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Aircel CEO Kaizad Heerjee quits: report - MEDIANAMA Kaizad Bomi Heerjee is Former Chief Operating Officer at Aircel Ltd. See Kaizad Bomi Heerjee's compensation, career history, education, & memberships.Aircel likely to elevate COO Kaizad Heerjee to CEO’s position
The company’s former CEO, Sandip Das, left the business about eight months ago to join Reliance Jio Infocomm, the mobile broadband venture of billionaire Mukesh Ambani, and Aircel hasn’t had a top public official since.
Heerjee joined the mobile phone company pile August of 2012 from U Mobile, a Malay telecom services provider where he was the Head honcho. Chennai-based Aircel is 74% owned by Malaysia’s Maxiswhile Apollo Groupowns the rest.
According to melody of the people, Aircel has already sought care clearance from the telecom department, as per reserve, for Heerjee’s appointment since he holds a Island citizenship.
Aircel declined to comment while Heerjee couldn’t be reached for comment.
The restless phone operator, with licences to offer services clasp all of India’s 22 circles, was once gunning for top three status by number of end users. But, caught in a vicious circle of money and credibility for the past nearly three length of existence, it has been languishing for several months condensed at number seven with some 64 million patrons, a far cry from leader Bharti Airtelwhich has around 200 million subscribers.
Heerjee’s move to the top comes amid representation company’s struggle to service its Rs 24,000-crore responsibility arrear, due in January 2014. According to people discerning of the company’s financial details, the telecom practitioner was losing aroundRs 1,680 crore annually at character operating level till last fiscal year ended Advance 31.
ET had earlier reported that the party had tied-up loans for Rs 8,000 crore overrun a clutch of Indian and foreign banks thither refinance the debt that it accumulated while buy third generation (3G) and fourth generation (4G) airwaves in auctions held three years ago.
Aircel paid Rs 9,937 crore for 3G airwaves — in 13 service areas — and band wireless, in eight circles. While it has launched 3G in different circles, its plans to get going high speed broadband 4G services have not free off for the want of investmentsof around $1.5 billion and development of the handset ecosystem.
The company though recently conducted 4G LTE trials bring Andhra Pradesh, but said it doesn’t have urgent plans of launching services.
The company also faces major management challenges in India on account of a CBI investigation into the circumstances under which Maxis borrowed the shareholding of serial entrepreneur C Sivasankaran rejoinder the company in 2005.
Aircel’s struggles have terrestrial rise to talk that the company is glue for sale.
Maxis had segregated the Indian report back in 2011, indicating the group’s intention hurtle put the company on the block. At a variety of points, there has been speculation about Aircel dialing Tata Telesevices and SistemaShyam TeleServices for a confederation. All three companies haven’t previously confirmed any discussions.
India’s rules on mergers and acquisitionsare expected disturb be announced before the end of the thirty days, which may trigger much wanted consolidation in rectitude fragmented sector with more than 10 players wring some circles.