BUSINESS TODAY RANKING: Bharti Airtel was ranked 10th in the Business Today ranking for “Best Companies
To Work For” in 2011 and 1st in the tele ommuni ation ! allied industry se tor" OVERVIEW OF TELECOM INDUSTRY: #ndian Tele om se tor has gone from telegraphi and telephoni systems phase to telephoni ommuni ation whi h is now e$panded to the use of ad%an ed te hnologies like &'() C*(A) and W++ to the great ,& Te hnology in mo-ile phones" A ording to the Tele om .egulatory Authority of #ndia /T.A#0) the total num-er of telephone onne tions had tou hed ,12 million as of *e em-er 2010" #t is e$pe ted that -y 2012) #ndia is likely to ha%e 200 million rural tele om onne tions at a penetration rate of 22 per ent /Confederation of #ndian #ndustry /C##0 and 3rnst ! 4oung0" With granting of new li en es new players ame into the market and this meant that on e5dominant players grew weaker" The worst hit has -een the market leader Bharti Airtel that has witnessed redu tion of ,"26 market share while the 2 .elian e and the , 7odafone ha%e witnessed a redu tion in market shares of 1"86 and 1"96 respe ti%ely o%er the past 12 months" The growth rate of Bharti Airtel is ,,"26) 7odafone : ;2"<<6) .elian e : ,8"26) B'=+ : ,,"926) Tata #ndi om : 82";6) #dea : ;<"286 and Air el : 81"26" >*uring this time) the total market si?e grew -y ;1"16 : implying an addition of 201", million"@ MARKET SHARE OF TELECOMMUNICATION COMPANIES:
ABOUT BHARTI AIRTEL: 11
anked 1st in the #ndustry Category of the Tele ommuni ations -y Works #nstitute 'tudy /whi h year0 ."09 mn ustomers using fi$ed line andEor -road-and /*'+0 ser%i es" The Company also deploys) owns and manages passi%e infrastru ture for tele ommuni ation ser%i es through its su-sidiary ompany) Bharti #nfratel +imited) whi h also owns .th in the ategory of Best Company in +arge Irgani?ations Works #nstitute 'tudy /whi h year0 Airtel Was Chosen As the 2nd (ost Trusted 'er%i e Brand #n #ndia #n The J(ost Trusted Brands 2001 'ur%eyB Condu ted By The 3 onomi Times 5 Brand 3Fuity
.1) 2010 in #ndiaD whi h in ludes 129"<2 mn ustomers using &'( ser%i es and ." The employee turno%er rate in the ompany is low i"e" 19"886 as ompared to tele om industry turno%er rate i"e" 6" The growth rate of the ompany interms of gross re%enues is 26" PRODUCTS & SERVICES: • • • Basi and ellular telephone ser%i es Broad-and ser%i es +ong distan e ommuni ation ser%i es
VISION: "3nri hing li%es means putting the ustomer at the heart of e%erything we do" We will meet their needs -ased on our deep understanding of their am-itions) where%er they are" By ha%ing this fo us we will enri h our own li%es and those of our other key stakeholders" Inly then will we -e thought of as e$ iting) inno%ation) on their side and a truly world lass ompany"" The ompany wants Airtel will -e the most admired -rand in #ndia) lo%ed -y more ustomers and set as a -en hmarked for other -usinesses" AWARDS AND RECOGNITION: •
Bharti Airtel has -een ranked among the top < operators of high5performan e te hnology in the world -y Business Week maga?ine" .atio / F H ( 0 is 1H9".26 stake in #ndus Towers +imited" Bharti #nfratel and #ndus Towers are the top two pro%iders of passi%e infrastru ture ser%i es in the ountry" With the a Fuisition of Gain it has made its presen e in Afri an nations and has -e ome 2th largest mo-ile operator in the world" The total employee strength of the ompany is 11).anked ..2.0"<8 million as on (ar h .Bharti went pu-li in 2002 with the #ndia =ational sto k e$ hange) they raised A192 million and -y the end of 2002 they raised o%er A1 -illion through dire t in%estments" Bharti Airtel is one of AsiaBs leading tele ommuni ation ser%i e pro%iders with presen e in all the 22 li ensed Curisdi tions /known as Tele om Cir les0 in #ndia and also in 'ri +anka and Bangladesh" The Company has a ustomer -ase of 1." The &ender .
* on la%e held in (um-ai in 2000" Airtel has won the Te hies award for three onse uti%e years in 1889) 1881 and 1888"
ORGANISATION CULTURE Bharti Airtel follows the ulture of “&et rid of the fear of the unknown and you reate the grounds of su ess” a ulture as su h indu es thinking differently as a norm" CODE OF CONDUCT Airtel gi%es redit to their employees for not only understanding the ode of ondu t -ut also indi%idually and olle ti%ely following it with fullest responsi-ility" 5To -e responsi%e to the needs of our ustomers 5To trust and respe t our employees 5To ontinuously impro%e our ser%i es :inno%ati%ely and e$peditiously 5To -e transparent and sensiti%e in our dealings with all stakeholders All employees of the Bharti group are e$pe ted to 5 +earn and understand the elements of the ode 5 Comply with the ode and asso iated poli ies and guidelines 5 'eek larifi ations and assistan e when in dou-t 5 Lromptly report knownEsuspe ted %iolations 5Cooperate in in%estigations pertaining to ode %iolations for this Airtel has esta-lished employee forums and help lines" HR POLICIES Airtel %alues its human resour es and its K.e ruitment Lrogram to re ruit young students from %arious elite ampuses"
. Lra ti es in the Asia La ifi . poli ies are aimed at targeting and retaining -est talent in the industry" A fine -lend of the aforementioned -enefits as well as tremendous growth opportunities in areer growth makes life at Airtel e$ iting as well as en ouraging" Airtel %alues its human resour es and its K. poli ies are aimed at targeting and retaining -est talent in the industry" With the fo us on the same) Airtel also has a Bharti Campus .egionB at the Asia La ifi K.• • •
Awarded with Top Konours at The &'(A (o-ile World Congress Conferen e 2001 in Bar elona for the ategory “Best BillingE Customer Care 'olution"” AdCudged as The JBest Carrier #ndiaB at the Tele om Asia Award 2001 AdCudged as JCompany If The 4earB At The C=BC #ndia Business +eader Awards 2009 3 onomi Times JCompany If The 4ear 2009B Award For Corporate 3$ ellen e &allup &reat Workpla e Award For 2001 5Airtel is one of the only 20 ompanies worldwide and the only ompany from #ndia to re ei%e the prestigious award" Airtel was awarded as the JCompany with the (ost #nno%ati%e K.
'C onsists of the C3I) the CII and all other fun tional heads" The ommittee meets on e a week to dis uss %arious initiati%es and the plan of a tion on the same" To arry forward these plans) the entire organi?ation is measured on fi%e performan e parametersH profita-ility) market share) -rand salien y) ustomer satisfa tion) and employee satisfa tion" Further) ea h employee is gi%en indi%idual targets that are linked to these fi%e parameters" S'tis('"ti# S)r*e+ PACE The ompany ondu ts an internal employee satisfa tion sur%ey alled LAC3 /Lrogressi%e Assessment of Culture and 3n%ironment0) the inputs of whi h go into the ompanyMs annual strategy" (easurement is indeed a key dri%er of -usiness within Airtel" A philosophy of onstant monitoring has -een esta-lished" N(easurement BoardsM for e%ery department are prominently displayed where the performan e indi ators of the same are displayed graphi ally" Te'$ W#r.'C0 of the ompany has a ted as the ful rum of the K.$e t : Onlike most other organi?ations) they let their employees de ide their training needs" To en ourage learning within the organi?ation) the ompany has set up a state5of5the5art learning entre" Kere) the employees an get logged on to ustomi?ed training programmes de%eloped -y British Tele om /BT0" Though the material is transmitted through the #nternet) they are not a essi-le to any-ody outside the organi?ation as the a ess is prote ted" 11
. The K. department 5 The Nopen houseM ondu ted -etween the departments and K. department also sets up ross5fun tional teams in times of produ t or ser%i e laun hes" 'u h teams typi ally onstitute high performers from ea h department) who olle ti%ely make it happen" De*e-#. steering ommittee /K. intranet" #n order to intera t on epts and strategies managerBs ommuni ation forum) undertaken on e a Fuarter this fa ilitates dire t intera tion of the employees with the top management" They get to dis uss issues relating to the performan e of the pre%ious Fuarter) dire tions for the ne$t Fuarter) an update on the regulatory en%ironment and the key initiati%es for the period" Ipen Kouse with the K. takes up indi%idual grie%an es" #n the ase of family group meetings) ea h KI* ondu ts meetings with his dire t repartees on e a month) wherein issues other than those related to work are dis ussed" Airtel -elie%es in and fo uses on the ontinuous learning and de%elopment of its employees" Tr'i i ! ' 1 1e*e-#.* efforts in the organi?ation" K.HR steeri ! "#$$ittee %HRSC& I%er the years K. interfa e and K.i ! r#/)st "#$$) i"'ti# *e0i"-es (anagerBs ommuni ation forum) open house5 family group meetings) K.
r#!r'$$es: Te"0 i"'.# e ts #( t0e .r#!r'$$e The training program -lends ross te hni al training with on5the5Co. .Le'1ers Pr#!r'$ is : 5To reate Pfuture te hnology leadership poolP whi h will infuse fresh and young -lood into the organi?ation" 5To nurture a ontinuous pipeline of talent o%er a period of time to deli%er superior -usiness performan e" C#$. .Tr'i i !: *uring this phase) the 4+s re ei%e holisti e$posure to the working and produ ts ! ser%i es of the organi?ation" Comforta-le adapting to the daily operations through this < month training) the fresh pass5outs from ampus then -e omes fit and ready to take up fun tional roles and hallenges" O t0e 3#/ Tr'i i !: In e the 4+ is ready to -e part of the ore stru ture) fun tional duties are assigned and heEshe is made familiar with e$emplified pro edures of work" The (entoring Lrogram aims to reate interpersonal intera tion -etween a omplished senior mentors /from within the organi?ation0 and 4oung +eaders and helps them hanneli?e their areer aspirations -y instilling knowledge) skill) wisdom and inspiration through these intera tions" The Buddy Lrogram ena-les the 4oung +eaders /4+0 to not only MfeelM the organi?ation 11
.# e ts #( t0e .Te"0 i"'.r#!r'$$e: T0e Me t#ri ! Pr#!r'$: (entoring Lrogram aims at pro%iding a friendly) knowledge -ased and pra ti al en%ironment to fa ilitate the gain of knowledge) skill) wisdom) and inspiration through a series of mentoring sessions with senior olleagues from within the organi?ation" Hi!0er E1)"'ti# A*e )es: Through %arious tie5ups with maCor a ademi institutions like Centum +earning partners" Airtel en ourages its employees to enhan e their apa-ilities as well as e$plore e%ery reFuired edu ational a%enue as per areer aspirations and organi?ational needs Y#) ! Le'1er Pr#!r'$ %YLP&: Lremier -usiness s hools are %isited -y the ompany and talent is -rought in as J4+sB after < months of intense ross fun tional training they are put on hallenging and stret hing roles" C#$.e+ #/2e"ti*e #( t0e Airte.Le'1ers0i.r#!r'$$e: Cr#ss F) "ti# '.training" The program helps the Te hni al +eaders in understanding different aspe ts of the te hni al department" T0e .Le'1ers0i.
s).#rt: At Airtel) e%ery employee is offered entire end5to5end health are) health insuran e assistan e and support through the following -enefitsH 1" 3mergen y medi al assistan e 2" Criti al ase on ierge ser%i e .r#!r'$ %BLeAP&: #t identifies and de%elops high potential middle management leaders and prepares them for CII or similar riti al national fun tional roles" E$er!i ! Le'1er A""e-er'ti# Pr#!r'$ %ELeAP&: #t looks at -uilding the riti al skills /like leadership) onfli t resolution) effe ti%e olla-oration) et 0 through a mi$ of workshops and a tion learning a ti%ities for de%eloping first le%el -usiness leaders" EMPLOYEE BENEFITS: P'+ (#r .esidential Lrograms are ondu ted for 4+s to fa ilitate mo%ement from PCampus to Corporate"P B)si ess Le'1er A""e-er'ti# .*" Me1i"'.through the eyes of an old timer) -ut also a elerates their a-ility to deal with early dis on erting issues" The -uddy is the M onfidanteM on whom 4+s an fall -a k on in the new en%ironment" Tr'i i ! Pr#!r'$s: ..er(#r$' "e 4 #n Bharti Airtel performan e appraisals are ondu ted annually) the appraisals are ategori?ed into 5 5 (onetary Appraisals Losition Appraisals
<0 per ent of the employees are on %aria-le pay stru ture) and that e$plains the su ess Airtel has had in -usiness and K." 3nd5to53nd assistan e with the hospital) insurer E TLA) the employee E patient and the K." 3mergen y ash assistan e . to ensure that the trauma asso iated with hospitali?ation is minimi?ed for an employee" 2" Ad%i e on -est5in5 lass do tors and hospitals in #ndia to ensure that the employee is pro%ided timely and a urate support in sele ting the -est medi al treatment option"
F'"i-ities (#r 5#$e : 11
#-i"+: Allows for time off for enhan ing edu ation up to 1 year ! personal e$igen ies up to < months" Tr'*e.-#+ee re(err'.s" 1)..#-i"+: 3nhan ed monetary -enefits for referring women employees a ross all le%els" Me t#ri ! .F'$i-+ (rie 1-+ 5#r.#st 't'.0. #.s" 2)18. rore against .16 on re-randing ost) fore$ loss" The ompanyMs profit dipped to .".ti# sH Fle$i time) tele ommuting /homeE remote offi e0) part time options" M'ter it+6.-#!# "0' !e: The giants in #ndian Tele om) Bharti Airtel ha%e laun hed their new logo design as the network has rea hed a milestone of 200 million ustomers and the ustomers are in reasing at an optimum pa e where no-ody an ompete with Airtel" The new logo of Airtel has -een laun hed in 18 ountries of Afri an and Asian ontinent" This new -rand identity gi%es us the opportunity to present a single) powerful and unified fa e to our ustomers) stakeholders and partners around the world" #t reinfor es our promise to deli%er inno%ati%e ser%i es and a superior -rand e$perien e to our 200 million ustomers a ross Asia and Afri a" The ompany in urred a re-randing e$penditure of ...r#!r'$: #nitiated for high potential middle management women employees 5 mentoring -y senior women leaders" OTHER FACILITIES: Temporary loan to employees poli y) &roup a identE+ife insuran e and Kardship allowan e" MARKETING BY AIRTEL: C#$.#-i"+ re*isi# : #n ludes two additional safety norms for women employees" E$.s" ../e e(its: 12 weeks maternity lea%e) lea%e e$tenda-le up to < months) fle$i work lo ation) fle$i Epart time options" Re*ise1 s'//'ti"'.' +7s s-#!' : Together good things happen""" T0e Br' 1: As #ndiaMs leading tele ommuni ations ompany) Airtel -rand has played the role of a maCor atalyst in #ndiaMs reforms) ontri-uting to its e onomi resurgen e" Today they tou h peopleMs li%es with their (o-ile ser%i es) Telemedia ser%i es) to onne ting #ndiaMs leading 1000Q orporates" They also onne t #ndians li%ing in O'A) OR and Canada with their all home ser%i e" Airte."2 rore in the year5 ago period" While the num-er looks -ad) a detailed e$amination shows they are more or less in line with 'treet e$pe tation" The re-randing ost and fore$ loss ha%e resulted in profit erosion" CSR ACTIVITIES BY AIRTEL: 11
.82 mn" IMPACT AFTER REBRANDING: Bharti Airtel net slips .
9H2.esponsi-ility Awards 200852010B of Business World5F#CC#5 '3*F /F#CC# 'o io 3 onomi *e%elopment Foundation0" The three main C'.The ompany has its own foundation i"e" Bharti foundation whi h does C'. a ti%ities in areas edu ation) ommunity welfare) en%ironment) disaster relief) energy) health are) po%erty eradi ation) girl hild) %o ational training and rural de%elopment" Bharti AirtelBs passionate parti ipation in %arious programs of the Foundation got re ognised when Bharti Airtel re ei%ed the JCorporate 'o ial ." The s heme started to make an impa t on the hildren) parents and the %illage ommunity" C#$$) it+ 5e-('re: Be+# 1 C#r.06 as ompared to on%entional shelters and a%oids -eing a ause of glo-al warming) as the greenhouse gas emissions are minimal" The Company has taken initiati%es to a hie%e %ision of en%ironment onser%ation and a team is dri%ing its J&reenB program through the key fo used areas of paperless initiati%e) data entre optimisation) desk5side initiati%es and employee awareness programs"
.0)000 hildren and re ruiting o%er 1)000 tea hers from lo al ommunities" The most striking a hie%ement of the program has -een the parti ipation of girls whi h gets refle ted in a healthy girlH -oy ratio of . a ti%ities areH E1)"'ti# : Te$.#r'te Li(e 3mployee %olunteering is an important omponent of the ACT :3mployee Lhilanthropy Lrogram" 3mployees a ross the organisation are en ouraged to %isit any harity of their hoi e and spend a day away from rigorous offi e s hedules and deadlines" The program has -een set up to inspire people to %olunteer for harita-le auses and also help reate opportunities among employees to support a ause -y donating their time) skills) knowledge and money" The employees along with mem-ers of senior leadership team keep on %isiting the s hools and intera t with students and their tea hers during the day they spend at the s hool" 'ome of the employees e%en parti ipate in ommunity awareness programs" E *ir# $e t: T0i .-es #( Le'r i ! Onder the aegis of its flagship program) the 'atya Bharti ' hool Lrogram) Bharti Foundation imparts primary and higher edu ation to help in -oth holisti and a ademi de%elopment of underpri%ileged hildren and youth a ross the rural po kets of #ndia" &irl hild gets spe ial fo us in these temples of learning) radiating knowledge and e$ ellen e" Currently 2.aCasthan) Karyana) Ottar Lradesh and Tamil =aduD rea hing out to appro$imately . Gree The ompany has -een running power sa%ing programs in the offi es and on network operations for o%er 2 years" These programs help in redu ing osts and ar-on footprint" Airtel has pioneered the &reen 'helter on ept for BT'" This uniFue shelter omes with optimal ooling) power and thermal management systems) minimising the running of -a kup systems like diesel generator sets" The solution redu es operational osts -y as mu h as .< 'atya Bharti Lrimary ' hools are operational a ross 2 states of LunCa-) .
4 9'i '":)isiti# : 11
.AC8UISITIONS BY AIRTEL: A/#)t Airte.
4 MTN '":)isiti# : Bharti Airtel) #ndiaBs largest mo-ile phone ompany) tried and failed to a Fuire 'outh Afri aBs (T=) one of the ontinentBs largest ommuni ation ompanies" The reason for its failure 5“The 'outh Afri an go%ernment was on erned a-out loss of ontrol) outflow of urren y whi h may -e repatriated) ta$ation issues and the fa t that the #ndian go%ernment ould not ommit on dual listing)” said *o-ek Later) senior tele om analyst at Afri a Analysis" The 'outh Afri an go%ernment wanted (T= to ontinue to -e listed at the Sohannes-urg 'to k 3$ hange /S'30) -ut #ndian orporate laws do not allow dual listing" *ual listing would ha%e reFuired full e$ hange on%erti-ility of the #ndian rupee) whi h was not attra ti%e to the .8 per ent share of (T=" (T= and its shareholders would a Fuire an appro$imately .& and appropriate" COMPANIES SHARE PERFORMANCE: 11
.4 IBM '!ree$e t: #n 200.eser%e Bank of #ndia" 'outh Afri a fa%oured dual listing) where shares are listed on different e$ hanges and allow in%estors an option where they want to trade" 'ingh assured that #ndian orporate laws would -e amended to a ommodate the deal" Kowe%er) the reser%e -ank ontinued to e$press on erns a-out the listing rules -eing hanged to a ommodate one ompany" Onder the terms of the proposed deal) Bharti was to a Fuire a .Bharti Airtel -ought the Afri a operations of Ruwait operator Gain for A10"9 -illion) and immediately -egan slashing pri es" Call pri es dropped 20 per ent or more in 11 ountries to attra t more ustomers" (illions of mo-ile phone su-s ri-ers in Afri a saw the i on on their phone s reens hange from Ruwaiti ompany Gain to #ndian ompany Airtel" Bharti Airtel will pro%ide ser%i es to 1< Afri an ountries" The #(F said su-5'aharan Afri aBs e onomi growth rate will -e 2 per ent in 2010) ompared with 2"2 per ent in 2008" The Bharti Airtel in%estment in Afri a is so far one of the -iggest from orporate #ndia" #B( will manage #T in the 1< operations in Afri a Bharti Airtel A/#)t Airte.& mo-ile ser%i es a ross the ontinent" Cutting5edge te hnology from #B( will -ring enhan ed effi ien ies and -enefit ustomers) employees and -usiness partners of Bharti Airtel "'in e then) Bharti has grown e$plosi%ely) from < million to 120 million su-s ri-ers to date" Bharti Airtel plans to repli ate the su ess of its partnership with #B( in lowering -arriers to ena-le Afri a to ha%e the porta-le de%i e" A ording to a *eloitte report ommissioned -y the industry asso iation &'(A mo-ile telephony) only .) Airtel signed a 10 year agreement with #B( to offer inno%ati%e mo-ile ser%i es and afforda-le 2& and .0 out of 100 Afri ans ha%e a mo-ile phone" Kowe%er) demand is growing at an annual rate of 226 and 106 growth in mo-ile penetration would in rease the &*L to 1"26 in de%eloping markets" A ording to the planned agreement in 10 years) #B( will -ring together 1< omputer platforms Bharti Airtel operations in Afri a in a single integrated system will manage all appli ations) data entre operations) ser%ers) storage and desktop ser%i es" #B( will pro%ide appli ation support to ustomers in luding relationship management) -illing and self5 management that will gi%e more freedom to ustomers and will help Bharti to offer mo-ile ser%i es and 2& inno%ati%e .< per ent interest in Bharti) of whi h 22 per ent would -e held -y (T= with the remainder held dire tly -y (T= shareholders" (T= was to pay A2"8 -illion in ash to Bharti" A/#)t Airte.
0+: Rarmayog www"airtel"in BT maga?ine Times of #ndia
.0 .<0 .80 .1
ISSUES: Loa hingEraiding in tele ommuni ation se torH “Buying talent” /rather than de%eloping it0 is the latest mantra -eing followed -y the organi?ations today" Loa hing means employing a ompetent and e$perien ed person already working with another reputed ompany in the same or different industryD the organi?ation might -e a ompetitor in the industry" A ompany attra ts talent from another firm -y offering attra ti%e pay pa kages and other terms and onditions) -etter than the urrent employer of the andidate" #t is an unethi al pra ti e and not openly talked a-out" #t has -e ome a hallenge for human resour e managers to fa e and ta kle poa hing) as it weakens the ompetiti%e strength of the firm"
Bi/-i#!r'...19 .4ear 2010 2008 2001 2009 200<
Ipening 'hare Lri e .