NORTH EASTERN REGIONAL INSTITUTE OF MANAGEMENT PROJECT REPORT ON PRESENTED BY • Partha Pratim Mahanta • Utpal Rajkonwar • Omi • Nirmali • Pranjal • Pran Pratim • Parag
Bharti Airtel Limited NSE: BHARTIARTL, BSE: 532454 Airtel is an Indian telecommunications company that operates in 19countries across South Asia, Africa and the Channel Islands. It operates a GSMnetwork in all countries, providing 2G or 3G services depending upon the country ofoperation. Airtel is the fifth largest telecom operator in the world with about 230.8million subscribers across 19 countries at the end of June 2011. It is the largestcellular service provider in India, with over 169.18 million subscribers as of June2011. Airtel is the 3rd largest in-country mobile operator by subscriber base, behindChina Mobile and China Unicom. Airtel is the largest provider of mobile telephony and second largest providerof fixed telephony in India, and is also a provider of broadband and subscriptiontelevision services. It offers its telecom services under the Airtel brand and is headedby Sunil Bharti Mittal. Bharti Airtel is the first Indian telecom service provider toachieve this Cisco Gold Certification. To earn Gold Certification, Bharti Airtel had tomeet rigorous standards for networking competency, service, support and customersatisfaction set forth by Cisco. The company also provides land-line telephoneservices and broadband Internet access (DSL) in over 96 cities in India. It also actsas a carrier for national and international long distance communication services. Thecompany has a submarine cable landing station at Chennai, which connects thesubmarine cable connecting Chennai and Singapore. It is known for being the first mobile phone company in the world to outsourceeverything except marketing and sales and finance. Its network (base stations,microwave links, etc.) are maintained by Ericsson, Nokia Siemens Network andHuawei, business support by IBM and transmission towers by another company(Bharti Infratel Ltd. in India). Ericsson agreed for the first time, to be paid by theminute for installation and maintenance of their equipment rather than being paid upfront. This enabled the company to provide pan-India phone call rates of Rs.1/minute (U$0.02/minute). Call rates have come down much further.
PROFILEName: Bharti Airtel Limited.Business Description: Provides GSM mobile services in all the 22 telecom circles in India, Srilanka, Bangladesh and now in 16 countries of Africa. Provides tele media services (fixed line and broadband services through DSL) in 87 cities in India. Provides an integrated suite of Enterprise solutions, in addition to providing long distance connectivity both nationally and internationally. They also offer DTH and IPTV ServicesEstablished: July 07, 1995, as a Public Limited CompanyISIN: INE397D01024Proportionate Revenue: Rs. 169,749 million (ended June 30, 2011-Audited) Rs. 122,438 million ( ended June 30, 2010-Audited) (As per IFRS Accounts)
Proportionate EBITDA Rs. 57,058 million ( ended June 30, 2011 - Audited) Rs. 44,456 million ( ended June 30, 2010 - Audited) (As per IFRS Accounts)Shares in Issue: 3,797,530,096 as at June 30, 2011Listings: Bombay Stock Exchange Limited (BSE) National Stock Exchange of India Limited (NSE)Stock Exchange Symbol: NSE – BHARTIARTL BSE – 532454Customer Base: India & South Asia: 174,941,000 GSM mobile, 3,322,000 Tele media customers and 6,262,000 Digital TV Services (Status as on June 30, 2011) Africa: 46,306,000 GSM mobile customers. (Status as on June 30, 2011)Registered Office: Bharti Airtel Limited (A Bharti Enterprise) Bharti Crescent, 1 Nelson Mandela Road, Vasant Kunj, Phase II, New Delhi - 110 070. Tel. No.: +91 11 4666 6100 Fax No.: +91 11 4666 6411
Brand Airtel Airtel was born free, a force unleashed into themarket with a relentless and unwavering determination tosucceed. A spirit charged with energy, creativity and ateam driven “to seize the day” with an ambition tobecome the most admired telecom service providerglobally. Airtel, in just ten years of operations, rose to thepinnacle of achievement and continues to lead.As Indias leading telecommunications company, Airtelbrand has played the role of a major catalyst in Indiasreforms, contributing to its economic resurgence.Today Airtel touch peoples lives with our Mobile services,Tele media services, to connecting Indias leading 1000+corporate. Airtel also connect Indians living in USA, UKand Canada with their call home service.
Business Divisions Bharti Airtel offers GSM mobile services in all the 22-telecom circles of India and is the largest mobile service provider in the country, based on the numberof customers.The group offers high-speed broadband with thebest in class network. With fixed line services in87 cities, they help you stay in touch with yourfriends & family and keep you updated round theclock. Enterprise Services provides a broad portfolio of services to large Enterprise and Carrier customers. This division comprises of the Carrier and Corporate business unit.Enterprise Services is regarded as the trusted communications partner to Indiasleading organizations, helping them to meet the challenges of growth.Discover the magical experience of digitalentertainment with Airtel. From DVD qualitypicture and sound, the best and widest variety ofchannels and programmes to the best on-demandcontent on Airtel Live, TV viewing experience change forever with digital TV fromAirtel.
Corporate GovernanceThe board of directors of the company has an optimum mix of executive and non-executive directors, which consists of two executive and fourteen non-executivedirectors. The chairman and managing director, Mr. Sunil Bharti Mittal, is anexecutive director and the number of independent directors on the board is 50% ofthe total board strength. The independence of a director is determined on the basisthat such director does not have any material pecuniary relationship with thecompany, its promoters or its management, which may affect the independence ofthe judgment of a director. The board members possess requisite skills, experienceand expertise required to take decisions, which are in the best interest of thecompany. The composition of the board is as under: Mr. Sunil Bharti Mr. Rajan Bharti Mittal Mittal Mr. Akhil Gupta Mr. Rakesh Bharti Mittal
Ms. Chua Sock Koong Mr. N. KumarMr. Craig Ehrlich Mr. Pulak Chandan PrasadMr. Ajay Lal Mr. Tsun yan HsiehH.E. Salim Ahmed Ms. Tan Yong ChooSalimMr. Nikesh Arora Mr. Manoj KohliMr. Hui Weng Lord Evan Mervyn DaviesCheong
ORGANIZATION STRUCTUREBharti has a hierarchical organizational structure:
The Organizational structures of Airtel are as follows:
WORK CULTURE Bharti provides a friendly environment, encouraging its employees to put in their best. Hewitt-BT has ranked Bharti Tele-Ventures Limited (BTVL) 14th amongst the 25 Best Employers in India in 2003. Employees are asked to face challenges and display leadership qualities. The company is open for all hardworking and innovative telecom professionals. The training and development of employees is a priority for the company. Internal & external communication: discussion boards & information posts. Acknowledge domain expertise in a specific content area but provide general management opportunities. Mentors and Networking opportunities Support and encouragement for taking initiative and participation: gender neutral sensitivity. Job assignment with visibility to key decision makers.
Vision & promiseBy 2015 Airtel will be the most loved brand, enriching the lives of millions."Enriching lives means putting the customerat the heart of everything we do. We will meettheir needs based on our deep understanding of their ambitions, wherever they are. Byhaving this focus we will enrich our own livesand those of our other key stakeholders. Only then will we be thought of as exciting, innovation, on their side and a truly world class company."
PROFILE OF THE LEADER (CEO) Sanjay Kapoor Chief Executive Officer Bharti Airtel Ltd. (India & South Asia) Sanjay Kapoor has over 26 years of professional experience, 13 years ofwhich have been in the telecommunications sector. Sanjay Kapoor joined the Bharti Group in 1998 and since then has held anumber of senior management positions across businesses. He started his journeyin Bharti at Bharti Cellular Ltd. which had the license for Delhi circle - at that time themainstay of Bharti’s mobile operations, from where he moved on to become theprincipal architect of the company’s operations in western India - one of the largesttelecom projects in the history of telecommunications in the country. Aftersuccessfully rolling out and launching the new operations, Sanjay Kapoor took therole of Group Director – Corporate Strategy and Planning in 2002, covering all thetelecom activities of Bharti Airtel Ltd. during which he created a strategic blueprint forthe telecom group and managed its early deployment. In 2003, Sanjay accepted theposition of President and of TeleTech Services (India) Ltd. and established thecompany as a recognized player in the countrys burgeoning ITES-BPO landscape. Early in March 2006 Sanjay Kapoor was made responsible for managing thegrowth of the largest mobile services company in India, in the capacity of Presidentof Bharti Airtel’s Mobile Services. During his tenure, the mobile business scalednewer heights and added more than 70 Mn customers to reach over 93 Mncustomers in March 2009, gaining an incremental market share of nearly 4% duringthis period. As a part of strategic organizational changes for future growth, in mid-March 2009 Sanjay was elevated from President – Mobile Services to a newlycreated position of Deputy CEO and was asked to lead all the consumer orientedbusinesses - Mobile, Telemedia and Digital TV at Bharti Airtel Limited, whichconstitute around 90% of company’s overall revenues.
Sanjay Kapoor advanced to his current position of CEO (India and SouthAsia), Bharti Airtel w.e.f March 2010. In this role, Sanjay has the end-to-endresponsibility of leading India and South Asia businesses of Bharti Airtel and ofdriving growth and business synergies across business units - Mobile Services,Telemedia Services, Enterprise Services and DTH services. As the CEO of country’s largest private integrated telecom operator, Sanjayhas spearheaded significant business transformations like the launch of airtel’s newglobal identity; integration of SriLanka and Bangladesh operations with rest of SouthAsia; implementation of Shared Services model for the networks group and thecustomer services division to bring about synergies at One airtel level;commencement of airtel’s prestigious partnership with SBI for mobile commerce andthe launch of airtel’s first ever Employer Brand –“jobs never done before.” Under hisable leadership airtel is well poised to lead the next wave of growth in telecom fromvoice to data. For more than 13 years he has played an active role in various industryforums like CII and NASSCOM. He currently serves as a Board member of GSMA,member of CII National Council and Chairman of the Cellular Operators Associationof India (COAI). Sanjay is also on the Board of Indus Towers, world’s largest telecomtower company with a portfolio of more than 1 lakh towers. Prior to joining the Bharti Group, Sanjay worked with Xerox India as Director -Operations Support. He spent 14 years with the global document managementcompany, handling a range of key portfolios, ranging from Sales & Marketing toGeneral Management functions. Sanjay Kapoor commenced his professional career in 1983 as an executivetrainee with Jay Engineering Works Ltd., India’s largest manufacturers of fans andsewing machines. Sanjay Kapoor holds a Bachelor’s degree in Commerce (Hons) from DelhiUniversity, an MBA from Cranfield School of Management (UK) and is a Graduate ofThe Wharton Advanced Management Program.
AWARDS and RECOGNITIONSEconomic Times Telecom Awards 2011 Innovative Product Value Added Service Customer Experience EnhancementFrost & Sullivan 2011 Asia Pacific ICT Awards Enterprise Telecom Service Provider of the Year Wholesale Data Service Provider of the year Mobile VAS Provider of the YearIndia‟s Most Innovative company - Wall Street JournalTelecom Operator award 2011 - Won in 5 categories. Most Admired company Best National Mobile operator Operator with Rural performance Best VAS provider Best Enterprise servicesDSCI Excellence Award 2011 for Security in Telecom- „Security Leaderof the YearBharti Airtel rated as India‟s Best Enterprise Connectivity Provider-Users choice award Instituted by PC QuestSunil Bharti Mittal : – Global Game changer at Economic Times TelecomAwards 2011Global Telecom Leader - Voice & Data magazineAkhil Gupta, Deputy Group CEO and MD - CFO India Hall of Fame byCFO IndiaManoj Kohli, CEO( International) & Joint MD - Telecom Man of the year -Tele.netBusiness world – FICCI – SEDF Corporate Social Responsibility Awards2009-10