Airtel

Company Analysis

Vision

By 2015 Airtel aims at being the most admired brand in India:

• Loved by more customers

• Targeted by top talent

• Benchmarked by more businesses

•We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more.

Introduction• Founded : 7 July 1995

• Founder : Sunil Bharti Mittal

• Industry : Telecommunications

• Headquarters : New Delhi, India

• Area served : South Asian & African countries and the Channel Islands

• Key people : Sunil Mittal(Chairman) and (MD)Sanjay Kapoor(CEO)

Overview• Bharti Tele-Ventures LTD (BTVL)- An Indian company

offering telecommunication services in 19 countries.

• Largest Cellular provider in India.

•World's third largest, single-country mobile operator and fifth largest telecom operator in the world, with 180 million subscribers all over the world.

• First Indian telecom service provider to achieve Cisco Gold Certification.

• Revenue: US $7.254 billion

•Operating Income: US $2.43 billion

•Net Income: US $1.662 billion

• Total Assets:US$11.853 billion

• Employees: 25,543

•Ownership Pattern:-Bharti Enterprises (63.56%)

- SingTel (32.04%)

-Vodafone (4.4%)

Business Model Innovation• First mobile phone company to outsource everything except

marketing and sales and finance.

•Network -Ericsson and Nokia Siemens.

• Business support – IBM.

• Transmission towers – Indus Towers Ltd.

History and Milestones1995-2000

•Mobile services under the brand name ‘Airtel’ launched for the first time in Delhi and Himachal Pradesh.

• British Telecom Plc (BT) acquired 21.05% stake in the Company.

• India’s largest private sector telecom operator post acquisitions of JT mobile and Skycell.

• Singapore Telecommunications (SingTel) acquired Telecom Italia’s stake in the Company.

2001-2005

• Company goes public on the Mumbai Stock Exchange and National Stock Exchange of India.

• India’s first private operator to offer basic telephone services in Haryana, Delhi, Tamil Nadu & Karnataka.

• Strategic partnerships with IBM and Ericsson for outsourcing of the Company’s core IT and network activities.

• Vodafone acquired 10% economic interest in the Company.

• India’s largest integrated private operator with Pan India footprint in mobile services

2006-2010

• Launched mobile services in Sri Lanka and crossed 1 million customers mark within six months of operations

• Received USD 1.275 billion funding in Bharti Infratel from leading institutional investors

• Launched DTH services, followed it with the launch of Triple Play services

• Crossed 100 million customers mark

• Launched the ‘Global Wholesale Service Portfolio’ with a reach to 50 countries across the continents of Europe, North America, Africa, Asia and Australia

• Started telecom operations in Bangladesh with the acquisition of 70% stake in Warid Telecom, Bangladesh

• Entered into definitive agreements with the Zain Group to acquire Zain Africa B.V.

• Launched digital media & teleport businesses for media customers

Business Units•Mobile.

• Telemedia.

•Digital TV

•DTH

Financial Analysis:

Balance Sheet

Sales Turnover

Net Profit After Tax

Net Profit Margin

Earnings per Share

Current Ratio

Debt Equity Ratio

Policies and Strategies

Workplace conduct:

• Personal conduct.

• Employee relations.

• Fair employment practice.

• Harassment free workplace.

Dealing with outside parties:-• Customers and fair competition.

• Conflicts of interest.

• Gifts and entertainment.

• Improper payments.

• Working with government and regulators.

• Working with business associates.

• Ethical advertising.

Protecting company assets

• Fraud.

• Confidential information / intellectual property.

• Insider trading.

• Finance and accounting practices.

Community responsibility•Health and safety.

• Protecting environment.

• Corporate social responsibilities.

• Political activities.

Mergers & Acquisitions• Airtel - Zain Deal

• Airtel - Warid Telecom Deal

• Airtel -Telecom Seychelles Deal

• Airtel - Singtel Deal

Airtel – Zain

• Secured Zain Telecom Operations in 15 African Countries.

• Consideration: USD 10.7 billion

•Mode of payment : Cash 9 billion, ZAF Debt 1.7 billion

•Mode of acquisition : Security (Share) Sale

Funding• Standard Chartered : $1.3 billion

• Barclays : $900 million

• State Bank of India : $1.5 billion

• BNP Paribas, Bank of America, Credit Agricole CIB, DBS, HSBC, Bank of Tokyo Mitsubishi UFJ, and SMBC : $4.8 billion

•No. of Subscribers : 42 million

Zain Africa Operations

Rationale for Acquisition•Geographical Diversification

• Favorable Demographics

• Spending Power

•Huge Potential

• Technological Partnerso IBMo Tech Mahindrao Spanco

Airtel-Bangladesh • Airtel – Warid Telecom Deal

• Acquired 70% stake in Bangladesh

• Consideration : USD 300 million

• 2.9 million subscribers

• Penetration Rate : 32%

Sri Lanka - Seychelles• Sri Lanka- In December 2008, Bharti Airtel rolled out third generation services in

Sri Lanka in association with Singtel.

- 1.4 million subscribers

-Market share – 22%

•Seychelles:-Acquired 100% stake in Telecom Seychelles for $62 million

-Market share – 57%

Airtel 3G • Acquired licenses for 13 circles across India.

• Consideration : Rs.12,295 crores.

•Delhi, Mumbai, Andhra Pradesh, Karnataka, Tamil Nadu, Uttar Pradesh (West), Rajasthan, West Bengal, Himachal Pradesh, Bihar, Assam, North East, Jammu & Kashmir.

• To be launched in Dec 2010.

• Equipment Contract:- Ericsson: 7 circles

-Nokia Siemens Networks: 3 circles

-Huawei: 3 circles

• Raised Rs.8500 crores from a consortium of financial institutions including SBI and HDFC.

•Will be paying the remaining amount from its cash reserves.

Airtel DTH• Subscribers: 33 lacs.

• Total DTH subscribers in India: 2.5 crores.

•Market Share: 13%.

• Fastest growing DTH operator in India.

CSR•Opened 236 schools across India(Satya Bharti School

Program)

• Encouraging entrepreneurship among young individuals.

• ACT – A Caring Touch(Contribute towards causes of other NGOs like CRY, Helpage India, SOS Children’s Villages of India, Cancer Aid and Research Foundation)

•Disaster Relief(contributed Rs 10 mn each for helping in flood relief for Chief Ministers Relief Funds for Andhra Pradesh &Karnataka states).

Bibliography• http://www.airtel.in

• http://en.wikipedia.org/wiki/Bharti_Airtel

• http://sify.com/news/ibm-tech-mahindra-spanco-get-bharti-africa-work-news-others-kkzxkjfbheg.html

• http://www.moneycontrol.com/financials/bhartiairtel/balance-sheet/BA08

• http://www.moneycontrol.com/company-facts/bhartiairtel/history/BA08

• BY:

• 151: Hitesh Thakkar

• 152: Tejal Thakkar

• 153: Varun Thakkar

• 154: Priya Tharwani

• 155: Madan Thorat