INDUSTRY PROFILE A midst all the talk of slowdown in the Indian economy, telecom is one sector that has

had a fairly good year in terms of subscriber additions and revenue growth in 2008.Mobile service companies have managed to add subscribers at the rate of eight million a month in 2008. This makes India the second fastest growth for mobile services in the world. However, even as this gives some reason to cheer for the telecom incumbents, there are a few trends in key metrics of the companies that suggest increasing pressure on margins. This is not the situation only this year the subscriber base of Indian telecom industry is increasing day –by-day and year –by – year. If we just have a glance on the Indian telecom industry it is divided into 23 circles spread allover the country with 9 Operators in the country. A large population, low telephony penetration levels, and a rise in consumers' income and spending owing to strong economic growth have helped make India the fastest-growing telecom market in the world. The first and largest operator is the state-owned incumbent BSNL, which is also the 7th largest telecom company in the world in terms of its number of subscribers. BSNL was created by corporatization of the erstwhile DTS (Department of Telecommunication Services), a government unit responsible for provision of telephony services. Subsequently, after the telecommunication policies were revised to allow private operators, companies such as Bharti Telecom, Tata Indicom, Vodafone, MTNL, Idea, Vodafone and BPL have entered the space as Major Operators in India. However, rural India still lacks strong infrastructure. In 2007, an article by Business week magazine reported that India's mobile phone market is the fastest growing in the world, with companies adding some 6 million new customers a month. The total number of telephones in the country crossed the 300 million mark on June 18 2008. The overall tele-density has increased to 36.98% in March 2009. In the wireless segment, 15.87 million subscribers have been added in March 2009. The total wireless subscribers (GSM, CDMA & WLL (F)) base is more than 391.76 million now. The wire line segment subscriber base stood at 38.22 million with a decline of 0.13 million in October 2008.

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Growth of mobile technology India has become one of the fastest-growing mobile markets in the world. ]The mobile services were commercially launched in August 1995 in India. In the initial 5–6 years the average monthly subscribers additions were around 0.05 to 0.1 million only and the total mobile subscribers base in December 2002 stood at 10.5 millions. However, after the number of proactive initiatives taken by regulator and licensor, the monthly mobile subscriber additions increased to around 2 million per month in the year 2003-04 and 2004-05. Although mobile telephones followed the New Telecom Policy 1994, growth was tardy in the early years because of the high price of hand sets as well as the high tariff structure of mobile telephones. The New Telecom Policy in 1999, the industry heralded several pro consumer initiatives. Mobile subscriber additions started picking up. The number of mobile phones added throughout the country in 2003 was 16 million, followed by 22 million in 2004, 32 million in 2005 and 65 million in 2006. The only country with more mobile phones than India with 246 million mobile phones is China – 408 million. India has opted for the use of both the GSM (global system for mobile communications) and CDMA (code-division multiple access) technologies in the mobile sector. In addition to landline and mobile phones, some of the companies also provide the WLL service. The mobile tariffs in India have also become lowest in the world. A new mobile connection can be activated with a monthly commitment of US$0.15 only. In 2005 alone 32 million handsets were sold in India. The data reveals the real potential for growth of the Indian mobile market. In March 2008 the total GSM and CDMA mobile subscriber base in the country was 375 million, which represented a nearly 50% growth when compared with previous year. In April 2008 the Indian Department of Telecom (DoT) has directed all mobile Phone service users to disconnect the usage of unbranded Chinese mobile phones that do not have International Mobile Equipment Identity (IMEI) numbers, because they pose a serious security risk to the country. Mobile network operators therefore planned to suspend the usage of around 30 million mobile phones (about 8 % of all mobiles in the country) by April 30.

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which have not yet been provided with a Village Public Telephone (VPT).87% 8 MTNL--------------------------.3 million in December 2004.75% 3|Page . Out of this 1.720 crore in 2005-06 as against Rs. in the mobile telephony space. The total investment in the telecom services sector reached Rs. Airtel controls 21.94 million in 2005.Revenue and growth The total revenue in the telecom service sector was Rs. Vodafone with 14.7% subscriber base (as per June 2005 data). However doubts have been raised about what it would mean for the poor in the country.4% subscriber base followed by Reliance with 20.6.3. Under the Bharat Nirman Programme. 674 crore in 2004-2005.0. will be connected.4003807 ------------------------1.04% 2 Vodafone Essar---------------.3%. 178.831 crore in the previous fiscal. Following list shows the GSM subscriber figure till Jan 2009 1 Bharti Airtel -------------------88382758--------------------. More than a billion people use the internet globally.50% 9 BPL-----------------------------.95% 4 IDEA ---------------------------40016153 ----------------------14.6%.822 revenue villages in the country. 86. 71.2006.96% 5 Aircel--------------------------.27% 6 Reliance Telecom --------------10353841--------------------.660 crore in 2005-06. up from Rs. 200.63340024 ----------------------23. It is difficult to ascertain fully the employment potential of the telecom sector but the enormity of the opportunities can be gauged from the fact that there were 3. the Government of India will ensure that 66. The value added services (VAS) market within the mobile industry in India has the potential to grow from $500 million in 2006 to a whopping $10 billion by 2009.33.35 million were broadband connections.42673357 ---------------------15. registering a growth of 21%. BSNL with 18.7 million Public Call Offices in December 2005 up from 2.68% 3 BSNL---------------------------. Internet subscriber base has risen to 6.16761397---------------------.2007303----------------------. On the other hand. Telecommunication is the lifeline of the rapidly growing Information Technology industry.

Vodafone.29 million mobile phone users in India compared to 39. India primarily follows the GSM mobile system. 4|Page . In September 2004. in the 900 MHz band. Idea cellular and BSNL/MTNL. with operations in only a few states. Currently there are an estimated 201.73 million fixed line subscribers. Reliance Infocomm. The dominant players are Airtel. There are many smaller players. Recent operators also operate in the 1800 MHz band. the number of mobile phone connections has crossed fixed-line connections.The mobile service has seen phenomenal growth since 2000.

low-powered. the technology to do so was nonexistent 1968 AT&T and Bell Labs proposed a cellular system to the FCC of many small. 1973 (April) The first call on a portable cell phone is made by Dr Martin Cooper. As the phones traveled across the area. each covering a 'cell' a few miles in radius and collectively covering a larger area. broadcast towers. a former general manager for the systems division at Motorola. Each tower would use only a few of the total frequencies allocated to the system. The basic concept of cellular phones began.Origin of Cellular Telephony 1947 Bell Laboratories introduced the idea of cellular communications with the police car technology. when researchers looked at crude mobile (car) phones and realized that by using small cells (range of service area) with frequency reuse they could increase the traffic capacity of mobile phones substantially. who is also considered the inventor of the first modern portable handset 1979 The first commercial cellular telephone system began operation in Tokyo 1982 FCC authorizes commercial cellular service for the USA 1987 Cellular telephone subscribers exceeded one million and the airways were crowded 1991 Commercial launch of cellular service based on GSM standard in Finland 5|Page . calls would be passed from tower to tower. However at that time.

not more than two cellular mobile operators could be licensed in each telecom circle). 1994 License for providing cellular mobile services granted by the government of India for the Metropolitan cites of Delhi. Mumbai. Kolkata & Chennai.History of Cellular Telephony in India 1992 Telecommunication sector in India liberalized to bridge the gap through government spending & to provide additional resources for the nation’s telecom target.7 million.e.756. under a fixed license fee regime for 10 years 1995(August) Kolkata became the first metro to have a cellular network 1997 Telecom Regulatory Authority of India is set up 1998 Annual foreign investment in telecom stands at Rs 17.4 million. 1999 FDI inflow into telecom sector falls by almost 90% to Rs. Tariff rebalancing exercise gets initiated 1999 National Telecom Policy is announced 2000 Amendment of TRAI Act FDI inflow drops further down to Rs 918 million 6|Page . Cellular mobile service to be duopoly (i. 2126. Private sector allowed participating.

after the number of proactive initiatives taken by regulator and licensor. 32 million in 2005 and 65 million in 2006. In addition to landline and mobile phones. ]The mobile services were commercially launched in August 1995 in India. Mobile network operators therefore planned to suspend the usage of around 30 million mobile phones (about 8 % of all mobiles in the country) by April 30. significant convergence is taking place. followed by 22 million in 2004. because they pose a serious security risk to the country.15 only. making India the second larges mobile market in the world – ahead of the USA. The only country with more mobile phones than India with 246 million mobile phones is China – 408 million. The Indian telecom industry continued on its high growth path with teledensity crossing the 22%mark. The customer base surpassed 260 million. The Industry has been adding more than 8 million customers a month. Although mobile telephones followed the New Telecom Policy 1994. which represented a nearly 50% growth when compared with previous year. some of the companies also provide the WLL service.Growth trends The burgeoning subscriber base and more stringent spectrum allocation regime creates a higher requirement of cell – sites or tower sites for operators. India has become one of the fastest-growing mobile markets in the world. In 2005 alone 32 million handsets were sold in India. In the fixed line segment. However. The number of mobile phones added throughout the country in 2003 was 16 million. the industry heralded several pro consumer initiatives. The data reveals the real potential for growth of the Indian mobile market. A new mobile connection can be activated with a monthly commitment of US$0.5 millions. to allow greater re-use of the radio frequency allotted to operators. 7|Page . growth was tardy in the early years because of the high price of hand sets as well as the high tariff structure of mobile telephones. as is evident from the growth of broadband and IPTV services. In the initial 5–6 years the average monthly subscribers additions were around 0. The mobile tariffs in India have also become lowest in the world.1 million only and the total mobile subscribers base in December 2002 stood at 10. India has opted for the use of both the GSM (global system for mobile communications) and CDMA (code-division multiple access) technologies in the mobile sector. In March 2008 the total GSM and CDMA mobile subscriber base in the country was 375 million. In April 2008 the Indian Department of Telecom (DoT) has directed all mobile Phone service users to disconnect the usage of unbranded Chinese mobile phones that do not have International Mobile Equipment Identity (IMEI) numbers. The New Telecom Policy in 1999.05 to 0. which is more than the monthly average of China’s telecom industry. the monthly mobile subscriber additions increased to around 2 million per month in the year 2003-04 and 2004-05. Mobile subscriber additions started picking up.

has a diverse business portfolio and has created global brands in the telecommunication sector. It had recently forayed into media by launching our DTH and IPTV Services. Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. world leader in financial protection and wealth management. Afterwards he planned to expand his company at national level and the consequence is Airtel. owns and manages passive infrastructure pertaining to telecom operations under its subsidiary Bharti Infratel Limited. under a MoU with Wal-Mart for the cash & carry business. It is the largest wireless service provider in the country. which were Rs. which stood at 85. The Bharti Group. and in Srilanka. Bharti Infratel owns 42% of Indus Towers Limited. 8|Page .487 customers as of March 31.726. It served an aggregate of 96.649.The Company also deploys. Airtel is one of Asia’s leading providers of telecommunication services with presence in all the 22 licensed jurisdictions (also known as Telecom Circles) in India. It has successfully launched an international venture with EL Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA. 2009. Sunil Bharti Mittal.Sunil Bharti Mittal.270 billion in 2007/08.7 million in December 2008. Bharti Infratel and Indus Towers are the two top providers of passive infrastructure services in India.a graduate from Ludhiana (PUNJAB). 2009. His true calling came in the mid 1990s when the government opened up the sector and allowed private players to provide telecom services. Ltd. based on the number of subscribers as of March 31. All these services are rendered under a unified brand “Airtel”.248 subscribe to GSM services and 2.239 use Telemedia Services either for voice and/or broadband access delivered through DSL. the founder – chairman of Bharti Enterprises (who owns Airtel). and total revenues. Bharti established itself as a supplier of basic telecom equipment. In the early years. Bharti Airtel is India’s largest telecommunications company by subscriber base. of whom 93.earlier he was owner of local telecom company Beetel. His strong entrepreneurial instincts gave him a unique flair for sensing new business opportunities. It also offered an integrated suite of telecom solutions to our enterprise customers.923.COMPANY PROFILE Airtel was started by Mr. the most famous face of the telecom sector in India. He symbolizes the adage that success comes to those who dream big and then worked assiduously to deliver it. is today. in addition to providing long distance connectivity both nationally and internationally. what we see today. Bharti has recently forayed into retail business as Bharti Retail Pvt.

2005      Company History Each year of Airtel’s existence has been marked by historic and far reaching milestones including many firsts. 1998 Became a public limited company in India -----------------------------------.March 30. 2002 First telecom company to have an all India mobile footprint (Presence in all 23 telecom circles in India)-----------------------------------. Chennai and expands its south Indian foot print Singapore Telecommunications Ltd. (Sing Tel) acquires Telecom Italia’s equity stake in the Company. Key Milestones Date of Incorporation-------------------------------------------------------------. For providing VSAT solutions across India and Bharti BT Internet Ltd. all to which have been stepping stones to their success and performance.July 07. 1999-2000 The larges private sector telecom operator in India after acquiring JT Mobile for providing cellular services in Punjab.February 18.Vision By 2010 Airtel will be the most admired brand in India: • Loved by more customers • Targeted by top talent • Benchmarked by more business. 9|Page . Karnataka and Andhra Pradesh Acquires Skycell.June 04. A brief history of the Company’s major events is: 1995-96 Mobile services under the brand name ‘Airtel’ launched for the first time in Delhi and Himachal Pradesh 1997-1998 The first private telecom service provider to obtain a license fro landline telephony in Madhya Pradesh Incorporation of Bharti BT VSAT Ltd. 1995 First private operator to offer fixed line telephony---------------------------.

2005-2006 All-India foot print with the launch of mobile services in Assam. enabling search through mobile phones. Eastern foray through acquisition and new licenses for eight new circles across India. Strategic tie-up with Microsoft and becomes the first telecom operator to offer Microsoft Windows Mobile 5. the leading mobile operator in Rajasthan and holding a license to offer services in the NorthEast. Strategic partnership with Google. a calling card service for various countries aimed at the Indian diaspora. Initial Public offering through India’s first 100% book-building issue. First private operator to offer basic telephone services in Haryana Delhi Tamil Nadu and Karnataka 2003-2004 Join the US $1 billion revenue club Strategic partnerships with IBM and Ericsson for outsourcing of the company’s core IT and network activities. Founding member of the Bridge Mobile Alliance.2001-2002 India One. Acquires a controlling stake in Hexacom. First private operator to launch mobile services in Jammu and Kashmir. a consortium of seven leading mobile operators in the region. India’s first private sector national and international long distance service launched. Receives license for providing 2G and 3G mobile services in Srilanka Launch of ‘Airtel CallHome’ service. 10 | P a g e . India’s first private submarine cable landing station in a joint venture with Singtel. Becomes India’s largest intergrated private operator based on the total customer base 2006-2008 Profit crosses US $ billion.0 technology.

enabling the company to operate international carrier facilities from Singapore. a subsidiary established with the aim to provide passive infrastructure services to all mobile services operators in India Board of directors Sunil Bharti Mittal -----------------.275 billion investment from leading international investors in Bharti Infratel. Receives US $ 1.---hairman and Managing Director Manoj Kohli -----------------------------Joint Managing Director Akhil Gupta ------------------------------Non Executive Director Chua Sock Koong -----------------------Non Executive Director Paul O’Sullivan --------------------------Non Executive Director Quah Kung Yang ------------------------Non Executive Director Rajan Bharti Mittal ----------------------Non Executive Director Rakesh Bharti Mittal --------------------Non Executive Director Craig Ehrlish -----------------------------Independent Non Executive Director Ajay Lal ----------------------------------Independent Non Executive Director Arun Bharat Ram -----------------------Independent Non Executive Director Bashir Abdulla Currimjee -------------Independent Non Executive Director Mauro Sentinelli ------------------------Independent Non Executive Director N. Joins international consortia of leading telecom companies to build 3 high bandwidth submarine cables AAG.Kumar ---------------------------------Independent Non Executive Director Nikesh Arora ----------------------------Independent Non Executive Director Pulak Chandan Prasad -----------------Independent Non Executive Director C 11 | P a g e .Facility Based operator license in Singapore. I-ME-WE AND Unity.

India Tel. Provides GSM mobile services in all the 22 telecom circles in India. New Delhi – 110 070.: +91 11 4166 6137 12 | P a g e . as a Public Limited Company Rs.239 Telemedia Customers (status as on March 31. 2009 The Stock Exchange. and was the first private operator to have an all India presence. 2008-Audited) As per US GAAP Accounts Rs. 2009) Provides GSM mobile services in all the 22 telecom circles in India. July 07. 2009-Audited) Rs.715 million (year ended March 31.: +91 11 4266 6400 Fax No. 270. 113. Provides telemedia services (fixed line and broadband services through DSL) in 95 cities in India.726. and was the first private operator to have an all India presence. 369.250 million (year ended March 31.678 million (year ended March 31.615 million (year ended March 31.No. Phase II.239.248 GSM mobile and 2. 2009 . 1. Vasant Kunj.Fact sheet Name Business Description Bharti Airtel Limited. 2008 . 151.Audited) As per US GAAP Accounts 1. Provides telemedia services (fixed line) in 95 cities in India. Registered Office Bharti Airtel Limited (A Bharti Enterprise) Aravali Crescent. Mumbai (BSE) The National Stock Exchange of India Limited (NSE) Established Proportionate Revenue Proportionate EBITDA Shares in Issue Listings Market Capitalisation Customer Base Operational Network 93. 1995.Audited) Rs.923. Nelson Mandela Road.898.796 as at March 31.

Airtel services Wireless services • • 2G/3G Rural Market Telemedia Services • • • Fixed Line Broadband DTH(Media) Enterprise Services • • Carriers Corporate Passive Infrastructure Services Analysis on Reports 13 | P a g e .

Data interpretation 14 | P a g e .

69462 169.694 1.867 o The changes in the fixed assets were due to the capital work in progress it includes Capital advances of 2. o The changes in current assets were due to the Debit outstanding for period exceeds six months.From the above balance sheet of 2006 & 2007 the major changes were found in the Particulars Fixed assets Current assets Current Liabilities Net current assets Investments Share capital Secured loans Inventory Cash & Bank Balances Values for 2006 193056341 29542935 66991634 37448699 7196981 18938793 28633707 177444 3074285 Values for 2007 130068771 44454766 98446711 53991945 7058179 18959342 2664475 478145 7804605 Differenc e 62987570 14911831 31455077 16543246 138802 20549 25969232 300701 4730320 (Increase /Decrease) Increase Increase Increase Increase Decrease Decrease Increase Decrease Decrease Percentage of change 48.125 Equity Shares are allotted as fully paid up under the scheme of amalgamation without payments being received in cash. Airtel (USA).591.516.970 Equity Shares issued as fully paid up bonus shares out of Share premium account.390.e. 00.420 Equity shares are allotted as fully paid up on the conversion of FCCB’s d) 2. Bharti Hexacom.443 and the other reasons are fluctuations of foreign exchange rates. Stock – in-Trade was increased.928 0.462 153.445 Equity Shares are allotted as fully paid up upon the conversion of OCRD without payment being received in cash. c) 19. Bharti Broadband Ltd.426 50. o The loans in above balance sheet were secured from banks as advances and also as term loans and vehicle loans o The inventory i. b) 20.088. Advance received form customers is decreased and Advance Billing. Advances and loans given to subsidiary companies like Bharti comtel. Mutual funds and Debentures. o The changes in current liabilities are due to the outstanding due of small scale industries undertaking’s. o The change in the share capital is due to a) 1. Buying computers.1085 90.953 24.475 46.772. 15 | P a g e . o The investments are done in the different areas like Government securities.

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15189505 11. Bonus & Provident fund contribution. wages and Bonus. Sim card utilization.04797433 28. 17 | P a g e . Insurance. o The change in the sales in the marketing expenditure is because of the Advertisement and Marketing. Increase in the cost of goods sold. Travelling and conveyance rent.41427118 67.03561386 51. o The change in the administrative and other expenditure is due to Legal and professional. Installation. Sales commission and Incentive. wages. Insurance. Rent.82083613 o The Expenditure was increased by 39. Staff welfare and Recruitment and training. Repairs and Maintenance and also due to the Leased line Gate way charges. Staff welfare Recruitment and Training. Insurance . Power and Fuel.23517639 31.15299677 25. o The change in Personnel is due to the Salaries.783 percent this is due to the inter connect charges. Contribution of Provident and Other funds. Internet Access and Bandwidth Charges. Personnel expenditure like salaries. Rates and taxes. o The difference of Network operation is due to the Interconnect Charges and PSTN Rentals. Provision for doubtful debts and advances. Power & fuel. Collection and recovery expenses. Installation. Power and Fuel.Data Interpretation From the above Profit and loss statement of 2006 & 2007 the major changes were found in the Particulars Networking operating Cost of Sales of goods Personnel Sales and Marketing Amministrativ e and Others Other income Finance expense Values for 2006 11408836 674043 11263414 10691655 16609713 618980 2558440 Values for 2007 19214108 220849 7754523 8013612 11953078 935600 2256011 Difference 7805272 -453194 -3508891 -2678043 -4656635 316620 -302429 Increase/ Decrease Increase Decrease Decrease Decrease Decrease Increase Decrease Percentage 68.

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42438522 40.3246793 18.e.722. o The changes in the share capital was due to a) 1.113 and also for Intrest Acquired on Investment and Advances in cash o The current liabilities are increased due to the advances to companies and also for Fringe benefits tax.408 and also Net of Provision for diminution in value Rs.5586861 o The changes that took place in fixed assets are due to the capital work in progress i.51765203 1451.10407534 35.970 Equity Shares issued as fully paid up bonus shares out of Share Premium account. 43.390.088.6150917 23.734 Equity Shares are allotted as fully paid up opon the conversion of Foreign Currency Convertible bonds. warranty and wealth tax.79583 80.0116270 8.9193654 0. c) 21.23.Data Interpretation From the above Balance sheet of 2007 & 2008 the major changes were found in the Particulars Fixed assets Current assets Current Liabilities Net current assets Investments Secured loans Inventory Share capital Cash and Bank Balances Values for 2007 193056341 44454766 98446711 53991945 7058179 2664475 478145 18959342 7804605 Values for 2008 190306475 62510110 121100901 58590791 109528528 524244 568607 18979074 5029390 Difference 2749866 18055344 22654190 4598846 10247034 9 2140231 90462 19732 2775215 Increase/ Decrease Decrease Increase Increase Increase Increase Decrease Increase Increase Decrease Percentage 1.000 equity shares.125 Equity Shares are allotted as fully paid up under the scheme of amalgamation without payments being received in cash 19 | P a g e . o The increase in current assets includes Goods in transit Rs. Debentures and Bonds and also in IFFCO Kissan Sanchar Ltd of 100. capital advances and it also includes goods in transit and also for the license fees for unified access service for long distance for 7 to 17 years and 14 years. b) 20.516. d) 2. o Investments in 2008 Increased due to the investment in Govt securities.445 Equity Shares are allotted as fully paid up upon the conversion of Optionally Convertible Redeemable Debentures without payment being received in cash. Mutual funds.315.

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wages.77350101 53. Increase in the cost of goods sold. Staff welfare and Recruitment and training o The difference of Network operation is due to the Interconnect Charges and PSTN Rentals. Rent.81878342 71.78345993 54. o The increase in the cost of goods sold is due to the opening stock addition of purchases. Sim card utilization.44690495 39. 21 | P a g e . Installation.824 thousand.Data Interpretation From the above Profit and loss statement of 2007 & 2008 the major changes were found in the Values for 2007 46013712 177944343 88958316 40332265 19214108 220849 10691655 Values for 2008 69725423 257035096 124349012 62441922 33004746 338502 17849080 Differenc e 23711711 79090753 35390696 22109657 13790638 117653 7157425 Increase/ Decrease Increase Increase Increase Increase Increase Increase Increase Particulars Profit before tax Total Income Expenditure Profit after tax Network Operating Cost of goods sold Sales and Marketing Percentage 51. Repairs and Maintenance and also due to the Leased line Gate way charges. Insurance. o The change in the sales in the marketing expenditure is because of the Advertisement and Marketing. Power & fuel. Insurance .064 percent this is due to the inter connect charges.53183686 44. Internet Access and Bandwidth Charges. Sales commission and Incentive. Power and Fuel.94403252 o The Expenditure was increased by 45. Net provision for diminution in value of 30. Personnel expenditure like salaries.27305082 66. Bonus & Provident fund contribution. Internal issues. Installation.

Revenue graph 22 | P a g e .

`Measurement Boards' for every department are prominently displayed where the performance indicators of the same are displayed graphically. Airtel values its human resources and its HR policies are aimed at targeting and retaining best talent in the industry. o To encourage learning within the organization. Airtel telemedia services and enterprise services (corporate and carrier) services business divisions. stock options) and performance targets for the Chairman and Managing Director (CMD) and Joint Managing Directors (JMDs) Executive Directors. o Measurement is indeed a key driver of business within Airtel.2051million in the year 2003 and revenue was Rs. HR Report o Bharti Airtel Limited (popularly known as Airtel) is the flagship company of The Bharti Enterprises.554 million in the same year. then we don't need him. the company has set up a state-of-theart learning centre. Airtel also has a Bharti Campus Recruitment Program to recruit young students from various elite campuses The key functions of the HR Committee include the followings: o Attraction and Retention strategies for employees. b) Thereafter there is a gradual increase in the in both the revenue and profit year after year. incentives/benefits bonuses. `` 23 | P a g e . A telecom giant. Though the material is transmitted through the Internet. we let our employees decide their training needs. employees can get logged on to customized training programmes developed by British Telecom (BT).Data Interpretation From the above graph for revenue of airtel the interpretations are a) There was a loss of Rs. they are not accessible to anybody outside the organisation as the access is protected. o Other key issues / matters as may be referred by the Board or as may be necessary in view of Clause 49 of the Listing Agreement or any statutory provisions. o Compensation (including salaries and salary adjustments. It is divided and organized in mobile services. it is the pioneer and the leading brand name in the private telecom service providers with its services spanning 94 cities. o All Human Resources related issue. ``Unlike most other organizations. Here. And if the individual does not know what his training needs are. Airtel's HR success was powered by a well defined rewards and recognition system. o Employees Development Strategies. This was backed by a strong training programme. With the focus on the same.'' says Nayar. Airtel also seeks to certify every employee on quality and IT. 30. A philosophy of constant monitoring has been established.

Padhi informs us that 60 per cent of the employees are on a variable pay structure. ``The idea is to provide employees with a single window to the department.'' 24 | P a g e .'' o To further HR interface.o Eventually. there are the performance-related bonuses that set the tone for these activities. every member of the HR department has been assigned two departments each to discuss and sort out all HR. personnel and administration issues. ``Such teams typically constitute high performers from each department. and that explains the success Airtel has had in business and HRD. who collectively make it happen. o The HR department also sets up cross-functional teams in times of product or service launches.

Strengths • • • • Very focused on telecom. With such achievements. retention of customers. The cost of sale of goods is been reduced by company with other expenditures but the sale of goods has been reduced. observations can be made that it promises unprecedented and efficient control over the market. other than VSNL. The profits are transferred into reserves in surplus The company has invested the funds in fixed assets.Summary • • • • • • • • • • The company analysis has outlined a scenario of the Bharti Airtel.e. that has an international submarine cable Weakness • • Price competition from BSNL and MTNL Untapped Rural Market Opportunities • • • Fast expanding Indian cellular market. Based on the above. Quality remains the prime concern and is maintained strictly by the team. The profit is been increased due to the service revenue but not by the sale of goods. Stock options. unsecured loans. business development. future perspective. there was a continuous increase in the share capital. Latest and low cost technology Huge market Threats • • Competition from other cellular and mobile operators Saturation point in Basic telephony service 25 | P a g e . Hr policies. study of different financial reports to know and understand the stand of the company Bharti Airtel speedy activity is one of its best attributes that has made it gain an international status across the world. From the analysis on the reports the conclusions drawn were. Bharti Airtel is still ruling the Indian telecom Industry and is aiming high to gain popularity and success around the world in brand building by making new discoveries everyday. Leader in fast growing cellular segment. Pan – India footprint. current scenario. It is always updated with the latest data and is highly competent. i. The only Indian operator. Differed tax liability.

in  www.airtel.Bibliography Internet  www.wikinvest.wikipedi.in  www.org  www.com Magazines  Survey of Indian Industry -2004  Survey of Indian Industry -2007  Survey of Indian Industry -2008 News papers  The Hindu  Deccan chronicle 26 | P a g e .hindustantimes.com  www.coai.

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