Dial the right `M' numbers to buy any Sterling company: Siva

Our Corporate Bureau
08 April 2004

Confirming a news report about three suitors (Idea Cellular, Bharti and Hutch) showing an interest in acquiring the group's Aircel Televentures, the holding company for Aircel Cellular Limited (the service provider in Chennai) and Aircel Limited (which operates in the rest of the state), he says that the companies are worth more than the Rs 1,700 crore — the amount at which the Sterling group's cellular operations are valued.

Two years ago, Sivasankaran had announced at a press conference that the group would be bidding for one of the largest Indian companies. Till date, no major takeover has been announced by the Sterling group — apart from buying out RPG Cellular Limited (the Chennai circle mobile operator) for Rs 208 crore and renaming it Aircel Cellular.  On the other hand the group has sold the internet service division of its high profile company, Dishnet DSL Limited to VSNL for Rs 270 crore.

When queried about his earlier announcement, Sivasankaran replies, "I did want to bid for one of the largest companies. But I got hints and feelers from various quarters to keep away. I am not in a position to tell you more than this."

However, Sivasankaran says that the group has bought the Barista coffee chain belonging to the Tatas, though he refused to divulge any details of the deal. Speaking of Dishnet DSL's future plans, he says the company will soon launch its wireless broadband operations. The company posted a profit of Rs 320 crore in 2003-04, he adds. "Dishnet DSL will soon come out with a public issue."

Meanwhile the current focus is on expanding the group's cellular telephony business. Put together, the two companies (Aircel Cellular and Aircel) have a subscriber base of one million — over 36 per cent market share. "We are targeting a subscriber base of one crore, out of Tamil Nadu's population of six crore," says Sivasankaran..

Aircel Cellular has firmed up a Rs 102 crore plan to expand the Chennai circle network. "We will expand the capacity to three million. By November 2004, the network capacity will also go up to 2 million and by January 2005 to three million. This will be the first company in India to have such a large capacity," he adds.