Entrepreneurship management

BHARTI GROUP

Akriti Sharma and Ashish Kumar Annepu

BHARTI GROUP

“Doing what you like and loving what you do.”

-Sunil Bharti Mittal

A word about Sunil Bharti Mittal
The founder, chairman and managing director of Bharti Enterprises.

Born 23 October 1957 in Punjab as son of Sat Paul (former MP) and Lalita

Attended Scindia school at Gwalior

Graduated in 1979 from Punjab University, Chandigarh, with a Bachelor of Arts and Science.

Awarded the Padma Bhushan, India's third highest civilian honor in 2007

Sunil Bharti Mittal : Achievements
“Asia Businessman of the Year,2006” – Fortune “Asia Pacific CEO of Year, 2006”– Frost & Sullivan “Business Leader of the Year,2005” - Economic Times “Best Asian Telecom CEO, 2005– Telecom Asia “Ernst & Young Entrepreneur of the Year, 2004” “India’s Best People CEO, 2004”– Hewitt Associates “Businessman of the Year,2002” – Business India “CEO of the Year, 2002” – World HRD Congress

Bharti Group : Overview

BHARTI GROUP

Bharti Teletech Ltd. Bharti Telesoft Ltd. Teletech Services(I) Ltd.

Bharti Airtel Ltd. Telecom Seychelles Ltd. Jersey Airtel Ltd.

Bharti AXA Life Insurance & Investment Managers Bharti Resources

Field fresh Foods Pvt Ltd Bharti retail

Bharti Group: The Beginning
Started his first business in April 1976 at the age of 18, with a capital investment of Rs 20,000 Started as a small scale manufacturing unit for bicycle components. Diversified into production of yarn, stainless steel sheets for surgical utensils. In 1981, purchased importing licenses from exporting companies based in Japan and North Korea in Punjab. Trade was banned in 1984

Bharti Group: Romance with telecom begins
Mittal discovered an extraordinary device: the touch-tone phone in Taiwan In 1984, he started assembling push-button phones in India under Bharati Telecom In 1985, entered into a technical tie-up with Siemens AG of Germany and became the first company in India to manufacture electronic push button telephones in Gurgaon. In 1989, Bharti tied-up with Takacom Corporation, Japan to become the first company in India to manufacture telephone answering machines. In 1990, Bharti tied-up with Lucky Gold Star, South Korea to become the first company in India to manufacture cordless telephones

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Bharti Group: Romance with telecom begins
Bharti's venture flourished, diversifying into fax machines, answering machines and cordless phones. By 1992, Mittal had set his sights on the next big thing. As part of that effort, bids for licenses to operate India's first mobile-phone networks were put up. Mittal clinched a deal with the French telecom group Vivendi Identified the mobile telecom business as a major growth area. Plans were finally approved by the Government in 1994 and he launched services in Delhi in 1995, And thus began “The Airtel Story ”

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The Airtel Story
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. 3rd Largest Wireless Operator in the World Largest & Fastest Growing Wireless Operator in India Largest Telecom Company listed on Indian Stock Exchange Bharti Airtel Limited is a leading emerging market telecom services provider with operations in 19 countries across Asia and Africa.

The Airtel Story : Timeline
Bharti Tele-Ventures Limited – BTVL incorporated on July 7, 1995 under the laws of India for promoting investments in telecommunication services. Commencement of business on January 18, 1996. initially formed as a wholly-owned subsidiary of Bharti Telecom Limited. Principal shareholders include Bharti Telecom Limited, Singapore Telecommunication International Pvt Limited and Vodafone International Holdings B.V.

The Airtel Story : Timeline
1995 Bharti Cellular launched cellular services “AirTel” in Delhi 1996 STET International Netherland acquired a 20% equity interest in Bharti Tele-Ventures . 1997 British Telecom acquired a 21.05% equity interest in Bharti Cellular Bharti Telecom and British Telecom formed a 51% : 49% joint venture, Bharti BT, for providing VSAT services. 1998 First Indian private fixed-line services launched in Indore on June 4, 1998 by Bharti Telenet thereby ending fixed-line services monopoly of DoT (now BSNL)

The Airtel Story : Timeline
1999 Warburg Pincus acquired a 19.05% equity interest in Bharti Tele-Ventures. New York Life Insurance Fund, or NYLIF, acquired a 3% equity interest in Bharti Cellular 2000 Bharti Tele-Ventures acquired an effective equity interest of 40.5% in Bharti Mobinet (formerly Skycell Communications Bharti Tele-Ventures acquired a 30.2% equity interest of Telecom Italia in Bharti Telenet and 18.8% from Bharti Telecom thereby making Bharti Telenet a 100% subsidiary of Bharti Tele-Ventures SingTel acquired STET's 15.3% equity interest in Bharti Tele-Ventures Bharti Tele-Ventures acquired an additional effective 41.64% equity interest in Bharti Mobile resulting in holding an effective 74% equity interest in Bharti Mobile.

The Airtel Story : Timeline
2001 Bharti Tele-Ventures acquired NYLIF's 3% equity interest in Bharti Cellular Bharti Telesonic entered into a joint venture, Bharti Aquanet, with SingTel for establishing a submarine cable landing station at Chennai Bharti Tele-Ventures issued additional equity for approximately US$ 481.30 million to SingTel, Warburg Pincus, AIF group, IFC, NYLIF, and Seejay Cellular and Bharti Telecom Bharti Cellular acquired a 100% equity interest in Bharti Mobitel (formerly Spice Cell ). Bharti Tele-Ventures acquired 85% and 15% in Bharti Telespatial from Bharti Telecom and Intel, respectively Bharti Tele-Ventures acquired a 44% equity interest in Bharti Cellular from British Telecom, thereby making Bharti Cellular its 100% subsidiary. Bharti Telesonic launched national long distance services under the brand name of IndiaOne

The Airtel Story : Timeline
2002 Comes out with issue of 18.53 crore equity shares through book building route ,becomes the first company in India to come out with 100% book building issue Enters into a 5-year agreement with Escotel and ETL of the Escorts group to contract leased line connectivity for its cellular operations DoT grants ILD Telephony License to Bharti Telesonic, subsidiary of the company Signs MoU with Telia AB to buy out their 26% stake in Bharti Mobile. ICICI Bank ties up with Bharti for pre-paid mobile cards via ATMs. Sunil Bharti Mittal, bags Businessman of the year award by Business India.
2003 Company accorded its approval for amalgamation of its subsidiary companies viz: Bharti Telenet Ltd, Bharti Telesonic Ltd, Bharti Broadband Networks Ltd and Bharti Comtel Ltd. The merged entity would be renamed as Bharti Infotel Ltd

The Airtel Story : Timeline
2003(cont..) Bharti TeleVentures announces the completion of merger with Bharti Mobitel. Bharti Mobitel Ltd. merged with Bharti Cellular Ltd. Bharti cellular, wholly owned subsidiary of Bharti Tele-Ventures, increases its stake to 100% in Bharti Mobile . Bharti launches first dual band network in Delhi. 2004 Airtel announces the signing of the first-ever bilateral roaming agreement. with Mobilink, the only GSM cellular service provider in Pakistan . Bharti Tele-Ventures Ltd signed an information technology outsourcing deal with infotech major IBM, estimated to be in the range of 0-750 million for a ten-year period. The Bharti group finalised a Rs 500-crore deal to share its national longdistance (STD) network with. 2005 Bharti Tele Ventures - Airtel introduces BlackBerry Connect in India Bharti Tele Ventures announces agreement with Vodafone.

The Airtel Story : Timeline
2005 Bharti Tele Ventures - Airtel introduces BlackBerry Connect in India Bharti Tele Ventures announces agreement with Vodafone. 2006 Bharti Tele Ventures bags 'Wireless Service Provider of the Year' & 'Competitive Service Provider of the Year' awards. Sunil Mittal bags CEO of the Year award. 2007 Bharti Airtel, telecom major, has come out with a slew of initiatives including buying out SingTel's 50 per cent stake in joint venture under sea cable company Network. Bharti Airtel on Feb 11, has been awarded QCI-DL Shah National Award on Economics of Quality.

The Airtel Story : Timeline
2009 Bharti proposes merger deal worth $23 billion with MTN (south African telecom service provider). The Bharti-MTN merger deal fails. 2010 Bharti Airtel signed a deal with Kuwait-based Zain Telecom to buy its African business for $10.7 billion (about Rs. 48,000 crore).

The Airtel Story : Business Divisions
The company is structured into four strategic business units – Mobile Telemedia Enterprise Digital TV. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while The Airtel Telemedia Services business offers broadband & telephone services in 94 cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the Airtel brand. The Digital TV business provides DTH services across India. All these services are provided under the Airtel brand.

Airtel : Business Strategy and success factors
MANTRA : Focus on Core Competencies and Outsource the rest!
Airtel partnered with leading players in telecommunication players across the globe. It has managed to work with the best of domain specialists globally and emerge as a world class entity. Partnerships include operational contracts with marquee vendors and strategic investors ranging from private equity investors to global telecom giants. Warburg Pincus – a celebrated PE investor held a stake for a substantial period of time and was instrumental in providing Airtel support in its early stages. Vodafone was a strategic investor in Airtel. Temasek – the Singapore based investor holds a considerable stake in it. Was also affiliated with Singapore Telecom.

Airtel : Business Strategy and success factors
Aim to be become a one stop shop for all telecommunication services under the Bharti umbrella. Exploring opportunities in international markets. Hived off tower infrastructure into a separate entity. Bharti Airtel has focused on making telecom services affordable through a dedicated effort of rationalizing and simplifying tariffs. The Company believes that infrastructure sharing will provide a boost to managing efficient operations, resulting in significant cost savings Diversification of back end jobs to companies such as “IBM”.

Airtel : Business Strategy and success factors
Commercialization strategy Aimed at the non-interested customers, perceiving unanticipated needs. Entered into strategic tie-up with ICICI Bank to offer recharge facility for Magic users at the ATMs . Established easy accessibility and availability by providing recharge cards at departmental stores, gift shops, retail outlets, telephone booths and also ‘kirana’ stores. Airtel started talking to new segments by positively positioning and establishing itself as a brand that improved the quality of life.

Airtel : Business Strategy and success factors
Pricing strategy
Revamped pricing strategy Varied call charges based on the time when the call was made The rates were lowered at nights to Rs. 0.40 and Rs.0.60 respectively. Life time validity card for Rs.99 only Launched special offers –sms packs, STD pack etc. Low roaming tariffs. Free GPRS services for there pre-paid and post paid customers.

Airtel : Business Strategy and success factors

Acquisition Strategy
Company has acquisition strategy to extend its fixed and cellular footprint from north and central India to south India.

The Airtel Story : Awards and Recognitions
Chosen as the “Second Most Trusted Service Brand” in India in the prestigious “most trusted brands 2007 survey" conducted by The Economic Times Brand Equity Bharti Airtel won the “Forbes Global IT Excellence Award” for its outsourcing arrangement with Nortel in May,2007 Conferred with the “Best Emerging Market Carrier Award” at the Telecom Asia Awards 2007 Adjudged “ Most Customer Responsive Telecom Company” in India in 2006 Awarded “ Most Admired Knowledge Enterprise” in 2006 at INFOVISION summit Telecom Asia Award 2006 for best Indian carrier

Bharti Group : Bharti AXA

Bharti AXA Life Insurance Company Ltd.

Bharti AXA Investment Managers Pvt. Ltd.

Bharti Resources

Bharti AXA Life Insurance Company Ltd
Bharti AXA Life Insurance Company Ltd. is a joint venture between the Bharti Enterprises and global insurance major AXA. The joint venture company has a 74% stake from Bharti and 26% stake of AXA Asia Pacific Holdings Ltd (APH). AXA Group is the world leader in financial protection and wealth management & is ranked 15th in the fortune list. It manages over 50 million customers & 1,10,000 employees world over. AXA APH Ltd. is responsible for AXA SA’s life insurance and wealth management businesses in the Asia-Pacific region. It has operations in Australia, New Zealand, Hong Kong, China, Indonesia, The Philippines, Thailand, Singapore, India and Malaysia.

Bharti AXA Life Insurance Company Ltd

KEY PRODUCTS
Wealth Confident Future Confident Secure Confident Save Confident Invest Confident Aspire Life

Bharti AXA Life Investment managers Pvt.Ltd
Bharti AXA Investment Managers Pvt. Ltd., an asset management company in India, is a joint venture between Bharti Enterprises, AXA Investment Managers (AXA IM) and AXA Asia Pacific Holdings (AXA APH).

AXA Investment Managers is a multi-expert asset management company within the AXA Group.

AXA Investment Managers and AXA Asia Pacific Holdings, both units of French insurer AXA, together hold 75 per cent in the company and the rest owned by Bharti.

Bharti Resources
Bharti Resources is a wholly owned subsidiary of Bharti Enterprises. It provides learning solutions that impact business performance through enhanced employee productivity, customer profitability and effective talent transformation. Bharti Resources currently works with a host of leading organisations such as American Express, Genpact, Maruti Udyog, Samsung, Pepsi, Goodyear, Bharti Foundation, Hero Honda, Jetking etc. Bharti Resources is committed to being a valuable business partner by upholding the philosophy of excellence in Customer Experience Management

Sanjeev Duggal CEO & Executive Director

Bharti Resources
Bharti Resources, in partnership with The Center for Leadership Studies, Inc. offers a variety of products and services that range from self and peer assessments and 360° degree feedback to packaged training programmes or tailored onsite workshops. Simitri Group International is a Training, Coaching and Consulting organisation which has presence in Singapore, Bangkok, Hong Kong, Kuala Lumpur, Seoul, Shanghai and Tokyo. Always in Style is an international organisation specializing in corporate image, retail training programmes and personal profiling software application. Headquartered in the U.S., it has presence in 17 countries Bharti Resources will offer MBA Business Applications and BBA Business Applications in technical collaboration with Annamalai University

Field Fresh Food Pvt. Ltd.

Bharti Retail

Field Fresh

Field Fresh Foods (P) Ltd was incorporated in the Year 2004, with a vision to Link Indian Fields to the World, by making India a global food basket. Field Fresh Foods (P) Ltd is an equal partnership venture between Bharti Enterprises, one of India’s leading business groups and ELRo Holdings India Ltd., an investment company of the Rothschild family, formed by Sir Evelyn de Rothschild & Lady Lynn Forester de Rothschild. Rohtash Mal CEO of Field Fresh Foods Pvt. Ltd

Field Fresh
Mission
Field Fresh aspires to create India’s first global outsourcing opportunity in fresh produce.

Initiatives
300 Acres of farm land in Punjab. 42 acres of land is protected for poly houses, glass and green houses and net houses. Engage over 1 lakh people in its operations.

Business Approach
Safe food, good agricultural practices, environment safety, fair trade practices and high employee welfare standards are the underpinnings of the business approach

Field Fresh
CSR {Corporate Social Responsibility}

Health & Safety. Community outreach programs{Satya Bharti School}

Achievements

First company to export mangoes to Japan. First company to export fresh vegetables to UK. Export seedless grapes to UK, EU, Middle east &Hong Kong.

Field Fresh

Product Basket 2nd largest producer of fresh fruits and vegetables in the world. 3% of the total agricultural land in the world. Field Fresh has partnered with SGS, a world leader in quality control

Bharti Retail
Bharti Retail Pvt. Ltd. is a 100% subsidiary of Bharti Enterprises. Bharti Retail will serve all regular shopping requirements of an average Indian household offering affordable prices, great quality & wider choice. Bharti Retail is looking at launching its retail outlets in multiple consumer friendly formats in several cities across India. The first Bharti store was opened in the first quarter of 2008 (Earlier, Bharti had announced the opening of its first store on 15th August, 2007. The plan was derailed by 6 to 8 months) Bharti Enterprises, has tied up with the world’s largest retailer, the $316-billion WalMart Stores Inc, for its retail venture in the domestic market, lending a dramatic twist to India’s $250-billion retail story.

Bharti Retail : Future Plans
$2.5 billion by 2015. 10 million(1 Crore) sq ft of retail space by 2015. Multi-format retail outlets including hypermarket, supermarket and convenience formats. Stores across all major cities in the country. Bharti would manage the front-end of the retail business, while the US giant Wal-Mart would be involved in the back-end, including logistics, distribution, supply chain and cash-and-carry.

Bharti Retail : Future Plans
Bharti-Wal-Mart joint venture would provide direct employment to 60,000 people over the next few years. Bharti expect to achieve a turnover of Rs. 200 billion by 2015. Depending on size, stores will stock food and grocery categories: fruits and vegetables, meat and poultry, dairy products, staples, FMCG and processed foods, electronics and appliances, clothing and footwear, furniture and furnishings, and other household articles

Bharti Group : Future Plans
Network expansion ,worth $3.5 billion ,in all towns and over 500,000 villages across India by 2010

Accelerates towards the 125 million customer mark by 2010

Bharti expect to achieve a turnover of Rs. 200 billion by 2015 in Retail sector.

Field fresh Foods (P) Ltd. Plans to raise investment from USD$ 50 million to USD$100 million over next five years to explore the potential of horticultural sector.

Bibliography
http://www.lifepositive.com/mind/work/corporate-management/sunilbharti-mittal.asp http://en.wikipedia.org/wiki/Sunil_Mittal http://timesofindia.indiatimes.com/articleshow/msid-32019056,prtpage-1.cms http://www.forbes.com/lists/2009/77/india-billionaires-09_Sunil-Mittal_EM57.html http://www.forbes.com/lists/2009/10/billionaires-2009-richest-people_Sunil-Mittalfamily_EM57.html http://www.youtube.com/watch?v=NU39b9g1oOo http://money.cnn.com/magazines/fortune/fortune_archive/2007/01/22/8397979/index 2.htm http://www.indiatelecom.info/mittal.htm

Compiled and Presented By: Akriti Sharma(03) Ashish Kumar Annepu(07) Semester –VII

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