Govt to sort out Tata & Birla's

spat
The Department of Telecom will now play referee in the spat between the Tatas and
the Birlas over the shareholding of Idea cellular. Sources in the Department of
telecom have told CNBC-TV18 that the government is examining the matter
expeditiously and will take a call very soon.

Aditya Birla Nuvo Limited had written a letter on February 8 seeking the
government's intervention to ensure that the Tatas reduce their stake in Idea cellular
in keeping with license conditions. Government rules do not allow any entity from
owning more than 10% in two telecom-operating companies in the same circle.

This was one of the reasons why Idea could not tap the second most lucrative
market-Mumbai, asTata Tele was already a big player in the Mumbai circle. In
response to this the Tatas shot back saying they are in full compliance with
government regulations. But the Tatas admitted that as a goodwill measure they are
willing to dilute their stake in Idea, but will do so at their own convenience.

With the Tatas willing to dilute its stake one wonders what the fuss is all about. It
could be a plain power play. The Tatas don't want to be seen as giving into pressure
from the Birlas. In fact, senior officials in the Tata Group admit that the Idea
investment is a mere financial one and that the company might even consider exiting
from Idea. The Tatas are clear that their operational interest lies only with Tata
Teleservices.

Tatas blame Birlas on Idea

issue
The war of letters between the Tata Group and Aditya Birla Group over Idea Cellular
continued today with the former shooting off another one to the Department of
Telecom blaming the Birlas of breaching a waiver agreement between the two sides
signed in 2004.
The letter said that the Birlas were agitating on an issue, for which it had already
waived all its rights, in order to force an exit by the Tatas from Idea Cellular.
`Bid to force an exit'
"The very issues raised by way of the present complaint was previously raised
between the shareholders and on December 11, 2004, the Birla group acting
through Grasim Industries Ltd and Tata Industries Ltd (TIL) executed a waiver
agreement wherein all claims whether in law, under the contract or in equity were
given up. The present attempt is unabashedly an attempt to renege on the said
agreement and force TIL to sell their shareholding under duress when the same is
not permissible under law," said the Tata letter. Industry sources said Birlas wanted
to buy Tatas stake in Idea Cellular at cheaper valuation and therefore was forcing the
issue.
`It's between us'
The Aditya Birla Group had earlier asked the Department of Telecom to intervene in
the dispute. The Birlas had said that the Tatas' equity holding in Idea Cellular was
illegal since it violated the licence conditions for unified access licence operators. It
sought a probe by the DoT on Tatas acquisition of AT&T Wireless stake in Idea
Cellular through a Mauritius-based investment company.
The Tatas, however, said that the DoT should not intervene since it was dispute
between two shareholders, which can be resolved between the two sides.
Taken from Business Line

Clash of the Titans: Tatas-

Birlas fight over Idea Cellular
•

The Tatas and Birlas

appear headed for a
showdown over their joint
holding in Idea Cellular.
Agency reports said that
while the AV Birla Group is
urging the government to
direct the Tatas to
expeditiously reduce stake
in the company, the Tatas
want to take their own time
to get 'fair value.'
Responding to a letter written by the Birlas to the Communications Ministry seeking a
'swift' action in accordance with licence conditions, Tata Group said that no
regulatory compulsion should be imposed on it, as it 'needed sufficient time to reduce
its holding at a fair value.'

Idea Cellular continues to

spark fight between Tata, Birla
The Birlas are believed to have shot off yet another letter to the Department
of Telecom. In the letter, they have alleged that the Tatas had not disclosed
their acquisition stake in Idea Cellular from Mauritius based AWS.

The Birlas are believed to have requested that, the Tata group not be allowed
to exercise voting rights, and management control in Idea with immediate
effect.

In the meanwhile, the Tatas are sticking to their stand that, they have not
violated any license conditions, and that they will dilute their stake in Idea
only, when they get a fair value. The Tatas are likely to respond to Birla's
second missive in a day or two.

Meanwhile, the government is looking into the matter, and is likely to issue a
directive in a few days.

Tata-Birla spat: Termination

notice served
Bombay House is at war with the Birlas, and it's latest ammunition is a termination
notice alleging the Birlas breached.
Tata sources told CNBC-TV18 that the Birlas have been using confidential Idea
Cellular information at presentations and analyst meetings.
The Tata's have served a termination notice which says- The AV Birla group are a
defaulting founder and we shall proceed to purchase the shareholding of the AV Birla
group within 90 days of this notice (termination) at a default price.
However, AV Birla group sources insist the dispute has nothing to do with the
shareholder agreement.
Their position is that the Tata group violated telecom license conditions when Tata
Teleservices got seven licenses for the same circles that Idea is present in. Sources
also say that Tata's acquisition of AT&T's subsidiary company in Mauritius is a
breach of license conditions.
The Tata Group though does not agree with these allegations and says it has
countered them in its reply to DoT. Idea Cellular, a GSM player in 7 circles, was a
Birla, Tata, AT&T venture, till AT&T sold out to its other 2 partners.
The Tata Group currently owns a 48.14% stake and the Birlas 50.14%. The two
promoters have been for the longest time now looking to sell a strategic stake in Idea
and were in talks with Telekom Malaysia.
But sources say that the deal fell through as the Tatas and the Birlas could not reach
a common valuation for the company. It's a battle over ownership and control
between the country's oldest business houses.

Airtel, Idea slash ISD rates by

up to 50 pc
Even as mobile operators announced STD rates of Re 1 per minute, Airtel Cellular
and Idea Cellular have gone a step further to reduce international long distance (ISD)
tariffs by up to 50 per cent.
As part of its One India tariff scheme, Airtel has dropped tariffs for ISD calls to Rs
7.20 per minute compared to Rs 14.24 per minute under the existing plans on offer.
Telephone calls to the Gulf and African countries will now be available for Airtel
subscribers at Rs 9.99 a minute compared to the current rate of Rs 19 a minute.
Heating up the competition, Idea Cellular has also reduced its ISD tariffs to Rs 7.50 a
minute for ISD calls to USA, UK and Canada and Rs 10 a minute for calls to Africa,
SAARC, Asia and Europe. Rates for ISD calls to other countries will remain at Rs 40
a minute for both Airtel and Idea users.
The move comes after the Telecom Regulatory Authority of India decreased the
Access Deficit Charge on outgoing ISD calls by Rs 1.70 a minute. However, the
operators have dropped the tariffs deeper than the reduction in the ADC charges
effected by the telecom regulator last week.
STD calls
Meanwhile, Airtel, Hutch and Idea Cellular have announced their versions of One
India plan, which offers STD rates at Re 1 a minute. The Hutch offer will allow its
subscribers to make STD calls to any destination at Re 1 a minute. Subscribers can
avail themselves of the offer by paying an additional charge of Rs 250 a month over
and above what they are already paying. The plan is being offered to both post-paid
and prepaid customers of Hutch across all its circles from March 4.
On the other hand, Airtel has announced a new plan with monthly rentals of Rs 299
called `India Home' which offers Airtel to Airtel local calls at Re 1 for a 2 minute call
and all other calls and SMS across the country at Re 1 per minute. Another plan
called `India Roam' plan is specially created for the roaming user and offers roaming
calls at just Re 1 per minute for a monthly fee of Rs 499.
For its pre-paid customers, Airtel has introduced a Rs 899 Recharge plan wherein all
local calls, STD calls and all SMS will be charged at Re 1.
Idea Cellular's offer for post-paid users is similar to that of Airtel's India Home plan.
For pre-paid card users, Idea has launched a recharge coupon of Rs 249, which
offers all local and STD calls at Re 1.

Idea Cellular spat: Tatas serve

notice to Birlas
The Tatas today served a termination notice to Birlas for breach of shareholders
agreement, according to CNBC-TV18. The Tatas have said that they would also
proceed to purchase the shareholding of the AV Birla Group in the Idea Cellular joint
venture.
The notice, issued on February 27, says "The AV Birla group is a defaulting founder
and we (Tatas) shall proceed to purchase the shareholding of AV Birla group within
90 days of this notice ("Termination Notice") at the default price."
The Tatas have also sent a copy of the notice to the Department of Telecom. The
Birlas, however, were not available for comment.

Trai issues notice to 5

telecom companies
The Telecom Regulatory Authority of India (TRAI) has issued show cause notices to
five telecom operators for deteriorating quality of service levels.

The telecom regulator had earlier asked all operators to meet the specified quality of
service norms by December 2005. However, after considering the reports filed by the
telecom companies, it decided to issues notices to Bharti TeleVentures, Reliance
Infocomm, Tata Teleservices, Spice Communications and BPL Mobile (now acquired
by Hutch).
Other operators Idea Cellular, Hutch, BSNL and MTNL have been let off because the
service levels have not deteriorated even though they are still short of the stipulated
norms.

POI Congestion
"Being deeply concerned about the deteriorating level of Points of Interconnection
(POI) congestion in the networks and also considering lack of efforts on the part of
the service providers in effecting timely augmentation of interconnection, it was
decided to issue show cause notices," said a TRAI release.
The benchmark prescribed by the authority for the parameter "POI Congestion"
(congestion between the networks of two operators) is less than 0.5 per cent.
Trai said that in spite of reminders, the performance of the cellular operators in
meeting the Quality of Service benchmarks continued to be unsatisfactory and in the
matter of POI congestion the number of places having congestion continued to be on
the rise.
"It was also noticed that at several places the level of congestion of some of the
operators was in the range of 80 per cent to 95 per cent.
"This means that out of 100 calls, 80 to 95 calls fail leading to total chaos in inter-
network communications and heavy customer dissatisfaction and almost a collapse
of the service.
"It is thus clear that due to the non-action by operators in streamlining
interconnection, the subscribers are suffering greatly," TRAI said.
The telecom regulator said that the stance taken by the Cellular Operator Association
of India (COAI), that unless the interconnection matters are resolved they should not
be directed to ensure quality of service, was not acceptable.

DoT steps into Tata-Birla

battle over Idea Cellular
The Department of Telecom, DoT, has asked the Tatas to give details of its
shareholdings in their joint venture Idea Cellular with Birlas.
Besides Idea, the government has asked the Tatas to give details of shareholding in
Tata Industries, which holds a stake in the joint venture, and other telecom entities-
Tata Teleservices and Tata Teleservices Maharashtra.
The Tatas are expected to file their reply today. The Birlas, meanwhile, urged the
government to act fast on its plea against the Tatas, saying non-compliance by Tatas
was 'grave, wide ranging and comprehensive.'

Tatas may not have given

details on Idea, says Birla
The Aditya Birla Group has said that Tata Industries may not have provided relevant
shareholding information pertaining to Idea Cellular to the Department of Telecom
(DoT).
The Birlas said that the Tatas were required to give details of only five relevant
companies to come clear on the shareholding structure inTata Teleservices and Idea
Cellular which was being held under a single promoter group — Tata Sons.
The Tatas had earlier told DoT that there was no single entity called the Tata Group
and that there were 80 companies using the brand name of Tata.
They had also said that they could provide information on all the 80 companies and
instead offered shareholding details of only Tata Industries. Senior officials in the
DoT said that the Birlas have informally sought their attention to the cross holding
structure of Tata Sons.
Senior executives in Birla Group said that Tatas needed to give details of only of five
relevant companies, including Tata Motors, Tata Chemicals, Tata Power, Tata
Industries and Tata Steel, information for which is available on the Internet also.
"Tata Industries could have easily obtained this information. There is a deliberate
attempt to suppress cross holding information," said a source in the Birla Group.
Sources said that the five Tata companies under Tata Sons held each others' shares
and together held more than 50 per cent stake in Tata Teleservices, though the
Tatas had claimed that only about 4 per cent stake was held by Tata Industries.
Sources in the rival camp said that Tata Sons through Tata Power and Videsh
Sanchar Nigam Ltdand Tata Industries accounted for much more than that.
They also pointed out that Tata Industries and its wholly owned
subsidiary in Mauritius held nearly 48 per cent stake in
Idea Cellular, which was against the licence norms
which prohibits a promoter group to hold more than 10
per cent stake in two different telecom companies
offering services in the same circle.
Birlas said that the SEBI guidelines were clear on the term `promoter' and, therefore,
Tata Sons, through its cross holding structure was the promoter of the telecom
ventures.
In fact, a letter written by the Tatas in January 2006 to DoT acknowledged the
problem and promised to bring down its share in Idea Cellular to less than 10 per
cent by June 2006.

Tatas to sell Idea stake to

Birlas
Published on Mon, Apr 10, 2006 at 10:37 | Updated at Mon, Apr 10, 2006 at 13:33 | Source : Moneycontrol.com

India's two oldest corporate houses may finally bury the hatchet. The Tatas have
virtually agreed to sell their stake in Idea Cellular to the AV Birla Group for between
Rs 4,600 crore to Rs 4,800 crore, reports CNBC-TV18.
Sources say the deal may be struck at a price band of Rs 42-44 per share. Tata
Sons Chairman Ratan Tata says the Birlas were willing to match the Maxis offer
price.
Ratan Tata said, "We picked a buyer and under the clauses of the shareholder
agreement we have to offer it first to the Birla group, which we have done. They
seem to have indicated their willingness to buy it; to match that price."

Tatas will dilute stake in Idea

at right time, price
•
The Tata Group Chairman, Mr Ratan Tata, said on Friday that he would
consider diluting stake in Idea Cellular at an "appropriate time and value''. The Tatas
are currently embroiled in a tussle with joint venture partner AV Birla Group over their
shareholding structure in Idea Cellular.
Raising hopes of resolution of the two-month long fight, Mr Tata told presspersons,
"We have always indicated that we shall dilute stake in Idea at the right time and right
price."
Mr Tata was speaking on the sidelines of a function at the Institute of Management
Technology in Ghaziabad.
The Birlas had earlier asked the Government to direct the Tatas to exit from the joint
venture. This was contested by the Tatas, who in turn, sent a termination notice to
the Birlas claiming that they would instead buy out the latter.
While Tatas have about 49 per cent stake, Birlas hold more than 50 per cent equity in
the venture, which offers mobile services in various telecom circles, including Delhi,
and claims to have about seven million subscribers. Mr Tata also said that the group
was planning to set up a gas-based fertiliser plant of one-million-tonne capacity in
Bangladesh. "We are in the final phase of price negotiations," he said.
On the ambitious Rs 1-lakh passenger car project, Mr Tata said he was not setting
any new deadlines for getting the car on the road. "We are looking at several places
for setting up the plant," he said. On the issue of job reservations in the private
sector, Mr Tata said: "We are all concerned about these people. But I do not think job
reservations would solve the problem."

Aditya Birla Group buys out

Tata's stake in Idea
Aditya Birla Group has bought out Tata's stake in Idea cellular. The deal is valued at
more than Rs 4400 crore. CNBC-TV 18’s research analyst, Nikhil Bhatnagar informs
that Aditya Birla Nuvo will pick up 15% at Rs 1373, which values the company (Idea
cellular) at Rs 9153 crore. The remaining stake will be picked up by Birla TMT for
about Rs 3300 crore.

The price offered is Rs 4400 crore odd for the entire stake. This is at par with what
Maxis was offering. Reports were suggesting thatRatan Tata himself did not want
anything less than Rs 4400-Rs 4600 for this stake.
If one looks at the valuations on an EV to subscriber basis, this is done at about 37-
38% discount to Bharti Tele-Ventures. Compared toTata Tele-Services Maharashtra, it
seems to be at a marginal premium. Tata Tele has an EV to subscriber of about Rs
17200. This particular stake would value an EV per subscriber of Rs 18000 for Idea
Cellular. So on valuation basis it seems decent enough.

Following this deal, the share holding will now change and 98.3% will be held
through various Aditya Birla Group companies. Aditya Birla Nuvo itself will hold about
35.74 %.

Tata Group mulling telecom

merger
After getting out of Idea Cellular, the Tata Group will consolidate its telecom
businesses. Although the three telecom firms, Tata Teleservices, and the listed Tata
Teleservices Maharashtra and VSNL, work closely, the Tata Group plans to merge
them.
The merged entity will join the ranks of the one billion-dollar companies but Tata Tele
officials say there is no time frame for merger.
MD at Tata Teleservices (Maharashtra), Charles Anthony said, "We could look at
listing TTSL or have a reverse merger."
Meanwhile, Tata Teleservices is trying to broaden its operations and revenue base.
Along with its sister concern, TCS, it has bid for a Goa government project to wire
about 2 lakh houses in the state, providing them with end-to-end communications
solutions. Besides it plans to expand its national mobile telephone footprint.
CEO at Tata Teleservices, Darryl Green said, "We are looking at the North East and
J&K."
To enhance its subscriber base it has launched a 2-year free outgoing-call scheme
that CNBC-TV18 reported this week. The scheme might help Tata Tele to fulfill its
objective to double its subsciber base to 10 million in a year.

Aditya Birla Group increases

equity stake in IDEA
The Aditya Birla Group and the Tata Group have concluded their earlier announced transaction,
with the Aditya Birla Group acquiring the entire 48.14% holding of the Tata Group in Idea Cellular
Ltd., for a total consideration of Rs.4406 crores. The transaction was completed earlier today.
The combined holding of the Aditya Birla Group companies in Idea now stands at 98.3%
constituted between Aditya Birla Nuvo Ltd. 35.7%, Birla TMT Holdings Ltd. 44.9%, Grasim
Industries Ltd. 7.6%, and Hindalco Industries Ltd. 10.1%.

Said Aditya Birla Group Chairman, Mr. Kumar Mangalam Birla, “the IDEA name has come to
stand for value and innovation in the eyes of its millions of subscribers. We shall raise the bar and
aim that Idea represents the very best across all product and service categories.”

Aditya Birla Nuvo and its subsidiaries has acquired 15% stake in Idea. Meanwhile, Birla TMT has
acquired the remaining 33.14% stake in the company.

Kumar Mangalam to head

Idea Cellular board
Idea Cellular has announced a newly reconstituted board of directors, a day after it
said it had completed the acquisition of 48 per cent stake in the company from the
Tata group.
Mr Kumar Mangalam Birla, Chairman of the AV Birla group, has been named the
Chairman of Idea.
The other board members are: Ms Rajashree Birla, Chairperson, Aditya Birla Centre
for Community Initiatives and Rural Development; Mr Sanjeev Aga, Managing
Director, Aditya Birla Nuvo, Mr Debu Bhattacharya, Managing Director, Hindalco; Mr
Saurabh Misra, Director, Aditya Birla Management Corporation Ltd, and
CEO, UltraTech Cement and Mr M.R. Prasanna, Group Executive President (Legal),
Aditya Birla group.
Aditya Birla Nuvo holds 34.7 per cent stake in Idea; Birla TMT Holdings Ltd 44.9 per
cent, Grasim 7.5 per cent and Hindalco 10.1 per cent.
Idea operates GSM cellular services in 10 circles in the country and currently has
eight million subscribers.

Idea Cellular looking at IPO

After taking full control of its cellular venture, Aditya Birla group company, Idea
Cellular is looking at the possibility of an initial public offer, IPO besides expanding
services with three new circles rollout in the next three months, reports The Hindu
Business Line.
"At some point of time the company would go public", Sanjiv Aga, managing director,
Aditya Birla Nuvo, said here on the sidelines of a cellular function. However, sources
said the company would be assessing the situation on an IPO now and take view
accordingly.
Idea Cellular, which is keen to enter the Mumbai circle and for which it has already
applied to the department of telecom for permission, is waiting for the approval. "The
application is still pending with the Government", Aga said. In rest part of the country,
it is planning to enter into three new circles.
"We are rolling out in three new circles Himachal Pradesh, Rajasthan and Eastern
UP in the next few months. The company will also take a view whether to enter into
national long distance in the next few months", Aga said.
The current eight circles are - Haryana, Delhi, UP (W), Gujarat, Maharashtra and
Goa (one circle), MP and Chhattisgarh (one circle), AP and Kerala.
The combined holding of Aditya Birla Group companies in Idea stands at 98.3%,
which includesAditya Birla Nuvo with 35.7%, Birla TMT Holdings 44.9%, Grasim
Industries 7.6% and Hindalco Industries 10.1%.

ABN reports excellent

performance for June 30,2006
Aditya Birla Nuvo has posted
excellent results for the 1st quarter
ended 30thJune 2006.

Its consolidated turnover of Rs.

1459.12 crores, surged by 88.6%
vis-à-vis Rs. 773.66 crores achieved
in the corresponding quarter of the
previous year. Net profit has leapfrogged to Rs. 66.71 crores against Rs. 33.03 crores. The
performance of its JVs and Subsidiaries has been impressive as well.

Revenue and profit growth was seen across business segments.

The Company’s stand-alone turnover at Rs. 783.18 crores, grew by 61.5% vis-à-vis Rs. 485.08
crores attained in the previous year and operating profit by 102.0% from Rs. 72.49 crores to Rs.
146.43 crores. The stand-alone net profit is higher at Rs. 56.28 crores against Rs. 30.75 crores,
despite a major rise in interest on borrowings and surplus funds used to finance the acquisition of
the 31.45% additional stake in Idea Cellular amounting to Rs. 2033.7 crores. Revenues and
earnings are inclusive of the fertilisers and financial services business, which merged into the
Company in September 2005.
Madura Garments

Madura Garments’ revenue has soared by 33.3% to Rs. 170.55 crores vis-à-vis Rs. 127.95 crores
recorded in the previous year. Operating Profit at Rs. 15.80 crores is up by 79.0%. Strong growth
across its product range, particularly in Shirts, Trousers and Suits boosted revenues. Louis
Philippe, Van Heusen and Allen Solly – its fashion brands and Peter England – its popular brand,
consolidated their market share, and bolstered profitable growth. The thrust on Contract Exports
towards providing full service has also started paying off. To enlarge its footprint and to give the
customer an international retail experience, the division is aggressively expanding large format
exclusive brand outlets, along with selected stores. Madura Garment has tied up 1.2 lac sq. ft of
retail space in malls and key High streets to be opened in next 2-3 years.

Rayon Division

The Rayon Division’s revenues at Rs. 112.18 crores reflect a rise of 29.2% vis-a-vis Rs. 86.81
crores in the corresponding quarter of the previous year. Higher volumes and better realisation
have been the growth drivers. In the chlor-alkali segment, revenues grew by 23.2% at Rs. 38.77
crores, on the back of expanded caustic soda capacity in July-05, which was partially offset by
lower realisation. The Division’s operating profit is higher at Rs. 28.42 crores (Rs.21.63 crores).
The 20MW captive power plant at Veraval will be commissioned during the quarter. The 65 TPD
caustic soda expansion is also on track.

Carbon Black Division

The Carbon Black Division’s performance has been impressive. Revenues at Rs. 175.13 crores
grew by 43.2% vis-à-vis Rs. 122.26 crores attained in the corresponding quarter of the previous
year. Operating profits are higher by 58.0% at Rs. 34.87 Crores. Total volumes rose by 8.5% to
44,475 tons led by the strong growth in the auto sector. The division’s realisation is up by 26.9%
due to a change in the market mix and the partial passing on of the high CBFS prices to its
customers. While the Company is pursuing environmental clearance for a 55,000 TPA brownfield
expansion, the division is also exploring possibilities to set up a greenfield project of 60,000 TPA
in Western India.

Fertilisers Division

The net turnover of the fertiliser division stood at Rs. 128.95 crores. Increased operational
efficiencies, coupled with the rising demand for urea fertiliser due to timely pre-monsoon rains,
aided the Fertiliser division’s sales, enabling it to post higher levels at 1.95 lacs MT. Production at
2.37 lacs MT represents 109% of re-assessed capacity. The division has attained yet another
milestone in being the first fertiliser unit world over to receive Rs. 6.93 crores on the sale of CER
certificate under Clean Development Mechanism (CDM).

Textiles Division

The Textiles Division’s revenues have gone up by 40.3% to Rs. 128.95 crores as against Rs.
102.96 crores in the preceding corresponding quarter. Operating Profits jumped by 47.1% buoyed
by a strong performance across segments. Its Linen segment, comprising Linen Fabric and Flax
yarn, continued on its expansive growth trajectory gaining from higher volumes. Value added
products and enhanced volumes in wool combing spurred the performance of the Worsted
segment. Its Wool combing capacity was doubled to 8,000 TPA in July 2005. The synthetic
segment is being downsized in a phased manner. To meet the growing demand for Linen, it is
increasing its linen fabric and flax spinning capacity at a cost of Rs. 31.5 crores and Rs. 31.0
crores respectively.

Financial Services Division

The Financial Services Division’s revenue stood at Rs. 11.43 crores. The division continued to
maintain its leadership in finance against securities. Finance extended during the quarter
increased to Rs. 303 crores vis-à-vis Rs 232 crores, despite the volatility in the capital market,
which led to a slow down in IPO offerings. Loan against shares also increased to Rs 271 crores
as against Rs 209 crores in corresponding quarter of previous year.

Insulators Domestic Marketing

Insulator domestic marketing division’s revenue is lower at Rs.27.87 crores vis-à-vis Rs 34.31
crores in the previous corresponding quarter due to the higher share of direct billing and also a
slow down at Halol, despite a 10.4% volume growth.

BIRLA NGK Insulators Private Limited, the 50:50 JV with NGK, has posted a turnover of Rs.51.08
crores, a growth of 10.2%. This was supported by higher realisation, offsetting lower volumes at
the Halol unit due to an illegal strike. Led by NGK experts, yield improvement efforts are being
pursued. The JV has curtailed its losses substantially from Rs. 4.92 crores in the previous year to
Rs. 3.43 crores in the current year.
Other Joint Ventures and Subsidiaries

IDEA Cellular’s subscriber base grew by 53.7% to 8.54 million. Revenues for the year showed an
impressive jump of 30.6% at Rs. 900.09 crores. The Company has an 8.1% market share in the
total mobility segment. It enjoys a predominant position in Maharastra, Gujarat, Andhra Pradesh,
Kerala, Madhya Pradesh, Delhi, U.P. (W) and Haryana. IDEA is planning to roll out its services in
Rajasthan, Himachal Pradesh (H.P.) and U.P. (E) by the end of this quarter, increasing its
presence to 11 circles. The Company along with its subsidiary has purchased 15% equity stake in
Idea Cellular Limited for Rs. 1372.7 crores on June 20, 2006. With this, the total equity holding of
Nuvo has increased to 35.73%. The benefit of additional shareholding will fully reflect in the
financials of the Company from the next quarter.

At TransWorks, revenues have risen significantly by 26.6% to Rs. 48.13 crores vis-à-vis Rs. 38.03
crores in the previous year. While three new major clients were added, business from existing
clients was ramped up. The Company has also been able to improve its business mix with a
growing share of non-voice business. The Company is optimising its infrastructure utilisation and
service levels leading to improved margins.

TransWorks entered into a definitive agreement, on June 24, 2006, for the acquisition of
Minacs Worldwide Inc., Canada’s leading BPO provider. TransWorks through its wholly owned
subsidiary AV TransWorks, Canada, has made an open offer to the shareholders on July 13,
2006. The transaction is likely to be completed by August end and the deal size is expected to be
USD 125 million. With this deal, TransWorks would feature in the Top 3 third party BPO service
providers in the country, and among the top 10 globally.

At Birla Sun Life Insurance, the total premium income has grown by 73.9% to Rs. 273.72 crores.
The Individual new business annualised premium advanced by 91% at Rs. 149.78 crores. The
Company has doubled its branches and agency force as compared to the previous corresponding
quarter. The company is focusing on expanding its network by adding 31 branches in this year,
while ramping up the agency force considerably. The company is taking necessary steps to regain
its market share.

At Birla Sun Life Asset Management, the assets under management increased to Rs. 14,611 Cr
visà- vis Rs. 11,457 Cr in the corresponding quarter of the earlier year. The share of equity funds
of the total Assets under Management increased from 20% to 26%. This has helped the company
achieve revenues of Rs. 19.53 Cr.

At PSI Data Systems, the business has turned into the black with positive net profits on
improved margins. Revenues stood at Rs. 23.15 crores. Gross margins improved from 33% to
35% through an enhanced share of high margin offshore business and improved manpower
utilisation.

Overall, the outlook for Aditya Birla Nuvo is optimistic given its strategic thrust, growth and
capex initiatives taken in each of the businesses.

· Madura Garment’s thrust will continue to be on retail expansion, merchandise

management, and optimising cost. In contract exports, strengthening manufacturing, design and
product development is on the anvil.

· VFY’s focus is on improving quality. To offset the declining ECU realisation, endeavours
to improve productivity and reduce costs are ongoing.

· Carbon Black expects to push volumes in the domestic market and pass on the
increased CBFS cost to its customers.

· Fertilisers will focus on increasing the share of value added products while maximising volumes
through higher operational efficiency, increased on-stream days and de-bottlenecking to raise
capacity.

· In Textiles attention will be on value added yarns and the retail reach of Linen Fabrics.

· The Insulator JV endeavours are to concentrate on higher value products and

yield improvement.

· Telecom will be expanding its reach through the roll out in three new circles and pan
India presence. Its debt restructuring will further strengthen the company.

· BPO is geared to up its performance through expanding and optimally utilising its seat
capacity through existing and new clients. Simultaneously focus will be on timely completion and
smooth integration of Minacs.

· Birla Sun Life insurance’s emphasis is on increasing the branch network and strengthening its
agency force while enriching its product portfolio, to better its performance

· Birla Sun Life Asset Management’s focal point is to increase reach and launch
innovative products.

· IT Services focus will be on building scalability to support business growth and

improving delivery capabilities
History
The chronology of key events of the Company from Becomes pan-India operator in 2009
incorporation is set out below:
Calendar year Events

2009
Subscriber base as on December 31, 2009:
57,611,872

Idea becomes a pan-India operator

Emerging Company of the Year - fastest growing

mobile operator in the world’s fastest growing
telecom market

2008
Subscriber base as on December 31, 2008:
40,016,153 Acquired Escotel, incumbent cellular
service provider in Haryana, UP(W) &
Idea acquired 9 licences for Punjab, Karnataka,
Kerala and new licensee in HP
Tamil Nadu & Chennai, West Bengal, Orissa,
Kolkata, Assam, North East and Jammu &
Kashmir
Acquired Spice Communications with the
operating circles of Punjab and Karnataka
Launched services in Mumbai metro in the
largest single metro city launch, ever

Launched services in Bihar

2007
Subscriber base as on December 31, 2007:
21,054,027
Won an award for the "CARE" service in the
"Best Billing or Customer Care Solution" at the
GSM Association Awards in Barcelona, Spain
Initial Public Offering aggregating to Rs. 28,187
million and Listing of Equity Shares on the Brand IDEA launched Delhi operations
commence (Nov)
 Bombay Stock Exchange and the National Stock
Exchange
Merger of seven subsidiaries with Idea Cellular
Limited

Reached the twenty million subscriber mark

2006
Subscriber base as on December 31, 2006:
12,442,450
Became part of the Aditya Birla Group
subsequent to the TATA Group transferring its
entire shareholding in the Company to the Aditya
Birla Group
Acquired Escorts Telecommunications Limited Acquired RPG Cellcom, service
(subsequently renamed as Idea provider in Madhya Pradesh (Feb)
Telecommunications Limited)
Awarded
Restructuring of debt

Launch of the New Circles

Reached the 10 million subscriber mark

Received Letter of Intent from the DoT for a new

UAS License for the Mumbai Circle.
Received Letter of Intent from the DoT for a new
UAS License for the Bihar Circle through Aditya
Birla Telecom Limited. ABNL, the parent of
Aditya Birla Telecom Limited, pursuant to a letter
dated November 22, 2006, agreed to transfer its
entire shareholding in Aditya Birla Telecom
Limited to the Company for the consideration of
Rs. 100 million. MoU for merger between Birla AT&T
and Tata Cellular Limited Andhra
2005
Pradesh signed (Jan)
Subscriber base as on December 31, 2005:
6,473,962

Reached the five million subscriber mark

Turned Profit Positive

Won an Award for the "Bill Flash" service at

GSM Association Awards in Barcelona, Spain

Sponsored the International Indian Film

Academy Awards

2004
Completed debt restructuring for the then Birla AT&T commence Cellular
existing debt facilities and additional funding for operations Maharashtra & Gujarat
the Delhi Circle.
Acquired Escotel Mobile Communications
Limited (subsequently renamed as Idea Mobile
 Communications Limited)

Reached the four million subscriber mark

First operator in India to commercially launch

EDGE services 2005

2003

Reached the two million subscriber mark

2002
Changed name to Idea Cellular Limited and
launched "Idea" brand name
Commenced commercial operations in Delhi
Circle

Reached the one million subscriber mark

2001
Acquired RPG Cellular Limited and consequently
the license for the Madhya Pradesh (including
Chattisgarh) Circle

Changed name to Birla Tata AT&T Limited

Obtained license for providing GSM-based

services in the Delhi Circle following the fourth
operator GSM license bidding process

2000
Merged with Tata Cellular Limited, thereby
acquiring original license for the Andhra Pradesh
Circle

1999
Migrated to revenues share license fee regime
under New Telecommunications Policy ("NTP")

1997
Commenced operations in the Gujarat and
Maharashtra Circles

1996
Changed name to Birla AT&T Communications
Limited following joint venture between Grasim
Industries and AT&T Corporation

1995

Incorporated as Birla Communications Limited

Obtained licenses for providing GSM-based

services in the Gujarat and Maharashtra Circles
following the original GSM license bidding
process.

We are part of the Aditya Birla Group and all our Promoters are companies belonging to the
Aditya Birla Group.
Idea Cellular, usually referred to as !dea, is a wireless telephony company
operating in all the 22 telecom circles in India based inMumbai. It is the 3rd largest
GSM company in India behind Airtel and Vodafone and ahead of state run
player BSNL.

Contents

[hide]
• 1 Inception and
growth

• 2 Customer service

• 3 Holding

• 4 Subscriber base

• 5 3G Services

• 6 References

• 7 External links

[edit]Inception and growth

In 2000, Tata Cellular was a company providing mobile services in AP. When Birla-
AT&T brought Maharashtra and Gujarat to the table, the merger of these two
entities was a reality. Thus Birla-Tata-AT&T, popularly known as Batata, was born
and was later branded as !dea.

Then Idea set sights on RPG’s operations in Madhya Pradesh which was successfully
acquired, helping Batata have a million subscribers, and the licence to be the fourth
operator in Delhi was clinched.

In 2004, Idea (the company had by then been rechristened) bought over the Escorts
group’s Escotel gaining Haryana, Uttar Pradesh (West) and Kerala — and licences
for three more — UP (East), Rajasthan and Himachal Pradesh. By the end of that
year, four million Indians were on the company’s network. In 2005, AT&T sold its
investment in Idea, and the year after Tatas also bid good bye to pursue an
independent telecom business. And Idea was left only with one promoter, the AV
Birla group. When the company’s stock listed on the bourses in March 2007, its
subscriber base was 13 million with presence in 11 circles. In less than three years,
the subscriber numbers have more than quadrupled. The public issue was
oversubscribed 50 times and raised Rs 2,450 crore.In June 2008, Idea Cellular
bought out BK Modi’s stake in Spice Communications for Rs 2,700 crore adding
Punjab and Karnataka circles. Modi’s joint venture partner, Telekom Malaysia,
invested Rs 7,000 crore for a 14.99% stake in Idea. Just around then, Idea’s
subsidiary, Aditya Birla Telecom sold a 20% stake to US-based Providence Equity
Partners for over Rs 2,000 crore.

[edit]Customer service

The company has its retail outlets under the "My Idea" banner. The company has
also been the first to offer flexible tariff plans for prepaid customers[citation needed]. It
also offers GPRS services in urban areas.

Idea Cellular won the GSM Association Award for "Best Billing and Customer Care
Solution" for 2 consecutive years[citation needed].

IDEA Cellular has been recognized as the 'Most Customer Responsive Company' in
the Telecom sector, at the prestigious Avaya GlobalConnect Customer
Responsiveness Awards 2010[citation needed].

[edit]Holding

Initially the Birlas, the Tatas and AT&T Wireless each held one-third equity in the
company. But following AT&T Wireless' merger with Cingular Wireless in 2004,
Cingular decided to sell its 32.9% stake in Idea. This stake was bought by both the
Tatas and Birlas at 16.45% each.

Tata's foray into the cellular market with its own subsidiary, Tata Indicom, a CDMA-
based mobile provider, cropped differences between the Tatas and the Birlas. This
dual holding by the Tatas also became a major reason for the delay in Idea being
granted a license to operate in Mumbai. This was because as per Department of
Telecommunications (DOT) license norms, one promoter could not have more than
10% stake in two companies operating in the same circle and Tata Indicom was
already operating in Mumbai when Idea filed for its licence.

The Birlas thus approached the DOT and sought its intervention, and the Tatas
replied by saying that they would exit Idea but only for a good price. On 10 April
2006, the Aditya Birla Group announced its acquisition of the 48.18% stake held by
the Tatas at Rs. 40.51 a share amounting to Rs. 44.06 billion. While 15% of the
48.14% stake was acquired by Aditya Birla Nuvo, a company in-charge of the Birlas'
new business initiatives, the remaining stake was acquired by Birla TMT holdings
Private Ltd., an AV Birla family-owned company. Currently,Aditya Birla Group holds
49.1% of the total shares of the company. Malaysia based Axiata controls a 14.99%
stake in the company.[3]

[edit]