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On Wednesday, the Vodafone Idea Board has accepted the request of Kumar Mangalam Birla to step down as Non-Executive Director and Non-Executive Chairman of the Board. The telco's board has unanimously appointed Himanshu Kapania as the new Non-Executive Chairman of the board.
Himanshu Kapania Replaces Birla as NEC of Vodafone Idea
The timing of the same raises some eyebrows as on Monday, a letter by Birla became public in which he had reached out the government, offering them his share in the telco. In a note to BSE, the company said, "consequently, the Board has unanimously elected Mr. Himanshu Kapania, currently a Non-Executive Director, as the Non-Executive Chairman".
"Further, based on recommendation of Nomination and Remuneration Committee, the Board has appointed Mr. Sushil Agarwal, a nominee of Aditya Birla Group, as an Additional Director (Non – Executive and Non Independent) with effect from 4th August, 2021", the company said.
Kapania is a veteran of the industry with 25 years of experience. He has been at significant positions in telcos across the world. Further, he has served on the Global GSMA Board for two years. Kapania has also been the Chairman of the Cellular Operators Association of India (COAI) for two years.
He was the Chairman of the FICCI Council on Telecom, Electronics and Digital Economy before being nominated at Vodafone Idea.
These past few weeks have been chaotic at Vodafone Idea. It has seen its AGR dues case widely publicized, especially the throwing out of the same by the SC (with Bharti Airtel). What's more, the telco has reported net losses since its inception. The telco has been losing customers steadily, and is not generating enough cash to sustain itself. All of this has culminated in Birla stepping down.
Kapania will now have the important task to steady the ship first, and then look ahead. Apart from its debts, payments and finances, Kapania has to look at the imminent 5G rollout, and ways to stay competitive.