The Foreign Investment Promotion Board notified on Friday the change of name in the mobile joint venture Hutch Essar to Vodafone Essar following the change in ownership.
Earlier, Registrar of Companies had approved the change of name of cellular major Hutch Essar to Vodafone Essar following the British mobile major's acquisition of controlling stake in the joint venture in May.
Vodafone Essar sources said the approval was granted to the company's application seeking the change of name due to the change in ownership. The approval from the RoC is given circle-wise.
The FIPB also notified the foreign investment limit both direct and indirect in Vodafone Essar to 74 per cent.
The FIPB notification marks the first formal step for
Vodafone's entry into the Indian market. The company has already appointed a new board chaired by Ravi Ruia, vice-chairman of Essar Group and Arun Sarin, CEO, Vodafone Plc as the vice-chairman of the Indian mobile venture.
Vodafone is now expected to phase out the Hutch brand over the next few months. The company has already started using the Vodafone Essar Ltd name in all its official communication with the telecom regulator and the government authorities.
FIPB had deferred approval three times following charges that Hong Kong telecom company Hutchison Telecom had breached regulations that cap foreign direct investment in telecom companies at 74 per cent. Hutchison agreed to sell its 67 per cent stake in the Indian JV to Vodafone in February for $10.9 billion.
