Synopsis: Aircel's journey in India was filled with challenges, including fierce competition and regulatory issues, leading to its market exit in February 2018 due to financial troubles. Founder Chinnakannan Sivasankaran highlighted how the business climate in India has changed over the past decade, noting political pressures and forced sales that marred earlier entrepreneurial efforts.
Aircel's journey in India was marked by numerous challenges, including intense competition and regulatory obstacles.
The company exited the market in February 2018 due to financial difficulties.
Aircel founder Chinnakannan Sivasankaran remarked that today's India is vastly different from a decade ago when businesses faced considerable pressures, causing many to either comply or collapse.
In a podcast hosted by Raj Shamani, Sivasankaran stated, "Politicians intervened, and I lost my company."
In 2006, Maxis Berhad, owned by Ananda Krishnan, a Malaysian citizen of Sri Lankan Tamil descent, acquired a 74% stake in Aircel.
The Aircel-Maxis deal came under scrutiny in 2011 when Sivasankaran claimed he was coerced into selling his stake to Maxis.
"I only made a modest sum of Rs 3,400 crore from the deal. If I had sold to AT&T, I would have gotten 8 billion," he said.
When asked about the compulsion behind the sale, Sivasankaran explained that the India of today is not the same as it was back then.
"Today, no one can pressure you," he noted, adding that entrepreneurs previously faced pressure to sell their companies to specific individuals.
Sivasankaran said that Krishnan struggled to manage Aircel, ultimately losing close to $45 billion and causing significant losses to several lenders.
"Now, you can build a business without pressure. My complaint isn't that I was forced to sell, but that I wasn't allowed to sell to the highest bidder," he emphasized.
Sivasankaran's entrepreneurial journey began in 1985 when he acquired Sterling Computers from Robert Amritraj, father of tennis star Vijay Amritraj, and launched affordable PCs priced at Rs 33,000, compared to competitors' machines that cost up to Rs 80,000.
This venture propelled Sterling to become one of the top three computer companies in India.
By 1997, he attempted to buy into Sunil Mittal's Bharti Telecom, acquiring over 10 percent of the company, but his request for a board seat was denied, leading him to sell his shares to Mittal at a loss.
He even made a bold offer to purchase Enron India's troubled energy business for one rupee.
In conclusion, Sivasankaran's story illustrates the tumultuous landscape of Indian entrepreneurship over the past few decades.
From pioneering affordable computing to navigating high-stakes telecom ventures, his experiences reflect both the challenges and evolution of the Indian business environment.
Despite facing significant pressures and setbacks, Sivasankaran's journey underscores the resilience and adaptability required to succeed.
His reflections on the past and present underscore a more liberalized and supportive environment for entrepreneurs in today's India, offering a stark contrast to the obstacles he once faced.
Related Questions
1. What were some of the challenges faced by Aircel during its journey in India?
Aircel faced numerous challenges, including intense competition and regulatory obstacles.
2. When did Aircel exit the Indian market, and what was the reason?
Aircel exited the market in February 2018 due to financial difficulties.
3. What did Aircel founder Chinnakannan Sivasankaran remark about today's India compared to a decade ago?
He remarked that today's India is vastly different, with businesses facing less pressure compared to a decade ago.
4. What were some of the key points made by Aircel founder Chinnakannan Sivasankaran about his experiences?
Sivasankaran discussed the challenges he faced, including the Aircel-Maxis deal and his entrepreneurial journey, from affordable computing to high-stakes telecom ventures.
5. What does Chinnakannan Sivasankaran's story illustrate about the landscape of Indian entrepreneurship?
His story reflects the challenges and evolution of Indian entrepreneurship, showcasing resilience and adaptability.
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