BHARTI AIRTEL

Bharti Airtel Limited is a leading integrated telecommunications company with operations in 20 countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks amongst the top 5 mobile service providers globally in terms of subscribers. In India, the company's product offerings include 2G, 3G and 4G services, fixed line, high speed broadband through DSL, IPTV, DTH, enterprise services including national & international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G mobile services. Airtel is the world's third-largest mobile telecommunications company with over 261 million subscribers across 20 countries as of August 2012. It is the largest cellular service provider in India, with 186.9 million subscribers at the end of August 2012. Airtel is the third largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. Airtel has GSM network in all countries, providing 2G, 3G and 4G services depending upon the country of operation. 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. Sunil Bharti Mittal founded the Bharti Group. In 1983, Mittal was in an agreement with Germany's Siemens to manufacture push-button telephone models for the Indian market. In 1986, Mittal incorporated Bharti Telecom Limited (BTL), and his company became the first in India to offer push-button telephones, establishing the basis of Bharti Enterprises. By the early 1990s, Sunil Mittal had also launched the country's first fax machines and its first cordless telephones. In 1992, Mittal won a bid to build a cellular phone network in Delhi. In 1995, Mittal incorporated the cellular operations as Bharti Tele-Ventures and launched service in Delhi. In 1996, cellular service was extended to Himachal Pradesh. In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular operations to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of Skycell Communications, in Chennai. In 2001, the company acquired control of Spice Cell in Calcutta. Bharti Enterprises went public in 2002, and the company was listed on Bombay Stock Exchange and National Stock Exchange of India. In 2003, the cellular phone operations were rebranded under the single Airtel brand. In 2004, Bharti acquired control of Hexacom and entered Rajasthan. In 2005, Bharti extended its network to Andaman and Nicobar. This expansion allowed it to offer voice services all across India. In 2009, Airtel launched its first international mobile network in Sri Lanka. In 2010, Airtel acquired the African operations of the Kuwait based Zain Telecom. In March 2012, Airtel launched a mobile operation in Rwanda. The company operates in four strategic business units, namely Mobile, Telemedia, Enterprise and Digital TV. The mobile business offers services in India, Sri Lanka and Bangladesh. The Telemedia business provides broadband, IPTV and telephone services in 95 Indian cities. The Digital TV business provides Direct-to-Home TV services across India. The Enterprise business provides endto-end telecom solutions to corporate customers and national and international long distance services to telcos.
Bharti Airtel is first wireless service provider which supplies roaming services, International and long distance communication services and Value Added Services. Bharti Airtel has high-speed optic fiber network. This network presently spans 126,357 kms all over India. Bharti Airtels international network

infrastructure includes ownership of the i2i submarine cable system and consortium ownership in five global undersea cable system.

Cellular technology is at its peak now and it is still growing. It started with the First Generation technology and now it has reached the Fourth Generation popularly called as 4G Technology. The company also deploys, owns and manages passive infrastructure pertaining to telecom operations under their subsidiary BhartiInfratel Ltd. BhartiInfratel Ltd own 42% of Indus Towers Ltd. Bharti Infratel Ltd and Indus Towers Ltd are the largest passive infrastructure service providers for telecom services in India.

Global Footprint of AIRTEL

HISTORY OF AIRTEL

Sunil Bharti Mittal founded the Bharti Group. In 1983, Mittal was in an agreement with Germany's Siemens to manufacture push-button telephone models for the Indian market. In 1986, Mittal incorporated Bharti Telecom Limited (BTL), and his company became the first in India to offer pushbutton telephones, establishing the basis of Bharti Enterprises. By the early 1990s, Sunil Mittal had also launched the country's first fax machines and its first cordless telephones. In 1992, Mittal won a bid to build a cellular phone network in Delhi. In 1995, Mittal incorporated the cellular operations as Bharti Tele-Ventures and launched service in Delhi. In 1996, cellular service was extended to Himachal Pradesh. In 1999, Bharti Enterprises acquired control of JT Holdings, and extended cellular operations to Karnataka and Andhra Pradesh. In 2000, Bharti acquired control of Skycell Communications, in Chennai. In 2001, the company acquired control of Spice Cell in Calcutta. Bharti Enterprises went public in 2002, and the company was listed on Bombay Stock Exchange and

National Stock Exchange of India. In 2003, the cellular phone operations were rebranded under the single Airtel brand. In 2004, Bharti acquired control of Hexacom and entered Rajasthan. In 2005, Bharti extended its network to Andaman and Nicobar. This expansion allowed it to offer voice services all across India. In 2009, Airtel launched its first international mobile network in Sri Lanka. In 2010, Airtel acquired the African operations of the Kuwait based ZainTelecom.In March 2012,Airtel launched a mobile operation in Rwanda. Today, Airtel is the largest cellular service provider in India and the third largest in the world

OWNERSHIP PATERN OF THE COMPANY

CATEGORY OF SHAREHOLDER NO. OF SHARE HOLDE RS TOTAL NO. OF SHARES TOTAL NO. OF SHARES HELD IN DEMATERIALIZE D FORM TOTAL SHAREHOLDING AS A % OF TOTAL NO. OF SHARES AS A % OF (A+B) AS A % OF (A+B+C) SHARES PLEDGED OR OTHERWISE ENCUMBERED

(A) Shareholding of Promoter and Promoter Group

(1) Indian Bodies Corporate Sub Total (2) Foreign Bodies Corporate Any Others (Specify) Any Other Sub Total Total shareholding of Promoter and Promoter Group (A) 3 1 1 4 6 857,180,286 8,493,000 8,493,000 865,673,286 2,601,127,176 857,180,286 8,493,000 8,493,000 865,673,286 2,601,127,176 22.57 0.22 0.22 22.80 68.50 22.57 0.22 0.22 22.80 68.50
-

2 2

1,735,453,890 1,735,453,890

1,735,453,890 1,735,453,890

45.70 45.70

45.70 45.70

(B) Public Shareholding

(1) Institutions Mutual Funds / UTI Financial Institutions / Banks Insurance Companies Foreign Institutional Investors Qualified Foreign Investor Sub Total (2) Non-Institutions Bodies Corporate 3,349 169,539,149 164,094,879 4.46 4.46 268 35 133,301,294 3,148,117 133,301,294 3,148,117 3.51 0.08 3.51 0.08 -

51 608

185,203,030 624,197,596

185,203,030 624,197,596

4.88 16.44

4.88 16.44

3,827

3,827

963

945,853,864

945,853,864

24.91

24.91

Individuals Individual shareholders holding nominal share capital up to Rs. 1 lakh Individual shareholders holding nominal share capital in excess of Rs. 1 lakh Any Others (Specify) Foreign Nationals Foreign Corporate Bodies Non Resident Indians Trusts Clearing Members Sub Total Total Public shareholding (B) Total (A)+(B)

50,662,393 358,942

50,651,303

1.33

1.33

12,332,985 144

12,332,985

0.32

0.32

8,270 1

18,014,529 55 5,082,710

18,014,529 55 5,082,710 -

0.47 0.13

0.47

0.13

7,919 32 317 370,705 371,668

4,018,460 5,500,632 3,412,672 250,549,056 1,196,402,920

4,018,460 5,500,632 3,412,672 245,093,696 1,190,947,560

0.11 0.14 0.09 6.60 31.50

0.11 0.14 0.09 6.60 31.50

371,674 -

3,797,530,096 -

3,792,074,736 -

100.00

100.00 -

(C) Shares held by Custodians and against which Depository Receipts have been issued-m
(1) Promoter and Promoter Group (2) Public Sub Total

371,674 3,797,530,096

3,792,074,736

100.00

Total (A)+(B)+(C)

PROMOTING CORPORATES SHARE HOLDING PATERN

Total Shares held No. Name of the Shareholder Shares pledged or otherwise encumbered

Number
1 2 3 4 Bharti Telecom Ltd Pastel Ltd Indian Continent Investment Ltd Viridan Ltd Total 1,735,453,890 591,319,300 265,860,986 8,493,000 2,601,127,176

As a % of grand total (A) + (B) + (C)

45.7 15.57 7 0.22 68.5

Number
-

% of Total shares held

-

As a % of grand total (A) + (B) + (C)

-

The Indian promoter, Bharti Telecom Ltd, holds 45.3% of the total shares of Bharti Airtel Ltd. The foreign promoters, Pastel Ltd and Indian Continent Investment Ltd, hold 15.6% and 6.3% respectively. Private

corporations that hold more than 1% of the total shares of Bharti Airtel include the Life Insurance Corporation of India (4.2%) and Europacific Growth Fund (1.7%

SHARE PRICES IN LAST 1 YEAR PRICE ON CURRENT MP HIGH LOW 29 AUG 2012 245

5 DEC 2011 5 DEC 2012 3 FEB 2012 PRICE 391 332 394

ORGANISATION STRUCTURE OF AIRTEL Airtel's initial organizational structure concentrated on the hierarchy of the operations inside the company as a whole. The structure depicted the corresponding operation/region of different in-charges and it didn't hold anyone responsible for each of its services. So, the company found it better to restructure its organizational chart. The transformed organisational structure has two distinct Customer Business Units (CBU) with clear focus on B2C (Business to Customer) and B2B (Business to Business) segments. Bharti Airtel's B2C business unit will comprehensively service the retail consumers, homes and small offices, by combining the erstwhile business units

- Mobile, Telemedia, Digital TV, and other emerging businesses (like Mcommerce, M-health, M-advertising etc.). The B2C organization will consist of Consumer Business and Market Operations.

SUNIL BHARTI MITTAL (CHAIRMAN & MANAGING DIRECOR)

SANJAY KAPOOR (INDIA & SOUTH ASIA) (CEO)

MANOJ KOHLI (INTERNATIONAL) (CEO)

Dr. JAI MENON (DIRECTOR INNOVATI ON & IT)

B SRIKANTH (CFO)

BHARAT BAMBA WAL (DIRECT OR GLOBAL BRAND)

NILANJAN ROY (CFO)

DREW KELTON (B2B) (PRESIDE NT)

K SRINIVA S (B2C) (PRESID ENT)

AJAY PURI (OPERATI ON)

S ASOKAN (SUPPLY CHAIN) (EXECUT IVE DIRECTO R)

KRISH SHANKAR (HR) (EXECUTIVE DIRECTOR)