83. Skycell Communications

Skycell Communications, one of the two cellular operators in Chennai, which
is promoted by Crompton Greaves in collaboration with DSS Enterprises, Bell
South International, and Millicom International Cellular SA, needs to really get
over its equity change role, and concentrate on the business. It may be recalled
that CG had 40.5 percent stake in the total venture, while DSS Enterprises had a
10.5 percent stake, with Bell South and Milicom each possessing 24.5 percent
share in the total venture. CG sold its stake to Bharati Televentures Ltd (BTL),
for an estimated Rs 124 crore, and BTL virtually took control of the company.
But the rest 59.95 percent of the equity held by DSS, Bellsouth, and Millicom,
are apparently being discussed for sale. In the deliberations for the
change-over, although the company has looked to expanding its business through
increasing the number of base stations to over 85, it lost significant ground to
RPG Cellular in terms of subscriber base. The company is estimated to have
notched up 56,100 odd subscribers till March-end this year. And it has a 45
percent market share in the city.

Skycell is estimated to have done a total business of Rs 86 crore during the
year. Its focus was on quality and expansion. It got ISO 9001 certification and
invested close to Rs 125 crore. An additional Rs 60 crore had been put in by the
equity partners for the expansion program in future. It launched teleshops for
better customer interface and concentrated on doubling its retail prepaid
outlets.