1.

Introduction:
Bharti Enterprises is a pioneer in telecom sector and the group is widening its horizons by
entering new business areas such as insurance and retail. Bharti Enterprises has created a vantage
position for itself in the global telecommunications sector. Bharti Airtel Limited occupies leading
position in mobile telephony in India while its brand 'Beetel' is the largest manufacturer and
exporter of world class telecom terminals.

Founder of Bharti Group is Sunil Mittal. In 1983, Sunil Mittal entered into an agreement with
Germany's Siemens to manufacture the company's push-button telephone models for the Indian
market. In 1986, Sunil Bharti Mittal incorporated Bharti Telecom Limited (BTL) and his
company became the first in India to offer push-button telephones, establishing the basis of
Bharti Enterprises.Bharti Airtel was established as Bharti Tele-Ventures Limited in 1985. This
telecommunication company is a joint stock holding enterprise headquartered in New Delhi.
Bharti Airtel, commonly called 'Airtel' is among largest mobile service operator with a subscriber
base of nearly 75 million. Airtel has a submarine cable landing station in Chennai connecting this
South Indian city to Singapore.

2.Business:
The businesses at Bharti Airtel have been structured into three individual strategic business units
(SBU’s) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The mobile
business provides mobile & fixed wireless services using GSM technology across 23 telecom
circles while the Airtel Telemedia Services business offers broadband & telephone services in 95
cities and has recently launched a Direct-to-Home (DTH) service, Airtel digital TV. The
company provides end-to-end data and enterprise services to the corporate customers through its
nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs,
ISP and international bandwidth access through the gateways and landing station.
Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base, behind
China Mobile and China Unicom. In India, the company has a 24.6% share of the wireless
services market, followed by 17.7% for Reliance Communications and 17.4% for Vodafone
Essar.
Airtel is a brand of telecommunication services in India and Sri Lanka owned and operated by
Bharti Airtel. It is the largest cellular service provider in India in terms of number of subscribers.
Services are offered under the brand name Airtel: Mobile Services (using GSM Technology),
Broadband & Telephone Services (Fixed line, Internet Connectivity (DSL) and Leased Line),
Long Distance Services and Enterprise Services (Telecommunications consulting for corporate).
It has presence in all 23 circles of the country and covers 71% of the current population (as of
FY07).

a.Airtel Sri Lanka:

In December 2008, Bharti Airtel rolled out third generation services in Sri Lanka in association
with Singtel. SingTel, is a major player in the 3G space in Asia. It operates third generation
networks in several markets across Asia. It had been largely criticised in recent times on its
inability to start operation even two years after its certification and proposed date of launch.
[3]
Airtel's operation in Sri Lanka, known as Airtel Lanka, commenced operations on the 12th of
January 2009.Airtel has also launched 16 MBPS broadband plans in India, making it the first ISP
to do so.
b.Touchtel:
Until September 18, 2004, Bharti provided fixed-line telephony and broadband services under
the Touchtel brand. Bharti now provides all telecom services including fixed-line services under
a common brand "Airtel".
c.Digital TV:
On 9 October 2008, Airtel joined the DTH bandwagon in India with Airtel Digital TV, a Direct-
to-Home Television service.
d. Broadband:
Airtel as now launched “Airtel Broad Brand” service. Bharti Airtel has also dropped tariff for the
512 kbps connection by 31 per cent from Rs 1,599 to Rs 1,099 a month, making it one of the
cheapest fibre optical cable-based broadband services in the market. Bharti has packed in value-
added services such as games on demand and anti-virus software. Additionally, download limits
on 8 Mbps and 16 Mbps plans have been doubled to 50 GB and 100 GB respectively.

3.Corporate Social Responsibility:

Corporate social responsibility (CSR), also known as corporate responsibility, corporate
citizenship, responsible business, sustainable responsible business (SRB), or corporate social
performance, is a form of corporate self-regulation integrated into a business model. Ideally,
CSR policy would function as a built-in, self-regulating mechanism whereby business would
monitor and ensure their adherence to law, ethical standards, and international norms. Business
would embrace responsibility for the impact of their activities on the environment, consumers,
employees, communities, stakeholders and all other members of the public sphere. Furthermore,
business would proactively promote the public interest by encouraging community growth and
development, and voluntarily eliminating practices that harm the public sphere, regardless of
legality.
Essentially, CSR is the deliberate inclusion of public interest into corporate decision-
making, and the honoring of a triple bottom line: “People, Planet, Profit.”The practice of CSR is
subject to much debate and criticism. Proponents argue that there is a strong business case for
CSR, in that corporations benefit in multiple ways by operating with a perspective broader and
longer than their own immediate, short-term profits. Critics argue that CSR distracts from the
fundamental economic role of businesses; others argue that it is nothing more than superficial
window-dressing; others argue that it is an attempt to pre-empt the role of governments as a
watchdog over powerful multinational corporations.

a .Approaches:
➢ i) “GREENER GUWAHATI”: A greener Guwahati is essential to
ensure better standard of living, with the increasing population of the Capital city
of Assam. So, Bharti Airtel, the leading mobile service provider of India, has
 started a year long initiative to create environment awareness among school
children through involving them in planting trees and saplings in Guwahati city of
Assam. This initiative was a part of its corporate social responsibility programme.
Bharti Airtel and Guwahati Social Forestry Division, Vyakti Vikas Kendra, a
charitable trust, and students from various schools and institutions planted around
1,000 saplings in and around the city.A senior official from the company said that
a cleanliness drive in Guwahati was on the cards. The environment awareness
campaign would be expanded to other cities in the region soon.The initiative was
aimed to inculcate pro-environment habits, like planting of trees and saplings and
disposal of waste, among children and students.“Though it’s a small gesture, our
objective is to create an awareness among people and primarily among the
children to make them prudent towards the nature. Bharti Airtel, with this
programme, wants to send the message across the seven NE states that the
responsibility equally rests on the corporates to work for a pollution free and
healthy environment,” said the official.Bharti would soon include more
institutions under its ‘Bharti Scholarship Foundation’ to support the needy and the
meritorious students in the region.
Assam Information Portal

➢ ii) “Airtel ties up with Jeevan Blood Bank”: People can get instant
information about availability of blood
➢ An initiative taken as part of Airtel’s Corporate Social Responsibility
➢ Special and easy number for quick access on status of available blood –
96000 97000
a. Service available for customers on all networks and toll free for Airtel mobile
customers

Airtel, India’s leading mobile service provider today strengthened its tie up with Jeevan Blood
Bank of Chennai, taking a step ahead in its “Airtel Cares for Everyone” (ACE) project. This is
a first of its kind initiative, wherein people can source information on blood within minutes and
access the real time stock of tested blood components from Jeevan Blood Bank 24 hours a day.
Airtel already has a partnership with Jeevan, in which a few numbers have been provided free of
cost for Jeevan to stay in touch with people wanting to donate blood and patients in need of
blood. This is now being strengthened through an SMS service, which provides information
about availability of blood. All that a person needs to do is to type <Blood group + or -> and sms
it to 9600097000 (for example, Blood B+ or Blood AB+). A response will be sent back to the
person within a minute, containing information on quantity of readily available tested blood
components of the group required. This facility is available for customers of all networks and is
toll free for Airtel mobile customers.
Anirban Ghosh, COO Mobile Services – Bharti Airtel Ltd, Tamil Nadu said –
“While Airtel has been contributing significantly to India’s telecommunications
infrastructure, it is important to reach out to the community in other ways as well.
At Airtel, we strongly believe in contributing to the betterment of our society and
this initiative reflects our commitment towards this cause. This is the 6 thyear of our
association with Jeevan Blood Bank and we truly hope that the general public will be
benefited in its crucial hour of need.”

Dr. P. Srinivasan M.D., Chairman & Managing Trustee, Jeevan Blood Bank
and Research Centre said – “Searching for blood in the hour of need can become
very time consuming and a frustrating exercise. This service will help people save
precious time by getting them quick access to availability of blood and will help the
needy at the right time. We would like to thank Airtel for having been associated
with us for so

4. Corporate Governance:
Bharti Airtel Limited firmly believes in the principles of Corporate Governance and is
committed to conduct its business in a manner, which will ensure sustainable, capital-efficient
and long-term growth thereby maximising value for its shareholders, customers, employees and
society at large. Company’s policies are in line with Corporate Governance guidelines prescribed
under Listing Agreement/s with Stock Exchanges and the Company ensures that various
disclosures requirements are complied in ‘letter and spirit’ for effective Corporate Governance.

Contents:

➢ Introduction
➢ Business
➢ a.Airtel Sri Lanka
➢ b.Touchtel
➢ c.Digital TV
➢ d. Broadband
➢ Corporate Social Resposibility
➢ Corporate Governance
➢ a.Share holdings
➢ b.Directors
➢ c.Quarter Reports
➢ Marketing Strategy
➢ a.SWOT Analysis
➢ Position
a.Share holdings:

Share Holding Pattern 31/03/2008 31/03/2008

30/06/2009 30/06/2009
as on :
Face Value 10.00 10.00 10.00 10.00
No. Of Shares % Holding No. Of Shares % Holding
PROMOTER'S
HOLDING
Foreign Promoters 419653373 22.11 414744373 21.85
Indian Promoters 859986028 45.30 859986028 45.30
Sub Total 1279639401 67.41 1274730401 67.15
NON PROMOTER'S
HOLDING
Institutional Investors
Mutual Funds and
65707219 3.46 58314959 3.07
UTI
Banks Fin. Inst. and
84217154 4.44 81877232 4.31
Insurance
FII's 371639110 19.58 393238153 20.72
Sub Total 521563483 27.47 533430344 28.10
Other Investors
Private Corporate 63492856 3.34 54786447 2.89
Bodies
NRI's/OCB's/Foreign
7725108 0.41 10915197 0.58
Others
Others 2804474 0.15 3420719 0.18
Sub Total 74022438 3.90 69122363 3.64
General Public 23147958 1.22 20956688 1.10
GRAND TOTAL 1898373280 100.00 1898239796 100.00

b.Directors:
Name of Directors

1 Mr. Akhil Gupta Deputy CEO & Joint Managing

Director
2 Mr. Craig Ehrlich Additional Director
3 Mr. Sunil Bharti Mittal Chairman and Managing director
4 Mr. Manoj Kohli Joint Managing Director & CEO
5 Mr. Bashir Currimjee Non Executive Director

====================================================
 =
Key Executives
S.No Name
1 Mr.Vijaya Sampath
2 Mr.Sanjay Kapoor
3 Mr.David Nishball
4 Mr.Sarvjit S Dhillon
5 Mr.Atul Bindal
Designation
Company Secretary
President - Mobile Services
President - EnterpriseServices
Chief Financial Officer
President Telemedia Services

c.Quarter Reports:

Jun ' Mar ' Dec ' Sep ' Jun '
09 09 08 08 08

9,040. 9,016. 8,830. 8,274. 7,893.

Sales 51 81 11 37 01

Other Income 15.78 32.85 20.14 28.43 59.31

Admin And Selling 1,131.

Expenses 19 992.77 553.56 510.83 605.12

Employee
Expenses 409.22 398.21 382.04 360.59 357.50
 392.3 247.4 140.6 -294.1 323.7
Taxation 0 7 8 8 3

2,687. 2,074. 2,017. 1,604. 2,046.

Net Profit / Loss 51 99 29 78 79

Extra Ordinary
Item 0.00 0.00 0.00 0.00 0.00

1,898. 1,898. 1,898. 1,898. 1,898.

Equity Capital 37 24 22 10 02

Agg.Of Non-
Prom. Shares (in 6,187. 6,235. 6,234. 6,258. 6,359.
lacs) 34 09 86 12 05

Agg.Of Non
Promoter
Holding(%) 32.59 32.85 32.85 32.97 33.50
OPM(%) 39.67 39.22 37.98 37.73 37.72
GPM(%) 44.53 35.63 33.58 24.99 38.92
NPM(%) 29.67 22.92 22.79 19.32 25.73

5.Marketing Strategy:
a.SWOT Analysis :
Strengths
b. Bharti Airtel has more than 65 million customers (July 2008). It is the largest cellular
provider in India, and also supplies broadband and telephone services - as well as
many
other telecommunications services to both domestic and corporate customers.

c. Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with
whom they hold a strategic alliance. This means that the business has access to
knowledge and technology from other parts of the telecommunications world.
d. The company has covered the entire Indian nation with its network. This has
underpinned its large and rising customer base.
Weaknesses
➢ An often cited original weakness is that when the business was started by Sunil
Bharti Mittal over 15 years ago, the business has little knowledge and
experience of how a cellular telephone system actually worked. So the start-up
business had to outsource to industry experts in the field.
➢ Until recently Airtel did not own its own towers, which was a particular strength of
some of its competitors such as Hutchison Essar. Towers are important if your
company wishes to provide wide coverage nationally.
➢ The fact that the Airtel has not pulled off a deal with South Africa's MTN could
signal the lack of any real emerging market investment opportunity for the business
once the Indian market has become mature.
Opportunities
➢ The company possesses a customized version of the Google search engine which
will enhance broadband services to customers. The tie-up with Google can only
enhance the Airtel brand, and also provides advertising opportunities in Indian for
Google.
➢ Global telecommunications and new technology brands see Airtel as a key
strategic player in the Indian market. The new iPhone will be launched in India
via an Airtel distributorship. Another strategic partnership is held with BlackBerry
Wireless Solutions.
➢ Despite being forced to outsource much of its technical operations in the early
days, this allowed Airtel to work from its own blank sheet of paper, and to
question industry approaches and practices - for example replacing the Revenue-
Per-Customer model with a Revenue-Per-Minute model which is better suited to
India, as the company moved into small and remote villages and towns.
➢ The company is investing in its operation in 120,000 to 160,000 small villages
every year. It sees that less well-off consumers may only be able to afford a few
tens of Rupees per call, and also so that the business benefits are scalable - using
its 'Matchbox' strategy.
➢ Bharti Airtel is embarking on another joint venture with Vodafone Essar and
IdeaCellular to create a new independent tower company called Indus Towers.
This new business will control more than 60% of India's network towers. IPTV is
another potential new service that could underpin the company's long-term
strategy.
Threats
➢ Airtel and Vodafone seem to be having an on/off relationship. Vodafone which
owned a 5.6% stake in the Airtel business sold it back to Airtel, and instead
invested in its rival Hutchison Essar. Knowledge and technology previously
available to Airtel now moves into the hands of one of its competitors.
➢ The quickly changing pace of the global telecommunications industry could tempt
Airtel to go along the acquisition trail which may make it vulnerable if the world
goes into recession. Perhaps this was an impact upon the decision not to proceed
with talks about the potential purchase of South Africa's MTN in May 2008. This
opened the door for talks between Reliance Communication's Anil Ambani and
MTN, allowing a competing Inidan industrialist to invest in the new emerging
African telecommunications market.
 ➢ Bharti Airtel could also be the target for the takeover vision of other global
telecommunications players that wish to move into the Indian market.

6.Position:
Bharti Airtel is the largest mobile services provider in the country, said that revenue for the
quarter ended June 30 was 99.4 billion Indian rupees (US$2 billion at the exchange rate on the
last day of the quarter), up by 17 percent from revenue in the same quarter in the previous year.
Profits in the quarter grew by 24 percent to 25 billion rupees. Bharti Airtel added 8.5 million new
subscribers during the quarter, taking the total to about 105 million subscribers. About 102
million of these subscribers were for the company's mobile services, with the balance coming
from its fixed telephony and broadband services business. India has added over 10 million new
mobile subscribers every month, despite the economic slowdown. Consumers see
communications as a necessity, analysts said. In May, the latest month for which figures are
available, India added 11.6 million new mobile subscribers, up by 35 percent from additions in
the same quarter in the previous year, according to Telecom Regulatory Authority of India
(TRAI). The country had 415 million subscribers at the end of May, TRAI said. However,
average revenue per user (ARPU) and the utilization of mobile phones by consumers fell,
reflecting competition and tariff cuts, as well as the economic slowdown. Bharti Airtel's ARPU in
the quarter ended June 30 dropped to 278 rupees from 350 rupees in the same quarter a year ago.
Average minutes of use per user dropped to 478 minutes in the quarter from 534 in the same
quarter in the previous year. Data from TRAI also showed declining ARPU and utilization by
consumers, across service providers, in the first quarter of this year. Bharti Airtel's non-voice
revenue as a percentage of mobile revenue was 9.3 percent, down from 9.7 percent in the same
quarter a year ago, reflecting a declining uptake of value added services by mobile users. Bharti
Airtel is scouting other markets outside India. It said in May that it had revived merger talks with
MTN Group in South Africa. The two companies have agreed to discuss the proposal exclusively
until July 31.

Name of the Subscribers Market Share (%)

Company
Bharti Airtel 4,88,75,664 31.88
Vodafone Essar 3,56,57,546 23.26
BSNL 3,03,03,230 19.77
IDEA 1,86,71,860 12.18
Aircel 80,39,355 5.24

Awards:Bharti Airtel was adjudged 'Best Carrier India' at 2008 Telecom Asia. In 2007,
Bharti Airtel won 'Business Leadership Award' from NDTV Profit.