LOMOTY 2023: Kumar Mangalam Birla explains why he returned to the board of debt-ridden Vodafone Idea

Lokmat ‘Maharashtrian of the Year Awards 2023’ celebrated outstanding efforts by individuals in their respective fields.Lokmat Maharashtrian of the Year Awards 2023 was a tribute to those who made Maharashtra proud, a celebration of those who shaped the destiny of this great state, and a source of inspiration for Maharashtrians of tomorrow. The event was attended by Aditya Birla Group Chairman Kumar Mangalam Birla. The veteran businessman was awarded the Lokmat Maharashtrain of the Year Award for his vision in business. The business tycoon was interviewed by Mr. Rishi Darda, Jt. MD Editorial Lokmat Group during the event which was held at NSCI Dome. Mr. Birla who  returned to the board of debt-ridden Vodafone Idea as an additional director in a non-executive and non-independent role explained the reason behind his comeback in the company.

Speaking at the event, he said, "We saw opportunities in the company which I felt should be tapped, the government is also of the opinion that three private sector companies should be in the telecommunication sector, and the other two companies are doing well, and it is my responsibility to take the business forward, that's why I decided to return," said Kumar Mangalam Birla.  For the unversed, Birla stepped down from the board of Vodafone Idea Ltd (VIL) in August 2021 for his role as non-executive chairman of the company. Aditya Birla Group, one of the promoters, holds around 18 per cent stake in VIL and Vodafone Group around 32 per cent. Birla in the past had offered to give up his stake in VIL.VIL, at present, is reeling under a debt of Rs 2.22 lakh crore, comprising deferred spectrum payment obligations of Rs 1.39 lakh crore and adjusted gross revenue liability of Rs 69,910 crore that are due to the government. The debt from banks and financial institutions stood at Rs 13,190 crore as on December 31, 2022.The government is now the biggest shareholder in the company after it allowed VIL to convert dues of around Rs 16,000 crore into equity. The development took place after Birla had assured Telecom Minister Ashwini Vaishnaw that he would make arrangements to fund the company and run it successfully.