Vodafone Idea plans to focus on network expansion, tariff rates and lower its debt burden of Rs 1,26,100 crore with its new investment strategy
Vodafone Idea has announced that it will invest around Rs 27,000 crore in financial year 2019-20. In a statement released by the telecom operator, it said that the investments will be drawn from the savings of Rs 14,000 drawn from the cooperation of the merged entities.
Reinvestment plan
The company seeks to improve cash flow to the tune of Rs 8,400 crore and re-deployment of co-located equipment of the earlier separate operators, Vodafone and Idea, that will help in saving Rs. 6,200 crore. The statement said that the capex guidance of Rs 270 billion in FY2019-20 would be supported by redeploying the existing equipment of Vodafone and Idea.
Revised plans
Vodafone Idea CEO Balesh Sharma said that the company would keep exits of low utilisation sites, speeding up real estate rationalisation, in store rationalisation and RFP in its priority list. Additionally, the telecom operator will work on simplifying the tariff plans and emphasize on network expansion.
Vodafone Idea has lined up its vendors, circles, zones and the new organisation structure to deploy its services. It has planned to increase its capital and sell off around 11.15 percent stake in Indus Towers to bring down its debt of Rs 1,26,100 crore by Rs 5,000 crore. Around 79 percent of the debt on Vodafone Idea is net dues for spectrum payment.
