1986 – Videsh Sanchar Nigam Limited (VSNL) was founded by Government of India.
2002 – Tata Communications acquires 25% stake in VSNL.
2004 –VSNL International was launched.
2008 – Majority stakes acquired by Tata Group. VSNL renamed as Tata Communications Limited (TCL).
2009 – TGN-Intra Asia cable system was completed by TCL and Tyco Telecommunications.
Introduction to the study, statement of problem and propositions
Tata acquiredVSNL in 2008. Indian subcontinent had a lot of domestic service providers and there was high level of competition between them. Tata already had presence in the domestic service provider space in the form of Tata Teleservices limited. Acquiring VSNL enabled Tata group to enter the international …show more content…
Everything from the market size to the market potential is in favor of Tata. Hence it was an easy decision to take for Tata group.
Acquisition
Tata Group paid Rs 1439 Crore in 2002 and acquired a 25% stake in VSNL. This was only for the telecom arm of VSNL. VSNL has extensive properties all over India which was not part of the bid. After VSNL acquired Teleglobe Canada and started laying the Intra-Asia cable system to boost its infrastructure and compete with the global service providers like AT&T, Verizon etc. In 2008 Tata Group acquired the majority stake in VSNL and renamed it as Tata Communications.
Tata communicationsperformancepost acquisition
Below graphs shows trends for the past 4 years using various financial parameters. This will help us to analyze the performance.
Operating