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Apr 13, 2015
A COMPREHENSIVE PROJECT REPORT ON COMPARISON STUDY WITH VODAFONE & RELIANCECOMMUNICATION SPECIFICATION ON TELECOM INDUSTRY
Submitted to GROW MORE FACULTY OF MANAGEMENT HIMATNAGAR IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In GUJARAT TECHNOLOGICAL UNIVERSITY Under The faculty Guidance Of Assi. Prof. Javed Jethara Submitted by Dabhi Ajit S. Enrollment No. : (107130592048) Patel Nagesh A. Enrollment No. : (107130592011) [Batch : 2010-12] MBA SEMESTER III/IV
Grow More Faculty of Management
Affiliated to Gujarat Technological University, Ahmadabad.1
PREFACEAccording to the rules of G.T.U and part of our syllabus, we are the M.B.A student have to take Comprehensive Project Report of any one industry in the year 2010-2012 and we have to write about the technical knowledge and how the Indian economy and also business running in present time. In M.B.A. we get lots knowledge by our theoretical syllabus and management reference books. In this modern age practical knowledge is more important than theoretical knowledge. It does not mean that theoretical knowledge is not important but without practical knowledge students are incomplete. It proved that PRACTICE MAKES THE MAN PERFACT.
It is almost inevitable to incur indebtedness to all who generously helped by sharing their invaluable time and rich experience with me, without which this project would have never been accomplished. No task can be achieved alone, particularly while attempting to finish a project of such magnitude. It took many very special people to facilitate it and support it. Hence, I would like to acknowledge all of their valuable support and convey my humble gratitude to them. Success is a sweet fruit, which every one strives to taste. In the process one takes help of encouraging and helping. People one seed at a time and forest grows and stone at a time and a place is built, a little effort at a time and project is developed and ambition released. This was solely t he approach; I took toward the development of the project. We thankful to other administration staff for their co-operation and kindly take on our project report. We would like to express heartily thankful to our respected Prof. Javed Jethera. who has given us valuable guidance and provide other required information for the preparation of this report.
Students Declaration We are Dabhi Ajit S. & Patel Nagesh A. hereby declare that the report for Comprehensive Project entitled Comparison Study with Reliance Communication & Vodafone Specification on Telecom Industryis a result of our own work and our indebtedness to other work publications, references, if any, have been duly acknowledged. Place : Date :
(Signature) (Name of Students) Dabhi Ajit S. EN ROLL:(107130592048) Patel Nagesh A. EN ROLL:(107130592011)
Sr. N Particular I Preface Ii Awknowledge Chap-1. About the telecom industry 1.1 Growth & evolution telecom industry 2. World markets telecoms 3. Major players in industry 4. Services profile 5. Product profile 6. Demand determination of telecom industry 7. Key success factore of telecom industry 8. Pest analysis 9. Research methodology 9.1 Research objectives:9.3 Data collection 10 Michel porters five force model company 11 Company information 12 Swot analysis 14 Financial analysis 15 Research methodology ratio. 15.1 Liquidity ratio 15.1.1 Current ratio 15.1.2 Net working capital
15.1.3. Quick ratio 15.1.4. Cash ratio 15.2 Leverage 15.2.1 Debt equity ratio 15.2.2 Interest on coverage ratio 15.3. Profitability ratio (%) 15.3.1 Return on equity ratio 15.3.2 Net profit ratio 15.3.3 Return On Capital ivestmentRatio 15.3.4 Return On Capital Employed Ratio 15.4 Activity ratio 15.4.1 Net assets turn over ratio 15.4.2 Fixed assets turn over ratio 15.4.3 Total assets turn over ratio 15.5 Profitability ratio (%) 16 Conclusion 17 Annexure 18 Profit & Loss Account 19 Balance sheet 20 Bibliography
CHAPTER 1 ABOUT THE INDUSTRY
TELECOM INDUSTRY IN INDIA
1.1GROWTH & EVOLUTION TELECOM INDUSTRY:-
1.TELECOM NDUSTRY PROFILE: The Indian Telecommunications network is the third largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world. The telecommunication sector continued to register significant success during the year and has emerged as one of the key sectors responsible for Indias resurgent Indias economic growth. GROWTH:The Indian telecom industry has witnessed a significant upswing and is presently on a high speed growth path, enjoying a growth rate of ~45 % p.a., among the highest in the World. India currently has ~550 million telecom subscribers, translating to a tele-density of ~46%. According to Business Monitor International, India is currently adding 8-10 million mobile subscribers every month. Approximately 20% of the world population has access to the Internet. The telecom industry is vast and offers a wide range of career opportunities on both the hardware and software fronts. These prospects include functional jobs in mobile telephony, internet protocol media systems, wireless communications, GSM, GPRS and CDMA technology, VoIP, data networks and optical networks amongst others.
The growth in number of broadband connections in India has accelerated since 2006. As of October 2011, total broadband Internet connections in India had reached 12.98 million constituting 1.0% of the population. India has one of the lowest penetrations of broadband connectivity in the world. The industry is expected to reach a size of 344,921 crore (US$65.53 billion) by 2011at a growth rate of over 26 percent, and generate employment opportunities for about 10 million people during the same period. According to analysts, the sector would create direct employment for 2.8 million people and for 7 million indirectly. The total revenue of the Indian telecom sector grew by 7% to 283,207 crore (US$53.81 billion) for 2010-11 117,039
financial year, while revenues from telecom equipment segment stood at
crore (US$22.24 billion).The number of mobile phone subscribers in the country would exceed 50 million by 2005 and cross 300 million by 2010, according to Cellular Operators Association of India (COAI).
MAJOR PLAYERS IN TELECOM INDUSTRY OF GROWTH RATE OF 2011.
B.S.N.L.VODAFONE IDEA AIRCEL AIRTEL RELIANCE V.S.N.L TATA UNINOR
30%23.7% 26.3% 18.2% 22.9% 34.4% 29.1% 17.8% 21.3%
GROWTH RATE40% 35% 30% 25% 20% 15% 10% 5% 0% GROWTH RATE
1 . INVESTMENT AND GROWTH In 2005-2006, the telecom industry witnessed a growth of 21% with a total revenue of Rs. 86,720 crores, and the total investment rising to Rs. 2,00,660 crores. It is projected that the telecom industry will be enjoying over 150% growth in the next 4-6 years. The growth also requires a huge investment by the players in the sector. Bharti Airtel is planning to invest about $8 billion by the year 2010. Liberalization policy and some socio-economic factors are mainly responsible for the immense growth in the sales volumes. The lifestyle of the people has changed. They need to be connected to the other people all the time. With the lowering down of the tariffs the affordability of the mobile phones has increased. The finance sector has also come up with loans for handsets on 0% interest. Mobile services providers are also expanding their coverage area by installing more and more antennas and other equipments.
EVOLUTION:The number of smart devices already reached 940 million units by the end of 2010, suggesting a penetration rate of nearly 18%. Therefore, smart devices have entered a period of rapid growth. The telecom industry has entered a critical period for its transformation in 2011.Take mobile communications for example. Openness, competition, and sharp decrease of the operating expense (OPEX) have fueled the rapid growth of mobile communications. There were already 5.6 billion mobile users worldwide in March 2011 with a mobile communications penetration rate of more than 80%. Mobile broadband services have become a highlight and drive of the entire telecom industry, and the faster penetration of smart devices has been pushing the rapid upgrading of the industry. Mature smart devices such as I Phone and I Pad are contributing to the economies of scale of the industry, as their prices keep falling to let them enter the low-end and mid-range markets..
Manufacture of Telecom Equipment:1.
With a growth rate of 45 percent, the Indian telecom industry is booming. Apart from providing mobile and broadband subscriptions, the telecom industry is also involved in the manufacture of telecom equipment. Rising demand for a wide range of telecom equipment, particularly in the area of mobile telecommunication, has provided excellent opportunities to domestic and foreign investors in the manufacturing sector. The last two years saw many11
renowned telecom companies setting up their manufacturing base in India. Ericsson has set up GSM Radio Base Station Manufacturing facility in Jaipur. Elicited has set up handset manufacturing facilities in Bangalore. Nokia set up its manufacturing plant in Chennai. LG Electronics set up plant of manufacturing GSM mobile phones near Pune. The Government has already set up Telecom Equipment and Services Export Promotion Forum and Telecom Testing and Security Certification Centre (TETC). A large number of companies like Alcatel, Cisco have also shown interest in setting up their R&D centers in India. With above initiatives India is expected to be a manufacturing hub for the telecom equipment.
2. WORLD MARKETS