Mobile Communications

Originally, Nambiar was the majority holder in BPL Mobile Communications, with a stake of 61.43%, while the rest was held by Chandrasekhar. But in 2002, amidst a host of allegations, murky strategic manouevers, Rajeev somehow managed to become the majority shareholder. In July 2005, Rajeev sold his entire stake in BPL Communication to Essar for Rs.15 billion, leaving behind a dumbstruck Nambiar, who only got a meager (if you can call it that) Rs.1.25 billion for his stake of 13%. Ironically, the man who started the first telecom empire in India can only blame himself (and perhaps his misplaced emotional trust) for the imbroglio. While the Nambiar’s were fighting the court room battles for their telecom business, their core business of consumer electronics was confronting the battle of strong competition from all possible directions.

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Source:- IIPM-Business and Economy, Editor:- Prof. Arindam Chaudhuri - 2006