No Way Back? As Hutchison and Essar slug it out for BPL's Mumbai circle, the already troubled joint venture hits rock bottom.
Business Today, August, 2006 by Krishna Gopalan
After countless rounds of sparring with the Ruias of Essar, his partner in a cellular telephony joint venture in India, Hong Kong billionaire Li Ka-Shing, Chairman of Hutchison Whampoa, decides enough is enough. Despite holding almost 67 per cent in his Indian JV Hutchison Essar Ltd (hel, 47.45 per cent of it directly), which contributes all of 42 per cent to his global telecom operations, he realises that he cannot see eye to eye with the Ruias. The head of the HK conglomerate has few options to fall back on. The best choice: Cut his losses (just figuratively; HEL boasts one of the highest gross margins amongst Indian cellular companies), and exit the Indian JV when the going isn't that bad (it's steadily getting worse). The Ruias, who were distinctly minority partners with 33 per...
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