Syed Safawi quits as CEO of Viom Networks

NEW DELHI: Syed Safawi, chief executive officer of Viom Networks, has put in his papers and would be moving on from his role by June end, two people aware of the development said.

In a letter? to the Board and an open communication to the employees, Safawi is learnt to have shared Viom’s progress in the last four years and its present situation of sustainable profitability.

When asked, Safawi confirmed his move out to ET, and said that his move would be timely as the deal between Viom Networks and American Towers Corporation (ATC) was completed.

He did not comment on where he would be joining next.

Last month, the Cabinet Committee on Economic Affairs (CCEA) approved ATC's acquisition of a 51% stake in Viom for over Rs 7600 crore, resulting in one of the largest tower deals in the industry.

Safawi, an industry veteran with close to three decades of industry experience with leadership stints at Reliance Communication Ltd., Bharti Airtel Ltd. and Coca-Cola, was brought in as CEO in 2012, by the company’s Board to turn around and unlock value at a time when the company had hit a rough patch.

After 122 telecom licences were cancelled by the Supreme Court in 2012, several of Viom's clients were hit and 20% of the company’s revenues were wiped out. It ended up accumulating debt of Rs 8,000 crore to build towers that were no longer needed. When Safawi leaves, the company would have clocked a profit of over Rs 525 crore in FY15-16 compared to a net loss of over Rs 325 crore four years ago.

ATC has acquired a majority stake in Viom through its Singapore arm, ATC Asia Pacific Pte Ltd, after announcing plans to buy a 51% stake in Viom last October.

Viom was a joint venture between Tata Teleservices (54%) and Srei (18.5%), while the balance shares are held by a clutch of private equity firms. Post the ATC deal, Srei has exited the Viom while Tata Tele’s stake has fallen to 34%.