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In a recent podcast, Aircel founder Chinnakannan Sivasankaran revealed that political intervention led to the loss of his company, highlighting the challenges faced by entrepreneurs in India a decade ago. Sivasankaran pointed out that the business environment in India has significantly changed since then, providing more freedom to entrepreneurs today.
Sivasankaran shared that success was problematic during that time, stating, “Politicians intervened and I lost my company.” He explained that he was forced to sell Aircel under political pressure, leading to a less favorable deal. “I just made a paltry sum of ₹3,400 crore from the deal; if I would have sold it to AT&T, I would have got $8 billion,” he said. The Aircel-Maxis deal, in which Maxis Berhad acquired a 74% stake in Aircel in 2006, came under scrutiny in 2011 following Sivasankaran’s allegations of coercion.
Reflecting on the past, Sivasankaran commented, “Today’s India is very different. No one can pressure you now. Back then, entrepreneurs had to face pressure to sell their companies to specific buyers.” He emphasized the current liberalized business environment, noting that entrepreneurs now have the autonomy to choose their buyers without undue influence.
Aircel exited the market in February 2018 due to financial difficulties. Sivasankaran’s comments shed light on the struggles faced by Indian entrepreneurs in the past and underscore the improvements in the business climate today.
“Now you build a business, no one can pressure you. Now it is a liberalized India. My complaint is not that they forced me to sell; my complaint is they should have allowed me to sell to the highest bidder,” Sivasankaran concluded.
Sources By Agencies
