Mumbai: The Indian-born CEO of telecommunications giant, Arun Sarin, will retire at the end of July as CEO of Europe's largest telecom firm Vodafone Group Plc, which posted a 2-per cent rise in pre-tax profit at £8.9 billion.

53-year old Sarin will will hand over charge in July to his second in command, Vittorio Colao, who runs the company's European operations and was pipped to the top post by Sarin in 2003.

"I feel that I have accomplished what I set out to achieve, particularly in developing and implementing a new strategy," said Sarin in a statement.

Under Sarin's reign, Vodafone moved back into the black by moving into developing markets such as India and Turkey, and moving out of slower-growing markets such as Japan. Incumbent Colao will face heightened competition from competitors in these emerging markets, from well entrenched players such as Singapore Telecommunications Ltd. and Bharti Airtel Ltd. Analysts say the entry into emerging markets was better late than never.

India and Turkey are two of the fastest-growing telecom markets in the world's top-20 mobile-phone markets list. Under Sarin, Vodafone's shares have buoyed 39 per cent since he took over the reigns in 2003.

Vodafone outperformed the benchmark since February 2007, when Sarin entered India with the $10.7-billion acquisition of Hutchison's telecommunications stake in Hutchison Essar, India's fourth largest telcom firm, to form Vodafone Essar Ltd., which was also his biggest acquisition.

The company's revenue in India jumped by 50 per cent, making up for sluggish performance in Europe, its revenues declined 15.8 per cent under pressure from competitors and regulators.

Prior to the acquiring Hutchison's stake in Essar, Sarin had paid $4.55 billion for Turkey's Telsim Mobil Telekomunikasyon Hizmetleri AS in 2006,  and faced a shareholder against his continuation as CEO.

Sarin's resignation comes after the successful turn-around of Vodafone back into the black, after having posted one of the largest corporate losses in history, and almost being ousted in boardroom revolt by institutional investors who voted against his re-election, saying he was too quick to spend millions on foreign acquisitions.

Sarin trumped his critics at Vodafone's growing profitability.

Commentators say that after turning Vodafone into among the world's largest telecom business, Sarin might now take a role at a large buyout firm, or accept board seats at large international companies.

Commentators say it is no surprise that he would like to exit, having vindicated his stand, while he is on top.