Background

Headquartered in Gujarat, Idea Cellular Ltd (Idea Cellular) is a publicly listed company with BSE and NSE. It was incorporated as Birla Communications Ltd in 1995. In 1997 it obtained licenses to provide GSM-based mobile services in the Gujarat and Maharashtra circles. In 2002, the company launched its Idea brand thus acquiring its current name. In 2006, it became a part of the Aditya Birla Group after the TATA Group sold its stake in the company. Idea Cellular is engaged in providing telecommunication services.

Business Profile

Idea Cellular functions through two business segments, namely, Mobile Services, National and International Long Distance services (NLD & ILD). The company is a pan-India integrated GSM mobile service provider through 20 service areas. As of Sep 09, the company had 46.80 mn subscribers representing an increase of more than 54% y-o-y in its customer base. During 2009, the company launched ‘Krishi Voucher’ in partnership with Reuters Market Light in Maharashtra to equip farmers with decision critical information for marketing of the agricultural produce. In FY09, Idea Cellular acquired a 40.80% stake in Spice Telecommunications Ltd. The company registered a 20.14% (y-o-y) rise in its gross revenues to Rs. 289.09 bn for the second quarter ended Sept 09. During the same period, the company demerged its infrastructure assets in services areas like AP, Delhi, Gujarat, UP, Haryana, Kerala, Rajasthan and Mumbai to its wholly owned subsidiary Idea Cellular Towers Infrastructure Ltd.