Call it a Jio trend or Reliance’s marketing strategy, the phenomenon of Jio has kept overwhelming the Indian market with its exclusive offers and kept on making other telecom operators rethink about their marketing policies. While the competition in Indian telecom sector is continued to hot up due to the mounting upshot of Jio, other telecom operators have started raising their investment values for driving the trend towards them.
To this lineup, the first step has taken by Vodafone India, as the company announced to invest a whopping amount of $3 billion in its Indian operations. As per the reports of The Economics Times, to intensify its domination in the Indian market, the British conglomerate has decided to shell out speculations and is reported to reflecting an amount of $3 billion or Rs 20,100 crore into its India unit by paying its liability.
For the financial year 2015-16, the individual debt of Vodafone India was Rs 81,500 crore and to replace this debt; Vodafone is planning an investment of Rs 20,100-crore equity infusion in its India arms. The biggest mobile network operator in Europe, Vodafone is also reported to review the timeline of Vodafone India’s first sale of stock.
According to The Economics Times report, “Overseas market conditions make it favorable to replace the debt here with equity as the return on investment is higher here and it will cut the debt servicing costs.”
However, Vodafone has rejected to give any comments on capital infusion and substitution debt plans. Still, the reports are clearly indicating about the boosting investment plans of the England-based organization for dealing with the driving trends of Reliance Jio in the Indian market.