Kumar Mangalam Birla, chairman of Aditya Birla Group, has said that if the government does not provide relief, Vodafone-Idea will be shut down. Birla said this at a summit on Friday. He said that if the government does not give the relief sought, then we will have to close our shop ie Vodafone-Idea. Birla said this in response to a question in which he was asked about the company's strategy in the event of no relief from the government. Birla is the chairman of Vodafone Idea, a company formed by the merger of Vodafone-India and Idea Cellular.
Through his statement, Birla has indicated that if the government does not get relief, he will not invest any more in the company. Birla said, "There is no point in investing more money in sinking money". He said that if the government does not get relief, they will take the company into the bankruptcy process.
This statement of Birla has put dark clouds on the future of the country's third largest telecom service provider. KM Birla's statement comes after a statement given last month by Nick Read, the CEO of Vodafone, the overseas partner of his telecom venture, in which he said "if you don't see a solution, then the situation is serious". With this you are moving towards liquidation. '
Significantly, Vodafone Idea suffered the biggest quarterly loss in India's corporate history in the second quarter of the current financial year. The company had a financial loss of Rs 50,922 crore in the quarter. This loss to Vodafone-Idea is equal to 10 times the total revenue earned by the company from year to year. At the same time, in the AGR Verdict given by the Supreme Court, Vodafone-Idea was directed to pay Rs 28,300 crore.
