A Project Report on
Bharti Airtel Limited
Prepared by
Deep Jyoti Das
CUN110501021
Introduction
• Bharti Airtel Limited, commonly known as Airtel.
• Airtel is an Indian telecommunications company that operates in 20
countries 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 million
subscribers.
• Airtel is the 3rd largest in-country mobile operator by subscriber
base, behind China Mobile and China Unicom.
• It offers its telecom services under the Airtel brand and is headed
by 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-button
telephones, establishing the basis of Bharti Enterprises.
• In 1990s, Sunil Mittal had also launched the country's first fax machines
and 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, and
extended 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. Bharti
Enterprises went public
• In 2002, and the company was listed on Bombay Stock Exchange and
National Stock Exchange of India.
• In 2003, the cellular phone operations were rebranded under the single
Airtel 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 Sri
Lanka.
• Today, Airtel is the largest cellular service provider in India and fifth
largest in the world.
Worldwide Presence
Worldwide Presence
Airtel is the 5th largest mobile
operator in the world in terms of
subscriber base.
Has a commercial presence in
20 countries and the Channel
Islands.
Airtel Bangla, in Bangladesh
Airtel, in India
Airtel Sri Lanka, in Sri Lanka
Airtel Africa, which operates in
16 African countries
Subscriber Base
• Bharti Airtel has about 230.8 million
subscribers worldwide.
• 169.18 million in India.
• 46 million are in Africa.
• 4 million in Bangladesh.
• 1.8 million in Sri Lanka
76%
21%
2% 1%
Subscribers Worldwide (in million)
India
Africa
Bangladesh
Sri Lanka
India
31%
10%
26%
11%
11%
11%
Metro City Subscribers
Hyderabad
Chennai
Delhi
Mumbai
Kanpur
Kolkata
“A” Circle
29%
11%
27%
15%
18%
Subscribers (in million)
Andhra Pradesh
Gujarat
Karnataka
Maharashtra
Tamil Nadu
“B” Circle
3%
6%
15%
11%
21%
20%
10%
14%
Subscribers (in million)
Haryana
Kerala
Madhya Pradesh
Punjab
Rajasthan
Uttar Pradesh (East)
Uttar Pradesh (West)
West Bengal
“C” Circle
10%
52%6%
7%
6%
19%
Subscribers (in million)
Assam
Bihar
Himachal Pradesh
Jammu and Kashmir
North Eastern States
Orissa
Telecom Operators in India
Organizational Structure
Sunil Bharti Mittal
• Founder, Chairman and Group CEO of
Bharti Enterprises
• Sunil Bharti Mittal is an Indian telecom
mogul, philanthropist.
• Son of Sat Paul (former MP) and Lalita.
• Padma Bhushan in 2007, from the
President of India.
• India's third highest civilian honor.
SWOT Analysis
Strength
• It is the largest cellular provider in India, and
also supplies broadband and telephone
services - as well as many other
telecommunications services to both domestic
and corporate customers.
• Other stakeholders in Bharti Airtel include
Sony-Ericsson, Nokia - and Sing Tel, with
whom they hold a strategic alliance. This
means that the business has access to
knowledge and technology from other parts of
the telecommunications world.
• The company has covered the entire Indian
nation with its network. This has underpinned
its large and rising customer base.
Weakness
• An often cited original weakness is that
when the business was started by Sunil
Bharti Mittal over 15 years ago, the
business has little knowledge and
experience of how a cellular telephone
system actually worked. So the start-up
business had to outsource to industry
experts in the field.
• Until recently Airtel did not own its own
towers, which was a particular strength of
some of its competitors such as Hutchison
Essar. Towers are important if your
company wishes to provide wide coverage
nationally.
• The fact that the Airtel has not pulled off a
deal with South Africa's MTN could signal
the lack of any real emerging market
investment opportunity for the business
once the Indian market has become
mature.
Opportunities
• The company possesses a customized version of the
Google search engine which will enhance broadband
services to customers. The tie-up with Google can only
enhance the Airtel brand, and also provides advertising
opportunities in Indian for Google.
• Global telecommunications and new technology brands
see Airtel as a key strategic player in the Indian market.
The new iPhone will be launched in India via an Airtel
distributorship. Another strategic partnership is held with
BlackBerry Wireless Solutions.
• The company is investing in its operation in 120,000 to
160,000 small villages every year. It sees that less well-
off consumers may only be able to afford a few tens of
Rupees per call, and also so that the business benefits
are scalable - using its 'Matchbox' strategy.
• Bharti Airtel is embarking on another joint venture with
Vodafone Essar and Idea Cellular to create a new
independent tower company called Indus Towers. This
new business will control more than 60% of India's
network towers. IPTV is another potential new service
that could underpin the company's long-term strategy.
Threats
• Airtel and Vodafone seem to be having an on/off
relationship. Vodafone which owned a 5.6% stake in
the Airtel business sold it back to Airtel, and instead
invested in its rival Hutchison Essar. Knowledge and
technology previously available to Airtel now moves
into the hands of one of its competitors.
• The quickly changing pace of the global
telecommunications industry could tempt Airtel to go
along the acquisition trail which may make it
vulnerable if the world goes into recession. Perhaps
this was an impact upon the decision not to proceed
with talks about the potential purchase of South
Africa's MTN in May 2008. This opened the door for
talks between Reliance Communication's Anil Ambani
and MTN, allowing a competing Indian industrialist to
invest in the new emerging African
telecommunications market.
• Bharti Airtel could also be the target for the takeover
vision of other global telecommunications players that
wish to move into the Indian market.
Financial Status
-10,000.00
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
Mar '07 Mar '08 Mar '09 Mar '10 Mar '11
Net worth 11,443.27 20,241.49 27,643.97 36,737.18 44,111.60
Total Liabilities 16,754.08 26,811.83 35,357.62 41,776.10 56,009.10
Investments 705.82 10,952.85 11,777.76 15,773.32 11,813.00
Net Current AssTotal Assetsets -5,635.86 -5,922.94 -4,000.26 -3,616.91 -3,002.30
Total Assets 16,754.07 26,811.84 35,357.62 41,776.12 56,009.10
Rs.inCr.
Balance Sheet
Mar '07 Mar '08 Mar '09 Mar '10 Mar '11
Total Income 17,987.30 25,874.20 32,791.86 36,693.09 38,241.20
Total Expenses 10,621.14 15,107.75 20,837.93 21,608.29 24,597.30
Operating Profit 7,260.54 10,662.41 13,215.68 13,966.34 13,425.70
Reported Net Profit 4,033.23 6,244.19 7,743.84 9,426.15 7,716.90
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
45,000.00
Rs.icCr.
Profit & Loss Account
Mar '07 Mar '08 Mar '09 Mar '10 Mar '11
Net Profit Before Tax 4601.37 6972.54 8161.54 10699.25 8725.8
Net (decrease)/increase In Cash and Cash
Equivalents 473.03 -290.53 286.77 -448.35 -213.1
-2000
0
2000
4000
6000
8000
10000
12000
Rs.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 telecom
market posed 1st real threat to
Bharti Airtel Limited ’s supremacy.
• Vodafone planned to invest $2
billion to establish and introduce
new 3G technologies.
• Vodafone entry increased
competition and better service to
customer
Countering The Threats
• Advertising Strategy
- ‘Kuch Bandhan atoot hote hain…’
- ‘Barriers break when people talk’
- ‘Har friend zaroori hai, yaar..’
• Invest maximum time and
effort to serve these customers
• Communicate frequently,
respond promptly in case of
issues
• Milk these accounts as
long as they are active
• The Key is to recognize
when to stop investing in
the relationship
• Do not invest in these
customers
• Maximize the profit on
each transaction
Customer Groupings
Period of Association
CustomerProfitability
True Friends
BarnaclesStrangers
Butterflies
• Analyze the size of
potential business
• Cross sell if potential is
large; else minimize
investment
Suggestion & Recommendation
• Few outlets are unaware about scheme so
proper communication is necessary
between distributor and retailers.
• Number of hoarding should be increased.
• Company should be lenient in ID
verification procedure.
• The brands must be made available easily
in, PCO & general stores.
• Company must undertake extensive
promotional activities like advertisements
must be released in different Medias to
create brand awareness.
• Sales promotion tools like gifts, contests
and coupons must be given to retailers as
well as customers and prospects.
• Catalogues should be distributed among
customers.
• Price should be as competitive as other
company maintains.
• Distribution of new connection should be in
reach of customer pocket
Airtel

Airtel

  • 1.
    A Project Reporton Bharti Airtel Limited Prepared by Deep Jyoti Das CUN110501021
  • 2.
    Introduction • Bharti AirtelLimited, commonly known as Airtel. • Airtel is an Indian telecommunications company that operates in 20 countries 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 million subscribers. • Airtel is the 3rd largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. • It offers its telecom services under the Airtel brand and is headed by Sunil Bharti Mittal.
  • 3.
    History • Sunil BhartiMittal 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-button telephones, establishing the basis of Bharti Enterprises. • In 1990s, Sunil Mittal had also launched the country's first fax machines and 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, and extended cellular operations to Karnataka and Andhra Pradesh.
  • 4.
    Continued… • In 2000,Bharti acquired control of Skycell Communications, in Chennai. • In 2001, the company acquired control of Spice Cell in Calcutta. Bharti Enterprises went public • In 2002, and the company was listed on Bombay Stock Exchange and National Stock Exchange of India. • In 2003, the cellular phone operations were rebranded under the single Airtel 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 Sri Lanka. • Today, Airtel is the largest cellular service provider in India and fifth largest in the world.
  • 5.
  • 6.
    Worldwide Presence Airtel isthe 5th largest mobile operator in the world in terms of subscriber base. Has a commercial presence in 20 countries and the Channel Islands. Airtel Bangla, in Bangladesh Airtel, in India Airtel Sri Lanka, in Sri Lanka Airtel Africa, which operates in 16 African countries
  • 7.
    Subscriber Base • BhartiAirtel has about 230.8 million subscribers worldwide. • 169.18 million in India. • 46 million are in Africa. • 4 million in Bangladesh. • 1.8 million in Sri Lanka 76% 21% 2% 1% Subscribers Worldwide (in million) India Africa Bangladesh Sri Lanka
  • 8.
  • 9.
    “A” Circle 29% 11% 27% 15% 18% Subscribers (inmillion) Andhra Pradesh Gujarat Karnataka Maharashtra Tamil Nadu
  • 10.
    “B” Circle 3% 6% 15% 11% 21% 20% 10% 14% Subscribers (inmillion) Haryana Kerala Madhya Pradesh Punjab Rajasthan Uttar Pradesh (East) Uttar Pradesh (West) West Bengal
  • 11.
    “C” Circle 10% 52%6% 7% 6% 19% Subscribers (inmillion) Assam Bihar Himachal Pradesh Jammu and Kashmir North Eastern States Orissa
  • 12.
  • 13.
  • 14.
    Sunil Bharti Mittal •Founder, Chairman and Group CEO of Bharti Enterprises • Sunil Bharti Mittal is an Indian telecom mogul, philanthropist. • Son of Sat Paul (former MP) and Lalita. • Padma Bhushan in 2007, from the President of India. • India's third highest civilian honor.
  • 15.
  • 16.
    Strength • It isthe largest cellular provider in India, and also supplies broadband and telephone services - as well as many other telecommunications services to both domestic and corporate customers. • Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with whom they hold a strategic alliance. This means that the business has access to knowledge and technology from other parts of the telecommunications world. • The company has covered the entire Indian nation with its network. This has underpinned its large and rising customer base.
  • 17.
    Weakness • An oftencited original weakness is that when the business was started by Sunil Bharti Mittal over 15 years ago, the business has little knowledge and experience of how a cellular telephone system actually worked. So the start-up business had to outsource to industry experts in the field. • Until recently Airtel did not own its own towers, which was a particular strength of some of its competitors such as Hutchison Essar. Towers are important if your company wishes to provide wide coverage nationally. • The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal the lack of any real emerging market investment opportunity for the business once the Indian market has become mature.
  • 18.
    Opportunities • The companypossesses a customized version of the Google search engine which will enhance broadband services to customers. The tie-up with Google can only enhance the Airtel brand, and also provides advertising opportunities in Indian for Google. • Global telecommunications and new technology brands see Airtel as a key strategic player in the Indian market. The new iPhone will be launched in India via an Airtel distributorship. Another strategic partnership is held with BlackBerry Wireless Solutions. • The company is investing in its operation in 120,000 to 160,000 small villages every year. It sees that less well- off consumers may only be able to afford a few tens of Rupees per call, and also so that the business benefits are scalable - using its 'Matchbox' strategy. • Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to create a new independent tower company called Indus Towers. This new business will control more than 60% of India's network towers. IPTV is another potential new service that could underpin the company's long-term strategy.
  • 19.
    Threats • Airtel andVodafone seem to be having an on/off relationship. Vodafone which owned a 5.6% stake in the Airtel business sold it back to Airtel, and instead invested in its rival Hutchison Essar. Knowledge and technology previously available to Airtel now moves into the hands of one of its competitors. • The quickly changing pace of the global telecommunications industry could tempt Airtel to go along the acquisition trail which may make it vulnerable if the world goes into recession. Perhaps this was an impact upon the decision not to proceed with talks about the potential purchase of South Africa's MTN in May 2008. This opened the door for talks between Reliance Communication's Anil Ambani and MTN, allowing a competing Indian industrialist to invest in the new emerging African telecommunications market. • Bharti Airtel could also be the target for the takeover vision of other global telecommunications players that wish to move into the Indian market.
  • 20.
    Financial Status -10,000.00 0.00 10,000.00 20,000.00 30,000.00 40,000.00 50,000.00 60,000.00 Mar '07Mar '08 Mar '09 Mar '10 Mar '11 Net worth 11,443.27 20,241.49 27,643.97 36,737.18 44,111.60 Total Liabilities 16,754.08 26,811.83 35,357.62 41,776.10 56,009.10 Investments 705.82 10,952.85 11,777.76 15,773.32 11,813.00 Net Current AssTotal Assetsets -5,635.86 -5,922.94 -4,000.26 -3,616.91 -3,002.30 Total Assets 16,754.07 26,811.84 35,357.62 41,776.12 56,009.10 Rs.inCr. Balance Sheet
  • 21.
    Mar '07 Mar'08 Mar '09 Mar '10 Mar '11 Total Income 17,987.30 25,874.20 32,791.86 36,693.09 38,241.20 Total Expenses 10,621.14 15,107.75 20,837.93 21,608.29 24,597.30 Operating Profit 7,260.54 10,662.41 13,215.68 13,966.34 13,425.70 Reported Net Profit 4,033.23 6,244.19 7,743.84 9,426.15 7,716.90 0.00 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00 30,000.00 35,000.00 40,000.00 45,000.00 Rs.icCr. Profit & Loss Account
  • 22.
    Mar '07 Mar'08 Mar '09 Mar '10 Mar '11 Net Profit Before Tax 4601.37 6972.54 8161.54 10699.25 8725.8 Net (decrease)/increase In Cash and Cash Equivalents 473.03 -290.53 286.77 -448.35 -213.1 -2000 0 2000 4000 6000 8000 10000 12000 Rs.inCr. Cash Flow
  • 23.
    Marketing Strategy • Segmentation •Long Term Outlook • Product Innovation • Quality Strategy • Heavy Advertising • Effective Sales Promotion • Customer care
  • 24.
    Future Strategies toretain its market share • New tariff plans. • More value added services. • Increase in visibility and coverage. • New innovative packages. • More of the e-factor.
  • 25.
    New Challenges • Vodafone’sentry in Indian telecom market posed 1st real threat to Bharti Airtel Limited ’s supremacy. • Vodafone planned to invest $2 billion to establish and introduce new 3G technologies. • Vodafone entry increased competition and better service to customer
  • 26.
    Countering The Threats •Advertising Strategy - ‘Kuch Bandhan atoot hote hain…’ - ‘Barriers break when people talk’ - ‘Har friend zaroori hai, yaar..’
  • 27.
    • Invest maximumtime and effort to serve these customers • Communicate frequently, respond promptly in case of issues • Milk these accounts as long as they are active • The Key is to recognize when to stop investing in the relationship • Do not invest in these customers • Maximize the profit on each transaction Customer Groupings Period of Association CustomerProfitability True Friends BarnaclesStrangers Butterflies • Analyze the size of potential business • Cross sell if potential is large; else minimize investment
  • 28.
    Suggestion & Recommendation •Few outlets are unaware about scheme so proper communication is necessary between distributor and retailers. • Number of hoarding should be increased. • Company should be lenient in ID verification procedure. • The brands must be made available easily in, PCO & general stores. • Company must undertake extensive promotional activities like advertisements must be released in different Medias to create brand awareness. • Sales promotion tools like gifts, contests and coupons must be given to retailers as well as customers and prospects. • Catalogues should be distributed among customers. • Price should be as competitive as other company maintains. • Distribution of new connection should be in reach of customer pocket