Idea plans Rs 2500 cr expansion

Looks to extend operations to all 23 circles.

Aditya Birla Nuvo, the holding company of mobile telephony major Idea Cellular, will invest over Rs 2,500 crore in the current financial year, as it is looking to extend its presence to all 23 circles in the country from the current eight circles.

Idea has already received licences to start operations in three more circles "� Uttar Pradesh (east), Himachal Pradesh and Rajasthan and is likely to start operations in these circles soon, taking its tally to 11 circles.

The company has submitted an application with the Department of Telecommunications to start operations in all the other circles (12) in the country.

"We are hopeful of getting licences in all circles and would start operations depending on the receipt of the approvals," said Sanjeev Aga, managing director, Aditya Birla Nuvo Ltd.

However, he did not specify the timeframe within which the company would start operations.

"We will invest over Rs 2,500 crore to strengthen our existing network and extend our presence to new circles. We will invest in brand promotion to increase our visibility. More promotional activities will be seen in national TV and print, other than regional media houses," Aga said.

A part of the Rs 2,500 crore will be met through internal accruals while the balance would be funded via debt.

Besides, the company is planning to tap the capital markets for funds.

"Funding is not a problem. Our group companies will fund the capital expenditure programme, while raising the funds from the capital markets will also be another option," he said.

Aga ruled out the possibility of roping in strategic investors but said Aditya Birla Nuvo was seriously exploring the option of placement of equity to "financial investors".

At present, Idea operates in Uttar Pradesh (west), Delhi, Gujarat, Maharashtra, Andhra Pradesh, Haryana, Kerala and Madhya Pradesh.