NEW DELHI: Unitech will exit the telecom business and focus on its core business of real estate, Ajay Chandra, managing director of Unitech, said. Admitting that the decision to enter the business was a mistake, Chandra, said, "Telecom is not our core competency.
Our competence is real estate and we will stick to real estate." He added that the company will not bid for new telecom licences when they are given out later this year.
In the last two years, since the 2G scam broke out, the company's core business had taken a beating and dropping sales of homes and offices around the country haven't helped matters. Things are now starting to look up for the company, which is focusing on executing its projects and reducing debt.
NEW BEGINNING
In the last two years, since the 2G scam broke out, the company's core realty biz had taken a beating.
Unitech had invested $150 m in Uninor and will have to book losses if this investment is wiped off.
Unitech had decided to enter the telecom services sector in 2007 and had applied for licences for the whole country. In 2009, after it had secured the licences, Telenor bought stake in Unitech Wireless for Rs 6,100 crore and subsequently invested another Rs 8,000 crore in the business.
The two companies got into a dispute after the cancellation of 122 mobile licences by the Supreme Court. After this verdict by the court, the Norwegian company sought compensation from the Indian firm for damages caused to its mobile venture.
Unitech later moved the Company Law Board seeking approval to settle the ownership dispute through arbitration. Last week, the I-T department attached the shares of three companies through which Unitech Ltd holds about 33% stake in the JV with Telenor saying these companies had outstanding income tax dues of around Rs 701 crore......Courtsey ...ET News
Our competence is real estate and we will stick to real estate." He added that the company will not bid for new telecom licences when they are given out later this year.
In the last two years, since the 2G scam broke out, the company's core business had taken a beating and dropping sales of homes and offices around the country haven't helped matters. Things are now starting to look up for the company, which is focusing on executing its projects and reducing debt.
NEW BEGINNING
In the last two years, since the 2G scam broke out, the company's core realty biz had taken a beating.
Unitech had invested $150 m in Uninor and will have to book losses if this investment is wiped off.
Unitech had decided to enter the telecom services sector in 2007 and had applied for licences for the whole country. In 2009, after it had secured the licences, Telenor bought stake in Unitech Wireless for Rs 6,100 crore and subsequently invested another Rs 8,000 crore in the business.
The two companies got into a dispute after the cancellation of 122 mobile licences by the Supreme Court. After this verdict by the court, the Norwegian company sought compensation from the Indian firm for damages caused to its mobile venture.
Unitech later moved the Company Law Board seeking approval to settle the ownership dispute through arbitration. Last week, the I-T department attached the shares of three companies through which Unitech Ltd holds about 33% stake in the JV with Telenor saying these companies had outstanding income tax dues of around Rs 701 crore......Courtsey ...ET News
