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Overview of the Indian Telecom Industry The Indian telecommunications industry is one of the fastest growing in the world and India is projected to become the second largest telecom market globally. According to the Telecom Regulatory Authority of India (TRAI), the number of telecom subscribers in the country increased to 562.21 million in December 2009, an increase of 3.5 per cent from 543.20 million in November 2009. With this the overall teledensity (telephones per 100 people) has touched 47.89. The telecom industry notched up US$ 8.56 billion in revenues during the quarter ended December 31, 2009 helped by a recovery in earnings from both mobile and landline services. According to Business Monitor International, India is currently adding 8-10 million mobile subscribers every month. It is estimated that by mid 2012, around half the country's population will own a mobile phone. This would translate into 612 million mobile subscribers, accounting for a tele-density of around 51 per cent by 2012. Moreover, according to a study conducted by Nokia, the communications sector is expected to emerge as the single largest component of the country's GDP with 15.4 per cent by 2014. The Indian equipment market was estimated at US$ 24 billion in FY09. Finnish giant Nokia is the market leader, with over US$ 3.4 billion revenues in 2008-09, followed by Ericsson at US$ 2.11 billion. With the availability of the 3G spectrum, about 275 million Indian subscribers will use 3Genabled services, and the number of 3G-enabled handsets will reach close to 395 million by 2013-end, estimates the latest report by Evalueserve. According to a Frost & Sullivan industry analyst, by 2012, fixed line revenues are expected to touch US$ 12.2 billion while mobile revenues will reach US$ 39.8 billion in India. Moreover, in an attempt to boost auction of 3G spectrum, the government has allowed prospective bidders to raise short-term funds from domestic market, which could be refinanced through external commercial borrowings (ECBs) within 12 months. The government is expected to mop up US$ 7.53 billion through the auction of 3G spectrums, which is likely to be completed by March 2010. It has fixed the reserve price at US$ 753.74 million. State-run telecom operator BSNL has rolled out 3G services in 318 cities with 856,000 subscribers. BSNL has plans to cross 400 cities by March 31, 2010 and this will be increased to 760 cities by September 2010. And even as debate on 3G continues, TRAI has started
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consultation on the next level of telecom services. Fourth generation or 4G offers download at faster speeds. Value-Added Services Market Currently, mobile value-added services (MVAS) in India accounts for 10 per cent of the operator's revenue, which is expected to reach 18 per cent by 2010. According to a study by Stanford University and consulting firm BDA, the Indian MVAS is poised to touch US$ 2.74 billion by 2010. In a bid to increase revenue from add-on services, India's top two mobile firms, Bharti Airtel Limited and Reliance Communications both plan to launch online mobile applications stores. Bharti Airtel will provide more than 1,250 applications across 25 categories including games, books and social networking on its applications store. Reliance Communications first version of its applications store would go live for GSM customers by the end of February 2010, and by the end of March 2010 an expanded version would be available to its code division multiple access (CDMA) customers as well. Major Investments The booming domestic telecom market has been attracting huge amounts of investment which is likely to accelerate with the entry of new players and launch of new services. Norway-based telecom operator Telenor, has bought a further 7 per cent in Unitech Wireless for a little over US$ 430.70 million. Telenor now holds 67.25 per cent. Last year, it had bought a 60 per cent stake for US$ 1.23 billion. The government has approved the foreign direct investment proposal of the Federal Agency for State Property Management of the Russian Federation to buy 20 per cent stake in telecom service provider Sistema-Shyam for US$ 660.1 million. Tata Teleservices is planning to invest an additional US$ 1 billion in its recently-launched GSM service Tata DoCoMo. It had already committed an investment of US$ 2 billion for the GSM services when it was launched in June 2009. Reliance Infratel, the tower subsidiary of Reliance Communications (RCom), will build 56,596 telecom towers by financial year 2010, increasing the total number of towers to 100,000. BSNL, India's leading telecom company in revenue terms, will put in about US$ 1.16 billion in its WiMax project.
Vodafone Essar will invest US$ 6 billion over the next three years in a bid to increase its mobile subscriber base from 40 million at present to over 100 million. Manufacturing India's telecom equipment manufacturing sector is set to become one of the largest globally. Mobile phone production is estimated to grow at a CAGR of 28.3 per cent from 2006 to 2011, totalling 107 million handsets by 2010. Revenues are estimated to grow at a CAGR of 26.6 per cent from 2006 to 2011, touching US$ 13.6 billion. Rural Telephony Rural India had 76.65 million fixed and Wireless in Local Loop (WLL) connections and 551,064 Village Public Telephones (VPT) as on September 2008. Therefore, 92 per cent of the villages in India have been covered by the VPTs. Universal Service Obligation (USO) subsidy support scheme is also being used for sharing wireless infrastructure in rural areas with around 18,000 towers by 2010. Policy Initiatives The government has taken many proactive initiatives to facilitate the rapid growth of the Indian telecom industry. 100 per cent foreign direct investment (FDI) is permitted through the automatic route in telecom equipment manufacturing. FDI ceiling in telecom services has been raised to 74 per cent. Introduction of a unified access licensing regime for telecom services on a pan-India basis. Introduction of mobile number portability in a phased manner, starting in the fourth quarter of 2008. The government is implementing a program of connecting 66,822 uncovered villages under the Bharat Nirman programme. The Department of Telecommunications (DoT) has stated that foreign telecom companies can bid for 3G spectrum without partnering with Indian companies. Only after winning a bid, would they need to apply for unified access service licence (UASL) and partner with an Indian company in accordance with the FDI regulations. The Road Ahead
The target for the 11th Plan period (2007-12) is 600 million phone connections with an investment of US$ 73 billion. Apart from the basic telephone service, there is an enormous potential for various value-added services. According to the CII Ernst & Young report titled 'India 2012: Telecom growth continues', revenue from India's telecom services industry is projected to reach US$ 54 billion in 2012, as against US$ 31 billion in 2008.
Bharti Enterprises accepted every opportunity provided by this new policy to evolve into India's largest telecommunications company and one of India's most respected brands. Airtel was launched in 1995 in Delhi. In the ensuing years, as the Airtel network expanded to several parts of India, the brand came to symbolise the very essence of mobile services. Product Airtel provides a host of voice and data products and services, including high-speed GPRS services. Airtel also offers a wide array of 'postpaid' and 'prepaid' mobile offers, with a range of tariff plans that target different segments. A comprehensive range of value-added, customised services are part of the unique package from Airtel. The company's products reflect a desire to constantly innovate. Some of these are reflected in the fact that Airtel was the first to develop a 'single integrated billing system' Airtel comes to you from Bharti Airtel Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti is the leading cellular service provider, with an all India footprint covering all 23 telecom circles of the country. It has over 21 million satisfied customers. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world class products and services. Established in 1976, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti has many joint ventures with world leaders like Singtel (Singapore Telecom); Warburg Pincus, USA; Telia, Sweden; Asian infrastructure find, Mauritius; International Finance Corporation, USA and New York Life International, USA. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Airtel's journey to leadership began in Delhi in 1995. Since then, Airtel has established itself across India in sixteen states covering a population of over 600 million people. Airtel will soon cover the entire country through a process of acquisitions and green field projects. With a presence in over 1,400 towns, Airtel today has the largest network capacity in the country. In the last nine years Airtel has achieved many firsts and unique records: it was the first to launch nationwide roaming operations, it was the first to cross the one million and the five million customer marks. It was also the first to launch services overseas. There are other 'firsts' credited to Airtel - many of them in the area of innovative products and services. Today, Airtel innovates in almost everything that it presents to the market. An excellent example is Easy Charge - India's first paperless electronic recharging facility for prepaid customers. As evidence of its fine record, Airtel has also been conferred with
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numerous awards. It won the prestigious Techies Award for 'being the best cellular services provider' for four consecutive years between 1997 and 2000 - a record that is still unmatched. And in 2003, it received the Voice & Data Award for being 'India's largest cellular service provider', amongst others. As part of its continuing expansion, Airtel has invested over Rs. 1,065 billion in creating a new telecom infrastructure. In 2003/04, Bharti Tele-Ventures earned a gross profit of Rs. 16 billion on revenues of Rs. 50 billion.
MOBILE SERVICE Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers. BHARTI REALITY LIMITED Bharti Realty Limited is a young, vibrant and dynamic realty company with expanding interests in commercial, retail and residential real estate. BHARTI FOUNDATION Bharti Foundation was set up in 2000, with the vision, To help underprivileged children and young people of our country realize their potential. It aims to create and support programs that bring about sustainable changes through education and the use of technology and information. BHARTI INFRATEL Bharti Infratel, a wholly owned subsidiary of Bharti Airtel, provides passive infrastructure services on a non-discriminatory basis to all telecom operators in India. Bharti Infratel also holds approximately 42% stake in Indus Towers, a joint venture between Bharti, Vodafone and Idea to offer passive infrastructure services.
VISION By 2010 Airtel will be the most admired brand in India: Loved by more customers. Targeted by top talent. Benchmarked by more businesses. MISSION To be global admired for telecom services that delight customers. Bharti Tele-Ventures Mobile Division (Airtel) is one of Indias leading private sector providers of telecommunications services with more than 85.7 million customers in December 2008. The only operator to provide mobile services in all 23 business regions, or circles, in India, the company also provides telephone services and Internet access over DSL in 15 circles, complementing its national and international long distance telephone services with mobile and broadband services. 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.
QUALITY POLICY We will deliver error-free services to our customers by doing our jobs right the first time, every time. Our quality policy is a reflection of the teams commitment to excellence in every aspect. In line with our quality policy and our determination to pursue the path of continuous quality improvement, we do the following? We have strong and robust Business Process Management System which helps in monitoring of output performance of processes in the form of Non Financial Parameters which are reviewed at different levels i.e local, regional, national and corporate office level.
Continuous process improvements happen within the organization based on Voice of Customers using six sigma methodology and knowledge management.
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The organization has been in Six Sigma for the last three years by creating Six Sigma Champions - Black Belt, Green Belts and Yellow Belts. All AES employees are trained in the strategy, statistical tools and techniques of Six Sigma Quality. Training courses are offered at various levels.
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Products/service profile
Services offered under the brand name Airtel. BROADBAND AND INTERNET SERVICES. DIGITAL TV BLACK BERRY E-MAIL ON GO CALLING CARDS WIRELESS INTERNET FIXED LINE SERVICES
AIRTEL ENTERPRISE SERVICES The Company is a part of Bharti Enterprises, and is India's leading provider of telecommunications services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBUs) - mobile services, broadband & telephone services (B&T) & enterprise services. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the B&T business group provides broadband & telephone services in 90 cities. The Enterprise services group has two sub-units - carriers (long distance services) and services to corporate. All these services are provided under the Airtel brand. Its include
Voice Services Mobile Services Satellite Services Managed Data & Internet Services Managed e-Business Services
Voice Services Bharti Airtel became the first private fixed-line service provider in India. It is now promoted under the Airtel brand. Recently, the Government opened the fixed-line industry to unlimited
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competition. Airtel has subsequently started providing fixed-line services in the four circles of Delhi, Haryana, Madhya Pradesh, Karnataka, Tamil Nadu & UP (West). Airtel Enterprise Services believes that these circles have high telecommunications potential, especially for carrying Voice & Data traffic. These circles were strategically selected so as to provide synergies with Airtels long distance network and Airtels extensive mobile network. Airtel Enterprise Services, India's premium telecommunication service, brings to you a whole new experience in telephony. From integrated telephone services for Enterprises and small business enterprises to user-friendly plans for Broadband Internet Services (DSL), we bring innovative, cost-effective, comprehensive and multi-product solutions to cater to all your telecom and data needs. Voice - Product Portfolio Airtel Enterprise Services telephone services go beyond basic telephony to offer our users a whole host of Value Added Services as well as premium add-ons. Each telephone connection from Airtel Enterprise Services is backed by a superior fibre-optic backbone for enhanced reliability and quality telephony. Few of the Value Added Services offered are Calling Line Identification, Three Party Conferencing, Dynamic Lock, Hunting Numbers, and Parallel Ringing etc. Airtel Enterprise Services Voice Services provide Free Dial-up Internet access that is bundled along with your Telephone connection from Airtel. Its fast, reliable and gives you unlimited Internet access. Mobile Services Airtels mobile footprint extends across the country in 21 telecom circles. Its service standards compare with the very best in the world. In fact, thats how Bharti has managed to win the trust of millions of customers and makes it one of the top 5 operators in the world, in terms of service and subscriber base. The company has several Firsts to its credit: The First to launch full roaming service on pre-paid in the country. The First to launch 32K SIM cards. The First in Asia to deploy the multi band feature in a wireless network for efficient usage of spectrum. The First to deploy Voice Quality Enhancers to improve voice quality and acoustics.
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The First telecom company in the world to receive the ISO 9001:2000 certification from British Standards Institute
Satellite Services
Airtel Enterprise Services provides you connectivity where ever you take your business Our Satellite Services bring you the benefits of access in remote locations. Airtel Enterprise Services is a leading provider of broadband IP satellite services and DAMA/PAMA services in India. Our solutions support audio, video and voice applications on demand. Satellite Services include :
Managed Data & Internet Services Airtel Enterprise Services brings you a comprehensive suite of data technologies. So we are able to support all types of networks and ensure our customers can migrate their network to the future seamlessly. Our Managed Data & Internet services make our customers future
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MPLS ATM FR Internet IPLC Leased Lines Customised Solutions International Managed Services
Metro Ethernet
Managed e-Business Services Airtel Enterpirse Services, offers an internationally benchmaked, carrier class hosting, storage and business continuity services. A range of services that help to keep your business running the way you want- 24x7. Thanks to our world-class high tech Data Centres. Managed e-Business Services include :
Area of operation
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Airtels nationwide operations are built on a high quality VSAT infrastructure with a Central Hub at Bangalore which is a high speed internet backbone. Last mile connectivity through Indias leading fixed line service, Airtel, in Delhi, Haryana, Tamil Nadu, Karnataka, Madhya Pradesh and Chhattisgarh.
Pan-India Mobile Network It has Indias finest long distance network covering over 180 cities on 25,000 km of optical fibres. Worlds largest submarine cable system, Network i2i stretching from Chennai to Singapore.
World Class Connectivity Portfolio Global Data & Internet Service: Riding on owned carrier class infrastructure, leveraging a total connectivity infrastructure, we bring Indias 1st end to end IPLC and unleash the full power of Global Data & Internet Services.
SE-ME-WE-4 The South East AsiaMiddle EastWestern Europe 4 submarine communications cable system OR SEA-ME-WE 4 is a consortium of 16 companies (including Airtel and Tata Communications) which carries telecommunications between Singapore, Malaysia, Thailand, Bangladesh, India, Sri Lanka, Pakistan, UAE, Saudi Arabia, Sudan, Egypt, Italy, Tunisia, Algeria and France.
Ownership pattern
The board of directors of the Company has an optimum mix of executive and non-executive
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directors, which consists of two executive and fourteen non-executive directors.The Chairman and Managing Director, Mr. Sunil Bharti Mittal, is an Executive Director and the number of Independent Directors on the Board is 50% of the total board strength. The independence of a director is determined on the basis that such director does not have any material pecuniary relationship with the Company, its promoters or its management, which may affect the independence of the judgment of a Director. The board members possess requisite skills, experience and expertise required to take decisions, which are in the best interest of the Company. Sunil Bharti Mittal Rajan Bharti Mittal Akhil Gupta Rakesh Bharti Mittal Chua Sock Koong N. Kumar Kurt Hellstorm Donald Cameron Paul OSullivan Professor V.S. Raju Pulak Chandan Prasad Bashir Abdullah Currimjee Gavin Darby Syeda Imam Ajay Lal York Chye Chang Paul Donovan Arun Bharat Ram
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Competitors information
Other players in the industry Reliance Comm Idea Cellular Tata Comm Vodafone Spice Comm TataTeleservice MTNL
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Voted Indias most innovative company in a survey conducted by The Wall Street Journal in 2008 Winner of the Gallup Great Workplace Award- Gallup Consulting, 2008 2nd Most Trusted Service Brand - Annual Economic Times-Brand Equity, Most Trusted Brands survey 2008 Best Content Service Award for its Farmer Information Dissemination Platform for Bharti Airtels joint venture with IFFCO, IKSL (IFFCO Kisan Samachar) - World Communications Awards 2008 Best Project Management Award for its Gujarat e-GRAM project - World Communications Awards 2008 Best Telecom Company at the NDTV Profit Business Leadership Awards Best Carrier India for innovative products & services and efficient cost models and the Ovum Telco-Transformation award recognizing philosophy and execution of a successful outsourcing strategy at the Telecom Asia Awards 2008 Sunil Bharti Mittal was awarded the GSM Association Chairmans Award 2008. The highest honour in global telecom sector, recognized his tremendous contribution to the development of Indias telecom sector Sunil Bharti Mittal adjudged the Business Leader Transforming India, 2008 at the NDTV Profit Business Leadership Awards
For the Year 2007 - 2008 Sunil Bharti Mittal conferred Degree of Doctor of Science (Honoris Causa) by G. B. Pant University Bharti draws top honours at the NDTV Profit Business Leadership Awards 2007 Bharti Airtel Ranked 3rd on Shareholder Returns in BusinessWeek IT 100 List Bharti Airtel has won the CNBC-TV18 India Business Leader Award for the Outstanding Company of the year, 2007
Bharti Airtel is one of the topmost companies in the telecom sector in India and is under the Bharti Enterprises Group. Airtel Bharti has been ranked as the best performance company in the whole world by the Business Week magazine in 2007. The Company Bharti Airtel is in India the biggest integrated and also the 1st telephone service provider in the private sector, which has footprint in around 23 telecom circles. Bharti Airtel Limited has been since its very beginning using the latest technology and thus the company has paved the way for the telecom sector in India with its world-class services and products. This has helped Bharti Airtel Company to grow for the number of its customers has increased very rapidly over the years. The company has around 50 million customers in 2007 and its market share of mobile subscribers in India is at 23.4%. The company Bharti Airtel Limited's total revenue amounted to Rs.12,242 crore in 20062007 and the net profit stood at Rs.3,126 crore. The Company Bharti Airtel is divided into 3 business units that are: Broadband & Telephone (B&T) services Enterprise services Mobile services
Among the various services that the Bharti Airtel Limited Company provides to its customers, the services of broadband and telephone (B&T) are 1 of them. The company provides broadband Internet services of high speed for it has the best network in India. The company Bharti Airtel also provides telephone services in around 94 cities of the country and this helps the people to stay connected with one another. The company plans to expand its broadband and telephone services by providing IPTV services and DTH operations. Further Bharti Airtel provides enterprise services to its customers. The services of enterprise provide telecom end-to-end solutions to customers who belong to the corporate sector and also long distance services to international and national carriers. The company Bharti Airtel has more than 35,016 kilometers of optic fiber, a submarine landing station, and is also a member of South East Asia- Middle East- Western Europe- 4. All this has helped the company to provide the best enterprise services to its customers. The company Bharti Airtel Limited plans to expand its enterprise services so that it can achieve the status of a global carrier within a period of 23 years. The company Bharti Airtel Limited provides mobile services to its customers. The company provides fixed and mobile wireless services in around 23 telecom circles by using the GSM
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technology. Bharti Airtel Company has become the biggest mobile service provider in India on the basis of the number of customers. The company in the future plans to expand its network in order to establish its presence in more than 500,000 villages all across the country by 2010. Bharti Airtel has become a leading company in the telecom sector in India due to the fact that it has provided the best quality of services to its customers. And this has been possible for the company has a wide telecom network that is of the latest technology. The Company Bharti Airtel Limited in the future also should continue to upgrade its facilities for this will ensure that high grade of services are provided to its customers.
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Promotional Strategy After the liberalization of the Indian Telecom Sector in 1994, the Indian cellular market witnessed a surge in cellular services. By 2005, there were a total of 12 players in the market with the five major players being Bharti Tele-Ventures Limited (Bharti), Bharat Sanchar Nigam Limited (BSNL), Vodafone-Essar limited (previously Hutch), Idea Cellular limited (Idea), Reliance India Mobile (RIM),TATA Indicom, and Aircell in south india. All the players except RIM and TATA offered services based on the Global System for Mobile (GSM) technology. RIM and TATA provided services based on Code Division Multiple Access (CDMA) technology, and now they have entered GSM market, with the introduction of reliance GSM and TATA Docomo. However Virgin india mobile providing service based on CDMA technology is targeting a niche segment, featuring them as a youth brand. As competition in the telecom arena intensified, service providers took new Initiatives to woo customers. Prominent among these were celebrity Endorsements, loyalty rewards, discount coupons, business solutions and Talk time schemes. The most important consumer segment in the cellular Industry is the youth segment and the business class segment. The youth Segment was the largest and fastest growing segment and was therefore targeted most heavily by cellular service providers.
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Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional Strategy. By 2004 it emerged the unprecedented leader commanding the largest market share in the cellular service market. Vodafone implemented the celebrity endorsement strategy partially, relying primarily on its creative advertising for the promotion of its brand. BSNL, on the other hand, attracted the consumer through its low cost schemes. Being a state owned player, BSNL could cover rural areas, and this helped it increase its subscriber base. Reliance was another player that cashed on its innovative promotional strategies, which included celebrity endorsements and attractive talk time schemes. Idea, relied heavily on its creative media advertising sans celebrities.
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Mr. Craig Ehrlich (Chairman) Independent Non-Executive Director Mr. Rajan Bharti Mittal Mr. Nikesh Arora Mr. Lim Chuan Poh Non-Executive Director Independent Non-Executive Director Non-Executive Director
Secretary The Company Secretary or his/her nominee act as the Secretary of the Committee. Key Functions The key functions of the HR Committee include the following: Attraction and Retention strategies for employees. Employees Development Strategies. Compensation (including salaries and salary adjustments, incentives/benefits bonuses, stock options) and performance targets for the Chairman and Managing Director (CMD) and Joint Managing Directors (JMDs) Executive Directors. All Human Resources related issue. Other key issues / matters as may be referred by the Board or as may be necessary in view of Clause 49 of the Listing Agreement or any statutory provisions.
Miscellaneous
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The Committee may invite other Directors/ Officers of the Company to attend the meetings of the HR Committee as Invitees from time to time, as and when required. Minutes of the HR Committee are placed before the Board in its subsequent meeting.
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Structure: The board of directors of the Company has an optimum mix of executive and non-executive directors, which consists of two executive and fourteen non-executive directors.The Chairman and Managing Director, Mr. Sunil Bharti Mittal, is an Executive Director and the number of Independent Directors on the Board is 50% of the total board strength. The independence of a director is determined on the basis that such director does not have any material pecuniary relationship with the Company, its promoters or its management, which may affect the independence of the judgment of a Director. The board members possess requisite skills, experience and expertise required to take decisions, which are in the best interest of the Company. The composition of the Board is as under: Sunil Bharti Mittal Rajan Bharti Mittal Akhil Gupta Rakesh Bharti Mittal Chua Sock Koong N. Kumar
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Kurt Hellstorm Donald Cameron Paul OSullivan Professor V.S. Raju Pulak Chandan Prasad Bashir Abdullah Currimjee Gavin Darby Syeda Imam Ajay Lal York Chye Chang Paul Donovan Arun Bharat Ram
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Skill A skill is the ability, knowledge, understanding and the judgment to accomplish a task. Skills maybe defines as what the company does best, the distinctive capabilities and competencies that reside in the organization. At Airtel Enterprise Service Unit, the value of a motivated, knowledgeable and skilled workforce is recognized. It aims to be the No. 1 organisation in every aspect of corporate
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governance People, Products, Philosophy and Quality, Ethics, Work Culture and Partnership. It aims to create and maintain a work environment that is fun0filled, promotes excellence through responsible leadership, innovation and excellence and adheres to a code of conduct that lays emphasis on the highest ethical standards, which Airtel Brand epitomizes. Style Style of leadership or relationship refers to the manner in which the individual uses his or her talents, values, knowledge, judgment and attitudes to lead and relate to others. Style expresses the persons character. Style is the leadership approach to top management and the organisations overall operating approach; also the way in which the organizations employees present themselves to the outside world Any one decision making parameter should be studied pertaining to day-to-day operation, to conclude the style of functioning. Bharti Airtel understands the importance of partners to remain competitive in a dynamic business environment. As a step in that direction, the Supply Chain (SCM) function has been created with a mandate to develop partner relationships to maximize mutual opportunities for growth and profitability. The SCM organization has a central core team of supply chain subject mater experts and execution teams operating under different business divisions across the country. Supply Chain Philosophy At the center of Bharti Airtel's Supply Chain Philosophy is partnership and collaboration. The Supply Chain characteristics have therefore been defined using the same approach, shown in the table below.
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Fewer; Clustered
Procurement personnel
Limited
Outsourcing
Strategic
Nature of Interactions
Cooperative, positivesum
Relationship focus
Mutually-beneficial
Relationship focus
Performance
Contract length
Long-term
Pricing practices
Target costing
Price Changes
Downward
Quality
Designed-in
Delivery
Smaller (JIT)
Quantities
Inventory buffers
Minimized, eliminated
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Communication
Extensive; multi-level
Communication
Collaborative; two-way
Role in development
Substantial
Production flexibility
High
Technology sharing
Extensive
Dedicated investments
Substantial
Mutual commitment
High
Governance
Self-governing
Future Expectations
Considerable
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MARKET DEVELOPMENT: LOOKING FOR OVERSEAS MARKET , 1)BHARTI-MTN DEAL.2) OPERATING IN JERSEY (Channel Islands)UNDER AIRTEL-VODAFONE BRAND.
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System: System followed in any one department in the organization should be detailed. Inventory control system / order execution system / Merit rating system etc. Staff: Classification / Duties and responsibility of various groups of staff. Supervisory / Clerical. Shared value: Study of implementing shared value in the company by an illustration, where the company has implemented its stated objective. E.g Technical / E.g
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SWOT ANALYSIS
Following is the SWOT Analysis for AIRTEL STRENGTH WEAKNESS
Very focused on telecom. Leadership in fast growing cellular segment. Pan-India footprint. The only Indian operator, other than VSNL, that has an international submarine cable.
The fast-expanding IPLC market. Latest technology and low cost advantage. Huge market.
Competition from other cellular and mobile operaters. Saturation point in Basic telephony service
OPPORTUNITIES
THREATS
STRENGTH VERY FOCUSED ON TELECOM Bharti Airtel is largely focused on the telecom, around 93% of the total revenue comes from telecom(Total telecom revenue Rs 3,326).
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LEADERSHIP IN FAST GROWING CELLULAR SEGMENT Airtel is holding leadership position in cellular market.. Bharti Airtel is one of India's leading private sector providers of telecommunications services based on an aggregate of 27,239,757 customers as on August 31, 2006, consisting of 25,648,686 GSM mobile and 1,591,071 broadband & telephone customers. PAN INDIA FOOTPRINT Airtel offers the most expansive roaming network. Letting you roam anywhere in India with its Pan-India presence, and trot across the globe with International Roaming spread in over 240 networks. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the B&T business group provides broadband & telephone services in 92 cities. THE ONLY OPERATOR IN INDIA OTHER THAN VSNL HAVING INTERNATIONAL SUBMARINE CABLES. Airtel, the monopoly breaker shattered the Telecom monopoly in the International Long Distance space with the launch of International Submarine cable Network i2i jointly with Singapore Telecommunications Ltd. in the year 2002. This has brought a huge value to the IPLC customers, delivering them an option besides the incumbent carrier, to connect to the outside world.
WEAKNESS Price Competition from BSNL and MTNL. Airtel is tough competition from the operators like BSNL nd MTNL as these two operators are offering services at a low rate. Untapped Rural market. Although Airtel have strong Presence throughout the country but still they are far away from the Indian rural part and generally this part is covered by BSNL so indirectly Airtel is loosing revenue from the rural sector.
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OPPORTUNITIES
THE FAST EXTENDING IPLC MARKET An IPLC (international private leased circuit) is a point-to-point private line used by an organization to communicate between offices that are geographically dispersedthroughout the world. An IPLC can be used for Internet access, business data exchange, video conferencing, and any other form of telecommunication. Airtel Enterprise Services and SingTel jointly provide IPLCs on the Network i2i. The Landing Station in Singapore is managed by SingTel and by Airtel in Chennai (India). Each Landing Station has Power Feeding Equipment, Submarine Line Terminating Equipment and SDH system to power the cable, add wavelengths and convert the STM-64 output to STM-1 data streams respectively. LATEST TECHNOLOGY AND LOW COST ADVANTAGEThe costs of introducing cellular services for Airtel are marginal in nature, as it needs only to augment its cellular switch/equipment capacity and increase the number of base stations. The number of cities, towns and villages it has covered already works to its advantage as putting more base stations for cellular coverage in these areas comes with negligible marginal cost. Besides such cost advantages, it has also other cost advantages for the latest cellular technology. As a late entrant into the cellular market, it has dual advantage of latest technology with modern features, unlike other private cellular operators who started their service more than 4-5 years back and low capital cost due to advantages of large scale buying of cellular switch/equipment. HUGE MARKETThe cellular telephony market is presently expanding at a phenomenal / whopping __ rate every year and there is still vast scope for Airtel to enter /expand in this market. Besides there is a vast rural segment where the cellular services have not made much headway and many customers are looking towards Airtel for providing the service to them. With its wide and extensive presence even in the remotest areas, Airtel poised to gain a big market share in this segment when it expands cellular services into the rural areas.
THREATS
COMPETITION FROM OTHER CELLULAR It is time for BSNL to improve/expand its cellular services. Fierce and cut-throat competition is already in place with the markets ever abuzz with several tariff reductions and announcement of attractive packages, trying to grab most of the mind share of the king - the consumer, whose benefits are increasing with passing of everyday. If BSNL is not innovative and agile, its cellular service will be a flop. It needs to be proactive with attractive packaging, pricing and marketing policies lest its presence in the market be treated with disdain
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by the private cellular companies. The launch of WLL services by Reliance Infocomm has aggravated the situation.
MARKET MATURITY IN BASIC TELEPHONY SEGMENT Although Airtel entered in the basic telephony market its a biggest there for the company as the basic telephony market has reached
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ANALYSIS OF FINANCIAL STATEMENT Balance sheet Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets 10,466.63 8,439.38 5,406.81 3,338.88 2,486.31 14,466.89 14,362.33 11,042.67 7,272.80 4,708.12 -4,000.26 -5,922.95 -5,635.86 -3,933.92 -2,221.80
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1,898.24 1,897.91 1,895.93 1,893.88 1,853.37 116.22 57.63 30.00 12.13 2.72 -
51.73
52.42
266.45
2,863.37 3,959.88
7,661.92 6,517.92 5,044.36 1,932.92 1,034.41 35,355.48 26,809.71 16,751.95 12,139.72 9,525.76
37,266.70 28,115.65 26,509.93 17,951.74 13,240.63 2.13 2.13 2.13 2.13 2.13
12,253.34 9,085.00 7,204.30 4,944.86 3,475.64 25,011.23 19,028.52 19,303.51 13,004.75 9,762.86 2,566.67 2,751.08 2,375.82 2,341.25 994.46 11,777.76 10,952.85 705.82 719.70 931.90
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities 9,898.56 9,379.62 580.43 1,887.76 1,574.29 125.85 476.52 243.99 460.83 472.71 0.09 0.20 2.66 7.94 58.35
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BIBLIOGRAPHY
www.airtel.com www.airtelworld.com airtel-broadband.com www.trai.gov.in www.hindustantimes.com http://www.bhartiairtel.com/ BHARTIAIRTEL ANNUAL REPORT 2006-07,2005-06, 2004-05 http://www.blonnet.com/2007/08/10/stories/2007081051230200.htm http://www.bhartiairtel.com/1024/aboutairtel/infrastructure.asp http://www.bhartiairtel.com/1024/globalairtel/products.asp http://www.bhartiairtel.com/1024/press/press.a http://marketingpractice.blogspot.com/2006/01/bhartiairtel-1999-2005-rip.html http://en.wikipedia.org/wiki/Bharti_Airtel http://www.coolavenues.com/know/gm/bhartiairtel_1.php
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