70801874-Idea-Cellular-2011

Merchand-I

Idea CellularCompany Deck 2011

Founded in 1995 as Birla Communications Limited by Aditya Birla Group and obtained licenses

for Gujarat and Maharashtra circles Changed name to Birla AT&T Communications Limited following joint venture between Grasim

Industries and AT&T Corporation Merged with Tata Cellular Limited in 2001, thereby acquiring original license for the Andhra

Pradesh Circle and was renamed to Birla-Tata-AT&T (Batata) Changed name to Idea Cellular Limited and launched "Idea" brand name in 2002 In 2005 AT&T and Tata pulled their stakes leaving Aditya Birla Group as the sole promoter By 2009 Idea is operating in all 22 telecom circles in India Headquartered in Mumbai and India’s  3rd largest mobile services operator in India with wireless

revenue market share at 13.9 % and a subscriber base of over 98 million as of August 2011 No. of employees: 6,481 CEO - Mr. Kumar Mangalam Birla Dominant stake/share holders - Aditya Birla Nuvo Ltd., Birla TMT Holdings Pvt. Ltd., Hindalco

Industries Ltd., Grasim Industries Ltd. Idea won 3G Spectrum in 11 service areas in India.

Company Overview

Vision: To be the most customer-focused mobile service brand, continuously innovating to help liberate our customers from the shackles of time & space

Mission:

Vision/Mission/Culture

Integrity - Honesty in every action Commitment - deliver on the promise Passion - energized action Seamlessness - boundryless in letter and

spirit Speed - one step ahead always

Values

Mr. Kumar Mangalam Birla - Chairman Mr. Himanshu Kapania- Managing Director Mr. Akshaya Moondra - Chief Financial Officer Mr. Anil K. Tandan - Chief Technology Officer Mr. Prakash K. Paranjape - Chief Information Officer Mr. Pradeep Shrivastava - Chief Marketing Officer Mr. Navanit Narayan - Chief Service Delivery Officer Mr. Vinay K. Razdan - Chief Human Resource Officer Mr. Rajat K. Mukarji - Chief Corporate Affairs Officer Mr. Rajesh K. Srivastava - Chief Materials & Procurement

Officer Mr. Ambrish Jain, Director - Operations Mr. Himanshu Kapania, Director – Operations

Management Team

Company Overview

Idea Cellular Limited (“Idea”) is a leading mobile services operator in India, with ~ 98 mn subscribers as on august 2011. Idea has a subscriber market share of 19.5% in its 8 established service areas, and 14.5% in its 13 operating service areas. After inclusion of Spice Communications, Brand !dea has 43.02 mn subscribers, corresponding to a 11.0% national market share.

Promoter Group

Idea is part of the Aditya Birla Group, India's first truly multinational group. The Group has businesses in sectors ranging from metals, garments, cement, fertilisers, life insurance and financial services among others. Over 50% of the Group’s revenues are derived from overseas operations. The group operates in 25 countries, and is anchored by an extraordinary force of over 125,000 employees belonging to 25 nationalities. The current Group holding of 46% in Idea is made up of:

Aditya Birla Nuvo Ltd. 25.3% Birla TMT Holdings Pvt. Ltd 8.6% Hindalco Industries Ltd. 6.9% Grasim Industries Ltd. 5.2% Total 46%

Business Overview

Corporate Structure

ICISL – tower company owning towers in Bihar and Orissa service area.

ICSL – provides manpower services to operating entities i.e. Idea & ABTL.

SSSL – holds MSC real estate in the Delhi service area. Spsice – provides GSM based mobile services in Punjab

and Karnataka service areas. ABTL – provides GSM based mobile services in Bihar

service area, and has 16% shareholding in Indus. ICTIL – holds towers de-merged from Idea, which will

subsequently merge in Indus. Indus – a joint venture between Bharti Infratel, Vodafone

Essar and Idea (through ABTL), to provide passive infrastructure services in 15 service areas.

Contd…

The main communication medium is Television. Billboards and hoardings come as a secondary medium of communication. Also uses radio for communication price plans and other strategic customer information to reach masses.

Strategic communication partners Idea strengthened its brand through a series of media properties with associations with Kaun

Banega Crorepati, Koffee With Karan, Mission Army and Grammy Awards on VH1, in addition to existing marquee properties like Idea. Filmfare Awards, Idea Present Citizens Journalist and other regional media properties. The brand continued its association with the Delhi Daredevils team in IPL4

Idea launched a unique National Inter School Skill fest called “Kaho Whats Your Idea” in association with renowned Quizmaster Derek O Brien. The program was very well received as it became one of the largest National School Connect Programs in the country touching 2.5 Lakh students across 3000 schools in 100 cities Idea International Indian Film Academy Awards

Television Programms Idea Rocks India Idea Star Singer Idea Andhra Idol

Marketing Campaign

Airtel Vodafone Reliance BSNL MTNL Tata Communications Spice Telecom Aircel MTS Virgin Mobile

Competitors

Share Holding Pattern◦ Promoters and Group – 46%◦ Foreign Holding – 42.9%◦ Public Share Holding – 11.1%

Subsidiaries:◦ 16% stake in Indus Towers, a joint venture with other telecom majors

Bharti Airtel and Vodafone◦ Idea Cellular Services Limited, provides manpower services to the

Company.◦ Idea Cellular Infrastructure Services Limited, is a tower company owning

towers in Bihar and Orissa◦ Idea Cellular Towers Infrastructure Limited (ICTIL), holds towers de-

merged from the Company◦ Idea Mobile Commerce Services Limited (Formerly Carlos Towers

Limited), is engaged in the business of Mobile Banking◦ Swinder Singh Satara and Company Limited, is engaged in the trading of

Data Cards, mobile handsets and Fixed Wireless Phones.

Subsidiaries/Parent Company

Last Quarter Ended 30th June 2011 (unauditied) Total Revenue of Rs. 44841 mn as against Rs.36296.1mn

in Q4FY10, up 23% in consecutive quarter PBT of Rs. 2146.7 mn as against Rs. 2062 mn in Q1FY10,

up by 4% PAT of Rs. 1497.3 mn as against Rs. 2016.4 mn in

Q1FY10, down by 25% YoY  Last Annual Financial Statement for FY 2010-2011 Total Revenue of Rs.155302 mn as against Rs. 124990

mn in FY10 PAT is Rs.8987 mn as against Rs.9539 mn in FY10 Earnings per share Rs. 2.56

Financials

Stock Market Details & Financial Ratios

Aditya Birla Centre for Community Initiatives and Rural Development

 CSR Areas  1. Education

2. Rural Development 

HR Practices/CSR Initiatives

 CSR activities in briefCorporate Social ResponsibilityThe Company is a responsible corporate citizen, and strives to give back to the community it operates in. The Corporate Social initiatives, which the Company has identified and implemented are as under:

  IIM Ahmedabad – Idea Telecom Centre of Excellence

Centre of Excellence focuses on the areas of telecom policies, governance, regulation and management, especially marketing and customer care.

  Pocket PCO project

Company has taken an initiative for designing and implementing a “Pocket PCO” program in India. Idea Pocket PCO is easy to use mobile phone that comes with a special Idea SIM having PCO software embedded in it.

  Promoting ‘Save Paper’ idea through ‘What an Idea, Sirji campaign’

Contd…

2010◦ Idea crossed usage of ‘One Billion’ Minutes per day on the network, propelling it amongst the

Top 10 country operators in the world◦ Company has been ranked 1st in the Telecommunications sector and ranked 12th in the

country under India’s Best Companies to Work for – 2011 Study conducted by Great Place to Work® Institute, India, in partnership with The Economic Times

◦ Brand !dea has been ranked the 4th Buzziest Brand by Agencyfaqs for second consecutive year

◦ The ‘Use Mobile Save Paper’ campaign was one of the most awarded campaigns with over 7 awards in various media awards like the EMVIES 2010, EFFIES 2010, Digital Media Awards 10-11 and Yahoo big Chair Awards 10-11.

2009◦ Idea launches services in Tamil Nadu◦ Idea expanded services into Orissa

2008

◦ Subscriber base as on December 31, 2008: 40,016,153◦ Idea acquired 9 licences for Punjab, Karnataka, Tamil Nadu & Chennai, West Bengal, Orissa,

Kolkata, Assam, North East and Jammu & Kashmir◦ Acquired Spice Communications with the operating circles of Punjab and Karnataka◦ Launched services in Mumbai metro in the largest single metro city launch, ever◦ Launched services in Bihar

Milestones, Awards/Recognitions

2007◦ Subscriber base as on December 31, 2007: 21,054,027◦ Won an award for the "CARE" service in the "Best Billing or Customer Care Solution" at the

GSM Association Awards in Barcelona, Spain◦ Initial Public Offering aggregating to Rs. 28,187 million and Listing of Equity Shares on the

Bombay Stock Exchange and the National Stock Exchange◦ Merger of seven subsidiaries with Idea Cellular Limited◦ Reached the twenty million subscriber mark

2006

◦ Subscriber base as on December 31, 2006: 12,442,450◦ Became part of the Aditya Birla Group subsequent to the TATA Group transferring its entire

shareholding in the Company to the Aditya Birla Group◦ Acquired Escorts Telecommunications Limited (subsequently renamed as Idea

Telecommunications Limited)◦ Restructuring of debt◦ Launch of the New Circles◦ Reached the 10 million subscriber mark◦ Received Letter of Intent from the DoT for a new UAS License for the Mumbai Circle.◦ Received Letter of Intent from the DoT for a new UAS License for the Bihar Circle through

Aditya Birla Telecom Limited. ABNL, the parent of Aditya Birla Telecom Limited, pursuant to a letter dated November 22, 2006, agreed to transfer its entire shareholding in Aditya Birla Telecom Limited to the Company for the consideration of Rs. 100 million.

Contd…

2005◦ Subscriber base as on December 31, 2005: 6,473,962◦ Reached the five million subscriber mark◦ Turned Profit Positive ◦ Won an Award for the "Bill Flash" service at GSM Association Awards in Barcelona,

Spain◦ Sponsored the International Indian Film Academy Awards

  2004

◦ Completed debt restructuring for the then existing debt facilities and additional funding for the Delhi Circle.

◦ Acquired Escotel Mobile Communications Limited (subsequently renamed as Idea Mobile Communications Limited)

◦ Reached the four million subscriber mark◦ First operator in India to commercially launch EDGE services 2005

2003◦ Reached the two million subscriber mark

  2002

◦ Changed name to Idea Cellular Limited and launched "Idea" brand name◦ Commenced commercial operations in Delhi Circle◦ Reached the one million subscriber mark

Contd…

2001◦ Acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh

(including Chattisgarh) Circle◦ Changed name to Birla Tata AT&T Limited◦ Obtained license for providing GSM-based services in the Delhi Circle following the fourth

operator GSM license bidding process  2000

◦ Merged with Tata Cellular Limited, thereby acquiring original license for the Andhra Pradesh Circle

  1999

◦ Migrated to revenues share license fee regime under New Telecommunications Policy ("NTP")

  1997

◦ Commenced operations in the Gujarat and Maharashtra Circles  1996

◦ Changed name to Birla AT&T Communications Limited following joint venture between Grasim Industries and AT&T Corporation

  1995

◦ Incorporated as Birla Communications Limited◦ Obtained licenses for providing GSM-based services in the Gujarat and Maharashtra Circles

following the original GSM license bidding process

Contd…

To facilitate higher adoption of 3G services by customers and to provide better face-to-face service, 3G Experience Zones have been established at the Service Centers across various cities. The 3G Experience Zones are managed by trained Data Specialist equipped with TV, Netbook, 3G compatible handset, NetSetter and device simulators for demonstration and query handling.

The Company launched a unique Interactive Voice Response rural service called ‘Behtar Zindagi’ in 16 regional languages, which provides information on key requirements of the rural segment like mandi rates, livestock, weather information, agriculture etc.

Idea continued on its ‘What an Idea Sirji’ campaign and launched the much appreciated ‘Break the Language Barrier’ campaign. It was supported with a unique service of ‘Idea Language Helpline’ offering instant translations in 15 Indian languages.

New Initiatives

Desired Qualities Looks for young, innovative and dedicated people

Career