With the Dhoots get set to take complete control of the telecom service provider Datacom Solutions Pvt Ltd, the name of the company will change to Videocon Telecommunications Ltd (VTL). HFCL group chairman Mahendra Nahata, who is the original promoter of the company and owns 36 per cent equity, is on his way out. R.N. Dhoot and P.N. Dhoot, two brothers of Videocon group chairman and managing director V.N. Dhoot, are now at the helm of affairs.
“Yes, we are changing name of the company to VTL,” said V.N. Dhoot. He refused to divulge details.
Nahata declined to comment.
The company is set to roll out its services from Mumbai from next month and has signed a roaming agreement with the Essar Group promoted Loop Telecom Ltd. In March, the company is expected top launch services in three circles including Tamil Nadu and Punjab, sources close to the company said.
The services will be launched under the ‘Videocon’ brand.
VTL acquired licence for operating telecom services through India in January 2008 along with four new operators. While MTS and Uninor have launched their services, Datacom couldn’t start operations as the two promoters fought over corporate governance issues in public.
With all issues now settled, Nahata will get close to Rs 1,400 crore to exit the business, sources said.
As the other new entrants got foreign partners, the company could not move forward despite taking lead in terms of creating a good team and being way ahead of its competitors.
When the fight between the two partners was at its peak, its high profile CEO Ravi Sharma left abruptly in October 2008. A large number of other senior officials followed.
As the Dhoots took management control, R.N. Dhoot has become the managing director of the company, and P.N. Dhoot looks after sales, marketing and distribution of services.