Bharti Airtel completes its $9 billion acquisition of Zain Africa's assets, providing a boost to its stock. The deal makes Bharti the world's fifth largest mobile operator by subscribers and gives it access to Africa's growing market. However, analysts note concerns around Bharti's debt levels increasing from the large acquisition and spectrum purchase costs, and that it may take a few years to see meaningful profit benefits as it looks to gain market share from established players in Africa and integrate Zain's operations across 15 countries.
Vodafone India and Idea Cellular merged to form Vodafone Idea Limited in 2018. This created the largest telecom operator in India with over 400 million subscribers. The merger aimed to help both companies tackle increased competition from Reliance Jio and reduce debt levels. It combined Vodafone's network assets and spectrum holdings with Idea's mobile customer base. The new entity faces challenges in integrating operations while improving network quality and raising funds, but may benefit customers through competitive plans and new technologies.
Bharti had a very low “Net Debt to Equity Ratio” of 0.05 at the end of Dec., 2009 which means that it was virtually a debt free company
It is good to have low debt but zero debt is not a desirable situation as debt can increase the shareholders’ return on their investment due to tax advantages associated with borrowing
House of Tata: Acquiring a Global FootprintAbhigyan Singh
The 134-year-old Tata Group with 95 operating companies (31 of them publicly traded) and 230,000 employees, it is India's largest private-sector employer, its biggest taxpayer, and its greatest foreign-exchange earner.
Bharti Airtel acquired Zain's African mobile operations in 15 countries for $10.7 billion. This gave Airtel a strong presence in Africa's growing mobile market and made it the world's fifth largest wireless company. However, nine of Zain's markets already had over 33% penetration and were losing money. While the deal expanded Airtel's global reach, it reported a 27% fall in profits as it struggled with losses from Zain's operations and higher tax rates in Africa.
The pdf is brief analysis on Strategies used by Airtel.
Contains PESTLE Analysis, SWOT Analysis, VRIO Analysis of Airtel. A brief about Telecom Industry and Corporate structure of Airtel.
Telecommunication expansion strategy for AfricaJacob Parackal
The major telecommunications companies have adopted similar strategies to expand in Africa, including acquiring existing companies, forming joint ventures, and obtaining licenses to operate in new markets. They target countries with low telecom penetration and aim to provide basic, low-cost services. However, differences remain in their brand positioning, level of innovation, and focus between more developed versus less developed African nations. Managing the cultural and economic differences across Africa poses challenges to their pan-African strategies.
A Written Analysis and Communication report on the HBR case study Humour or Harrasment using the six-step problem-solving approach. Identified the key problem, suggested alternative solutions, Evaluation Criteria, Evaluation of options, Recommendation, Implementation plan, and Contingency plan.
Vodafone India and Idea Cellular merged to form Vodafone Idea Limited in 2018. This created the largest telecom operator in India with over 400 million subscribers. The merger aimed to help both companies tackle increased competition from Reliance Jio and reduce debt levels. It combined Vodafone's network assets and spectrum holdings with Idea's mobile customer base. The new entity faces challenges in integrating operations while improving network quality and raising funds, but may benefit customers through competitive plans and new technologies.
Bharti had a very low “Net Debt to Equity Ratio” of 0.05 at the end of Dec., 2009 which means that it was virtually a debt free company
It is good to have low debt but zero debt is not a desirable situation as debt can increase the shareholders’ return on their investment due to tax advantages associated with borrowing
House of Tata: Acquiring a Global FootprintAbhigyan Singh
The 134-year-old Tata Group with 95 operating companies (31 of them publicly traded) and 230,000 employees, it is India's largest private-sector employer, its biggest taxpayer, and its greatest foreign-exchange earner.
Bharti Airtel acquired Zain's African mobile operations in 15 countries for $10.7 billion. This gave Airtel a strong presence in Africa's growing mobile market and made it the world's fifth largest wireless company. However, nine of Zain's markets already had over 33% penetration and were losing money. While the deal expanded Airtel's global reach, it reported a 27% fall in profits as it struggled with losses from Zain's operations and higher tax rates in Africa.
The pdf is brief analysis on Strategies used by Airtel.
Contains PESTLE Analysis, SWOT Analysis, VRIO Analysis of Airtel. A brief about Telecom Industry and Corporate structure of Airtel.
Telecommunication expansion strategy for AfricaJacob Parackal
The major telecommunications companies have adopted similar strategies to expand in Africa, including acquiring existing companies, forming joint ventures, and obtaining licenses to operate in new markets. They target countries with low telecom penetration and aim to provide basic, low-cost services. However, differences remain in their brand positioning, level of innovation, and focus between more developed versus less developed African nations. Managing the cultural and economic differences across Africa poses challenges to their pan-African strategies.
A Written Analysis and Communication report on the HBR case study Humour or Harrasment using the six-step problem-solving approach. Identified the key problem, suggested alternative solutions, Evaluation Criteria, Evaluation of options, Recommendation, Implementation plan, and Contingency plan.
This document analyzes Vodafone's strategy for developing total communications in the UK market. It provides an overview of Vodafone, including its mission, vision, and growth objectives. It then performs a PESTEL analysis, Porter's Five Forces analysis, and SWOT analysis to evaluate the market environment and Vodafone's position. Recommendations are made, such as partnering with BT, tapping into rural markets, and diversifying services. The value chain and bibliography are also included.
Reliance Jio Infocomm Limited (RJIL), a subsidiary of Reliance Industries Limited, is India's largest telecommunications company. It owns wireless telecommunications brands including Jio and provides 4G/LTE mobile data and voice services, fiber internet (JioFiber), and apps. RJIL has over 350 million subscribers, a market share of 29.2%, and aims to reach 45% by 2022. It competes primarily with Airtel, Vodafone, and Idea and has invested heavily to build its network infrastructure. Through promotions and partnerships, Jio positions itself as providing high-quality, affordable services to customers across India.
Rajat Gupta was a corporate director at Goldman Sachs and McKinsey who was found guilty of 3 counts of securities fraud for relaying confidential boardroom information from Goldman Sachs to hedge fund manager Raj Rajaratnam at Galleon Group. Wiretaps revealed Gupta discussing Warren Buffett's investment in Goldman Sachs and the company's quarterly losses with Rajaratnam. Rajaratnam then traded on this insider information for profit. Gupta faced up to 20 years in prison but was ultimately sentenced to 2 years.
The Tata Group, an Indian multinational conglomerate, adopted a strategy of international expansion through global acquisitions under the leadership of Ratan Tata. As several Tata companies faced challenges from domestic market saturation and regulations in the 1990s, the group pursued acquisitions to diversify and achieve growth in foreign markets. Major Tata acquisitions included Tetley Tea, Corus Steel, Jaguar Land Rover, and several hotel brands. These global acquisitions transformed the Tata Group into one of the largest and most diverse international business groups in India.
Vodafone acquired Hutchison Essar in a series of transactions between 2007-2014:
- In 2007, Vodafone acquired a 67% stake in Hutchison Essar for $10.7 billion, renaming it Vodafone Essar.
- Between 2008-2011, Vodafone acquired additional stakes in the company, owning 74% by 2011.
- In 2014, Vodafone acquired the remaining 26% and became the sole owner of the Indian business, renaming it Vodafone India.
Bharti Airtel is a major Indian telecommunications services company with a 25% market share in wireless services and 1% in wireline. It faces issues expanding and maintaining its network. The document discusses Bharti's management strategies, its market share compared to competitors, questions and answers about its operations, and references for further information.
Thomas Green recently joined Dynamic Displays as an Account Executive and has quickly been promoted due to his success in securing a large contract. However, he has developed a poor working relationship with his superior, Frank Davis, the Marketing Director. Green challenges Davis' authority and fails to provide updates or back up his claims with data as requested. He also works individually rather than collaborating with the team. Going forward, Green needs to improve his marketing knowledge, build trust with Davis and his team through communication and collaboration, and take responsibility for his mistakes.
Vodafone and hutch merged in 2007, which is the second largest Merger with a deal value of $11.1 billion. The pre and post merger key financial ratios of both the companies are presented.
Bharti Airtel acquired Zain's African operations in 2010 for $10.7 billion to expand into the growing African telecom market. However, operating in multiple African countries posed challenges such as dealing with different regulations, infrastructure issues, strong competition from established players like MTN, and cultural differences between Indian and African business practices. The acquisition also carried significant financial risks due to Zain's losses and the large debt taken on for the deal. While customer growth was lower than expected, Airtel began to see some improvements in metrics after lowering prices and expanding networks and services.
Bharti Airtel is acquiring Telenor India. This will boost Airtel's spectrum holdings and subscriber base. The deal gives Airtel an additional 43.4 MHz of spectrum in the 1800 MHz band, which will strengthen its 4G services. It will also add 52.5 million subscribers from Telenor's operations in seven Indian circles. The acquisition positions Airtel strongly against competitors like Jio as consolidation in the Indian telecom market continues.
Vodafone India and Idea Cellular agreed to merge in March 2017, creating the largest telecom company in India with over 394 million customers. Vodafone would own 45.1% of the merged entity, while Idea's promoters would hold 26% and the rest would be publicly owned. The merger was aimed at making the combined company the largest in India by subscribers as well as boosting revenue through increased market share and an expanded customer base. However, integrating the networks and strategies of the two companies, which had different areas of strength and approaches, could also lead to clashes or loss of consumer choice and jobs.
Vodafone strategic management analysis and business analysis vodafone strategy analysis, poster five forces analysis, porter five forces analysis,competitor analysis,swot nalysis,external and internal environment analysis
Apple faced shareholder concerns in 2013 over its $137 billion in cash. Shareholders wanted the cash returned rather than sitting unused. Apple analyzed various options, including issuing dividends or preferred stock. It also created a five-year financial forecast to determine how much cash it would accumulate if all was returned in 2012. This would help Apple decide whether and how much to return to shareholders.
Hindalco acquired Novelis, a global leader in aluminum rolling and recycling, for $6 billion. The acquisition made Hindalco the world's largest aluminum company and provided access to Novelis' downstream aluminum products business and global footprint. While the high purchase price raised financial concerns, the combination created strategic and cultural fit between the companies. Hindalco planned to leverage Novelis' technologies and global operations to grow its aluminum business while maintaining cultural integration through minimal management changes at Novelis.
Does Corporate Governance really stays the same in the reality as it's been explained to students...?
Such cases really raise many questions on that note.
Vedanta acquired a controlling stake in Cairn India Ltd. Specifically:
- Vedanta bought an 11% stake in Cairn India from Petronas for $1.5 billion in 2011.
- In December 2011, Vedanta acquired 30% of Cairn India from Cairn Energy for a total of $8.67 billion, giving it a 58.5% controlling stake.
- The acquisition provided Vedanta access to Cairn India's significant oil reserves in India and was expected to be immediately earnings accretive for Vedanta.
This document is a term paper by a group of students analyzing the fraud at Parmalat, an Italian food company that went bankrupt in 2003. The paper has four chapters: 1) it provides background on Parmalat and its fraudulent activities including hiding losses and overstating assets; 2) it discusses how Parmalat understated its liabilities by billions of euros through accounting manipulations; 3) it examines how Parmalat concealed its actions with complicit auditors and banks and rationalized the fraud; 4) it proposes improvements to auditing and corporate governance to prevent future frauds.
Indonesia: Country Analysis (International Marketing)Rahul Wane
Indonesia is the world's 4th most populous country with over 250 million people. It has a predominantly young population and a growing economy averaging 6% GDP growth annually. While Indonesia maintains political and economic stability, it faces challenges such as corruption, lack of infrastructure development, and disagreements within its governing coalition that can hamper reforms. The country also has strong potential for continued economic growth through developing industries, tourism, and its large domestic market.
The document discusses two mergers and acquisitions deals in the Indian market. The first deal discusses ICICI Bank acquiring Bank of Rajasthan, with ICICI providing a share swap ratio of 25 shares for every 118 shares of BOR. The merger provided ICICI with greater market presence in northern India and a larger retail deposit base. The second deal discussed Bharti Airtel's acquisition of Zain Africa's business for $10.7 billion. While the deal expanded Bharti's operations, the high purchase price and debt incurred posed financial risks. The document also provides background information on the companies involved and rationales for the deals.
This document analyzes Vodafone's strategy for developing total communications in the UK market. It provides an overview of Vodafone, including its mission, vision, and growth objectives. It then performs a PESTEL analysis, Porter's Five Forces analysis, and SWOT analysis to evaluate the market environment and Vodafone's position. Recommendations are made, such as partnering with BT, tapping into rural markets, and diversifying services. The value chain and bibliography are also included.
Reliance Jio Infocomm Limited (RJIL), a subsidiary of Reliance Industries Limited, is India's largest telecommunications company. It owns wireless telecommunications brands including Jio and provides 4G/LTE mobile data and voice services, fiber internet (JioFiber), and apps. RJIL has over 350 million subscribers, a market share of 29.2%, and aims to reach 45% by 2022. It competes primarily with Airtel, Vodafone, and Idea and has invested heavily to build its network infrastructure. Through promotions and partnerships, Jio positions itself as providing high-quality, affordable services to customers across India.
Rajat Gupta was a corporate director at Goldman Sachs and McKinsey who was found guilty of 3 counts of securities fraud for relaying confidential boardroom information from Goldman Sachs to hedge fund manager Raj Rajaratnam at Galleon Group. Wiretaps revealed Gupta discussing Warren Buffett's investment in Goldman Sachs and the company's quarterly losses with Rajaratnam. Rajaratnam then traded on this insider information for profit. Gupta faced up to 20 years in prison but was ultimately sentenced to 2 years.
The Tata Group, an Indian multinational conglomerate, adopted a strategy of international expansion through global acquisitions under the leadership of Ratan Tata. As several Tata companies faced challenges from domestic market saturation and regulations in the 1990s, the group pursued acquisitions to diversify and achieve growth in foreign markets. Major Tata acquisitions included Tetley Tea, Corus Steel, Jaguar Land Rover, and several hotel brands. These global acquisitions transformed the Tata Group into one of the largest and most diverse international business groups in India.
Vodafone acquired Hutchison Essar in a series of transactions between 2007-2014:
- In 2007, Vodafone acquired a 67% stake in Hutchison Essar for $10.7 billion, renaming it Vodafone Essar.
- Between 2008-2011, Vodafone acquired additional stakes in the company, owning 74% by 2011.
- In 2014, Vodafone acquired the remaining 26% and became the sole owner of the Indian business, renaming it Vodafone India.
Bharti Airtel is a major Indian telecommunications services company with a 25% market share in wireless services and 1% in wireline. It faces issues expanding and maintaining its network. The document discusses Bharti's management strategies, its market share compared to competitors, questions and answers about its operations, and references for further information.
Thomas Green recently joined Dynamic Displays as an Account Executive and has quickly been promoted due to his success in securing a large contract. However, he has developed a poor working relationship with his superior, Frank Davis, the Marketing Director. Green challenges Davis' authority and fails to provide updates or back up his claims with data as requested. He also works individually rather than collaborating with the team. Going forward, Green needs to improve his marketing knowledge, build trust with Davis and his team through communication and collaboration, and take responsibility for his mistakes.
Vodafone and hutch merged in 2007, which is the second largest Merger with a deal value of $11.1 billion. The pre and post merger key financial ratios of both the companies are presented.
Bharti Airtel acquired Zain's African operations in 2010 for $10.7 billion to expand into the growing African telecom market. However, operating in multiple African countries posed challenges such as dealing with different regulations, infrastructure issues, strong competition from established players like MTN, and cultural differences between Indian and African business practices. The acquisition also carried significant financial risks due to Zain's losses and the large debt taken on for the deal. While customer growth was lower than expected, Airtel began to see some improvements in metrics after lowering prices and expanding networks and services.
Bharti Airtel is acquiring Telenor India. This will boost Airtel's spectrum holdings and subscriber base. The deal gives Airtel an additional 43.4 MHz of spectrum in the 1800 MHz band, which will strengthen its 4G services. It will also add 52.5 million subscribers from Telenor's operations in seven Indian circles. The acquisition positions Airtel strongly against competitors like Jio as consolidation in the Indian telecom market continues.
Vodafone India and Idea Cellular agreed to merge in March 2017, creating the largest telecom company in India with over 394 million customers. Vodafone would own 45.1% of the merged entity, while Idea's promoters would hold 26% and the rest would be publicly owned. The merger was aimed at making the combined company the largest in India by subscribers as well as boosting revenue through increased market share and an expanded customer base. However, integrating the networks and strategies of the two companies, which had different areas of strength and approaches, could also lead to clashes or loss of consumer choice and jobs.
Vodafone strategic management analysis and business analysis vodafone strategy analysis, poster five forces analysis, porter five forces analysis,competitor analysis,swot nalysis,external and internal environment analysis
Apple faced shareholder concerns in 2013 over its $137 billion in cash. Shareholders wanted the cash returned rather than sitting unused. Apple analyzed various options, including issuing dividends or preferred stock. It also created a five-year financial forecast to determine how much cash it would accumulate if all was returned in 2012. This would help Apple decide whether and how much to return to shareholders.
Hindalco acquired Novelis, a global leader in aluminum rolling and recycling, for $6 billion. The acquisition made Hindalco the world's largest aluminum company and provided access to Novelis' downstream aluminum products business and global footprint. While the high purchase price raised financial concerns, the combination created strategic and cultural fit between the companies. Hindalco planned to leverage Novelis' technologies and global operations to grow its aluminum business while maintaining cultural integration through minimal management changes at Novelis.
Does Corporate Governance really stays the same in the reality as it's been explained to students...?
Such cases really raise many questions on that note.
Vedanta acquired a controlling stake in Cairn India Ltd. Specifically:
- Vedanta bought an 11% stake in Cairn India from Petronas for $1.5 billion in 2011.
- In December 2011, Vedanta acquired 30% of Cairn India from Cairn Energy for a total of $8.67 billion, giving it a 58.5% controlling stake.
- The acquisition provided Vedanta access to Cairn India's significant oil reserves in India and was expected to be immediately earnings accretive for Vedanta.
This document is a term paper by a group of students analyzing the fraud at Parmalat, an Italian food company that went bankrupt in 2003. The paper has four chapters: 1) it provides background on Parmalat and its fraudulent activities including hiding losses and overstating assets; 2) it discusses how Parmalat understated its liabilities by billions of euros through accounting manipulations; 3) it examines how Parmalat concealed its actions with complicit auditors and banks and rationalized the fraud; 4) it proposes improvements to auditing and corporate governance to prevent future frauds.
Indonesia: Country Analysis (International Marketing)Rahul Wane
Indonesia is the world's 4th most populous country with over 250 million people. It has a predominantly young population and a growing economy averaging 6% GDP growth annually. While Indonesia maintains political and economic stability, it faces challenges such as corruption, lack of infrastructure development, and disagreements within its governing coalition that can hamper reforms. The country also has strong potential for continued economic growth through developing industries, tourism, and its large domestic market.
The document discusses two mergers and acquisitions deals in the Indian market. The first deal discusses ICICI Bank acquiring Bank of Rajasthan, with ICICI providing a share swap ratio of 25 shares for every 118 shares of BOR. The merger provided ICICI with greater market presence in northern India and a larger retail deposit base. The second deal discussed Bharti Airtel's acquisition of Zain Africa's business for $10.7 billion. While the deal expanded Bharti's operations, the high purchase price and debt incurred posed financial risks. The document also provides background information on the companies involved and rationales for the deals.
Bharti Airtel is considering strategic outsourcing to help manage its rapid growth. It plans to outsource network management and operations to reduce capital expenditures and transfer investment risks. Outsourcing could lower costs through reduced hiring needs and better bargaining power. However, outsourcing core business functions increases dependency on vendors and limits flexibility. Vendors also face risks from unused capacity and uncertainty in Bharti's growth. With proper oversight, outsourcing could help Bharti address the huge investments needed to serve its growing customer base.
Bharat Petroleum introduced their "Pure for Sure" campaign in 2002 to ensure customers receive pure,
high-quality fuel. This initiative focuses on strict quality control measures throughout the supply chain from transportation of fuel in sealed tankers to calibration of dispensing units. Other companies like
IOCL, HPCL, and Reliance have their own promotional campaigns around fuel quality but none as explicit
and comprehensive as BPCL's "Pure for Sure" program, which involves independent third-party auditing
to build public trust.
The features of the retail banking industry. How does a modern banks offer to the consumer is discussed over here. Work done during my internship at AXIS Bank.
Therapeutic Benefits Of Wyeth To Pfizerritupon gogoi
The acquisition of Wyeth by Pfizer strengthens Pfizer's position in key disease areas like Alzheimer's disease and inflammation. It brings marketed products and pipeline candidates in these areas, though it may not address Pfizer's underlying R&D productivity issues. The merger provides most benefit in Alzheimer's, where the combined company will dominate the pipeline. It also offers opportunities in rheumatoid arthritis through products like Celebrex and Enbrel, and in vaccines and antibiotics through Wyeth's portfolio. However, the pipeline candidates still face high risks of clinical failure.
Post-merger integration requires leadership from the top to define the new company's culture and roles. An integration manager can help coordinate integration efforts and ensure synergies are captured. When integrating IT systems, companies must find a balance between rapid and slow integration to minimize customer and employee disruption while realizing cost savings.
Analysis of Bharti Airtel for 2008 09 For Linked InRohit Ranganathan
Bharti Airtel is India's leading telecommunications services provider with over 100 million customers across its mobile, DTH, and landline operations. In the financial year 2008-2009, Bharti Airtel added over 31 million new mobile customers, with revenues from mobile services growing 39% and contributing 81% of consolidated revenues. The company is focusing on opportunities in rural areas while managing risks from increased regulation and competition.
This document describes a special purpose vehicle that would securitize a pool of international bonds. The special purpose vehicle would issue trust certificates representing fractional interests in the underlying bond pool. These certificates could then be subscribed to by entities that owe debts to the bond-issuing country, allowing them to legally set off and cancel their debts at a discounted rate through the purchase and retirement of the bond certificates. The program aims to monetize the intrinsic bond value, preserve bondholder claims, generate liquidity, and stimulate market-driven resolution of defaulted sovereign debt.
This document outlines Pfizer's plans to acquire Wyeth to create the world's premier biopharmaceutical company. The acquisition will diversify Pfizer's portfolio and strengthen its leadership in key therapeutic areas and geographies. Pfizer expects the deal to advance its strategic priorities and deliver $2 billion in cost savings by 2011 on top of $4 billion in synergies from the transaction. The all-cash-and-stock deal is valued at $68 billion and will be funded through cash, debt, and Pfizer stock.
Bharti Airtel outsourced the building and maintenance of its telecom network to vendors like Ericsson, Nokia, and Siemens in 2004. It also signed a 10-year partnership with IBM to outsource its IT network and operations based on a percentage of Bharti's revenues. This allowed Bharti to focus on its core operations while transferring investment risks and costs to vendors. However, outsourcing brought challenges around material imports, employee transfers between companies, and ensuring vendors had sufficient capacity for Bharti's growth. Overall, outsourcing helped lower Bharti's capital and resource costs while diversifying risks across multiple vendors.
Benefits and advantages of global level mergersjithin koshy
The document discusses two mergers and acquisitions deals:
1) Sun Pharma's acquisition of Ranbaxy in 2014 to create the world's 5th largest specialty generic pharmaceutical company. This deal was aimed at expanding their market share and addressing regulatory issues Ranbaxy was facing.
2) Microsoft's acquisition of Nokia's mobile phone business in 2013 for $7.2 billion to strengthen its presence in the mobile device market. This deal gave Microsoft control over Nokia's hardware assets and patent portfolio.
This presentation covers methods to set up Google Analytics on your website. It also includes basic terminologies / jargons / concepts that are used throughout Google Analytics
Management of Innovations Case Study - Bharti AirtelIshan Parekh
The document provides an overview of the evolution of the telecom industry in India and the rise of Bharti Airtel as a leader in the market. It discusses key milestones and policy changes in the Indian telecom sector from 1992 to 2007. It then summarizes Bharti Airtel's growth into one of the largest mobile operators in India with over 75 million subscribers and annual revenue of over $1.3 billion. The document also briefly outlines Bharti Airtel's strategies to expand globally, maintain technology leadership, and tap further opportunities in rural India.
Impact of mergers and acquisition of pharmaceutical industry in indian scenarioNitin Patel
Mergers and acquisitions in the pharmaceutical industry allow companies to broaden their product portfolios, acquire new technologies and markets, and increase efficiency. The document discusses several major deals, including Pfizer-Wyeth, Ranbaxy-Daiichi Sankyo, and Piramal-Abbott. While M&As can increase competitiveness, market share and R&D, they may also lead to job losses and decreased productivity as companies consolidate operations. Overall, the impacts of pharmaceutical industry M&As are mixed, with benefits around scale and risks around reduced competition and innovation.
This presentation summarizes BP's major safety disasters and the initiatives taken to improve safety culture. It describes three major disasters - in Texas in 2005, Alaska in 2006, and the Gulf of Mexico in 2010 - that resulted from a lack of safety practices and negligence prioritizing profit over safety. BP faced billions in fines and penalties and long-term damage to its reputation. New programs like Operating Management System and Site Alignment aim to standardize operations and improve two-way communication between levels to prevent future incidents.
The document provides an overview of the telecom sector in India, including its history and growth. It discusses key milestones like the first landline in India, establishment of regulatory authorities, growth of wireless subscribers, and market share of major players. It also summarizes opportunities like rural telephony, value-added services, and challenges around spectrum management and achieving higher broadband penetration. Recent developments like the Bharti-MTN deal and introduction of mobile number portability are also covered at a high level.
Mergers and Acquisitions in Indian Pharma IndustryNaveen Kumar
The document discusses mergers and acquisitions (M&A) in the Indian pharmaceutical industry. It provides reasons for the increasing M&A activity, such as patent cliffs, expanding markets, high R&D costs, and the need to increase market share. It outlines some of the major M&A deals involving Indian pharmaceutical companies, including Abbott's acquisition of Piramal for $3.72 billion, one of the largest pharma deals in India. The future of M&A activity in the industry is also discussed.
This document provides an analysis of Bharti Airtel Ltd., the largest telecommunications company in India. It begins with an acknowledgements section and executive summary. Section 1 provides context on the Indian telecom sector and an overview of Bharti Airtel. SWOT and PEST analyses of Airtel are also presented. Section 2 applies Porter's 5 Forces model to analyze industry competition and discusses a consumer behavior analysis. Section 3 covers Airtel's segmentation, branding, positioning strategies and outlook. The conclusion summarizes key points.
Bharti Airtel acquired Zain Africa's operations for $10.7 billion to expand into new markets in Africa. The key attractions were Africa's growing telecom market with low penetration rates, diversifying Bharti Airtel's geographic presence beyond India, and gaining access to multiple African countries through a single transaction. However, Bharti Airtel will face challenges in integrating Zain Africa's operations across 15 countries, overcoming cultural and regulatory differences, and turning around Zain Africa's losses. Bharti Airtel will need to leverage its low-cost business model, focus on the untapped rural customer base, and increase revenue per user and call volumes to extract value from this large acquisition
Bharti Airtel is an Indian telecommunications company with Sunil Bharti Mittal as its Director. It provides mobile, fixed line, IPTV and DTH services. While it was once India's largest operator by subscribers, it has faced financial difficulties in recent years due to increased competition and debt from acquisitions. It is undertaking various initiatives like tariff hikes and asset sales to reduce debt and improve its financial position.
Bharti Airtel is a global telecommunications company headquartered in India with operations in 18 countries. It has over 471 million customers and is one of the top three mobile operators worldwide. Airtel generates 52% of its revenue from its mobile business in India, with the remaining revenue coming from its operations in Africa and other businesses. While Airtel has faced challenges from competition and regulatory issues, its management is working to expand data services, acquire new customers, and ensure it can deliver high-quality services across its networks to retain existing customers and encourage more data consumption. A financial analysis found signs of recovery for Airtel as it works to improve profitability, but high debt levels, leverage, and
1) Bharti Airtel considered acquiring a stake in MTN in 2008 but the deal did not proceed as MTN wanted Bharti to become its subsidiary instead of being a merger of equals.
2) In 2010, Bharti Airtel and MTN proposed a merger that would create the third largest telecom company in the world with $20 billion in revenues and over 200 million customers.
3) The proposed deal structure involved Bharti acquiring a 49% stake in MTN for $13.1 billion and MTN acquiring a 36% stake in Bharti for $10.5 billion. However, the deal did not ultimately go through.
The key points are:
1) Bharti Airtel saw growth in customer base, revenues, and EBITDA but declines in profit during fiscal year 2011-2012.
2) The company made major investments by rolling out 3G networks across India and in seven African markets, and launching 4G services in India.
3) Airtel Money mobile payment service was launched in India and eight African countries.
4) The company restructured its business into B2C and B2B verticals to
This document brings together a set of latest data points and publicly available information relevant for Telecommunication & Media Industry. We are very excited to share this content and believe that readers will benefit from this periodic publication immensely.
Bharti Airtel is an Indian global telecommunications services company and the third largest mobile network operator in the world. It operates in 20 countries across South Asia and Africa. The company was founded in 1976 and launched its first cellular services in Delhi in 1995. Over the years, Bharti Airtel has expanded through organic growth and acquisitions, becoming one of the world's largest telecom companies with over 325 million customers. However, the company now faces challenges from increasing competition in India, slower than expected adoption of its 3G services, stagnating cash generation, and margin pressure in its African markets.
Idea Vodafone merger by Manju B BBA GEN SEM 6Manju Bagriya
Vodafone and Idea announced a merger in 2017 to combine their telecom businesses in India. The merger was completed in 2018, creating Vodafone Idea as the largest telecom operator in India. The merger was intended to allow the companies to better compete against Reliance Jio by achieving cost savings and exploiting synergies. However, the company has faced integration challenges and intense competition, resulting in losses. While revenue increased after the merger, profit declined due to high costs and tariffs set by competitors. The company is working to achieve its synergy targets but continues to face financial difficulties in the Indian telecom market.
This document provides an overview of Idea Cellular Limited's quarterly report for the fourth quarter ending March 31, 2009. It includes the following key points:
- Idea reported standalone revenues of Rs. 28,626 million for the quarter, a 9.2% growth over the previous quarter. Annual revenues reached Rs. 99,622 million, a 47.9% increase over the previous year.
- Idea added 4.7 million subscribers in the quarter, its highest ever, bringing its total subscriber base to 39 million.
- The company's EBITDA margin was 25.9% for the quarter, absorbing a 2.2% negative impact from its infrastructure sharing agreement with Indus Towers.
Vodafone and Idea merged to tackle the rising dominance of Reliance Jio in the Indian telecom sector. The merger created synergies through cost savings from combined operations. However, the merged entity Vodafone-Idea still faces financial struggles due to intense competition from Jio. While it has the largest subscriber base, it reported net losses compared to Jio's profits. The merger aims to realize $10 billion in synergies but market conditions have made achieving synergies challenging. The swap ratio for the merger was 1:1 based on Idea's share price of Rs. 72.5.
Vodafone acquired Hutchison Essar, India's third largest mobile phone operator, in a $11.1 billion deal in 2007. The acquisition gave Vodafone operational control over Hutchison's Indian telecom assets and subscriber base. It was one of the largest overseas acquisitions by a British company at the time. However, Vodafone faced some legal and tax issues regarding the deal structure with Indian authorities. Ultimately, the acquisition helped Vodafone become the second largest mobile operator in India by 2009 in terms of revenue and subscriber base, as it continued investing and expanding operations.
Idea Cellular Ltd. is recommended as a buy with a price target of Rs. 185-230. The technical outlook is positive as the stock has taken support at Rs. 130 and is trending higher. Company outlook is also positive due to expected robust subscriber growth, improving EBITDA margins, and potential value unlocking from hiving off its tower business. On the financial front, net sales increased 64% YoY while EBITDA and PAT grew 69% and 259% YoY respectively due to margin expansion and lower costs.
1) The company reported quarterly revenue growth of 3.5% over the previous quarter and 5.5% over the same quarter last year. Net profits declined slightly by 0.9% compared to the same quarter last year.
2) The company added 47 new clients this quarter and saw a net increase of 3,914 employees.
3) The company continues to expand its services such as engineering services and mobility solutions. Finacle, the universal banking solution, added 10 new deals this quarter.
RCOM is planning to partner with global technology companies like Motorola and HP for its 3G mobile infrastructure and innovation lab in India. The lab will provide 3G network and technology services to other operators. RCOM also plans to generate revenue by allowing other service providers to use the lab's services.
The central bank has hinted it may slow the pace of raising interest rates given moderation in food prices and the need to balance inflation control and economic growth. Rates have been raised four times this year to curb high inflation but growth is projected above 8.5% for the fiscal year.
The government warned it may ban BlackBerry services in India if the company does not provide a monitoring solution for its services within
The document discusses the impact of competition from Reliance Jio on Airtel's profits in India. It describes Airtel's strategies to improve customer retention through bundling services, upgradation offers, and premiumization. While Airtel's earnings before interest and taxes turned positive in the last quarter, its ability to gain market share against Jio with higher tariffs will determine long-term profitability in India's telecom sector.
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Financial Results for the First Quarter of the Fiscal Year Ending March 2020KDDI
Statements made in these documents with respect to the KDDI Group‘s performance targets, projected subscriber numbers, future forecasts and strategies that are not historical facts are forward-looking statements about the future performance of the KDDI Group, based on company’s assumptions and beliefs in light of the information available at the time they were made. They therefore include certain risks and uncertainties. Actual results can differ from these statements due to reasons including, but not limited to, domestic and overseas economic trends, competitive position, formulation, revision or abolition of laws and ordinances, regulations or systems, government actions or intervention and the success or lack thereof of new services.
Consequently, please understand that there is a possibility that actual performance, subscriber numbers, strategies and other information may differ significantly from the forecast information contained in these materials or other envisaged situations.
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1. India's Bharti Airtel completes acquisition of
Zain Africa
The company now has operations in 18 countries in Asia and
Africa
By John Ribeiro, IDG News Service
June 08, 2010 08:51 AM ET
1 Comment
Print
. What's this?
Bharti Airtel, India's largest mobile services company, said Tuesday that it has completed the
acquisition of the African operations of Mobile Telecommunications Company (known as Zain),
thus fulfilling the company's ambitions to expand into markets outside India.
The agreement signed with Zain earlier this year covers 15 countries in Africa but not Zain's
operation in Sudan, nor its investments in Morocco.
Bharti Airtel said it had acquired Zain Africa for an enterprise value of US$10.7 billion. The
acquisition gives Bharti Airtel a total customer base of 180 million, including 131 million
subscribers it had in India at the end of April.
A challenge for Bharti Airtel will be to integrate the operations of Zain Africa in all 15 countries,
which currently operate largely as stand-alone units, said Kamlesh Bhatia , a principal research
analyst at Gartner.
Zain said Tuesday that it had received $7.9 billion in cash from Bharti Airtel. Over the next six
months, Zain expects to receive an additional $400 million upon certain milestones being
achieved, it said. The balance of $700 million is due one year from completion of the acquisition.
Bharti Airtel will also assume $1.7 billion of consolidated debt obligations, under the agreement
between the two companies.
The large payout by Bharti Airtel comes in addition to Indian rupees 123 billion ($2.6 billion) it
paid last month to the Indian government for 3G spectrum in a recently concluded auction.
The large payouts on both counts by Bharti Airtel is likely to have increased the company's debt
considerably, Bhatia said. A new investment that is coming up for the company is the roll out of
3G services once spectrum is allotted to it by the government by September this year.
2. Bharti Airtel's bid for Zain's operations came after the company failed twice to arrive at an
agreement with the MTN Group in South Africa. That plan did not meet with the approval of the
South African government, which wanted to maintain MTN's separate identity.
By expanding its business outside the country, Bharti Airtel can in the long term benefit from
economies of scale, including getting better deals from suppliers, Bhatia said.
Bharti Airtel is also looking outside India to boost its margins, as the Indian market has become
very competitive, with voice call rates sometimes as low as 0.01 rupees per second. Voice calls
were earlier charged by the minute.
The company reported a decline in profits and flat revenue for the quarter ended March 31, even
though its customer base grew 35 percent over the same quarter last year.
Bharti has operations in Sri Lanka, and also acquired a majority stake in Warid Telecom, the
fourth largest operator in Bangladesh.
Bharti Airtel’s investors finally have something to be happy about.
India’s largest mobile phone operator by subscribers said on Tuesday that it had completed its $9
billion acquisition of most of the Africa assets of Kuwait’s Mobile Telecommunications Co., or
Zain, providing a much needed respite to the stock, which had tumbled about 18% in the past
two months.
The news sent Bharti’s stock soaring 5.0% by early afternoon, outpacing the benchmark
Sensex’s 0.8% rise.
AP Photo
Bharti Group chairman Sunil Bharti Mittal, center, and other company officials show off the
parts of the globe covered by Bharti’s new acquisition.
3. Bharti had in March agreed to buy most of Zain Africa in what is India’s second-largest cross-
border deal after Tata Steel’s $13 billion acquisition of Anglo-Dutch steel maker Corus in 2007.
The deal, which makes Bharti the world’s fifth-largest mobile-phone operator by subscribers,
gives the company access to Africa, allowing it to tap a market with high growth potential.
―The acquisition provides Bharti with meaningful growth opportunities in Africa, which still has
relatively low mobile phone penetration, and an opportunity to improve Zain Africa’s relatively
lower EBITDA [earnings before interest, taxes, depreciation and amortization] margins,‖
Standard & Poor’s credit analyst Mehul Sukkawala said in a note.
Also, concerns about pending litigations which threatened to upset Bharti’s entry in Africa have
somewhat been put to rest with the Indian telecom company saying it has signed an agreement
with Broad Communications Ltd., which owns a 14% stake in Zain Nigeria, to settle all legal
cases. Broad had in 2009 filed a suit with the Federal High Court in Lagos, seeking an order to
restrain Zain from selling a stake. The Nigerian unit is also involved in another long-standing
dispute with South African telecom company Econet Wireless Holdings, a Zain Nigeria
shareholder, attempting to overturn a 2006 deal through which Zain bought a 65% stake in the
Nigerian business.
Analysts also remain concerned about when Bharti will be able to see any meaningful benefit
from the deal. Already mired by stiff competition and strained balance sheet due to the third-
generation bandwidth auction, it may be a few years before the company begins to see its
margins expanding.
With about four or five established players currently present in the African market, Bharti may
need to spend aggressively on marketing and introduce lower tariffs to gain significant market
share even though Zain Africa already has a presence in 15 countries, analysts say.
Also, the deal was widely regarded as being expensive and in the light of the current
environment for the telecom sector in India, the pressure on Bharti’s balance sheet may continue
— a concern echoed by Standard & Poor’s, which lowered its long-term corporate credit rating
on Bharti Wednesday.
―We lowered Bharti’s rating to reflect our expectation that the company’s leverage and cash-
flow protection measures will deteriorate significantly following its largely debt-funded
acquisition of Zain Africa BV,‖ the rating agency said.
Dear Shareholders,
The Directors have pleasure in presenting the sixteenth annual report
on the business and operations of the Company together with audited fi
nancial statements and accounts for the year ended March 31, 2011.
OVERVIEW
4. Bharti Airtel is one of the world''s leading providers of
telecommunication services with presence in 19 countries including
India & South Asia and Africa. The Company served an aggregate of 220.9
Mn customers as on March 31, 2011. The Company is the largest wireless
service provider in India, based on the number of customers as of March
31, 2011. The Company offers an integrated suite of telecom solutions
to its enterprise customers, in addition to providing long distance
connectivity both nationally and internationally. The Company also
offers Digital TV and IPTV Services. All these services are rendered
under a unified brand airtel either directly or through subsidiary
companies. The Company also deploys, owns and manages passive
infrastructure pertaining to telecom operations under its subsidiary
Bharti Infratel Limited. Bharti Infratel owns 42% of Indus Towers
Limited. Bharti Infratel and Indus Towers are the largest passive
infrastructure service providers for telecom services in India.
FINANCIAL RESULTS AND RESULTS OF OPERATIONS
Financial Highlights of Consolidated Statement of Operations of the
Company as per International Financial Reporting Standards.
Amount in Rs. Mn
Particulars Financial Year Y-o-Y
2010-11 2009-10 Growth
Gross revenue 594,672 418,472 42%
EBITDA 199,664 167,633 19%
Cash profit from operations 177,851 167,455 6%
Earnings before taxation 76,782 105,091 -27%
Net profit/(loss) 60,467 89,768 -33%
Financial Highlights of Standalone Statement of Operations of the
Company as per Indian Generally Accepted Accounting Principles.
Amount in Rs. Mn
Particulars Financial Year Y-o-Y
2010-11 2009-10 Growth
Gross revenue 380,158 356,095 7%
EBITDA 133,843 137,764 -3%
Cash profit from operations 133,664 147,217 -9%
Earnings before taxation 87,258 106,993 -18%
Net profit/(loss) 77,169 94,262 -18%
LIQUIDITY
5. The Company has suitable commercial arrangements with its creditors,
healthy cash flows and sufficient standby credit lines with banks and
financial institutions to meet its working capital cycles. It deploys
a robust cash management system to ensure timely servicing of its
liquidity obligations. The Company has also been able to arrange for
adequate liquidity at an optimised cost to meet its business
requirements and has minimised the amount of funds tied-up in the
current assets
As of March 31, 2011, the Company had cash and cash equivalents of Rs.
9,575 Mn and short term investments of Rs. 6,224 Mn.
The Company actively manages the short-term liquidity to generate
optimum returns by investments made only in debt and money market
instruments including liquid and income debt fund schemes, fixed
maturity plans and other similar instruments.
The Company is comfortable with its present liquidity position and
foreseeable liquidity needs. It has adequate facilities in place and
robust cash flows to meet its liquidity requirements for executing its
business plans and meeting with any evolving requirements.
GENERAL RESERVE
Out of the total Profit of Rs. 77,169 Mn on a standalone basis for the
financial year ended March 31, 2011, an amount of Rs. 5,800 Mn has been
transferred to the General Reserve.
DIVIDEND
The Board recommends a final dividend of Rs. 1 per equity share of Rs. 5
each (20% of face value) for the financial year 2010-11. The total
dividend payout inclusive of Rs. 616 Mn tax on dividend, will amount to Rs.
4,414 Mn. The payment of dividend is subject to the approval of the
shareholders at the ensuing annual general meeting of the Company.
SUBSIDIARY COMPANIES
As on March 31, 2011, your Company has 113 subsidiary companies as set
out in Page no. 150 of the annual report (for abridged annual report
please refer Page no. 49).
Pursuant to the General Circular No. 2/2011 dated February 8, 2011
issued by the Ministry of Corporate Affairs, Government of India, the
Board of directors have consented for not attaching the balance sheet,
Profit and loss account and other documents as set out in Section
212(1) of the Companies Act, 1956 in respect of its subsidiary
companies for the year ended March 31, 2011.
Annual accounts of these subsidiary companies, along with related
information are available for inspection at the Company''s registered
offi ce. Copies of the annual accounts of the subsidiary companies will
also be made available to Bharti Airtel''s investors and subsidiary
companies'' investors upon request.
The statement pursuant to the above referred circular is annexed as
part of the Notes to Consolidated Accounts of the Company on Page no.
6. 53 of the abridged annual report and Page no. 159 of the full version
of the annual report.
ABRIDGED FINANCIAL STATEMENTS
In terms of the provisions of Section 219(1)(b)(iv) of the Companies
Act, 1956, the Board of directors have decided to circulate the
abridged annual report containing salient features of the balance sheet
and Profit and loss account to the shareholders for the financial
year 2010-11. Full version of the annual report will be available on
Company''s website www.airtel.com and will also be made available to
investors upon request.
In support of the green initiative of the Ministry of Corporate
Affairs, the Company has also decided to send all future communications
including the annual report through email to those shareholders, who
have registered their e-mail id with their depository participant/
Company''s registrar and share transfer agent. In case a shareholder
wishes to receive a printed copy of such communications, he/she may
please send a request to the Company, which will send a printed copy of
the communication to the shareholder.
QUALITY
Deeply embedded in Bharti Airtel''s DNA, operational excellence has been
the driving force towards mobilising the entire organisation to
eliminate non-conformances and minimize waste in its processes. This
has led to a remarkable process improvement and cost reduction. The
Company has developed its unique model of excellence in line with
Malcolm Balridge award known as CEO''s Operational Excellence award. The
award criteria includes improvement, process compliance, leadership
engagement in excellence, best practice replication, customer and
employee satisfaction and financial performance. For the up-keep of
standards, all processes are continually assessed by external
consultants leading to certifications like TL9000, BCP DR, ISO 27001,
OHSAS, beside continual improvement.
BRANDING
The year was a landmark in the history of the brand airtel, marked by
important changes and advancements, as the Company continued to build
on its leadership position across markets. A number of signifi cant
strides were taken to live up to the Company''s refreshed vision – By
2015 airtel will be the most loved brand, enriching the lives of
millions.
Bharti Airtel introduced a completely new, fresh and vibrant brand logo
and identity. Designed to appeal to a more demanding consumer, the
dynamic new identity met with high appreciation as it was introduced in
existing and new markets. Backed by a high decibel communication
campaign, the roll out of the new identity was completed across all its
markets.
Apart from India and Sri Lanka, the brand also started to offer its
services to consumers in Bangladesh making the Company a powerhouse
across South Asia. Across the seas, the Company established a strong
presence in the 16 countries across the African continent.
7. During the year, Airtel won the ''Most Preferred Cellular Service
Provider Brand'' award in the CNBC Awaaz Consumer Awards 2010 for the
6th year in a row. The CNBC Awaaz Consumer Awards were based on an
extensive consumer survey done by Nielsen, wherein the customers rated
brands across different categories which delivered true value for
money.
MAJOR AGREEMENTS AND ALLIANCES
During the year, the Company signed the following major agreements
relating to operations, customer service, innovation and technology:
- With Ericsson, Nokia Siemens Networks and Huawei for the launch of 3G
services in India. These partners will plan, design, deploy and
maintain a state of the art 3G HSPA Network in the Company''s 3G license
circles. This deployment would enable the Company to extend its
leadership position in the Indian market and meet the growing demand
for high speed surfing and wireless entertainment in the country.
- With Ericsson and Huawei to deploy state-of-the-art network
infrastructure in Bangladesh. Ericsson to deliver and manage majority
of the Company''s network capacity in Bangladesh, while Huawei to swap
the existing radio network in the eastern areas of Bangladesh.
- With State Bank of India (SBI), a Joint Venture (JV) agreement to
usher in the new era of financial inclusion for the unbanked in India.
The JV will become the Business Correspondent of SBI and offer banking
products and services at affordable cost to the citizens in unbanked
and other areas.
- With Nokia to launch ''Ovi Life Tools'' service targeted at providing
Airtel''s mobile customers with access to relevant content on
agriculture, education and entertainment.
- With Radio Mirchi, to launch ''Mirchi Mobile'' on airtel, enabling its
customers to choose and follow their favourite local Mirchi radio
station from anywhere in India from the 12 Radio Mirchi stations.
- With Encyclopedia Britannica to offer airtel broadband customers two
year free access to ''Britannica online'', the world''s most trusted
information source.
- With Novatium to help expand the broadband market by launching ''Net
PC Plus'' on airtel broadband for customers in Chennai.
- With Savvis to offer managed IT and cloud services in the high growth
Indian IT market. The collaboration aims to launch innovative managed
services to enterprises operating in or expanding into India.
- With China Telecom to launch direct underground terrestrial link
between India and China. With this network, the Company has established
the third international gateway for its customers in India offering an
alternate and shortest route between India and China alongside existing
Subsea routes.
- With VMware, to launch virtualisation services based on VMware
8. vSphere™ platform, extending the Managed Service portfolio.
- With Servion and Cisco for launch of Hosted Contact Center services
for large, medium and small enterprises offering freedom from
technology obsolescence, capital investments and continuity challenges
while leveraging the capability to customise the solution, based on
business requirements.
- With consortium of telecom operators for launch of IMEWE submarine
cable system stretching from India to Western Europe via Middle East;
EASSy Cable system, the largest submarine cable system serving the
African continent and EIG offering connectivity to the Middle East,
Africa and Europe with enhanced capacity, redundancy and network
resilience.
- With IBM for transformation and management of the comprehensive IT
infrastructure and applications in all the 16 countries of operations
in Africa.
- With Ericsson, NSN Siemens and Huawei for network management of 2G
and 3G network in all the 16 countries of operations in Africa.
- With IBM, Tech Mahindra and Spanco for world-class customer service
across all 16 countries in Africa.
NEW PRODUCTS/ INITIATIVES
During the year, the Company launched various new and innovative
products and services, directly and through its subsidiaries, which
enabled it to strengthen its leadership in an intensely competitive
market. Some of the key launches of the year included:
- 3G Services in 9 of 13 circles with 3G spectrum, empowering all 3G
customers to manage their data usage and avoid ''bill shock'' with
proactive, personalised and timely data usage alerts coupled with
introduction of easy-to-understand intuitive tariffs with personalised
data usage limits.
- airtel money - India''s first mobile wallet service by a telecom
operator. It offers customers an effi cient alternative to cash
transactions, providing Airtel customers across the country with a
convenient and secure way of making payments through the ubiquitous
mobile platform anytime, anywhere!
- airtel call manager, a service that enables a customer to keep
his/her callers informed (when he is in a meeting or driving and is not
able to take calls) by choosing the meeting or the driving profi les.
- airtel voice blog, world''s first voice blogging service, enabling
customers to share recorded voice updates with their followers – fans,
friends or family.
- airtel world SIM for international travellers enabling outbound
travellers to retain their local number while roaming internationally
at a fraction of the cost, allowing customers to save upto 85 percent
on international calls.
9. - Live Aarti on mobile, India''s first service on mobile offering daily
live Pujas and Aartis directly from the shrines including Tirupati
Balaji, Siddhivinayak, Shri Sai Baba from Shirdi and Bangla Sahib.
- LearnNext an e-Learning website for the Company''s broadband users. It
is a complete computer based interactive CBSE study module, for
students studying in Class VI to X.
- IPTV services in Bangalore, the 2nd city after Delhi – NCR to get
airtel IPTV services.
- airtel broadband TV, allows the broadband customers to watch live TV
on their computers or laptops without having to buy an extra TV set or
cable connection/set top box or an air antenna by simply subscribing to
airtel broadband TV.
- Unified Service Management Centre (uSMC), to enhance the quality of
customer experience and provide best in class services to the
customers.
- Global Data Services in Thailand and Malaysia in association with
TRUE International Gateway Co. and Telecom Malaysia respectively to
serve the growing bandwidth demands of customers in the region.
- airtel digital TV recorder, an enhanced Set Top Box (STB) with
capability to record live television, anytime, anywhere using mobile
phone. After pioneering the initiative of recording television
programmes through mobile, the recording facility was extended through
internet for airtel digital TV recorder customers.
- India''s first High Definition (HD) box with Dolby digital plus
offering 7.1 channels of surround sound for airtel digital TV
customers.
- MAMO (My Airtel My Offer) is Africa''s first marketing tool offering
segmented and personalised offers to both active and inactive
customers. A single number, ''141'' is being advertised inviting
customers to listen to their customised offers with the option of
fulfillment. The offers range from voice (local and international),
SMS, VAS and data depending on customers'' usage and activity.
- i-Care was deployed across all countries of operation – the objective
of the programmes is to bring about a cultural transformation across
the Company by putting the customer as the first priority and taking
personal ownership to resume customer issues.
OTHER COMPANY DEVELOPMENTS
- The Company became a global telecom operator by completing
acquisition of Zain Group''s (Zain) mobile operations in 15 countries
across Africa in June 2010 and Telecom Seychelles Limited, a leading
telecom operator in Seychelles in August 2010. With these acquisitions,
the Company expanded its African footprint to 16 countries and its
overall presence to 19 countries, thus becoming the first Indian brand
to go truly global with a footprint covering over 1.8 Bn people.
- The Company launched its New Vision for India and South Asia ''By
10. 2015, airtel will be the most loved brand, enriching the lives of
millions'' inspiring and directing all stakeholders for the next stage
of growth.
- The Company also launched its vision for Africa By 2015 airtel will
be the most loved brand in the daily lives of African people.
AWARDS AND RECOGNITIONS
The Company was conferred with many awards and recognitions during the
year. Some of them are listed below:
- At the GSMA in Barcelona in February this year, Airtel Africa was
awarded two Global Mobile awards – ''Best Mobile Money Product or
Solution'' and ''Best Customer Care and Customer Relationship Management
(CRM)''.
- Five awards at the Telecom Operator Awards 2011 constituted by
tele.net, including ''Most Admired Telecom Operator'', ''Best National
Mobile Operator'', ''Best VAS Provider'', ''Best Enterprise Services
Provider'' and ''Operator with Best Rural Performance''.
- ET Telecom Awards 2011 in categories of ''Customer experience
Enhancement'' and ''Innovative VAS Product''.
- ''Most Preferred Cellular Service Provider Brand'' award in the CNBC
Awaaz Consumer Awards 2010 for the 6th year in a row.
- ''Top Telecom Company'' 4th year in a row by NDTV Profit Business
Leadership Awards 2010.
- ''CIO 100 Award'' instituted by CIO magazine for innovative practices
at the Annual CIO 100 Awards.
- Four awards at the Annual Voice & Data Telecom Awards 2010 - ''Top
Cellular Service Provider'', ''Top Telecom Service Provider'' and ''Top NLD
& VSAT Service Provider''.
- ''India''s Best Enterprise Connectivity Provider'' at the Users'' Choice
Awards instituted by PC Quest.
- Ranked amongst the top five firms in Corporate Reputation in India,
by the Nielsen.
- Rated as one of the top 5 best employers in the Aon Hewitt Best
Employers in India 2011 study.
- Ranked amongst the top 10 companies in ''the Best Companies to Work
For'' survey by Business Today in 2011.
- ''Small Business Technology Partner of the Year award'' at the
Franchise India''s Small Business Congress 2010.
- airtel digital TV was voted the favorite DTH service by customers in
key metros in a nationwide customer satisfaction survey by MaRS on
India''s Favourite DTH Operator.
11. CAPITAL MARKET RATINGS
As at March 31, 2011, Bharti Airtel has outstanding ratings with four
institutions, two domestic rating agencies, viz. CRISIL and ICRA, and
two international rating agencies, viz. Fitch Ratings and S&P.
- CRISIL and ICRA have rated the Company at the top end of their rating
scales, both for short term (P1 /A1 ) as well as long term (AAA/LAAA).
- Fitch Ratings has rated the Company (and reaffi rmed at the time of
Zain Acquisition) at level of sovereign of India (BBB-). S&P who had
rated us at level of sovereign of India (BBB-) downgraded the Company
by a sub-notch to BB at the time of Zain acquisition.
SHARE CAPITAL
During the year, there was no change in the authorised, issued,
subscribed and paid-up equity share capital of the Company which stood
at Rs. 18,987,650,480 divided into 3,797,530,096 equity shares of Rs. 5
each as at March 31, 2011.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
In accordance with the listing agreement requirements, the Management
Discussion and Analysis report is presented in a separate section
forming part of the annual report.
CORPORATE GOVERNANCE
The Company is committed to maintain the highest standards of corporate
governance. The directors adhere to the requirements set out by the
Securities and Exchange Board of India''s Corporate Governance Practices
and have implemented all the stipulations prescribed.
A detailed report on corporate governance pursuant to the requirements
of clause 49 of the listing agreement forms part of the annual report.
However, in terms of the provisions of Section 219(1) (b)(iv) of the
Act, the abridged annual report has been sent to the members of the
Company excluding this report. A certifi cate from the auditors of the
Company, M/s. S.R. Batliboi & Associates, Chartered Accountants,
Gurgaon confi rming compliance of conditions of Corporate Governance as
stipulated under clause 49 is annexed to the report as annexure A.
SECRETARIAL AUDIT REPORT
Keeping with the high standards of corporate governance adopted by the
Company and also to ensure proper compliance with the provisions of
various corporate laws, the regulations and guidelines issued by the
Securities and Exchange Board of India and other statutory authorities,
the Company has voluntarily started a practice of secretarial audit
from a practicing company secretary.
The Company has appointed M/s. Chandrasekaran Associates, Company
Secretaries, New Delhi, to conduct secretarial audit of the Company for
the financial year ended March 31, 2011, who has submitted their
report confi rming the compliance with all the applicable provisions of
various corporate laws. The Secretarial Audit Report is provided
12. separately in the annual report. However, in terms of the provisions of
Section 219(1)(b)(iv) of the Act, the abridged annual report has been
sent to the members of the Company excluding this report.
CORPORATE SOCIAL RESPONSIBILITY
At Bharti Airtel, Corporate Social Responsibility (CSR) encompasses
much more than social outreach programmes and is an integral part of
the way the Company conducts its business. Detailed information on the
initiatives of the Company towards CSR activities is provided in the
Corporate Social Responsibility section of the annual report.
DIRECTORS
Since the last Directors'' Report, Mr. Arun Bharat Ram has retired from
the Board in terms of the policy on independent directors adopted by
the Company and Mr. Lim Chuan Poh, a nominee of Pastel has resigned.
During the year, Lord Evan Mervyn Davies, Mr. Hui Weng Cheong, H.E. Dr.
Salim Ahmed Salim and Mr. Tsun-yan Hsieh were appointed as directors.
The Board places on record its sincere appreciation for the services
rendered by Mr. Lim Chuan Poh and Mr. Arun Bharat Ram during their
tenure on the Board.
Ms. Tan Yong Choo was appointed as a director to fi ll casual vacancy
caused due to resignation of Mr. Quah Kung Yang w.e.f. January 21, 2010
and holds offi ce upto the date of the ensuing annual general meeting.
Mr. Ajay Lal, Mr. Akhil Gupta and Mr. N. Kumar retires by rotation at
the forthcoming annual general meeting and being eligible, offer
themselves for re-appointment.
The Company has received notices from members under Section 257 of the
Companies Act, 1956, proposing the appointment of Lord Evan Mervyn
Davies, Mr. Hui Weng Cheong, H.E. Dr. Salim Ahmed Salim, Ms. Tan Yong
Choo and Mr. Tsun-yan Hsieh as non-executive directors of the Company.
Mr. Sunil Bharti Mittal completes his current term as Managing Director
of the Company on September 30, 2011. On the advice of the HR
Committee, the Board recommends to the shareholders, the re-appointment
of Mr. Sunil Bharti Mittal as a Managing Director for a further term of
fi ve years effective October 1, 2011.
A brief resume, nature of expertise, details of directorships held in
other public limited companies of the directors proposing
re-appointment along with their shareholding in the Company as
stipulated under clause 49 of the listing agreement with the stock
exchanges is appended as an annexure to the notice of the ensuing
annual general meeting. The Board recommends their appointment.
FIXED DEPOSITS
The Company has not accepted any fixed deposits and, as such, no
amount of principal or interest was outstanding as on the balance sheet
date.
AUDITORS
13. The Statutory Auditors of the Company, M/s. S. R. Batliboi &
Associates, Chartered Accountants, Gurgaon, retires at the conclusion
of the ensuing annual general meeting of the Company and have confi
rmed their willingness and eligibility for re-appointment and have also
confi rmed that their re-appointment, if made, will be within the
limits stipulated under Section 224(1B) of the Companies Act, 1956. The
Board recommends their re-appointment for the next term.
AUDITORS'' REPORT
The Board has duly examined the Statutory Auditors'' report to accounts
which is self explanatory and clarifi cations wherever necessary, have
been included in the Notes to Accounts section of the annual report.
As regards the comment under para i (a) of the annexure A to the
Auditors'' Report regarding the updation of quantitative and situation
details relating to certain fixed assets in the Fixed Assets Register,
the Company is further strengthening its process for updation of
requisite details at frequent intervals.
As regards the comment under para xxi of the annexure to the Auditors''
Report, to address the issues of fraud by employees and external
parties, the Company has taken appropriate steps including issuance of
warning letters, termination of service of the errant employees,
termination of the contract/agreements with the external parties, legal
action against the external parties involved, blacklisting the
contractors, etc. The Company is further strengthening its internal
control systems to reduce the probability of occurrence of such events
in future.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
For the Company, being a service provider organisation, most of the
information as required under Section 217(1)(e) of the Companies Act,
1956, read with the Companies (Disclosure of Particulars in the Report
of the Board of Directors) Rules, 1988, as amended is not applicable.
However, the information as applicable has been given in annexure B to
this report.
EMPLOYEES STOCK OPTION PLAN
The Company values its employees and is committed to adopt the best HR
practices. The employees of the Company are presently eligible for two
ESOP schemes under 2001 and 2005 Employee Stock Option Policy. Besides
attracting talent, the Schemes also help in retention of talent and
experience.
The ESOP Scheme 2001 is administered through a Trust, whereby the
shares held in the Trust are transferred to the employee as and when
the concerned employee exercises stock options under the Scheme.
Till March 2010, under ESOP Scheme 2005, the employees were allotted
new equity shares upon exercise of stock options. In the board meeting
held in April 2010, the Board approved purchase of the Company''s equity
shares up to the limit approved by the shareholders in the existing
Trust and appropriate the same towards the Scheme. Accordingly, under
14. the ESOP Scheme 2005, the Company now acquire shares from the secondary
market through the Trust and transfers the same to the respective
employees in place of allotment of fresh equity shares.
Disclosure in compliance with Clause 12 of the Securities and Exchange
Board of India (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999, as amended, are
provided in annexure C to this report.
A certifi cate from M/s. S. R. Batliboi & Associates, Chartered
Accountants, Statutory Auditors, with respect to the implementation of
the Company''s Employees Stock Option schemes, would be placed before
the shareholders at the ensuing annual general meeting and a copy of
the same will also be available for inspection at the registered offi
ce of the Company.
PARTICULARS OF EMPLOYEES
The information as required to be provided in terms of Section 217(2A)
of the Companies Act, 1956 read with Companies (Particular of
Employees) Rules, 1975 have been set out in the annexure D to this
report. In terms of the provisions of Section 219(1)(b)(iv) of the Act,
the abridged annual report has been sent to the members excluding this
annexure. Members who desire to obtain this information may write to
the Company Secretary at the registered offi ce address and will be
provided with a copy of the same.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
to the best of their knowledge and belief confi rm that:
I. The applicable accounting standards have been followed along with
proper explanation relating to material departures, in the preparation
of the annual accounts for the year ended March 31, 2011;
II. They have selected and applied consistently and made judgements
and estimates that are reasonable and prudent to give a true and fair
view of the state of affairs of the Company as at the end of the fi
nancial year and of the Profit of the Company for that period;
III. They have taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 and for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
IV. They have prepared the annual accounts on a going concern basis.
ACKNOWLEDGEMENTS
Your Directors wish to place on record their appreciation to the
Department of Telecommunications (DOT), the Central Government, the
State Governments in India, Government of Bangladesh, Government of Sri
Lanka and Governments in the 16 countries in Africa, Company''s bankers
and business associates; for the assistance, co-operation and
encouragement they have extended to the Company and also to the
15. employees for their continuing support and unstinting efforts in
ensuring an excellent all round operational performance. The directors
would like to thank various partners viz. Bharti Telecom, Singapore
Telecommunications Limited and other shareholders for their support and
contribution. We look forward to their continued support in the
future.
For and on behalf of the Board
Place : New Delhi Sunil Bharti Mittal
Date : May 5, 2011 Chairman & Managing Director
Bharti Airtel 1QFY2010 performance highlights and result update
August 21, 2010, Saturday, 16:08 GMT | 11:08 EST | 20:38 IST | 23:08 SGT
Contributed by Angel Broking
By Angel Broking
For 1QFY2011, Bharti Airtel posted robust top-line performance, up 13.8% qoq, aided by the
acquisition of Zain Africa. However, margins declined due to high SG&A, network operation
and access costs, while the bottom line was severely affected due to the loss reported by its
African operations.
Robust top line aided by higher MOUs, but strong erosion witnessed in margin: Bharti
Airtel’s net revenue grew 17.4% yoy (13.8% qoq), which included revenue contribution of
Rs958cr from Zain Africa, which has been accounted for 23 days (June 8–June 30, 2010) in
1QFY2011. The company’s global subscriber base stood at 177mn as of 1QFY2011. The
company reported a 518bp yoy (189bp qoq) drop in EBITDA margin in combined operations.
Further, a) the net interest payable of Rs420cr v/s net interest income of Rs128cr and Rs36cr in
1QFY2010 and 4QFY2010, respectively, b) higher depreciation cost and c) higher tax rate,
resulted in a 32% yoy (18% qoq) decline in the bottom line of combined operations (including
Africa) to Rs1,682cr. This was mainly due to a net loss of Rs224cr incurred in its African
operations. However, comparing its India and South Asia financials, the company’s top line grew
8.2% yoy (4.9% qoq) to Rs11,273cr, while posting a 360bp yoy (80bp qoq) margin decline.
Thus, the bottom line, excluding Africa, declined by 23% yoy (6.8% qoq) to Rs1,905cr.
16. Outlook and valuation: We expect Bharti Airtel’s top line to witness a 28.5% CAGR over
FY2010–12E, with strong addition in its subscriber base, including that of Zain Africa. However,
RPM is expected to decline at a 15% CAGR in the same period. Thus, the bottom line is
expected to decline at a 5.1% CAGR over FY2010–12E, mainly due higher interest outgo on
debt raised for Zain and 3G BWA and opex required for integrating Zain’s operations during this
period. In view of the recent underperformance on the PAT and RoE fronts, we have valued
Bharti Airtel at ~17x FY2012E EPS of Rs21.3, in line with our Sensex target multiple of 17x
(Bharti has traded at an average premium of 12% to Sensex average PE multiple during 2005–
2010). Thus, we recommend an Accumulate rating on Bharti Airtel and maintain our Target
Price of Rs360.
17. Robust top line aided by the acquisition of Zain Africa
Bharti Airtel recorded 17.4% yoy (13.8% qoq) growth in net revenue for 1QFY2011 mainly on
account of strong growth of 16% yoy (17.6% qoq) in its mobile business, aided by additional
revenue contribution of Rs958cr from Zain Africa. The company’s telemedia business also
witnessed 4.8% yoy (5.3% qoq) growth. Further, the tower business and other businesses (DTH
and IPTV) witnessed declines on a sequential basis, registering growth of 28.1% and 89.8% on a
yoy basis, respectively.
Growth in the company’s mobile business was supported by 35.3% yoy (10.2% qoq) growth in
18. total MOU in its Indian and South Asian operations, which stood at 1,90,396mn minutes (480
MOU per user per month), as the subscriber base in India and South Asia grew by 7.1% qoq
each. Zain Africa’s operations added 36.4mn subscribers during 1QFY2011; however, Zain
Africa has lower MOUs of 103 minutes per user per month compared to India and South Asia.
Thus, the company’s total subscriber base (including that of India, South Asia and Zain Africa)
stood at 177mn at the end of 1QFY2011.
Bharti Airtel’s average revenue per user per month (ARPU) in India and South Asia continued to
decline by 22.7% yoy (2.3% qoq) to Rs215, while ARPU of Zain Africa stood at US $8
(~Rs365) during the quarter. The company’s RPM continued to fall by 23% yoy (4.6% qoq) to
Rs0.45 on account of the ongoing competitive tariff wars and new low-cost pricing plans during
the quarter.
19. High SG&A, network operation and access costs impact margin
Bharti Airtel reported a 518bp yoy (189 qoq) drop in EBITDA margin during 1QFY2011 mainly
on account of the 300bp yoy (130bp qoq) increase in SG&A expenses. Network operating costs
also increased by 190bp yoy (down 40bp qoq) due to the expansion in overseas operations and
the 70bp yoy (90bp qoq) increase in access costs. Moreover, the company made a provision of
~Rs104cr for additional spectrum payment expected to be made to the government on the
expected revision in TRAI’s 2G spectrum-related recommendations. This led to a 90bp margin
decline in 1QFY2011. Thus, the company’s overall margins (inclusive of India, South Asia and
Zain African operations) during 1QFY2011 were affected due to its expansion and integration
activities and lower RPM.
Low margins and high interest, depreciation and tax erode PAT
During the quarter, Bharti Airtel’s net interest payable (inclusive of interest cost on borrowings,
investment income and derivative and exchange fluctuation expenses) stood at Rs420cr
(inclusive of India, South Asia and Zain Africa) v/s net interest income of Rs128cr and Rs36cr in
1QFY2010 and 4QFY2010, respectively. The interest cost of Rs46cr attributable to 3G and
BWA loans, however, stands capitalised due to its pending commercial launch. The net other
income (inclusive of other income, share of associates profit and non-operating expenses) was
slightly up at Rs24.4cr in 1QFY2011 v/s Rs18cr in 4QFY2010 and net loss of Rs2.1cr in
1QFY2010. The additional capex of Rs1,836.1cr incurred during the quarter resulted in higher
depreciation cost, which was up by 32% yoy (14.8% qoq) in 1QFY2011. Further, the tax rate
20. moved up at 18% in 1QFY2011 v/s 14.6% in 1QFY2010 and 14% in 4QFY2010. Thus, the
company reported a 32% yoy (17.8% qoq) decline in the bottom line, including African
operations, to Rs1,682cr; however, excluding African operations, the bottom line declined by
only 23% yoy (6.8% qoq) to Rs1,905cr.
Like-to-like operational performance comparison in 1QFY2011
21. During the quarter, on a like-to-like basis, the company witnessed top-line growth of 8.2% yoy
(4.9% qoq) to Rs11,273cr, while Zain Africa, which has been accounted for 23 days (June 8–
June 30, 2010) in 1QFY2011 contributed Rs958cr to the top line. The EBITDA margin,
excluding African operations, contracted by 360bp yoy (80bp qoq), which was lower as
compared to a contraction of 518bp yoy (189bp qoq) witnessed in the margin of the combined
operations (including Zain Africa and other holding companies in Africa). Therefore, higher
acquisition-related costs incurred in 1QFY2011 had a major impact on the EBITDA margin of
the company’s combined operations.
Further, higher interest costs on borrowings related to Zain’s acquisition impacted the company’s
profit before tax, which was down by 22% yoy (6% qoq) in India and South Asia on a like-to-
like basis v/s a 30% yoy (15% qoq) decline in profit before tax of combined operations in
1QFY2011. Thus, mainly on account of Zain’s acquisition and net loss of Rs224cr incurred in
Africa in 1QFY2011, the bottom line declined by 32% yoy (18% qoq) in combined operations,
while the bottom line on a like-to-like basis declined by 23% yoy (6.8% qoq).
22.
23.
24. Investment arguments
Expansion to give Bharti a strong foothold amongst peers
Bharti Airtel has successfully acquired Zain Africa’s operations, the integration of which is
expected to be completed by December 2010. Through Zain Africa, Bharti Airtel has acquired
3G spectrum licenses in five out of the 16 African countries. Thus, the company sees Zain
Africa’s operations comprising 16 African countries (including the newly acquired Seychelles
for a cost of US $62mn, having US $19,500 GDP/Capita with a large roaming revenue base and
EBITDA margin of 40%) as a strong opportunity.
Bharti Airtel has also successfully expanded its footprint in Sri Lanka and Bangladesh (through
Warid Telecom) and plans to replicate its minute factory model combined with a low-cost
structure in the newly acquired geographies of Sri Lanka, Bangladesh and Africa. The company
will work on infrastructure sharing and forge contracts on a network utilisation-based model,
much like it does in India to improve productivity and, thereby, the profitability of its African
operations, which are currently reporting losses.
Un-tapped opportunities in the domestic market to aid growth
In the domestic market, the company plans to tap the less penetrated areas (value-added services)
25. and the huge broadband space, as well as focus on the data and non-voice services in the mobile
business segment. Management also plans to expand DTH and its newly launched digital media
business operations. Further, the company is strongly focusing on growing its presence in rural
areas and small towns, where the current tele-density is still low at ~20%.
Survival of the fittest, as hyper competition looms over the industry We believe the status of the
Indian telecom sector would continue to remain challenging if operations continue at lower
tariffs to combat hyper competition. Currently, on an average, there are 10–12 telecom operators
per circle in India compared to 4–5 in the developed markets of US and Europe. The final verdict
on the new 2G spectrum-related recommendations by TRAI is yet to be out, while the MNP has
still not been implemented. Thus, we believe consolidation would be the right way ahead for the
industry, and telecom service providers (TSP) such as Bharti Airtel that have strong market
positioning and healthy financials would sustain the blows better than the smaller players,
discarding unhealthy competition and promoting steady growth of the sector.
We believe the inflow from the 3G rollout would be a reliever to the current pain that the Indian
telecom industry is going through; however, the same would take some time to add to the TSPs’
profitability in the earlier months once the rollout begins. The rollout is expected to happen from
December 2010, with no clarity on the exact date of the rollout.
Outlook and valuation
We expect Bharti Airtel’s top line to witness a 28.5% CAGR over FY2010–12E, with strong
addition in its subscriber base, including that of Zain Africa. However, RPM is expected to
decline at a 15% CAGR in the same period. Thus, the bottom line is expected to decline at a
5.1% CAGR over FY2010–12E, mainly due higher interest outgo on debt raised for Zain and 3G
BWA and opex required for integrating Zain’s operations during this period. In view of the
recent underperformance on the PAT and RoE fronts, we have valued Bharti Airtel at ~17x
FY2012E EPS of Rs21.3, in line with our Sensex target multiple of 17x (Bharti has traded at an
average premium of 12% to Sensex average PE multiple during 2005–2010). Thus, we
recommend an Accumulate rating on Bharti Airtel and maintain our Target Price of Rs360.