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On the eve of the 10th anniversary of the communications company she founded, Ms Niira Radia has decided to close down Vaishnavi Corporate Communications Pvt Ltd.
Ms Radia shot into prominence after some of her telephone conversations with various persons, including Mr Ratan Tata, Chairman of the Tata group, were taped and leaked in the media, after the 2G spectrum scam broke out. The Central Bureau of Investigation searched the premises of Vaishnavi in December 2010 and Ms Radia's residence.
On health grounds
In a statement, Ms Radia, Chairperson of the Vaishnavi group, said: “To give precedence to my personal priorities of family and health, I have decided against renewing any client mandates and to exit the business of communications consulting. It is a painful decision and has been taken after much consideration and consultation with my family, doctor, clients and colleagues.”
Sources say that Vaishnavi has about 250 employees on its rolls and it is believed that a number of them will be absorbed in the Tata group companies and Reliance Industries, and some may join Rediffusion, which has now got the Tata group's PR mandate.
e-mail to staff
In an e-mail, she is believed to have told her staff that the experience of the past year had taken a toll on her health and family and she had decided not to renew any client mandates. The Tata group, which was among Vaishnavi's earliest and largest clients, said it had appointed Rediffusion headed by Mr Arun Nanda, to manage the group's public relations and public affairs from November 1. “This follows the expiry of the contract with Vaishnavi Corporate Communications on October 31, 2011,” the statement added.
Vaishnavi came into being on November 1, 2001 with the Tata group as its single biggest client. Later, it floated a subsidiary to look at non-Tata group clients. Subsequently, in 2008, Vaishnavi set up another subsidiary Neucom Consulting to handle the public relations for Reliance Industries. It also set up a consultancy under the name of Noesis Consultants with a number of retired bureaucrats, including Mr Pradip Baijal, former Chairman of the Telecom Regulatory Authority of India.
For the year ended March 2010, Vaishnavi had reported an income of Rs 55.65 crore and a profit after tax of Rs 6.08 crore, down from Rs 56.79 crore and Rs 8.30 crore the previous year.
According to informed sources, Vaishnavi's billing for the Tata group accounted for more than Rs 15 crore a year.
Key clients
In a statement, Mr Ratan Tata, said the group respected Ms Radia's personal wishes in not renewing any client mandate.A Reliance group spokesperson in a statement said: “We regret the decision of Ms Niira Radia to discontinue her association with the business of communications consultancy and not renew any of her client mandates.”
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