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G ro u p - V I

Bharti Group - Overview

• Asia’s leading integrated telecom services


provider
• Largest Telecom player in India with 24%
market share
• Indian telecom subscriber increasing by 8-
9 mn/month on average with total
around 400mn currently
• Stru ctu re d in to fo u r stra te g ic b u sin e ss
u n its - M o b ile , Te le m e d ia , E n te rp rise a n d
D ig ita lT V

Performance
Heading FY’05 FY’ 06 FY’ 07 FY’ 08 FY’ 09

Net Revenue from Operations 7944.19 11290.58 17887.99 25939.37 34155.03

Net Profit/Loss Before Tax 1564.27 2285.8 4601.37 6972.54 8161.53


Group Companies

Bharti AirTel Bharti TeletechTelecom Comviva Tech


Seychelles Ltd
FieldFresh Bharti Retail Bharti AXA Bharti AXA
Food General Life Insurance
Insurance

Bharti AXA Centum Jursey Airtel Guernsey


Investment Learning Ltd Airtel
Managers

Bharti Bharti Realty Bharti Infratel


Foundation
Mobile services
•G ro w th ra te s w e re d o w n fro m
th e p re vio u s q u a rte r
•R e a so n is in cre a se d
co m p e titio n a n d ta riff w a rs.
•In d ia 's te le co m re g u la to r,
Te le co m R e g u la to ry A u th o rity o f
In d ia ( T R A I), h a s re p o rte d a
d e clin e in A R P U ( a ve ra g e
re ve n u e p e r u se r) a n d
u tiliza tio n b y co n su m e rs a cro ss
se rvice p ro vid e rs fro m th e first
q u a rte r o f th is ye a r

Fixed Line

xed lines decline as mobile use surges

Rising affordability of mobile services

Impact of new entrants in 2G and 3G


DTH

arket which began commercial


ons in 2003 has been able to
over 12 Million subscribers during the past five years

M arket Share
major reason for this may be the late entry of Airtel
4%
into the market which is
8%
DD DTH
35 %
1 6% Dish TV
Tata Sky
17 % Su n DTH
2 0% Big DTH
Airtel DTH
Broadband

e first telecom providers to bring broadband connection to India

Competition with BSNL


Bharti Retail

etail Ltd. is a wholly owned subsidiary of Bharti Enterprises

Tie up with Wall Mart

cilities over 7 years and would employ 5,000 people. Each store would occupy 50,000

Joint partnership in agri company FieldFresh


Bharti AXA Life Insurance
Company

joint venture between Bharti Enterprises and AXA

nge of life insurance and wealth management products

ccrued a loss of Rs.15.5 Crores in the 2009

ccrued a loss of Rs.15.5 Crores in the 2009

ccrued a loss of Rs.15.5 Crores in the 2009


Contribution of Revenue
Segment Revenue FY Comparison

Rs. Million FY08 FY09 %Change

Mobile 217861 303601 39%

Telemedia 28484 33517 18

Enterprise - Corporate 13217 16945 28

Others 2431 42489 1648

Passive Infrastructure Services 6023 3611 -40

Sub total Revenue 311186 468100 50

Less Intersegment Eliminations 40936 98485 141

Total Revenue 270250 369615 37


Strategy of Bharti Group

Acquisition Strategy

Company has acquisition strategy to extend


its fixed and cellular footprint from north
and central India to south India.
Global presence like in Srilanka
,Seychelles .Attempt to acquire MTN to to
gain entry through a company already
operating in 21 African nations.

Concentration on Core Competencies

Bharti's strength is brand


management, people management and
customer management
Bharti Group-BCG Matrix
SBU Major Market Share of RMS Log Market Revenue
Competitors Transfer Growth (in Rs. Cr)
(Approx)
SBU Competitor

Airtel Reliance 23.65% 18.3% 1.29 1.462 7% 36,962


Teleservices

Airtel DTH DD Direct 4% 35% 0.115 -.942 38.9% 25694

Bharti BSNL Broadband 3.62% 54% 0.067 -1.173 16% 36291


Broadband

Bharti AXA LIC 1.1% 62.45% 0.018 -1.754 33% 362

Bharti Retail Pantaloon 0.07% 54.6% 0.0013 -2.892 35% 236


Bharti Group-BCG Matrix
SWOT Analysis
Strength Weakness
•Over 100mn users •Till recently did not own mobile towers

•Largest Service provider in India •Failure of MTN deal will signal no real

•Strong Pan India presence market investment


•Strategic alliance with Syntel, Nokia and •Data services not delivering on its high

Sony gives them access to best global expectations


technologies

Opportunities Threats
•Strategic partenership with Blackberry •Presence of close and strong competitors

•Focus on expanding business in rural areas •Increasing comeptition from GSM &

•Tie up with other companies in “Indus CDMA


Towers” •Potential entry of global players
Growth Areas:
•Airtel looking at rural marketing as long term growth segment
•Gearing up to increase revenue share from VAS (Value Added Services) and
applications
•Value Added Services

Growth Limiters :
•Reaching Industry Limit – Teledensity expected to reach 51% by 2012
•Very high competition, especially on pricing front
•Falling Margins
•Failure of MTN deal
Recommendations
• This over reliance on few sectors should be reduced
through more focus on growth potential sectors like
Insurance and Retail
• It should also go for a very aggressive growth in Latin
American and African markets
• Bharti should use its strength of large network to promote
its other SBUs like insurance, DTH and broadband
• Improving the quality of DTH and changing its brand name
• To develop core competency in segments like fixed lines
telephones and broadband.