Kumar Mangalam Birla returns as Vodafone Idea chairman

Kumar Mangalam Birla has reportedly been named non-executive chairman of Vodafone Idea Limited (Vi), as the telecom operator attempts a turnaround after years of financial strain triggered by intense competition and regulatory liabilities such as adjusted gross revenue (AGR) dues.

According to a report by The Economic Times, Birla said India’s telecom opportunity remains strong, driven by the government’s Digital India vision, and indicated that Vi’s revival reflects efforts to sustain a competitive three-player private market backed by its workforce and a large subscriber base of nearly 200 million users.

Birla also pointed to improving operational metrics at the company, supported by a capital expenditure programme of around $5 billion, expressing confidence that Vodafone Idea will continue to play a role in India’s telecom landscape and broader economic growth.

He replaces Ravinder Takkar, who has stepped down from the chairman’s role and will continue as a non-executive director while taking over as vice chairman. The changes, effective May 5, were approved by the company’s board, according to an exchange filing. Birla had earlier resigned as non-executive chairman in 2021 amid financial stress at the company.

Vi, a joint venture between the Aditya Birla Group and Vodafone Group, was formed to tackle tariff competition following the entry of Reliance Jio in 2016. However, the company came under pressure after the Supreme Court of India ruling in 2019 on AGR dues.

Last month, the government reduced Vi’s AGR dues by 27% to ₹64,046 crore and granted a 10-year moratorium on repayments, providing relief to its cash flows.