Vodafone Essar became a jewel in the crown of Vodafone group, in a span of
just two years after making its foray in India in 2007-08. The company reported
a revenue of Rs 22,224 crore by the end of the FY 2008-09, up from Rs 15,477
crore in the previous fiscal.
The company's focus on data services has paid dividends. The revenue from
data services grew by 52.57%, which was a major contributor to the total revenue
after voice.
Vodafone started several data services including innovative fax services for
mobile phone users, EDGE data card, 3G USB stick, USB stick and mobile data VPN
for the subscriber.
During the financial year, the company added around 24.6 mn customers in
India, taking its total subscriber base to 68.7 mn, growing by 55% from last
year's figure of 44.1 mn subscribers. The company has a market share of 17.6%.
However, despite a good growth rate the global economic recession affected
Vodafone as well. The visitor revenue increased, albeit at a lower rate, due to
the impact of economic pressures as people traveled less. Lower effective rates
per minute, reflecting price reductions earlier in the year, coupled with the
continued market shift to lifetime validity prepaid offerings, led to a
reduction in customer churn.
As 64% of the Indian population is yet to own a mobile phone (March 2009
figures), Vodafone sees a huge opportunity in the country, especially in the
rural and semi urban areas. Penetration will continue to be an important driver
of growth for the company.
The company has continued network expansion, with an average of 2,600 base
stations constructed per month, primarily in the new circles. Site sharing also
increased and Indus Towers steadily increased its operation throughout the rest
of the year, with 95,000 sites under its management by the end of March 2009.
Another highlight of the year was the exit of Asim Ghosh, who retired as a
CEO on March 31, 2009. Ghosh was succeeded by Marten Pieters, who was earlier
the CEO of Celtel International BV, a leading pan-African mobile operator.
Further, as a part of its global initiative, Vodafone is establishing shared
service centers (SSC) in Hungary, Europe and Ahmedabad, India. The SSC will grow
to become a world class center of excellence that will deliver high quality
transaction solutions and reporting across the fields of finance, procurement,
and human resources.
The SSC will also help manage resources and information much more
effectively. This will play an important part and enable Vodafone achieve its
key strategic goals. SSC is likely to start operations in the second quarter of
the ongoing fiscal. During the current fiscal the company will be looking at 3G
services which will drive its revinues.
 |
CEO, VODAFONE eSSAR
Marten Pieters |
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