Sunshine Holdings expands into telecom industry

Diversified conglomerate Sunshine Holdings Ltd further expanded its business portfolio by entering the telecommunication industry, with the recent acquisition of a 10% stake in VSNL Lanka Ltd (VLL), a fully owned subsidiary of Videsh Sanchar Nigam Ltd (VSNL) India, the fourth largest long distance telecommunication provider.

The investment in the telecommunications industry is yet another pioneering initiative for the Sunshine group with plans underway to acquire a further 5% of VLL. This will help to add value to its shareholders as well as to balance and further strengthen the growing investment portfolio, the company said.

VSNL Lanka was a fully owned subsidiary of Videsh Sanchar Nigam Ltd before the Indian group was brought under the administrative control of the TATA Group. Speaking on the acquisition, V. Govindasamy, Group Managing Director of Sunshine Holdings Limited said, “Due to our relationship with the TATA Group, I was appointed to the board of VLL and we started to work together. There was an understanding that the Sunshine Holdings Group will have a stake in the VSNL company.

It is in that spirit that VSNL has now offered us this opportunity to enter into the telecommunication business.”