BHARTI AIRTEL

Submitted by Mrinal Tirodar

107
 OVERVIEW
Bharti was founded by Mr Sunil Bharti Mittal in
the year 1976
Bharti has grown from being a manufacturer of
cycle parts to a world-class businesses in
telecom, insurance, retail, and foods.
Bharti started its telecom services business by
launching mobile services in Delhi (India) in 1995.
Bharti group operates under the Airtel brand in
20 countries across Asia and Africa.
Airtel is amongst the top four wireless operators
in the world and the largest telecom company in
India.
 OVERVIEW
Some of biggest names in international business
who have partnered Bharti are SingTel, Qatar
Foundation Endowment, IBM,Ericsson, Nokia
Siemens and Alcatel-Lucent are key partners in
telecom.
AXA Group is the partner for the insurance
business and Del Monte Pacific for the processed
foods division.
Bharti strongly believes in giving back to the
society and through its philanthropic arm the
Bharti Foundation it is reaching out to over
39,000 underprivileged children and youth in
India.
 GROUP COMPANIES
Bharti AXA General Insurance
Bharti AXA Life Insurance
Bharti Infratel Limited.
Bharti Realty Limited
Bharti Retail
Bharti SoftBank Holdings Pte. Ltd
Beetel
FieldFresh Foods Pvt. Ltd
Indus Towers
 INDIAN TELECOMMUNICATION
SECTOR
Since 1990, Indian telecom industry has undergone
a rapid pace of growth and liberalisation.
It has become one the most competitive and
fastest growing telecom industry in the world.
India has the worlds second largest mobile phone
user base with over 933 million users.
It has the worlds third largest internet user base
with over 198 million users.
Telephones, internet and television broadcast
industry are the major sectors of Indian telecom
industry.
 INDIAN TELECOMMUNICATION
SECTOR
The rural-urban digital divide has been reduced to
some extent by the Indian telecom industry.
The transparency has also been increased with
the introduction of e-governance.
 SWOT ANALYSIS
STRENGTHS
Largest operator in the country having second
largest population in the world
Present in 19 other countries
Recognized globally
Technology, infrastructure and skilled manpower
Strong brand image
 SWOT ANALYSIS
WEAKNESSES
Weak outsourcing strategy
Network coverage
Inadequate infrastructure in rural areas
 SWOT ANALYSIS
OPPORTUNITIES
India continues to be the largest growing market in
the world and provides ample opportunities for
telecom majors to expand services, especially in
rural areas.
Mandatory digitisation of cable television across
the country
Mobile number portability
The telemedia services provide a huge opportunity
to Airtel to foray into different telemedia services
and expand and diversify its services
 SWOT ANALYSIS
THREATS
Steadily decreasing market share
Increasing number of competitors
Mobile number portability, a double edged sword
Regulatory stringency
 PRODUCTS
Mobile telephony
Internet services
Broadband
Digital televisions
 COMPETITOR ANALYSIS
Top 3 competitors of Bharti Airtel
telecommunication are
Vodafone
Idea cellular
R-com
 MARKET SHARE
MARKET SHARE
AIRTEL
VODAFONE
IDEA
R-COM
7.5 30.8% TTSL
% BSNL/MTNL
7.6% AIRCEL
UNINOR
SISTEMA SHYAM
16.2%
23.3% LOOP
HFCL
RETAIL EXPANSION PLAN
Bharti Airtel has opened its 100 retail stores in India
in last 14 months which are owned and operated by
itself, in order to provide best service experience to
customers
The stores employ over 1,000 staff members
The new stores also has outlets which will be
managed only by women to focus on the needs of
addressing to the needs of female across the
country
A one-stop-shop for all customer needs, the stores
also offer a collection of devices including phones
and tablets
 FINANCIAL POSITION
PARTICULARS 2014 2013 2012
(RS. MILLION) (RS. MILLION) (RS. MILLION)
SALES 4,99,185.00 4,53,509.00
4,16,038.00
TURNOVER
OTHER INCOME 8,534.00 14,631.00 6,247.00
TOTAL INCOME 5,07,719.00 4,68,140.00 4,22,285.00
TOTAL 3,36,197.00 3,18,802.00 2,79,601.00
EXPENSES
OPERATING 1,71,522.00 1,49,338.00
1,42,684.00
PROFIT
GROSS PROFIT 1,56,087.00 1,32,815.00 1,36,437.00
INTEREST 13,364.00 16,523.00 13,962.00
PBDT 1,42,723.00 1,16,292.00 1,28,722.00
DEPRECIATION 0.00 0.00 0.00
PBT 83,774.00 64,548.00 69,562.00
TAX 17,772.00 13,585.00 12,262.00
 FUTURE OUTLOOK
Bharti Airtel launched 4G on mobiles inBangalore, thus
becoming the first in India to offer such a service on 14th Feb,
2014
Bharti Airtel in July 2014, expanded 4G services to many cities
inPunjablikeAmritsar,Hoshiarpur,Ajitgarh,Ludhiana,Jalandha
r,PhagwaraandKapurthala
4G will allow Airtel to offer new services such as high speed
mobile Internet, video-telephony and music downloads and will
help accelerate the growth opportunities
India is set to witness entry of new players in the mobile
services market. These players are most likely to focus on the
rural segment for their subscriber base
The incumbent operator advantage should hold Bharti Airtel in
good stead. The company is well positioned to expand its
network in the remote areas of the country