Page 30 - Sphere No.5 (Feb 2002)

T E L E C O M S
the cellular industry. By 1998, com-
mentators were forecasting the death
of the sector as most foreign players
bailed out. Ghosh notes that it was
Hutchison’s long-term commitment—
along with its understanding and
experience of the same business else-
where—that enabled it to keep faith
and therefore remain in India.
With the Indian cellular market set
to open up further this year, the
Group will face more competition
and challenges. A recent move to
allow landline service providers to
offer mobility has antagonised the
larger cellular operators, further proof
that India’s regulatory environment is
not for the faint hearted.
“This is a market that requires a
lot of stamina and back-breaking
effort,” says Ghosh, “but if you have
the vision, the commitment and a
clear strategy, results will come. Our
basic approach is to take the long
view, but execute like hell for the
short-term results.”
PAYING DIVIDENDS
The Group’s commitment to India
began to pay dividends in 1999, when
the Government overhauled the
industry’s regulatory structure to
favour a competitive environment
that would stimulate affordable, effec-
tive telecommunication for all citi-
zens. The new National Telecom
Policy replaced fixed licence fees
with a revenue-sharing scheme and
increased the licence period from 10
to 20 years.
“The market structure changed to
one that suited a long-term player
like Hutchison,” Ghosh confirms.
Almost immediately, Hutchison
embarked on an expansion pro-
gramme, acquiring stakes in three
licences through joint ventures. The
Group acquired interests in Sterling
Cellular in Delhi, Usha Martin in
Kolkota and Fascel in Gujarat. In nine
months, Hutchison established itself
as one of the country’s major players.
Hutchison’s ability to forge strong
alliances with like-minded Indian
partners has been a key aspect
of its success. The Group’s partners
include Essar Teleholdings, Kotak, the
Hindujas and Max.
“All our partners are amongst the
earliest investors in India, and are
committed to building shareholder
value through customer focus,”
Ghosh says. “They also possess
strong market intuition and under-
stand the realities of building a big
business in this country.”
Hutchison’s presence in the affili-
ates has also facilitated the alignment
of strategies and processes over the
past 18 months. Customer service,
sales and marketing are all areas that
have seen swift harmonisation, and
the next stage will see the establish-
ment of a single corporate entity with
common branding.
In July 2001, a Hutchison joint
venture acquired three additional cel-
lular licences for the high-tech states
of Karnataka and Andhra Pradesh and
also the fourth metro city of Chennai,
with a strong exposure to the South.
Hutchison affiliates now enjoy a foot-
print of 23% of the national popula-
tion, which in turn has 50% of the
purchasing power. “The Group has
an exquisitely focused and premium
footprint,” Ghosh enthuses.
The Group’s phenomenal devel-
opment in India also owes much to a
workforce that has set new standards
in innovation and dedication. A pal-
pable sense of verve runs through the
ranks at Hutchison Max Telecom’s
Mumbai headquarters, where the
strategy has been to recruit and retain
the brightest minds. Their inspired
creativity drives the progress of the
businesses, and Ghosh is fulsome in
his praise of the employees.
“This is a company with a
tremendously motivated group of
people. The esprit de corps and
work ethic are simply remarkable.
Throughout the Group, we have
one of the country’s best workforces
and we have a tremendous restless-
ness to learn further,” says Ghosh.
“The goal is to be a leading player,
not just in India, but to do things
that are leading edge by any interna-
tional standards. We shall definitely
persevere.”
Across the social spectrum, everyone’s talking.
Hutchison’s ability
to forge strong
alliances with like-
minded Indian
partners has been
a key aspect of its
success.
RAJESH MISTRY; STOCK IMAGES