TO SHAREHOLDERS
Dear Shareholders,
Your Company, a partnership between two strong promoters Aditya Birla
Group and Vodafone Group, is the third largest telecommunications provider in India,
offering Voice, Data, Enterprise Services and other Value Added Services
("VAS"), including Short Messaging Services, Digital Services, IoT Services etc.
As of March 31, 2024, the subscriber market share of your Company stands at 20.7% as per
TRAI Subscription Report.
Your Company continues to follow its well-defined strategy to remain
competitive in the market, despite being significantly limited on investments. VIL
delivered a second successive year of revenue and EBITDA growth, clearly reflecting its
ability to effectively operate and compete in the market.
Your Company provides 4G coverage to more than 1 billion Indians as it
continues to make significant improvement in its voice quality and enhance data capacity
to offer superior network experience for its customers. During the year a large part of 4G
capacity expansion was achieved through re-farming the spectrum from 3G to 4G. In five
circles, VIL has completely re-farmed its 3G spectrum to 4G and is working towards the
same in the remaining circles. VIL has also expanded the Voice Over Wi-Fi (VoWiFi) service
in most of the markets, enhancing the voice experience of its 4G customers.
Your Company has also been focusing on a digital-first approach,
digitizing all its customer touchpoints as well as distribution channels. VIL has launched
'Vi One'; a converged proposition for consumers, offering broadband + mobility + OTT
services under one plan, which is an 'Industry first' for pre-paid segment. Further,
VIL has integrated all content offerings; Movies, Web Series, TV channels, Games, etc. on
the Vi app allowing easier access to all
its content offerings without having to download multiple apps. VIL is
also working towards strengthening its content partnership portfolio to offer Telco++
experience to its customers.
For the Business Services, your Company remains on path of transforming
itself from a Telco to a Techco and continues to expand its offerings beyond connectivity.
The Vi Business Plus Mobility service offered by VIL includes mobile security features to
safeguard sensitive data and mitigate cyber threats. The integrated IoT solutions offered
by VIL across mobility, infrastructure and utility segments are expected to further
improve your Company's position in these segments. VIL, through a combination of own
assets and through strategic collaborations, also offers multi-cloud marketplace as well
as is in the process of developing colocation and Infrastructure-as-a-Service (IaaS)
services. VIL's 'ReadyForNext' digital assessment platform for SMEs and small
office/home offices is positioned towards capturing a larger market share from these
segments.
Further, in June 2024, your Company has undertaken several tariff
interventions in the prepaid as well as postpaid offerings across all price points,
including unlimited plans as well as combo vouchers. Staying true to its philosophy of
supporting entry level users and progressively linking higher prices to increased usage,
changes in entry level plans were kept minimal. However, the tariffs continue to remain
low and need further increase to improve overall industry health and generate reasonable
returns as well as to promote investments, including investments towards new and emerging
technologies.
During June 2024 spectrum auction, your Company renewed it's 900
MHz spectrum in UP West and West Bengal circles, while also enhancing its 900 MHz spectrum
holding in 7 circles, namely Andhra Pradesh, Tamil Nadu, Karnataka, Punjab, Rajasthan,
UP East and Koikata. This will enable VIL to dedicate adequate 900 MHz
band spectrum for 4G thereby enhancing the experience of its 4G customers in these large
markets, particularly the indoor experience. Your Company has also acquired 1800 MHz
spectrum in Madhya Pradesh and 2500 MHz spectrum in Bihar, which will help in increasing
the network capacity quickly.
During the calendar year 2024, your Company raised ~ Rs 240 billion via
equity issuance - Rs 180 billion through a Follow-On Public Offer (FPO); Rs 20.8 billion
through preferential allotment to promoters; Rs 24.6 billion via preferential allotment to
Nokia and Ericsson, including Rs 16 billion through conversion of OCDs into equity. Your
Company remains engaged with lenders for debt fund raising. This equity and debt fund
raising will enable the Company to make right set of network investments to execute its
strategy and effectively compete in the market.
The mobility sector is expected to witness growing demand as the
requirement of connectivity across various segments of population is increasing. Further,
with the advancement of technology, various Industries are expected to benefit from the
connectivity related services offered by mobile operators. These factors will continue to
drive the demand for high-speed mobile broadband connectivity. VIL, with a strong
subscriber base of 212.6 million (March 31, 2024), 4G population coverage of over 1
billion Indians, large and competitive spectrum profile, extensive distribution reach and
a well-established brand along with differentiated digital offerings, is well positioned
to effectively compete in the market.
Outlook
Your Company is on the path to achieve its long-term strategic
objectives by offering a differentiated experience to its customers on both voice and data
as well as to its enterprise customers. Post
the fund raise, your Company is now working towards executing its
investment plan to expand its 4G coverage as well as launch 5G services which will enable
it to compete more effectively in the market and strengthen its position.
Brand 'Vi' is gaining more affinity across all customer segments.
The Company believes, this will enable it to achieve its vision of being a partner to its
customers; in building a better today and a brighter tomorrow.
VIL continues to follow a partnership approach to expand its digital
offerings to provide Telco++ experience to its mobile customers. Further, VIL is also
exploring the potential opportunities using its platform capabilities in collaboration
with its partners for its enterprise offerings as it transforms itself from a Telco to a
Techco.
Finally, I would also like to take this opportunity to thank the
Government of India, DoT, TRAI, State Governments, Lenders, Vendors, Suppliers and
Partners who have continued to support in these difficult times and more importantly,
acknowledge the unwavering efforts of the employees of your Company who remained focused
on delivering their best during these challenging times.
Yours Sincerely,
Ravinder Takkar