Anil Ambani, chairman of Reliance Communications (RCom), won’t be paid even a single penny this year, as the company has incurred massive debts amounting to around $7 billion. Anil Ambani has voluntarily decided to not take anything in salary, keeping in view the company’s deteriorating financial health. The company is already facing the heat from its lenders. The decision taken by Anil Ambani to forgo his salary entirely is in line with the company promoters’ commitment to the Strategic Transformation Program that seeks to reduce the debt burden and bring the company back to profitability. It may be recalled that RCom was once the flagship of Anil Ambani’s business empire, but due to increased competition in the telecom sector, the company’s revenue has dipped and debts have risen substantially.
RCom recently got a major reprieve, when its lenders decided to give it time till end of this year to reduce its debt. RCom is currently pursuing two deals that will allow the company to reduce its debt by around Rs 25,000 crore ($3.9 billion). One of the deals involves the merger of its wireless division with rival Aircel whereas the second deal involves the sale of a stake in its mobile masts business. Both these deals are expected to be completed by September 2017.