A Project Report onBharti Airtel LimitedPrepared byDeep Jyoti DasCUN110501021
Introduction• Bharti Airtel Limited, commonly known as Airtel.• Airtel is an Indian telecommunications company that operates in 20countries across South Asia, Africa and the Channel Islands.• It operates a GSM network in all countries, providing 2G or 3G services.• Airtel is the 4th largest telecom operator in the world.• 230.8 million subscribers across 19 countries.• The largest cellular service provider in India, with over 171.85 millionsubscribers.• Airtel is the 3rd largest in-country mobile operator by subscriberbase, behind China Mobile and China Unicom.• It offers its telecom services under the Airtel brand and is headedby Sunil Bharti Mittal.
History• Sunil Bharti Mittal founded the Bharti Group.• In 1986, Sunil Bharti Mittal incorporated Bharti Telecom Limited (BTL)and his company became the first in India to offer push-buttontelephones, establishing the basis of Bharti Enterprises.• In 1990s, Sunil Mittal had also launched the countrys first fax machinesand its first cordless telephones.• In 1992, Sunil Mittal won a bid to build a cellular phone network in Delhi.• In 1995, Sunil Mittal incorporated the cellular operations as Bharti Tele-Ventures and launched service in Delhi.• In 1996, cellular service was extended to Himachal Pradesh.• In 1999, Bharti Enterprises acquired control of JT Holdings, andextended cellular operations to Karnataka and Andhra Pradesh.
Continued…• In 2000, Bharti acquired control of Skycell Communications, in Chennai.• In 2001, the company acquired control of Spice Cell in Calcutta. BhartiEnterprises went public• In 2002, and the company was listed on Bombay Stock Exchange andNational Stock Exchange of India.• In 2003, the cellular phone operations were rebranded under the singleAirtel brand.• In 2004, Bharti acquired control of Hexacom and entered Rajasthan.• In 2005, Bharti extended its network to Andaman and Nicobar.• In 2009, Airtel launched its first international mobile network in SriLanka.• Today, Airtel is the largest cellular service provider in India and fifthlargest in the world.
Worldwide PresenceAirtel is the 5th largest mobileoperator in the world in terms ofsubscriber base.Has a commercial presence in20 countries and the ChannelIslands.Airtel Bangla, in BangladeshAirtel, in IndiaAirtel Sri Lanka, in Sri LankaAirtel Africa, which operates in16 African countries
Subscriber Base• Bharti Airtel has about 230.8 millionsubscribers worldwide.• 169.18 million in India.• 46 million are in Africa.• 4 million in Bangladesh.• 1.8 million in Sri Lanka76%21%2% 1%Subscribers Worldwide (in million)IndiaAfricaBangladeshSri Lanka
India31%10%26%11%11%11%Metro City SubscribersHyderabadChennaiDelhiMumbaiKanpurKolkata
“A” Circle29%11%27%15%18%Subscribers (in million)Andhra PradeshGujaratKarnatakaMaharashtraTamil Nadu
Sunil Bharti Mittal• Founder, Chairman and Group CEO ofBharti Enterprises• Sunil Bharti Mittal is an Indian telecommogul, philanthropist.• Son of Sat Paul (former MP) and Lalita.• Padma Bhushan in 2007, from thePresident of India.• Indias third highest civilian honor.
Strength• It is the largest cellular provider in India, andalso supplies broadband and telephoneservices - as well as many othertelecommunications services to both domesticand corporate customers.• Other stakeholders in Bharti Airtel includeSony-Ericsson, Nokia - and Sing Tel, withwhom they hold a strategic alliance. Thismeans that the business has access toknowledge and technology from other parts ofthe telecommunications world.• The company has covered the entire Indiannation with its network. This has underpinnedits large and rising customer base.
Weakness• An often cited original weakness is thatwhen the business was started by SunilBharti Mittal over 15 years ago, thebusiness has little knowledge andexperience of how a cellular telephonesystem actually worked. So the start-upbusiness had to outsource to industryexperts in the field.• Until recently Airtel did not own its owntowers, which was a particular strength ofsome of its competitors such as HutchisonEssar. Towers are important if yourcompany wishes to provide wide coveragenationally.• The fact that the Airtel has not pulled off adeal with South Africas MTN could signalthe lack of any real emerging marketinvestment opportunity for the businessonce the Indian market has becomemature.
Opportunities• The company possesses a customized version of theGoogle search engine which will enhance broadbandservices to customers. The tie-up with Google can onlyenhance the Airtel brand, and also provides advertisingopportunities in Indian for Google.• Global telecommunications and new technology brandssee Airtel as a key strategic player in the Indian market.The new iPhone will be launched in India via an Airteldistributorship. Another strategic partnership is held withBlackBerry Wireless Solutions.• The company is investing in its operation in 120,000 to160,000 small villages every year. It sees that less well-off consumers may only be able to afford a few tens ofRupees per call, and also so that the business benefitsare scalable - using its Matchbox strategy.• Bharti Airtel is embarking on another joint venture withVodafone Essar and Idea Cellular to create a newindependent tower company called Indus Towers. Thisnew business will control more than 60% of Indiasnetwork towers. IPTV is another potential new servicethat could underpin the companys long-term strategy.
Threats• Airtel and Vodafone seem to be having an on/offrelationship. Vodafone which owned a 5.6% stake inthe Airtel business sold it back to Airtel, and insteadinvested in its rival Hutchison Essar. Knowledge andtechnology previously available to Airtel now movesinto the hands of one of its competitors.• The quickly changing pace of the globaltelecommunications industry could tempt Airtel to goalong the acquisition trail which may make itvulnerable if the world goes into recession. Perhapsthis was an impact upon the decision not to proceedwith talks about the potential purchase of SouthAfricas MTN in May 2008. This opened the door fortalks between Reliance Communications Anil Ambaniand MTN, allowing a competing Indian industrialist toinvest in the new emerging Africantelecommunications market.• Bharti Airtel could also be the target for the takeovervision of other global telecommunications players thatwish to move into the Indian market.
Financial Status-10,000.000.0010,000.0020,000.0030,000.0040,000.0050,000.0060,000.00Mar 07 Mar 08 Mar 09 Mar 10 Mar 11Net worth 11,443.27 20,241.49 27,643.97 36,737.18 44,111.60Total Liabilities 16,754.08 26,811.83 35,357.62 41,776.10 56,009.10Investments 705.82 10,952.85 11,777.76 15,773.32 11,813.00Net Current AssTotal Assetsets -5,635.86 -5,922.94 -4,000.26 -3,616.91 -3,002.30Total Assets 16,754.07 26,811.84 35,357.62 41,776.12 56,009.10Rs.inCr.Balance Sheet
Mar 07 Mar 08 Mar 09 Mar 10 Mar 11Total Income 17,987.30 25,874.20 32,791.86 36,693.09 38,241.20Total Expenses 10,621.14 15,107.75 20,837.93 21,608.29 24,597.30Operating Profit 7,260.54 10,662.41 13,215.68 13,966.34 13,425.70Reported Net Profit 4,033.23 6,244.19 7,743.84 9,426.15 7,716.900.005,000.0010,000.0015,000.0020,000.0025,000.0030,000.0035,000.0040,000.0045,000.00Rs.icCr.Profit & Loss Account
Mar 07 Mar 08 Mar 09 Mar 10 Mar 11Net Profit Before Tax 4601.37 6972.54 8161.54 10699.25 8725.8Net (decrease)/increase In Cash and CashEquivalents 473.03 -290.53 286.77 -448.35 -213.1-2000020004000600080001000012000Rs.inCr.Cash Flow
Marketing Strategy• Segmentation• Long Term Outlook• Product Innovation• Quality Strategy• Heavy Advertising• Effective Sales Promotion• Customer care
Future Strategies to retain its market share• New tariff plans.• More value added services.• Increase in visibility and coverage.• New innovative packages.• More of the e-factor.
New Challenges• Vodafone’s entry in Indian telecommarket posed 1st real threat toBharti Airtel Limited ’s supremacy.• Vodafone planned to invest $2billion to establish and introducenew 3G technologies.• Vodafone entry increasedcompetition and better service tocustomer
Countering The Threats• Advertising Strategy- ‘Kuch Bandhan atoot hote hain…’- ‘Barriers break when people talk’- ‘Har friend zaroori hai, yaar..’
• Invest maximum time andeffort to serve these customers• Communicate frequently,respond promptly in case ofissues• Milk these accounts aslong as they are active• The Key is to recognizewhen to stop investing inthe relationship• Do not invest in thesecustomers• Maximize the profit oneach transactionCustomer GroupingsPeriod of AssociationCustomerProfitabilityTrue FriendsBarnaclesStrangersButterflies• Analyze the size ofpotential business• Cross sell if potential islarge; else minimizeinvestment
Suggestion & Recommendation• Few outlets are unaware about scheme soproper communication is necessarybetween distributor and retailers.• Number of hoarding should be increased.• Company should be lenient in IDverification procedure.• The brands must be made available easilyin, PCO & general stores.• Company must undertake extensivepromotional activities like advertisementsmust be released in different Medias tocreate brand awareness.• Sales promotion tools like gifts, contestsand coupons must be given to retailers aswell as customers and prospects.• Catalogues should be distributed amongcustomers.• Price should be as competitive as othercompany maintains.• Distribution of new connection should be inreach of customer pocket