Vodafone Idea to deliver merger synergy benefits of Rs 14000 crore by FY21

MUMBAI: Vodafone Idea said its merger integration is moving ahead of plan and the telco will be able to unlock the synergies worth ₹14,000 crore by FY21 rather than earlier estimated FY23.

“Original synergy target brought forward by two years — ₹14,000 crore of run-rate costs and capex synergies (₹8,400-crore opex and ₹5,600-crore capex) on an annual basis by the second full year post completion,” stated an investor presentation by the largest telco on Wednesday.

Balesh Sharma, chief executive officer of Vodafone Idea, told analysts that the operator had completed vendor selection, circle and zone selection, product harmonisation and has its organisation structure in place.

Sharma in his presentation added that going ahead the telco will prioritise on exits of sites that have low utilisation, speed up real estate rationalisation, fast track managed services RFP and bring in store rationalisation.

The telco said it will simplify its tariff plans, concentrate on 4G and network expansion amongst other steps as growth drivers. The telco is in stiff competition with Bharti Airtel and Reliance Jio.