...Together good things happen... Bharti Airtel Annual Report 2009-10 Airtel centre The Airtel Centre – Inaugurated on November 13, 2009 Centre of excellence that houses more than 3,000 employees, 13 offices and spread over 600,000 sq.ft. Table Bharti Airtel Annual Report 2010 of contents 1 Corporate information 2 Corporate history and Top 30 shareholders 3 Performance at a glance 4 Awards & honours 5 Chairman’s message 6 Board of directors 7 CEO (International) & JMD’s message 8 CEO (India & South Asia)‘s message 9 Together good things happen 10 Corporate social responsibility 11 Directors’ report 12 Management discussion & analysis 13 Report on corporate governance 14 Secretarial audit report 15 Standalone financial statements with Auditors’ report 16 Consolidated financial statements with Auditors’ report 17 Notice of annual general meeting 2 3 4 5 6 8 12 14 18 24 32 40 46 63 64 115 159 1 Corporate Board of directors Sunil Bharti Mittal Chairman and Managing Director information Group General Counsel & Company Secretary Vijaya Sampath Statutory Auditors Manoj Kohli CEO (International) & Joint Managing Director Non-executive directors Ajay Lal Akhil Gupta Arun Bharat Ram Chua Sock Koong Craig Edward Ehrlich Lim Chuan Poh N. Kumar Nikesh Arora Pulak Chandan Prasad Rajan Bharti Mittal Rakesh Bharti Mittal Tan Yong Choo CEO (India & South Asia) Sanjay Kapoor S.R. Batliboi & Associates, Chartered Accountants Auditors – US GAAP Ernst & Young...
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...Bharti Airtel has made strategic organisational changes to enhance its focus on expanding operations to international markets beyond India and South Asia. The company has created a new international business group, which will be responsible for the company's expansion plans. Manoj Kohli, joint managing director and chief executive of Indian and South Asian operations, has been appointed as the head the newly created international business division. Sanjay Kapoor, currently the deputy CEO of the company will be elevated to the position of CEO (India and South Asia), Bharti Airtel. In his new role, Mr Kapoor would have responsibility of leading India and South Asia businesses of Bharti Airtel and will drive growth and business synergies in mobile services, telemedia services, enterprise services and DTH. Sunil Bharti Mittal, chairman and managing director of Bharti Airtel, said: “The next phase of our journey is set to be another game changer - requiring superior thrust and focused leadership. We continue to win in the Indian telecom market, which is going through a phase of hyper competition. At the same time, we will be developing comprehensive plans for our journey to cover emerging markets beyond India and the South Asia.” “Bharti Airtel has one of the finest management teams in the country and a strong leadership pipeline. This new structure will leverage our management depth and build a strong platform for fulfilling our global vision. Manoj and Sanjay, are amongst...
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...MARKETING STRATEGIES OF AIRTEL SUBMITTED UNDER PARTIAL FULFILLMENT OF THE REQUIREMENT FOR TRAINING SUPERVISOR: PROJECT ADVISOR: SUBMITTED BY: SESSION: ACKNOWLEDGEMENT I acknowledge the sincere assistance provided to me from several rather unexpected quarters during the course of execution of this study. It would be a mammoth task to place on record my gratitude to each and every one of them but a whole hearted attempt would be made nevertheless, least I be branded ungrateful. I am extremely thankful to Mr.Abhishek Yadav, (Unit Advisor) for giving me an opportunity to undergo training in BHARTI AIRTEL MARKETING and making my stay at AIRTEL MARKETING a memorable learning experience. Where the emotions are involved words cease to work. I am deeply indebt to ---------------------- for her encouragement, affections, valuable advice and guidance that helped me to complete this project successfully. 2 EXECUTIVE SUMMARY The project aims at understanding the Marketing strategies at Airtel and its impact on the perception of Airtel Cellular Services. Research has demonstrated conclusively that it is far more costly to win a new customer than it is to maintain an existing one. And there is no better way to retain a customer than to exceed his expectations. For this purpose it is essential to know the level of customer satisfaction. The focus of my research was the measurement of customer satisfaction level for the services provided by Bharti Airtel. The research was...
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...May 9, 2013 Result Update KEY DATA Market Cap (INR bn) Market Cap (USD mn) 52 WK High / Low Avg Daily Volume (BSE) Face Value (INR) BSE Sensex Nifty BSE Code NSE Code Reuters Code Bloomberg Code Shareholding % Promoters MF/Banks/Indian FIs FII/ NRIs/ OCBs Indian Public Performance Chart 2Q 68.0 8.0 17.0 7.0 1295.2 23984.4 370 / 238 507834 5 19990 6069 532454 BHARTIARTL BRTI.BO BHARTI IN 3Q 68.0 8.0 18.0 6.0 4Q 69.0 9.0 17.0 5.0 CMP : INR 324 Rating : Buy Target : INR 410 Bharti Airtel Margins contract due to higher network costs and fuel expenses… Operating matrics in India improves, while that of Africa disappoints … Voice realization in both India and Africa continues to remain under pressure, but higher AMOU in India is a major positive… Headline tariffs are set to improve… Maintain 'Buy' rating on the stock with revised price target of Rs 410 Bharti Airtel's consolidated net profit during Q4FY13 missed our estimates as well as the consensus estimates due to price realization pressure in India & Africa, high network rollout costs and sharp rise in interest cost and higher tax expenses during the quarter. Although the number of subscribers on the company's network increased both in India and Africa resulting in higher total minutes on the network (TMOU), the realized revenue per minute (ARPM) continued to remain under pressure. The average revenue per user (ARPU) though increased due to increased data usage from its 3G user base and higher voice minutes of usage...
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...COMPANY PROFILE Bharti Tele-Ventures was incorporated on July 7, 1995 as a company with limited liability under the Companies Act, for promoting telecommunications services. Bharti Tele-Ventures received certificate for commencement of business on January 18, 1996. The Company was initially formed as a wholly-owned subsidiary of Bharti Telecom Limited. Bharti Airtel Ltd is one of the world's leading providers of telecommunication. Airtel has GSM network in all countries in which it operates, providing 2G, 3G and 4G services depending upon the country of operation. Airtel is the world's third largest mobile telecommunications company with over 261 million subscribers across 150 countries as of August 2012. It is the largest cellular service provider in India, with 183.61 million subscribers as of November 2012.[5] Airtel is the third largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. The chronology of events since Bharti Tele-Ventures was incorporated in 1995 is as follows: Calendar year & Events 1995 - Bharti Cellular launched cellular services 'AirTel' in Delhi 1996 - Bharti Telenet launched cellular services in Himachal Pradesh 1997 - British Telecom acquired a 21.05% equity interest in Bharti Cellular - Bharti Telenet obtained a license for providing fixed-line services in Madhya Pradesh circle 1998 - First Indian private fixed-line services launched in Indore in the Madhya Pradesh circle on June 4, 1998 by Bharti Telenet thereby...
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...If you were Bharti, what major concerns would you have about entering an outsourcing agreement with IBM? With Ericson, Nokia or Siemens? Bharti Airtel started as a very small company with only $900 capital. Who would have imagined it would have become India biggest Telecom Company. Today, Airtel is the largest provider of mobile telephony and second largest provider of fixed telephony in India, and is also a provider of broadband and subscription television services. It offers its telecom services under the "Airtel" brand, and is headed by Sunil Bharti Mittal. It also acts as a carrier for national and international long distance communication services. Concerns with IBM, Nokia, Ericson and Siemens When Bharti was going through crises of capital expenditures, Gupta introduced two proposals for their benefit. One was to combine with IBM and another was to Nokia, Ericson and Siemens. Their strategy was to hand over the full responsibility of buildup, maintenance and servicing of the telecom network to equipment vendors. As IT technology is not an easily available and cheap market. It does require a lot of investment money to go in. At that stage-when Gupta made the proposal-Bharti didn’t had much. So from the point of a chairman it was the best solution to get the outsourcing done. “The advantages that it has was uncertainty in expenditure would have been low, transferring risk equipment risk to the vendors, pay for use and avoid capacity wastage”(Applegate, Austin &...
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...Bharti AirTel Case Digest Bharti AirTel Limited, although in relatively good financial standing, should be very careful in allocating its limited resources. Investments for network installation, maintenance, service and IT systems can cause significant pressure in Bharti’s working capital. As such, investment decisions can make or break Bharti. There are several key reasons why Bharti should outsource its network and IT systems. The first reason is the rapidly changing environment of the telecommunication industries. If Bharti purchases its own network and IT systems, the systems may be obsolete in no time thus wasting the limited capital resources of this company. A second reason is Bharti’s should concentrate on its competencies. Its strength is not technology but operations. This firm’s competency is not in IT design or in network systems. Instead, its core competency is branding and customer service. Therefore, it is in these areas that Bharti has to concentrate. Bharti should leave the technology part to its vendors so that it can maintain its competitive edge. Outsourcing will provide Bharti the option of always getting the best in the field as vendors compete against each other in providing the best offerings at the best cost. Bharti can change networks/IT without worrying about the fixed structures that will become obsolete and useless because of the rapidly evolving technology. Practically, Bharti will in fact be transferring investment risks to the vendors...
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...A STUDY ON CUSTOMER PERCEPTION TOWARDS Submitted in the partial fulfillment in Bachelor of Business Administration Submitted To: Submitted By: Ms. Rasna Pathak Project Guide Roll no. 94532451177 BBA 6th SEM GNA Institute of Management & Technology (Affiliated from PTU) ACKNOWLEDGEMENT I would like to take an opportunity to thank all the people in collecting the necessary information and making of the report. I am grateful to all of them for their time and wisdom. My project becomes a reality only because of cooperation of many people who had helped me in completing this project. I sincerely extend my gratitude to Ms Rasna Pathak who has given me this golden opportunity to have an insight in the corporate world and who has been a source of guidance and support. Sameer Thakur TABLE OF CONTENTS |Title Page |1 | |Bonafide Certificate |2 | |Declaration ...
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...Bharti Airtel Case In the year 2004, Bharti Airtel was at an important crossroads where the company needed to make decisions that would be instrumental in deciding how successful the company would be in the future. The company was growing at an incredible pace, 100% per year, and it was having trouble keeping up with the growth in order to maintain the network. The process of budgeting, maintaining vendor contracts, and managing IT capital expenditure were starting to become a formidable challenge for the company. Bhart Airtel needed to understand exactly what its core competencies were and make the appropriate strategic plans to focus on the competencies. Bharti Airtel’s core competency was understanding the customer’s needs and building the brand up. There was a 300-400 million potential Indian phone customers, and Bharti Airtel’s goal was to capture as much of the market share as they could. The problem was that the company was spending much of it’s time and resources on maintaining the expansive network and focusing on it’s Information Technology needs. This led to the company being more focused on it’s IT needs and less on it’s core competency. Akhil Gupta decided to make a revolutionary decision by changing they way things had been done. Instead of focusing the company’s time and resources on expanding and maintain the expansive network, Gupta thought it was a better idea to outsource all of it’s IT needs. This unpopular decision by Gupta meant that Bharti Airtel would...
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...Hai |1 Case 5 – Strategic Outsourcing at Bharti Airtel Limited 1. Do you think Bharti should enter the outsourcing agreements outlined by Gupta? What do you see as advantages and disadvantages of such agreements? In my opinion, Bharti should go ahead with its outsourcing agreements outline by Gupta. There are advantages and disadvantages of delegating its telecommunications and IT networks to vendors. First of all, Indian market for Telecom is growing exponentially. In 1989, there were 4.2 million telephone subscribers. By 2003, the number was 54 million. Thus, outsourcing would help Bharti to full capitalize the astounding growth surge. It can use its resources and expertise to only focus on core areas of value-added services, marketing, branding and pricing, and leave the rest to expert vendors. Second, as one of Applegate’s benefits of “incremental outsourcing”, Bharti would reduce its deliver time to market by outsourcing (Applegate, 287). New network set up in a circle takes at least 6 months from planning to operating. Using its vendors’ technology and expertise, new products would be developed faster and the time would be reduced to get the product or service to the end users. Third, Bharti would receive favorable cash flow profiles and cost reduction from outsourcing, according to Applegate (288). The company would transfer equipment investment risk to vendors. It does not have to keep the investment in maintaining excess capacity. Vendors can archive...
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...Bharti Airtel Limited Annual Report 2010-11 Board of directors Sunil Bharti Mittal Akhil Gupta Chua Sock Koong N. Kumar Ajay Lal Craig Ehrlich Pulak Prasad Rakesh Bharti Mittal Tan Yong Choo Evan Mervyn Davies Rajan Bharti Mittal Hui Weng Cheong Nikesh Arora Salim Ahmed Salim Tsun-yan Hsieh Manoj Kohli Table of contents Corporate information Performance at a glance rformance Chairman's message airman's CEO (International) & JMD's message O (Internation onal) on CEO (India & South Asia)'s message O (India dia Corporate social responsibility rporate po Directors' report rectors' e Management discussio & analysis nage agement discussion ssio ssion Report on corporate governance governance port ver ve Secretarial audit report report cretarial o Standalone financial stateme with Aud ors' report Auditors' ndalone a statements ments me e uditors r Consolidated financial statements with Auditors' report nsolidated financial statements w i nt with t 2 3 4 6 8 10 0 1 14 24 30 47 48 103 1 Bharti Airtel Annual Report 2010-11 Corporate information Board of directors Mr. Sunil Bharti Mittal Chairman & Managing Director Mr. Manoj Kohli CEO (International) & Joint Managing Director Non-executive directors Mr. Ajay Lal Mr. Akhil Gupta Ms. Chua Sock Koong Mr. Craig Ehrlich Lord Evan Mervyn Davies Mr. Hui Weng Cheong Mr. N. Kumar Mr. Nikesh Arora Mr. Pulak Prasad Mr. Rajan Bharti Mittal Mr. Rakesh Bharti Mittal H.E. Dr. Salim Ahmed...
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...Executive Summary Bharti Airtel, a leading telecommunications provider in India has seen an enormous growth since the opening up of the Indian economy after the economic reforms initiated by the then PM of India, Mr. P.V.Narasimharao towards liberalization, globalization and privatization. Airtel is now the fourth largest telecom company in the world in terms of subscriber base and is the leading telecom carrier in India. The phenomenal growth of Airtel has been due its outstanding and unique business model where it retained its core-functions to itself such as marketing and finance and outsourced its IT functions to companies such as IBM. Airtel has expanded significantly since 1992 due to the competitive advantage it had in the domestic market ( pan-India presence) and only since 2005-06 it started going global foraging into Africa. Significant threats to Airtel come from the lowering of FDI influx into Indian economy and increasing government regulations in the spectrum allocation frame work ,political interference and lobbying. Also the unstable economic conditions in the countries such as Central Africa were not favorable for its expansion in the global markets. Bharti Airtel (or simply Airtel) is an Indian telecommunications company with operations in 20 countries across Asia and Africa. It is headquartered in New Delhi India and was originally conceived and set up by Sunil Bharti Mittal in 1995. At present, Airtel is the world’s fourth largest telecommunication...
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...INTRODUCTION TO TOPIC SENSORY MARKETING: Marketing techniques that aim to seduce the customer by using his senses to influence his feelings and behavior. Sense: Any of the faculties, as sight, hearing, smell, taste, or touch, by which humans and animals perceive stimuli originating from outside or inside the body. HISTORY: During the 1950s, marketers concentrated on using sight for branding. They focused on color and form to promote brands. This was because the main medium for advertising was posters. As television became popular, the consumers' sense of sound was appealed to in advertising. This was mainly during television commercials in the form of jingles (appendix a). In the 1970s marketers began to find that smell could be used in brand promotion. They were also able to adjust the scent of their products to make them more palatable for the consumer. Recently sensory branding has developed to encompass all five senses. Where it all starts….. Perceptual Encoding (process of meaning attribution) Sensation (five senses) Stimuli (exposure) See Ear Smell Taste Feel Sight Sound Odor Flavor Texture The Senses 1. Visual Sight is the most used sense for marketing because it is the one most responsive to the environment. According to fashion retailer Gina Tricot, 'the eyes buy 70 or 80 percent of what people buy.' Sight is how the customer knows the product offering, quality, changes...
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...INTRODUCTION Introduction In today’s globalizing economy competition is getting more and more fierce. That means it becomes more difficult for products and services to differentiate themselves from other offerings than ever before. Not only is the number of competitive offerings rising due to globalization of production, sourcing, logistics and access to information. Many products and services face new competition from substitutes and from completely new offerings or bundles from industry outsiders. Since product differences are closed at an increasing speed and many companies try to win the battle for customers by price reductions, products and services tend to become commodities. Customer perceptions are influenced by a variety of factors. Besides the actual outcome - i.e. did the product or service deliver the expected function and did it fulfil the customers need - the whole process of consumption and all interactions involved are of crucial importance. Background of the Study Today’s globalised information driven economy this can also comprise issues like • How other customers or influencing groups perceive the product or brand • The degree to which the customer feels the actual marketing campaign addresses the most important issues • Responsiveness and service quality of any affiliates, e.g. distribution partners Customer perceptions are dynamic. First of all, with the developing relationship between customer and company,...
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...Strategy Airtel is the single largest player, both in terms of revenue and customers in the Wireless segment and in the Airtel Business segment in India. It is the largest private player in the Telemedia services – Broadband and Fixed Line services. It also is one of the leading players in the other SBU’s – Digital TV services, and passive infrastructure services. As the market leader, Airtel is making efforts to expand the total market, as well as defend its market share. Airtel has played a key role in the introduction of 4G/LTE services and in the Digital TV space in the country. It has also penetrated the rural market, which now boasts of a much better ARPU than before. As the market leader, Airtel’s strategy has been 4 fold – * High Usage, High Price: Airtel has focused on higher usage and higher price in India. Airtel started with low pricing, which helped it augment its subscriber base (largest in the country), and then steadily increased the prices. However, with the entry of newer firms like Docomo and Aircel, this strategy has not played off very well, with Airtel losing market share, from over 30% 4 years ago to just over 20% currently. * Marketing and Branding: Airtel has, over the years, laid strong emphasis on marketing and branding. The Brand ‘Airtel’ is one of the most recognizable brands in the country, let alone telecom. It has engaged in mass spending on celebrity endorsements, from Shah Rukh Khan to Sachin Tendulkar to A.R. Rehman. Airtel has also...
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