Aircel Founder Reflects on India’s Business Climate Changes

During a recent podcast, Chinnakannan Sivasankaran, the founder of Aircel, shared his insights on the significant changes in India’s business environment over the past decade. 

He reflected on the pressures faced by entrepreneurs in the past and how the landscape has evolved to become more favorable for business operations Today.

Aircel Business Pressures a Decade Ago:

Sivasankaran highlighted the substantial pressures businesses faced in India a decade ago, noting that success often came with challenges. He remarked, “Politicians intervened, and I lost my company.” 

Reflecting on his own experience, he mentioned that despite making a sum of ₹3,400 crore from the Aircel deal, he felt shortchanged compared to a potential deal with AT&T that could have fetched him $8 billion.

Evolution of India’s Business Environment:

Contrasting the past with the present, Sivasankaran emphasized that Today’s India offers a more liberalized and supportive environment for entrepreneurs. He stated, “Today, no one can pressurize you. 

Back then, the entrepreneur had to face pressure to sell the company to a particular person.” This shift signifies a considerable improvement in the business climate, where entrepreneurs now have more freedom and less political interference.

The Aircel-Maxis Deal:

Aircel exited the market in February 2018 due to financial difficulties. In 2006, Maxis Berhad acquired a 74% stake in Aircel. However, the Aircel-Maxis deal was scrutinized in 2011 when Sivasankaran alleged that he was pressured to sell his stake to Maxis Berhad. 

Reflecting on the situation, he said, “My complaint is not that they forced me to sell; my complaint is that they should have allowed me to sell to those who offered me 8 billion.”

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