be targetting a market share of 20-25% and will continue with the top management team led by Asim Ghosh, Vodafone said.

"Hutch Essar provides an excellent platform for future growth, and clear operational plan to deliver value," the company webcast from London said a short while ago.

Meanwhile, Arun Sarin is expected to visit India anytime this week.

The visit could see Sarin holding parleys with various stakeholders to give further shape to the transaction that would cost Vodafone about $11 billion in cash.

While there was no official confirmation about the visit, sources said the Vodafone CEO, who had visited India last month to meet the virtual who's who of the government to understand the telecom regulatory framework ahead of a bid, could come calling as early as Wednesday.

PTI adds: Ghosh keen to continue

Asim Ghosh, managing director of Hutch-Essar in which Vodafone has picked up majority stake, said he would like continue to head the new-look venture and said he was open to an IPO by the company.

"I am open to continue... we (he and Vodafone) have had some transitional discussion," Ghosh told PTI when asked if he would continue as the MD and if Vodafone had offered the position in the wake of change in ownership.

On whether he as chief executive of the venture would recommend to the new promoters, bringing the much-awaited public issue of Hutch-Essar, he said: "I am open to all options. It is for them to decide."