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Case Study

Company Profile – Bharti Airtel

Candidate’s Name: SHUVANKAR PORIA

Date: 04/03/2023

1
Company Overview
Background Business Segments

Bharti Tele-Ventures was incorporated on July 7, 1995 as a We at Airtel always think in fresh and innovative ways about the
company with limited liability under the Companies Act, for needs of our customers and how we want them to feel. We deliver
promoting telecommunications services. Bharti Tele- what we promise and go out of our way to delight the customer with
Ventures received certificate for commencement of a little bit more”
business on January 18, 1996. The Company was • Customer service focus
initially formed as a wholly-owned subsidiary of Bharti • Empowered employees
Telecom Limited. The chronology of events since Bharti • Innovative services
Tele-Ventures was incorporated in 1995 • Cost efficiency
• We will meet the mobile communication needs of our customer
through error-free service delivery
• Innovative Product and Services
• cost efficiency
• Unified messaging solution

Key Financials and Other


Headquarters/Ownership
Data
Total Revenue: ₹117,081 crore
• (2022 Ownership: Public
(US$15 billion) Address: Gurgaon/Gurugram,
Net Income: ₹5,882 crore City, State: Haryana, India
(US$740 million) Telephone: +91-124-4222222
Total assets : ₹416,413 crore Website: airtel.in
(US$52 billion)
Market cap: CEO: Sunil Bharti Mittal
4.40 Trillion INR
Founder: Sunil Bharti Mittal
Employees: 48,600 (2020)
2
Geographic Footprint

Representing
Locations

• India

• Acquisition
of Zain's
Africa

• Bangladesh
and Robi

3
Financial Performance (1/2)
Group Financial Analysis Revenue and Net Income
(USD bn), 2017-2021
2017 TOTAL REVENUE IS 53.9 USD AND
INDIAN CURRENCY IT IS APROX RS 4401.21. 70
61.5 60.9 35
IN 2018 ITS DOWNGRADE 0.6% REVENUE 54.2 60
53.9 54.2 54.1
ITS INDIAN CURRENCY IS
RS4425.71 50 25
AND 2019 IT INCRISED 13.5% 61.5 USD IT
INDIAN CURRENCY VALUE IS RS 5021.97 40 15
13.5
LUST 2020 IT DECRISED -1% AND ITS USD
30
VALU IS 60.9 4.9 5
SO ITS INDIAN VALUE IS 4972.98 20 0.6
-1
-5
AT LUST IN 2021 ITS VALU DECRISED -11.2% 10
3.4 3.7 3.9 3.9 3.4
AND VALUE IS 54.1USD IN INR IS RS 4408.25. -11.2
0 -15
AFTER ANALYSIS WE KNOW THAT 2017 2018 2019 2020 2021
DUE TO THE COVID 19 REVENUE AND NET
INCOME IS DICRESED

4
Financial Performance (2/2)
Revenue by Segment (USD bn), 2019-2021
7 7 7
6 6 6
5 5 5
4 4 4
3 3 3
2 2 2
1 1 1

2019 2020 2021

Segment Revenue Analysis

The revenues of BHARTI AIRTEL stood at 10955.85 USD m in FY20, which was up 7.1% compared to
10234.09 USD m reported in FY19.
BHARTI AIRTEL's revenue has fallen from 12030.71 USD m in FY16 to 10955.85USD m in FY20.
Over the past 5 years, the revenue of BHARTI AIRTEL has grown at a CAGR of -2.3%.

5
SWOT Analysis
STRENGTHS WEAKNESSES

The strengths of a company are the features that Weaknesses are aspects of a business or brand
have worked towards attracting more users that have a scope for improvement. So let’s check
some of Airtel’s major weaknesses:
•Advertising: Celebrity brand ambassadors have
boosted the brand to a great extent. Airtel also has •Outsourcing Operations: Outsourcing operations
high brand visibility in forms of social media ads, has helped Airtel in reducing its prices. This causes
television ads, and others such as banners, etc. the risk of the company having to be dependent

S
•Customer Base: Airtel is one of the most popular
cellular service providers in India with more than
352 million subscribers. As of 2019, Airtel had 403
million users worldwide. Airtel also has an
W
on some other companies which may affect its
operations

•African operations: Airtel had bought Zain’s


African Business back in 2013 at a huge price of
international submarine cable system connecting approximately 9 billion dollars, but airtel is yet to
India to Singapore. Airtel also has a strong customer announce any profits from that investment.
base in countries like Srilanka, Bangladesh, and
Africa. •High Debt: Airtel has been under huge debt. This
•Extensive infrastructure: From its partnership with is because their acquisitions have been turning
Idea and Vodafone To building the Indus, Tower out to be bad investments and also high credit
Airtel has extended its infrastructure all over the and low margins.
country which is helping it in gaining new customers

•Other Services: Airtel also provides users with


services like Data and Application Based Services,
Data Center based services, Cloud-Based Services,
and Digital Media services. 6
SWOT Analysis
Opportunities Threats
Opportunities for a company are the sectors in Threats to a company are the reasons that are
which a company may progress considering the causing or may cause a decrease in the number of
current market situations and weaknesses of other customers.
companies.
•Jio 5G: Jio has been providing the customers with
•Strategic Partnership: As far as MNP (Mobile faster network services and has also developed
Number Portability in India) is concerned much more in the 5G Technology. Jio’s ethernet

O
partnering with smartphone companies is going to
be the smartest strategy. This guarantees fixed
cash flows in the future and would also ensure an
increased customer base.
T
cable services labeled Jio Fibre has gained a lot of
attraction due to its low pricing and the great
internet speed with rare to no fluctuations in
internet speeds

•Market development: Considering the brutal •Government Regulatory Framework: As a result


competition in the telecommunications industry & of the normal auctioning of spectrum & change in
shrinking margins, venturing into new government policies, there is a possible threat to
markets/developing economies will prove to be a the stability of this market, as companies with
success for the company. deeper pockets are more likely to gain from these
auctions
5G: The current advancements in technology and
5G trials could also prove an excellent success for •Competition: The continuously changing prices in
the company. 5G and LTE services are not yet very the Indian market and the rising margins are
common in the country especially in rural adversely affecting Airtel’s business by a huge
cities, Airtel can extend their services in this amount. Reliance Jio had started free data and
direction to get new customers. calling a few years back which caused a huge
disruption in the telecom sector, causing other 7

companies to reduce their prices.


Dear Ma’am

I wanted to thank you for taking the time to speak with


me yesterday about the Growth Analytics at Frost &
Sullivan.
I enjoyed our conversation, and I am grateful for the
opportunity to learn more about the roleand the
company.I am very interested in this position and
Ilook forward to hearing back from you about next
steps.
Again, thank you for your time and consideration.
Sincerely,
Shuvankr Poria

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