Essar agrees to partner Vodafone in mobile venture

16 February 2007

Mumbai: Essar, which holds a 33-per cent stake in mobile joint venture Hutch-Essar, said it would continue in the business with new majority partner Vodafone.

"We are not going to exit the business. We will run it together," Essar group vice chairman Ravi Ruia said after a meeting with Vodafone CEO Arun Sarin.

"I know Ruias from long ago. I respect their partnership. They have created value in the business. We are now trying to iron out issues and will take the business forward together," Vodafone chief Arun Sarin said, adding that he respected Essar as partners and "will take the business forward together."

Sarin met key members of the Ruia family, including Essar chairman Shashi Ruia, vice chairman Ravi Ruia, group directors Prashant and Anshuman Ruia, at the Ruia residence as part of efforts to ensure smooth sailing of mobile venture Hutch-Essar, where the UK company is acquiring majority stake.

Intense discussions between the Vodafone team and Ruia family led by Essar Group chairman Shashi Ruia followed.