Hathway Cable & Datacom is to demerge its broadband division into a wholly-owned sub-division, Hathway Broadband Pvt Ltd. The plan now needs shareholder approval as well as formal agreement with India’s securities and exchange supervising boards and regulators.
The scheme is designed to maximise shareholder value and permits Hathway to focus the new business on attacking the market’s growth potential. Current broadband penetration throughout India is barely 8 per cent of the population.
HathwayBroadband says it wants to support India’s Prime Minister Modi in his Digital India Initiative.
Hathway Cable & Datacom MD & CEO Jagdish Kumar said, “We are uniquely placed to leverage our leading position in the cable television industry and our brand to provide Indian subscribers with a world class broadband experience. This restructuring recognises that the market dynamics of the broadband business are unique as compared to our parent cable television business. The separation is a step towards increasing the broadband business’ customer focus and market competitiveness and in delivering a superior value proposition to our subscribers.”