Opportunity for Cost Reduction: An analysis with special reference to Bharti Airtel Nesa. Its a final presentation given on MBA curriculum of Dibrugarh University. For full project report with Synopsis, you can mail me at partha89.mahanta@gmail.com

1. PRESENTED BY
Partha Pratim Mahanta
MBA 4th Semester
Roll No. 83/11
OPPORTUNITY FOR COST REDUCTION: AN
ANALYSIS WITH SPECIAL REFERENCE TO OPEX
AT BHARTI AIRTEL LIMITED, NESA CIRCLE

2. INTRODUCTION
TITLE OF THE PROJECT
Opportunity for Cost Reduction: An analysis
with special reference to OPEX at Bharti
Airtel Limited, NESA
ORGANISATION
Bharti Airtel Limited, NESA
Bharti House
6-Mile Khanapara, Guwahati-
781022
ORGANISATIONAL GUIDE
Pankaj Kumar,
DGM (Finance), NESA
INSTITUTIONAL GUIDE
Jyotish Barmah Deka
Assistant
Professor,NERIM

3. RESEARCH METHODOLOGY
RESEARCH TYPE
Analytical Research
RESEARCH DESIGN
Descriptive Research
Design
SOURCES OF DATA
PRIMARY DATA
• Schedules
• Unstructured Interviews
SECONDARY DATA
• General Ledger Report
• Annual Report
• Broachers & in-house magazines
• Journals
• Websites
STATISTICAL TOOL USED
• Tabulation
• Cross Tabulation
• Line Diagram
• Sub-divided Bar Diagram
• Pie-Charts
LIMITATIONS OF THE STUDY
1. Due to restrictions in the organization could access to a limited numbers
of documents.
2. Non-proficiency in technical aspects of financial work in
telecommunication companies might have hindered the research work.
3. Due to limited time could not study the all heads of OPEX individually.
4. Chances of some biasness could not be eliminated.
STATEMENT OF THE PROBLEM
1. Bharti Airtel Limited establish a fixed OPEX budget mechanism.
2. There is a provision of revising the budget in NESA circle as per
the company procedure as well.
3. In NESA, during the period of the study (1st Jan to 31st Dec 2012)
no revised budget was done.
4. They rather stick to a fixed OPEX budget.
5. This study was undertaken to finding out the scope for cost
reduction in OPEX under the principle of fixed budget
mechanism.

4. OBJECTIVES OF THE STUDY
To study the different heads of OPEX
To study the different areas of cost reduction
To study the scope for reduction in an OPEX
To examine the trend of OPEX in different
departments and zones during the period
(January 2012-December 2012)

5. FINDINGS
In Bharti Airtel Limited, NESA circle there are total 12 heads of OPEX.
• Accounting expenses
• License fees expenses
• Maintenance & repairs
expenses
• Advertising expenses
• Office expenses
• Utilities expenses
• Domestic travelling expenses,
• International travelling expenses,
• Conveyance expenses
• Network expenses
• Meeting & conferences expenses
• Marketing expenses
In Bharti Airtel Limited, NESA circle there are total 11 Departments.
• Business Head Department
• HR Department
• SCM Department
• Finance Department
• Legal Department
• IT Department
•Marketing Department
• Sales Department
• CSD Department
• Retail Department
• OE Department
There is a scope for cost reduction for domestic
travelling expenses in business
head, SCM, finance, legal, sales, CSD, retail and in OE
department. Analysis

6. FINDINGS
There is a scope for cost reduction for conveyance
expenses in legal, sales, CSD and retail departments.
Analysis- 2
For meeting and conferences expenses, the budgeted
amount is sufficient. So, there is no scope for cost
reduction for meeting and conferences expenses for all
these departments. Analysis-3
• The domestic travelling expenses shows the inclined
trend.
• In conveyance expenses it shows the fluctuated trend.
• In meeting & conferences expenses, it shows the
diminishing trend. Analysis
The trend of OPEX heads over the zones of NESA
circle shows that the maximum employees
belonging to Circle office incurred all the three
OPEX heads expenses. Analysis-4

7. SUGGESTIONS
The budget for OPEX head should be made according to the needs of the
department. The monthly equal distribution of the budget should be avoided.
The advance booking of train, air or hotel should be implemented, so that
organization can be avail benefit of advance booking.
The structure of pay-band allowance of employees should be restructured.
The staff should minimize air travel wherever possible. It will reduce
domestic travelling expenses in some extent.
Encouraging employees to be more cost-conscious while travel can
have positive effects, both financially and in other ways.
Implementation of audio and video conferencing mode for meetings
and conferences may be proved ideal.

8. CONCLUSION
It is believed that cost controlled is cost reduction; more so, if it is related to
OPEX cost in any organization.At Bharti Airtel, NESA, this study reveals that, its management give utmost
care for OPEX control and its effective management; so that elements in
OPEX cost does not stands as barriers for proper functioning of various
cost centers in managing sales and profitability.It is found that the present methodology of OPEX management has scope
for improvement besides the everlasting solution is only in continuous
scaling and measurement of such head of expenditure can bring
permanent solution to address the issue.

10. Examining the trends of Domestic travelling
expenses (on yearly basis)
-15
-10
-5
0
5
10
15
20
BusinessHead
HR
SCM
Finance
Legal
IT
Marketing
Sales
CSD
Retail
OE
PERCENTAGEcHANGE
DEPARTMENTS
Departments Percentage of Change
(%)
Business Head
1.39
HR
(12.94)
SCM
0.45
Finance
2.78
Legal
4.29
IT
(4.79)
Marketing
(0.16)
Sales
17.08
CSD
0.34
Retail
7.47
OE
7.53BACK

11. Examining the trends of Conveyance expenses
(on yearly basis)
Departments Percentage of Change
(%)
HR
(3034.79)
SCM
(121.82)
Finance
(0.91)
Legal
1.57
IT
(3034.79)
Marketing
(144.37)
Sales
6.57
CSD
14.99
Retail
20.12
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
HR
SCM
Finance
Legal
IT
Marketing
Sales
CSD
Retail
PERCENTAGEcHANGE
DEPARTMENTS
BACK

12. Examining the trends of Meeting & Conferences expenses
(on yearly basis)
Departments Percentage of Change (%)
Business Head
(300.00)
HR
(13.40)
Finance
(143.90)
Legal
(39.07)
IT
(94.62)
CSD
(257.14)
-350
-300
-250
-200
-150
-100
-50
0
BusinessHead
HR
SCM
Finance
Legal
IT
Marketing
Sales
CSD
Retail
OE
PERCENTAGEcHANGE
DEPARTMENTS
BACKFINDINGS

13. Examining the trends of Domestic Travelling expenses
on the basis of zone
Zones Total Expenses
(in Rs.)
Percentage (%)
Circle Office 3938424 60.24
Guwahati 496452 7.59
NES 1 146047 2.23
NES 2 718735 10.99
Upper
Assam 1238435 18.94
Total 6538093 100.00
BACKFINDINGS

14. Examining the trends of Conveyance expenses
on the basis of zone
Zones Total Expenses
(in Rs.)
Percentage (%)
Circle Office 1074562 36.89
Guwahati 844075 28.98
NES 1 488393 16.77
NES 2 393897 13.52
Upper
Assam 111838 3.84
Total 2912764 100.00
BACKFINDINGS

15. Examining the trends of Meeting & Conferences expenses
on the basis of zone
Zones Total Expenses
(in Rs.)
Percentage (%)
Circle Office 173048 100.00
Total 173048 100.00
BACKFINDINGS