Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

SWOT Analysis Bharti Airtel by shrey420

VIEWS: 1,483 PAGES: 42


More Info
									              INTRODUCTION TO BHARTI AIRTEL
     Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group,
has a diverse business portfolio and has created global brands in the telecommunication sector. It
is one of India‟s leading private sector providers of telecommunications services with more than
10crores customers. Airtel comes to you from Bharti Airtel Limited, India‟s largest integrated and
the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti
Airtel since its inception has been at the forefront of technology and has steered the course of the
telecom sector in the country with its world class products and services. The businesses at Bharti
Airtel have been structured into three individual strategic business units (SBU‟s) - Mobile
Services, Airtel Telemedia Services & Enterprise Services. 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 95 cities and has recently
launched India's best Direct-to-Home (DTH) service, Airtel digital TV. 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.

Core values

       Empowering People - to do their best
       Being Flexible - to adapt to the changing environment and evolving customer needs
       Making it Happen - by striving to change the status quo, innovate and energize new ideas
        with a strong passion and entrepreneurial spirit,
       Openness and transparency - with an innate desire to do good
       Creating Positive Impact – with a desire to create a meaningful difference in society.


       To build India's finest business conglomerate by 2020.


We will meet the mobile communication needs of our customers through:

       Error- free service delivery

       Innovative products and services

       Cost efficiency
     Unified Messaging Solutions

 Name                 Bharti Airtel Limited.
 Business             Provides mobile, telemedia services (fixed line)          and
 Description          enterprise services (carriers & services to corporates)
 Established          July 07, 1995, as a Public Limited Company
 Proportionate        Rs. 184,202 million (year ended March 31, 2007-Audited)
 Revenue              Rs. 117,255 million (year ended March 31, 2006-Audited)
                      As per Indian GAAP Accounts
 Proportionate        Rs. 74,407 million (year ended March 31, 2007-Audited)
 EBITDA               Rs. 42,250 million (year ended March 31, 2006-Audited)
                      As per Indian GAAP Accounts
 Shares in Issue      1,897,148,464 as at June 30, 2007
 Listings             The Stock Exchange, Mumbai (BSE)
                      The National Stock Exchange of India Limited (NSE)
 Customer Base        64,370,434 GSM mobile and 2,319,509 telemedia customers
                      (Status as at month ended April 30, 2008)
 Operational Network Provides GSM mobile services in all the 23 telecom circles in
                     India, and was the first private operator to have an all India
                     Provides telemedia services (fixed line) in 94 cities in India.
Organization Structure
 As an outcome of a restructuring exercise conducted within the company; a new integrated
 organizational structure has emerged; with realigned roles, responsibilities and reporting
 relationships of Bharti‟s key team players. With effect from March 01, 2006, this unified
 management structure of 'One Airtel' will enable continued improvement in the delivery of
 the Group‟s strategic vision.

 Bharti Airtel - Organization Structure
Awards and Recognitions in year 2007-08
      Bharti Airtel has won the CNBC-TV18 India Business Leader Award for the
       Outstanding Company of the year, 2007

      Bharti draws top honours at the NDTV Profit Business Leadership Awards 2007

      Bharti Airtel Ranked 3rd on Shareholder Returns in BusinessWeek IT 100 List.

      Sunil Bharti Mittal conferred Degree of Doctor of Science (Honoris Causa) by G. B.
       Pant University

 Corporate Governance
Bharti Airtel Limited firmly believes in the principles of Corporate Governance and is
committed to conduct its business in a manner, which will ensure sustainable, capital-efficient
and long-term growth thereby maximising value for its shareholders, customers, employees and
society at large. Company‟s policies are in line with Corporate Governance guidelines
prescribed under Listing Agreement/s with Stock Exchanges and the Company ensures that
various disclosures requirements are complied in „letter and spirit‟ for effective Corporate
The Company is committed to maintain the highest standards of corporate governance and
benchmarking industry best practices. The Company meet the standards of the Securities and
Exchange Board of India‟s Corporate Governance guidelines and have implemented all the
stipulations prescribed. A detailed report on corporate governance pursuant to the requirements
of Clause 49 of the Listing Agreement forms part of the Annual Report. A certificate from the
auditors of the Company, Price Waterhouse, Chartered Accountants, confirming compliance of
conditions of corporate governance as stipulated under the aforesaid Clause 49 is annexed to the
Corporate Governance Report.
  During the financial year 2003-04, your Company was assigned highest Governance and
  Value Creation (GVC) rating viz. „Level 1‟ rating by CRISIL, which indicates that the
  company‟s capability with respect to creating wealth for all its stakeholders is the highest,
  while adopting sound Corporate Governance practices.This rating was re-affirmed by
  CRISIL on April 20,2006.
At Bharti Airtel, Corporate Social Responsibility (CSR) encompasses much more than social
outreach programs - is an integral part of the way the Company conducts its business.
Employees of Bharti Airtel across the country support community based initiatives, individually
or in groups. During the year, a large number of such initiatives were undertaken in e.g. the
areas of education, the environment and sports promotion. The Company is strongly committed
to the principles of environment conservation and preservation. This is achieved by minimizing
the consumption of energy and optimizing the use of material produced out of natural resources,
both in offices and technical spaces. Special emphasis is laid on health, environmental and
safety issues affecting the employees in particular and for the neighborhood and community in
general. The Company has put in place a process for continuous monitoring and
improvement in these areas.
Besides delivering its own programs and initiatives, Bharti Airtel works closely with Bharti
Foundation, the leading Corporate Social Responsibility vehicle for the Bharti Group. Bharti
Foundation believes in the power of education to bring about essential and critical growth in
India and thus has a strong focus on education, which extends from elementary education to
higher education.
Bharti Foundation is in the process of building a large number of high-quality pre-primary and
primary schools (Satya Bharti Schools) which will provide education that will allow the
students easy mainstreaming, with special emphasis on the English language. Bharti
Foundation‟s programs further include Bharti Computer Centres, Bharti Libraries, the Bharti
School of Telecommunication Technology & Management at IIT Delhi, Bharti Scholarships,
Mid-day Meals and so on. In the year under review Bharti Foundation was awarded the coveted
Golden Peacock Award for Corporate Social Responsibility in the NGO category in recognition
of its education programs and plans.

                           SWOT Analysis Bharti Airtel

      It is the largest cellular provider in India, and also supplies broadband and telephone
    services - as well as many other telecommunications services to both domestic and
    corporate customers.
      Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with
    whom they hold a strategic alliance. This means that the business has access to knowledge
    and technology from other parts of the telecommunications world.
      The company has covered the entire Indian nation with its network. This has
    underpinned its large and rising customer base.


      An often cited original weakness is that when the business was started by Sunil Bharti
    Mittal over 15 years ago, the business has little knowledge and experience of how a cellular
    telephone system actually worked. So the start-up business had to outsource to industry
    experts in the field.
     Until recently Airtel did not own its own towers, which was a particular strength of
    some of its competitors such as Hutchison Essar. Towers are important if your company
    wishes to provide wide coverage nationally.


      The company possesses a customized version of the Google search engine which will
    enhance broadband services to customers. The tie-up with Google can only enhance the
    Airtel brand, and also provides advertising opportunities in Indian for Google.
      Despite being forced to outsource much of its technical operations in the early days, this
    allowed Airtel to work from its own blank sheet of paper, and to question industry
    approaches and practices - for example replacing the Revenue-Per-Customer model with a
    Revenue-Per-Minute model which is better suited to India, as the company moved into
    small and remote villages and towns.
      The company is investing in its operation in 120,000 to 160,000 small villages every
    year. It sees that less well-off consumers may only be able to afford a few tens of Rupees
    per call, and also so that the business benefits are scalable - using its 'Matchbox' strategy.
      Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea
    Cellular to create a new independent tower company called Indus Towers. This new
    business will control more than 60% of India's network towers. IPTV is another potential
    new service that could underpin the company's long-term strategy.


      Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a
    5.6% stake in the Airtel business sold it back to Airtel, and instead invested in its rival
    Hutchison Essar. Knowledge and technology previously available to Airtel now moves into
    the hands of one of its competitors.
      The quickly changing pace of the global telecommunications industry could tempt Airtel
    to go along the acquisition trail which may make it vulnerable if the world goes into
    recession. Perhaps this was an impact upon the decision not to proceed with talks about the
    potential purchase of South Africa's MTN in May 2008. This opened the door for talks
    between Reliance Communication's Anil Ambani and MTN, allowing a competing Inidan
    industrialist to invest in the new emerging African telecommunications market.
                    MARKETING MANAGEMENT
 People know about AIRTEL cellular service through

        30 %   Friends        70% Advertisements          5% Other Sources

      Feature of AIRTEL forced people to use AIRTEL is

      35% Advertisements     20% Connectivity       10%Schemes


   People’s first choice of cellular service when they want to use mobile
            AIRTEL 45%             HUTCH 30%             IDEA 8%
        RELIANCE 10%                    TATA INDICOM 5%        OTHERS 2%
      Feature of AIRTEL is better than the people’s previous cellular service.

      Advertisements 25%      Connectivity 60%      Schemes 15%

 AIRTEL users in people’s phone book

   Less than 30%          :     15%

   30% - 70%          :           25%

  More than 70%           :       60%
 Type of advertisement mostly like by people in AIRTEL is

   Audio Visual               :           85%

   Print                      :           2%

   Audio                      :           13%

   Celebrity liked by people very much in AIRTEL

   Sachin               :           55%
   Shahrukh             :           38%

   Kareena              :           2%

   A. R. Rehman         :           5%
 People take benefits of schemes offered by AIRTEL

  YES                  :           85%

  NO                   :           13%

  CAN’T SAY            :           2%

      People like most in AIRTEL is

  NOKIA + AIRTEL       :           86%

  AIRTEL MAGIC         :           5%

  Postpaid services    :           8%
AIRTEL Broadband     :           1%

    Service liked by people most in AIRTEL is

AIRTEL missed you service        :           33%
Ring tones                       :           5%
Hello tunes                      :           22%
VOICE SMS                        :           40%

    AIRTEL is #1 in India

Yes                  :           95%
              No                       :              5%

           AIRTEL‟s Advertising has a major impact its users. People like the schemes provided by airtel.
          AIRTEL had created a very good image in the mind of the new users of cellular service.
          AIRTEL has adopted a very good strategy by providing a new connection with NOKIA who is
          market leader in mobile sets, many new users buy Nokia sets and they get a free connection of
          AIRTEL. AIRTEL is successful in capturing the highest market share by adopting Celebrity
          Endorsement Strategy. A.R. Rehmaan‟s tune for AIRTEL worked as free advertising for
          AIRTEL as another service user uses it too. Other celebrities like Shahrukh Khan (bollywood)
          and Sachin Tendulkar (Cricket) has also contributed very much in AIRTEL. Also the much
          talked about new voice sms service is been liked by its users provided advertisements by saif-
          kareena has popularized the same.
          By virtue of its connectivity and advertising strategy AIRTEL is successful in grabbing the
          highest market share in India, but there are still some recommendations from my study point of
          view is that AIRTEL needs to make its network service more stronger than other service
          providers to dominate the market in future too.

                                  FINANCIAL MANAGEMENT
          Balance sheet
                                                        Mar ' 08       Mar ' 07        Mar ' 06   Mar ' 05 Mar ' 04
Sources of funds
Owner's fund
Equity share capital                                   1,897.91        1,895.93        1,893.88 1,853.37 1,853.37
Share application money                      57.63          30.00           12.13         2.72            -
Preference share capital                          -                 -             -           -           -
Reserves & surplus                        18,283.82       9,515.21       5,437.42 2,675.38 2,971.49
Loan funds
Secured loans                                52.42         266.45        2,863.37 3,959.88             1.36
Unsecured loans                            6,517.92       5,044.36       1,932.92 1,034.41          625.00
Total                                     26,809.71      16,751.95      12,139.72 9,525.76 5,451.22
Uses of funds
Fixed assets
Gross block                               28,115.65      26,509.93      17,951.74 13,240.63          31.84
Less : revaluation reserve                     2.13           2.13            2.13        2.13            -
Less : accumulated depreciation            9,085.00       7,204.30       4,944.86 3,475.64           17.29
Net block                                 19,028.52      19,303.51      13,004.75 9,762.86           14.56
Capital work-in-progress                   2,751.08       2,375.82       2,341.25       994.46         0.10
Investments                               10,952.85        705.82          719.70       931.90 1,762.67
Net current assets
Current assets, loans & advances           8,439.38       5,406.81       3,338.88 2,486.31 3,688.36
Less : current liabilities & provisions   14,362.33      11,042.67       7,272.80 4,708.12           15.77
Total net current assets                  -5,922.95      -5,635.86      -3,933.92 -2,221.80 3,672.59
Miscellaneous expenses not written             0.20           2.66            7.94       58.35         1.30
Total                                     26,809.71      16,751.95      12,139.72 9,525.76 5,451.22

Ratios                                                                                            (Rs crore)
                                              Mar ' 08   Mar ' 07       Mar ' 06 Mar ' 05            Mar ' 04
            Per share ratios
            Adjusted EPS (Rs)                   34.08      21.20          10.60        6.29                    -
            Adjusted cash EPS (Rs)              52.16      34.34          18.84       12.66              0.03
Reported EPS (Rs)                            32.90    21.27    10.62    6.53        -
Reported cash EPS (Rs)                       50.99    34.41    18.86   12.90     0.03
Dividend per share                               -        -        -       -        -
Operating profit per share (Rs)              56.16    38.28    21.32   16.17     0.14
Book value (excl rev res) per share (Rs)    106.34    60.17    38.67   24.12    26.03
Book value (incl rev res) per share (Rs.)   106.35    60.18    38.68   24.13    26.03
Net operating income per share (Rs)         135.73    94.16    59.45   43.93     0.33
Free reserves per share (Rs)                 83.18    49.88    28.11   12.31    16.03
Profitability ratios
Operating margin (%)                         41.37    40.65    35.86   36.81    43.21
Gross profit margin (%)                      29.08    27.47    23.14   24.29    37.06
Net profit margin (%)                        23.99    22.46    17.80   14.83     0.58
Adjusted cash margin (%)                     38.03    36.26    31.57   28.74     9.47
Adjusted return on net worth (%)             32.04    35.23    27.42   26.06        -
Reported return on net worth (%)             30.94    35.35    27.47   27.08        -
Return on long term funds (%)                28.52    29.83    21.28   20.41     0.42
Leverage ratios
Long term debt / Equity                       0.30     0.43     0.61    0.98     0.10
Total debt/equity                             0.32     0.46     0.65    1.10     0.12
Owners fund as % of total source             75.43    68.24    60.45   47.55    88.50
Fixed assets turnover ratio                   1.03     0.74     0.72    0.74     1.98
Liquidity ratios
Current ratio                                 0.58     0.48     0.45    0.52   233.91
Current ratio (inc. st loans)                 0.56     0.47     0.44    0.47     9.44
Quick ratio                                   0.55     0.47     0.44    0.48   233.91
Inventory turnover ratio                    453.06   373.35   634.52 257.80         -
Payout ratios
Dividend payout ratio (net profit)               -        -        -       -        -
Dividend payout ratio (cash profit)              -        -        -       -        -
Earning retention ratio                     100.00   100.00   100.00 100.00    100.00
Cash earnings retention ratio               100.00   100.00   100.00 100.00    100.00
Coverage ratios
Adjusted cash flow time total debt            0.66     0.81     1.34    2.13   104.71
Financial charges coverage ratio                     27.77       26.09         17.22     9.52       1.28
Fin. charges cov.ratio (post tax)                    25.60       24.13         16.08     8.54       1.29

Highlights for Full Year ended March 31, 2008
• Overall customer base crosses 6.4 crore.
• Highest ever-net addition of 2.5 crore customers in a year.
• Market leader with a market share of all India wireless subscribers at 23.8%(22.4% last year)
• Total Revenues of Rs. 27,025 crore (up 46% Y-o-Y).
• EBITDA of Rs. 11,372 crore (up 53% Y-o-Y).
• Cash Profit of Rs. 11,137 crore (up 52% Y-o-Y).
• Net Income of Rs. 6,701 crore (up 57% Y-o-Y).

Business and Financial Metrics

Total Revenue and Profit after Tax from 2003 to 2008 for Bharti Airtel[2]

In 2007/08, Bharti Airtel had total revenues of Rs. 270 billion, up 46.6% from Rs. 184 billion in
2006/07.[2] Its net profit was Rs. 64.0 billion, up 57.4% from Rs. 40.6 billion the previous
year.[2] The company grew segment revenues by 54.9% in the Mobile Services segment, 27.2%
in the Telemedia Services segment, 25.3% in the Enterprise Services (Carriers) segment and
49.2% in the Enterprise Services (Corporates) segment.[2] These increases were attributed to a
64.7% increase in the company's subscriber base from 39.0 million in 2006/07 to 64.3 million in
2007/08.[2] As of 31 March 2008, Bharti Airtel's population coverage stood at 71% and its fiber
optics cable network was 73,787 route-kilometers.[2]

In the 3rd quarter of 2008/09, Bharti Airtel had total revenues of Rs. 96.3 billion, up 38.3%
from Rs. 69.6 billion in the 3rd quarter of 2007/08.[7] Its net profit wasRs. 21.6 billion, up
25.4% from Rs. 17.2 billion the same quarter of the previous year.[7] The company grew
segment revenues by 41.5% in the Mobile Services segment, 15.8% in the Telemedia Services
segment, 56.3% in the Enterprise Services (Carriers) segment and 23.8% in the Enterprise
Services (Corporates) segment.[7] Again, these increases were attributed to a 10.5% increase in
the company's subscriber base from 77.5 million in the 2nd quarter of 2008/09 to 85.7 million in
the 3rd quarter of the same year.[7] As of 31 December 2008, Bharti Airtel's population coverage
stood at 79% and its fiber optics cable network was 90,205 route-kilometers.[7]

Annual Data                   Units           2004     2005      2006        2007        2008

Total Customer Base           000s          7,141    11,842   20,926      39,013      64,268

Mobile Services               000s          6,504    10,984   19,579      37,141      61,985

Telemedia Services            000s          637      857      1,347       1,871       2,283

Based on Statement of

Revenue                       Rs. million   50,369   81,558   116,641     184,202     270,122

EBITDA                        Rs. million   17,055   30,658   41,636      74,407      114,018

Cash Profit from Operations   Rs. million   14,363   28,219   40,006      73,037      111,535

Earnings before Tax           Rs. million   5,527    15,832   23,455      46,784      73,115

Net Profit                    Rs. million   5,387    12,116   20,279      40,621      63,954

Key Ratios

Return on Equity (ROE)        %             12.00%   23.70%   32.00%      43.10%      38.50%
Earnings per Share (EPS)    Rs. million   3.15     6.53        10.78     21.43       34.23

[]Key    Operating Metrics

Source: Average Revenue Per User (ARPU) from June 2007 to December 2008 for Bharti

The following metrics are used as indicators of the company's health.

        Average revenue per user (ARPU) per month is computed by dividing the company's
    total revenues (excluding equipment sales) during a certain period by its average customers
    in the same period and then dividing this result by the number of months in the period. A
    higher ARPU is better for the company.
       Churn is calculated by dividing the total number of disconnections during a certain
    period by the average customers in the same period and then dividing the result by the
    number of months in the period. A lower churn is better for the company.
      Minutes of usage (MoU) is the duration (in minutes) for which a customer uses the
    network. It is expressed over a period of one month. Higher MoU is better for the company.
       Subscriber base refers to the number of individuals that use or subscribe to Bharti
    Airtel's services. A larger subscriber base is better for the company.

The table below shows key operating metrics for Bharti Airtel over the past 7 quarters.
                                    Dec      Sep      Jun      Mar      Dec      Sep      Jun
Parameters                  Unit
                                    2008     2008     2008     2008     2007     2007     2007

Customers                   000s    88,270   79,988   71,777   64,268   57,341   50,950   44,676

Average Revenue Per User
                            Rs.     324      331      350      357      358      366      390

Minutes of Usage (MoU)      Minutes 505      526      534      507      474      469      478

Post-Paid Voluntary Churn   %       1.1%     1.1%     1.0%     1.0%     0.9%     1.1%     1.1%

Post-Paid Company-
                            %       1.2%     1.4%     1.4%     1.5%     1.8%     2.1%     2.5%
Initiated Churn

Pre-Paid Churn              %       2.9%     3.2%     3.8%     4.3%     3.9%     3.8%     4.0%

Business Segments

Segment Contribution to Total Revenue in 2007/08 for Bharti Airtel[2]

Bharti Airtel has 5 business segments:
                   (i) Mobile Services;

                   (ii) (ii) Telemedia Services;

                   (iii)(iii) Enterprise Services - Carriers;

                   (iv) (iv) Enterprise Services - Coprorates; and

                   (v) (v) Passive Infrastructure Services.

Mobile Services (69.7% of revenue, 71.3% of EBIT, 76.2% of net profit)
The Mobile Services segment provides prepaid and postpaid mobile and fixed wireless services
in all of India's 23 telecom circles. In 2007/08, revenue and EBITfrom this segment stood
at Rs. 218 billion and Rs. 59.3 billion respectively. Net profit rose 71.9% from Rs. 29.6 billion
in 2006/07 to Rs. 51.0 billion in 2007/08.

Telemedia Services (9.1% of revenue, 7.3% of EBIT, 7.6% of net profit)
The Telemedia Services segment provides fixed line telephone and broadband (DSL) services in
15 telecom circles across India. In 2007/08, revenue and EBIT from this segment stood
at Rs. 28.6 billion and Rs. 6.1 billion respectively.[8] Net profit rose 227% from Rs. 1.6 billion
in 2006/07 to Rs. 5.1 billion in 2007/08.

Enterprise Services - Carriers (14.0% of revenue, 13.6% of EBIT, 16.7% of net profit)
The Enterprise Services - Carriers segment provides long distance voice and data services to
carrier customers and other Airtel segments. In 2007/08, revenue and EBIT from this segment
stood at Rs. 43.8 billion and Rs. 11.3 billion respectively.[8] Net profit rose slightly
from Rs. 11.1 billion in 2006/07 to Rs. 11.2 billion in 2007/08.[8]

Enterprise Services - Corporate (4.4% of revenue, 6.3% of EBIT, 5.9% of net profit)
The Enterprise Services - Corporate segment provides voice and data services to corporate and
SMEs. In 2007/08, revenue and EBIT from this segment stood at Rs. 13.9 billion and Rs. 5.2
billion respectively.[8] Net profit rose 89.0% from Rs. 2.1 billion in 2006/07 to Rs. 3.9 billion in

Passive Infrastructure Services (1.9% of revenue 1.1% of EBIT, 1.1% of net profit)
In 2007/08, Bharti Airtel formed a joint venture with Vodafone Essar and Idea Cellular to
merge their respective passive infrastructure assets in 16telecom circles across India. A
subsidiary, Bharti Infratel, was set up to manage the company's assets in this joint venture and
provide passive infrastructure services to all telecom operators in India on a non-discriminatory
basis. In the same year, revenue and EBIT from this segment stood at Rs. 6.0 billion and Rs. 1.2
billion.[8] Net profit was Rs. 0.74 million.[8]

Shareholding Pattern
The Indian promoter, Bharti Telecom Ltd, holds 45.3% of the total shares of Bharti Airtel
Ltd.[9] The foreign promoters, Pastel Ltd and Indian Continent Investment Ltd, hold 15.6% and
6.3% respectively.[9] Private corporations that hold more than 1% of the total shares of Bharti
Airtel include the Life Insurance Corporation of India (3.4%) and Europacific Growth Fund

                   Shareholding Pattern of Bharti Airtel Ltd[10]

                                  Entity                           Percentage

Bharti Telecom Ltd (Indian Promoter)                               45.30%

Foreign Promoters                                                  21.85%

Foreign Institutional Investors                                    21.99%

Banks, Financial Institutions and Insurance                        3.50%

Mutual Funds                                                       2.97%

Private Corporate Bodies                                           2.63%

General Public                                                     1.04%

Non Resident Indians, Overseas Corporate Bodies and Foreign Others 0.56%

Others                                                             0.16%
Market Share
Bharti Airtel has a dominant market share across the GSM subscribers in the telecom sector.
Bharti Airtel's market share is facing competition since an aggressive entry strategy by the new
telecom operators is being pursued, as carried out by RCOM for its national GSM rollout.

GSM Market Share(%) Nov      Dec        Jan         Feb      Mar    Apr    May      Jun    Jul    Aug    Sep
- 2007/2008         2007     2007       2008        2008     2008   2008   2008     2008   2008   2008   2008

Bharti Airtel        33.0    33.2       33.3        33.5     33.4   33.6   33.7     33.9   34.2   34.4   34.5

Vodafone             24.0    24.0       23.9        23.9     23.8   23.9   24.0     24.1   24.2   24.3   24.3

BSNL/MTNL            21.7    21.5       21.3        21.1     21.2   20.8   20.4     20.0   19.7   19.4   19.1

Idea                 14.9    15.0       15.0        15.1     15.2   15.3   15.5     15.5   15.4   15.1   15.1

Others               6.4     6.4        6.5         6.4      6.4    6.4    6.5      6.5    6.6    6.7    6.9

Bharti Airtel has been able to sustain highest revenues across India in line with its sharp
increase in subscriber market share in 2008. Bharti‟s biggest revenue market share gains came
from circles Rajasthan, Bihar, Andhra Pradesh, Karnataka and Tamil Nadu.
Revenue Market Share(%) - 2007/2008          Dec 2007 Mar 2008 Jun 2008 Sep 2008

Bharti Airtel                                29.8          29.9     31.2     32.7

Vodafone Essar                               18.5          19.1     19.7     19.6

Reliance Communications                      15.0          13.9     13.5     12.4

BSNL                                         14.1          14.5     11.7     11.4

Idea                                         8.1           8.6      9.5      10.0

Others                                       14.4          14.0     14.4     13.8
Prepaid Airtel options:

Total Cost Control
Pre activated STD/ISD without deposits or rentals
Strong Network coverage
Instant Balance and Validity Enquiry
Recharge your Airtel Prepaid
Prepaid Roaming
More with Airtel Prepaid
Reach us Anytime Anywhere

Total Cost Control
You can control your Airtel Prepaid like never before. No more rentals or deposits – simply
recharge as much as you need to from as low as Rs. 10, to as high as Rs. 10,000/-.

Pre activated STD/ISD without deposits or rentals
You can now enjoy a pre-activated STD/ISD on your Airtel Prepaid. No more paying deposits or
having a minimum balance in your account to make an STD/ISD call. Hassle-free calls are here
to stay! Click here for more information on STD/ISD rates in your circle new.

 Strong Network Coverage
Enjoy complete clarity when calling with Airtel‟s world-class technology and unbreakable
network coverage that spans over 23 circles across the country.

 Instant Balance and Validity Enquiry
Your account balance is updated on the screen of your handset at the end of each chargeable call.
You can also call 123 from your mobile phone and listen to the voice announcement or simply
dial *123#, press 'OK' or 'YES' button and your account balance will be displayed on the screen
of your handset.

 Recharge your Airtel Prepaid
Recharging is Easy. The calling value on your card keeps reducing as you make calls or use any
other chargeable service. Choose the Airtel Prepaid Recharge Coupon that‟s right for you, from a
variety of tailor– made recharge coupons with different denominations, which are available at a
number of outlets across your city. Simply follow the procedure mentioned below, to recharge
your phone.

          Gently scratch the silver panel on the reverse of the recharge card for a 16-digit
          Call '123' and choose your preferred language.
          Follow the voice announcement and enter the 16-digit recharge number, when
          Your prepaid account will be automatically recharged by the calling value amount
          and validity of your coupon.

More Recharge options:

Flexible recharge voucher
This unique recharge voucher gives you the option to choose between validity or talktime, as per
your need.

Easy Recharge
Recharge your Airtel Prepaid Card electronically with value that suits your needs, starting from
Rs. 10 till Rs. 10,000. You can also recharge your Airtel Prepaid while roaming anywhere in the
country. Click here for Airtel Easy Charge options.

24-hour Recharge via ATM
Recharge your Airtel Prepaid round-the-clock at your nearest ATM. Just walk up to your nearest
ATM, insert the ATM card and enter your ATM PIN number. Select 'Mobile Recharge / Bill
Pay' from the main menu and follow the prompts to recharge your prepaid. This recharge option
is available with all leading banks.

Internet Recharge
You may log on to the Internet banking website of your bank and select the prepaid recharge
option to recharge your Airtel prepaid. Many leading banks provide Internet based recharging.

The following recharge denominations are available nationally for recharge through Bank
website or ATM.

 Denomination Rs Calling value Rs         Proc Fee Rs      Service tax Rs     Validity Days
 50                   43.33               2.0              4.67               30

 100                  88.66               2.0              9.34               30

 200                  179.32              2.0              18.68              30

 300                  269.99              2.0              28.01              30

 500                  451.31              2.0              46.69              30

 1000                 904.62              2.0              93.38              30

You can also recharge with Rs.99 Lifetime Prepaid Plan to enjoy Lifetime Validity. Free airtime
of Rs.10 available with this recharge.

Validity Extension service

Trade your talk time to extend the validity of your prepaid. Dial *141*001# and then, press the
call button. Your validity would be extended by 1 day for a charge of Rs.15. You can similarly
extend your validity for 5, 10, 15 or 30 days.

Prepaid Roaming
Airtel Prepaid comes preactivated with 'National Roaming', so you stay connected no matter
wherever you are. You can also send or receive MMS, check your email and access other GPRS
services while roaming in India as you would in your own city. While traveling abroad you can
receive calls & send or receive SMS.

Call management Services
Call waiting, call hold, call divert and Caller Line Identification Presentation– all with your
Airtel prepaid connection.

Voice Mail
When your handset is switched off, or you‟re too busy to answer the phone, Airtel Voicemail
will answer your calls and record a message. The best part is that there's no extra monthly cost
for setting up Voicemail - you just pay for the phone call when you use the service.

SMS (Short Messaging Service)
Send messages quickly and easily using text, if it's too noisy to talk or you don't have much time.
It's the way to share those interesting one-liners, important reminders and rib-tickling jokes, with
anyone, anytime, anywhere in the world.

Subscription Alerts
Get regular alerts on news, jokes, business, health and films on your Airtel mobile phone with
Subscription Services. SMS <SUB NEWS> to 53333 for News, <SUB JOKE> for Jokes, <SUB
BIZ> for Business News, <SUB SPO> for Sports Alerts & <SUB VAASTU> for Vaastu tips.

MMS (Multi-media Messaging Service):
Jazz up your messages with pictures, images and video clippings, with MMS from Airtel! To
activate MMS on your phone, SMS 'MMS' to 56465 and save service settings.

Hello Tunes
Tired of that boring old „tring tring‟ on your phone? Now when a friend calls, make them groove
to the hottest new tracks burning up the music charts with Hello Tunes from Airtel! Choose from
a library of over 80000 songs from more than 16 languages. Whats more, copy any Hello tune
you like by simply pressing „*‟ on your phone when the Hello Tune is playing on your friends
phone. Click here for more information on Hello Tunes.

Reach us Anytime Anywhere
In case you need assistance, dial '121' - our toll-free number, accessible from anywhere in the
country, even while roaming. You can also send us an SMS to 121 or mail us
*In case of email, mention your mobile no. like, 9810012345, in the subject of the mail for a
quicker response.
Postpaid Airtel Connection
Easy Billing
Easy Payment Options. Anytime, Anywhere.
Credit Limit
Strong Network Coverage
Long Distance Calling Facility
Widest Roaming (National and International)
GPRS - Roaming

Enjoy a host of rich features only with Airtel e-bill. Register free on „My Airtel‟ section and view
your monthly bill with call details for last three months. Sort your calls between personal and
official or analyze your usage, at the click of a button. To change your tariff plan call our IVR at 121
and leave a request, you can also send in your requests through email, log your
request on My Airtel section of the website or SMS the change to 121
You can choose from a host of convenient payment options only with Airtel. Walk into any Airtel
relationship centre and make your payments by cash or credit card. Drop a cheque at any of the drop
boxes for making payments or simply log on to My Airtel section and pay instantly through your
credit card. You can also opt for easy payment options like.

Standing Instructions
You can give us standing instructions to debit your credit card account for your monthly Airtel bills.
All you have to do is fill the Standing Instruction Form and mail, fax it to us or drop it any of our
relationship centres.

Electronic Clearing System
Fill an ECS form and mail fax it to us or drop it any of our relationship centres to directly debit your
bank account for your monthly Airtel bill.

Pay while roaming
Airtel has introduced 'Anywhere payment' that offers you the convenience of making payments
while you roam. Walk in to any Airtel Relationship Centre in the country, make payments by cash
or credit card and enjoy uninterrupted Airtel Services.

Error! Hyperlink reference not valid.
Your pre-set credit limit mentioned on your monthly bill helps you keep your mobile charges in
control, keeps track of your usage and ensures that your mobile phone is not misused. Should you
exceed your credit limit, you will be informed via a voice or a non-voice message to make an
interim payment and reduce your account balance below your credit limit. You may also choose to
pay us an additional refundable deposit to enhance your credit limit or opt for our convenient
payment method of Credit Card Standing instruction .

 Error! Hyperlink reference not valid.
Enjoy complete clarity when calling with Airtel .It offers you world class technology and
unbreakable network coverage that spans over 23 circles across the country.

Error! Hyperlink reference not valid.--Call long distance calls in India and Overseas with STD /
ISD facility on your Airtel phone. Click here for more information on STD/ISD rates.

Error! Hyperlink reference not valid.--Airtel's roaming service allows you to stay connected and
use your mobile phone to make or receive calls from almost anywhere in India and also over 160
countries, abroad. Click here for more information on Airtel Roaming.

Call management Services
Call waiting, call hold, call divert and Caller Line Identification Presentation, help you do more with
your Airtel Postpaid connection!

Conference call
You can hold a teleconference with 5 people simultaneously with Call Conferencing service from
Airtel. In fact, you can set up a conference even when the other five are using a landline phone. To
know more, call customer service at 121.

Missed call alert
A missed call alert is a SMS that you will receive for all the calls that you missed. The SMS will
detail the CLI and the time when the call was made. To activate, dial *135*2# then press the call
button and wait for the request to be completed.

Voice Mail
When your handset is switched off, or you‟re too busy to answer the phone, Airtel Voicemail will
answer your calls and record a message. The best part is that there's no extra monthly cost for setting
up Voicemail - you just pay for the phone call when you use the service.

SMS (Short Messaging Service)
Send messages quickly and easily, using text, if it's too noisy to talk or you don't have much time.

MMS (Multi-media Messaging Service):
Jazz up your messages with pictures, images and video clippings, with MMS from Airtel! To
activate MMS on your phone, SMS 'MMS' to 56465 and save service settings.

GPRS (General Packet Radio Services)
Log on to the internet, with GPRS that allows data transmission at a higher speed. Access e-mails
and internet across Airtel's pan-India presence using 'Mobile Office' with your phone or a phone and
laptop both.
Supply chain management at Airtel
      Bharti Airtel understands the importance of partners to remain competitive in a
      dynamic business environment. As a step in that direction, the Supply Chain (SCM)
      function has been created with a mandate to develop partner relationships to maximize
      mutual opportunities for growth and profitability. The SCM organization has a central
      core team of supply chain subject mater experts and execution teams operating under
      different business divisions across the country.

 Supply Chain Philosophy
      At the center of Bharti Airtel's Supply Chain Philosophy is partnership and
      collaboration. The Supply Chain characteristics have therefore been defined using the
      same approach, shown in the table below.

                                                      Bharti Airtel
             Supply Chain Characteristics

             Number & Structure                       Fewer; Clustered

             Procurement personnel                    Limited

             Outsourcing                              Strategic

             Nature of Interactions                   Cooperative, positive-sum

             Relationship focus                       Mutually-beneficial

             Relationship focus                       Performance

             Contract length                          Long-term

             Pricing practices                        Target costing

             Price Changes                            Downward

             Quality                                  Designed-in

             Delivery                                 Smaller Quantities (JIT)

             Inventory buffers                        Minimized, eliminated

             Communication                            Extensive; multi-level
               Communication                             Collaborative; two-way

               Role in development                       Substantial

               Production flexibility                    High

               Technology sharing                        Extensive

               Dedicated investments                     Substantial

               Mutual commitment                         High

               Governance                                Self-governing

               Future Expectations                       Considerable


                                 Airtel’s HR Policy:

Airtel believes that one of the most important drivers of growth and success for any organization
is its people. At Bharti Airtel, our „Mantra‟ for employee delight focuses on 5 Ps –
      People,
      Pride,
      Passion,
      Processes and
      Performance.

Bharti Airtel has been recognized among the Best Employers in the Country for two successive
years – being 14th in 2003 & jumping ahead of several other large conglomerates to an
enviable position of the 2nd Best Employer in the Country in 2004. This is a clear
demonstration & acknowledgement of the robust, progressive, people as well as business
aligned Human Resource practices, which the organization has developed and implemented
remarkably          in        a       very         short        span         of        time.

Bharti Airtel follows an “open door policy” to approach the management, which helps resolve
  issues with mutual agreements. It encourage people to stand up against any unfair treatment for
  which they have the Office of the Ombudsman, where employees can raise any issues
  regarding business and workplace conduct. Bharti ensures transparency through the various
  communication policies, strategies and plans. . Regular Employee Communication Forums
  provides a platform for the employees to raise issues that require resolution.

  Its leaders strongly believe in facilitating and initiating activities that help employees manage
  their health and well-being. Company‟s focus always remains to redefine leadership; we
  develop leaders who enable performance and inspire their people to unleash their potential.
  Their people orientation reflects in our vision of being “targeted by top talent”, and a key
  aspect of our business focus “building a best-in-class leadership team that nurtures talent at
  every                                                                                       level.”

  Employee friendly HR policies have been put in place, which amply reflect the organization‟s
  concern for its people. Some typical examples of these policies and practices include a family-
  day at office, half day leave for birthdays, gifts for anniversaries, compulsory 10 days off,
  festival celebration with family, no official meetings on weekends, five day weeks, concierge
  services, call center engagement programs etc. These “care” policies and practices are applied
  across        the       organizational      levels      without       any       discrimination.

  From self-management workshops to aerobics sessions, yoga classes to provision of
  relaxation/meditation rooms, we ensure that every employee keeps a check on his/her fitness.
  Tie-ups with leading health service organizations enable our employees to undertake periodical
  health check-ups depending upon their age. This facility is also extended to employee family
  members at discounted rates. The company provides Flexible Group Mediclaim insurance to all
  employees, covering all kinds of illnesses, accidents and hospital coverage for serious ailments.
  Apart from these specific engagements, we regularly organize health check up camps, eye
  check-up camps and stress management sessions. Some of our offices have opened
  gymnasiums/fitness facilities to ensure that the fitness fanatics do not have to worry about time
  constraints to remain fit. At many of our locations, we have hired psychologists who undertake
  personal              counseling               sessions               for             employees.

  Bharti Airtel offers a flexible compensation structure to its employees wherein the employees
  have the flexibility to structure their fixed component of their compensation according to their
  requirements within the ambit of legislation.

 “Even a sweeper in the corporate office must understand that, if he does not keep the office clean,
the visiting shareholders could question the company’s ability to manage a business if they cannot
manage their premises well”
                                                 -Mr. Akhil Gupta (HR- Airtel)
  Our Performance Linked Incentive (PLI) schemes are linked with the variable component of our
  compensation structure. This component is linked to both the individual performance against
  his/ her set KRAs (Key Result Areas) and the overall performance of the business entity that an
  employee                                      belongs                                       to.
  Our leaders and managers understand the need to bring clarity to employees about how their
  roles, goals and actions align the realization of organization’s vision and goals.
  The mechanisms like Performance Management System (PMS) and Talent Management Process
  (TMP) are the key sources of identifying the training needs of the employees and check to
  competency levels for promotion.

The goal of human resource management is to help an organization to meet strategic goals by
attracting, and maintaining employees and also to manage them effectively.

The process involves carrying out a skills analysis of the existing workforce, carrying out manpower
forecasting, and taking action to ensure that supply meets demand. This may include the
development of training and retraining strategies. Through HRP an organization strives to have the
right number & the right kind of people at the right place at the right time.


Bharti Airtel Limited has moved to the Billion Dollar league and this is a testimony to the
importance that they attach to our "people". Today, Bharti is a formidable player in the telecom
business with unparalleled energy, passion and creativity unleashed by the talent pool within.
Their Management Trainee program, christened Bharti Young Leaders' Program has been
designed to provide young leaders an accelerated path to reach their career goals.

The Young Leaders Program, in its 5th year since inception, has successfully groomed young
leaders of BA year on year. These employees have now gained senior positions at various locations
within BA. Our Goal –

     Nurture and create a pool of potential talent (Young Leaders) who can deliver superior
      business performance.

     Provide Young Leaders with a holistic understanding and exposure to the business and the

     Facilitate Young Leaders in gaining insight into their own strengths, development areas, and
      provide             opportunities              for             self           development.

According to Edwin B. Flippo, “Recruitment is the process of searching the candidates for
employment and stimulating them to apply for jobs in the organization”. Recruitment is the activity
that links the employers and the job seekers.
 Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified
applicants for the future human resources needs even though specific vacancies do not exist.

                                   RECRUITMENT Process

                                   Trends in Recruitment

   The outsourcing firms help the organization by the initial screening of the candidates according
   to the needs of the organization and creating a suitable pool of talent for the final selection by the
   organization. Outsourcing firms develop their human resource pool by employing people for
   them and make available personnel to various companies as per their needs. In turn, the
   outsourcing firms or the intermediaries charge the organizations for their services.

   “Buying talent” (rather than developing it) is the latest mantra being followed by the
   organizations today. Poaching means employing a competent and experienced person already
   working with another reputed company in the same or different industry; the organization might
   be a competitor in the industry. A company can attract talent from another firm by offering
   attractive pay packages and other terms and conditions, better than the current employer of the
   candidate. But it is seen as an unethical practice and not openly talked about. It has become a
   challenge for human resource managers to face and tackle poaching, as it weakens the
   competitive strength of the firm.

3. E-Recruitment
  Many big organizations use Internet as a source of recruitment. E- recruitment is the use of
  technology to assist the recruitment process. They advertise job vacancies through worldwide
  web. The job seekers send their applications or curriculum vitae i.e. CV through e mail using the
  Internet. Alternatively job seekers place their CV‟s in worldwide web, which can be drawn by
  prospective employees depending upon their requirements.

                                          Top 5 Job Sites






Recruitment through AIRTEL Website
                                    Recruitment Process
The recruitment process is the basic procedure, however there are few changes in different
departments, for e.g. IT dept & Customer Care dept cannot have same type of recruitment process as
the abilities & skills required are different in different department. However the basic process is as
following :

1. Prepare the organizational chart with the support of respective departments based on industry
   norms & projection of growth.

2. Co-ordinate with all departments for their manpower requirements.

3. Create the job profile and person specification as per department requisition.

4. Create the company profile for advertising the company to attract prospective candidates &
   also for the consultants etc.

5. Follow internal or external methods of Recruitment

       Commonly used External Methods

          i.   Co-ordinate with recruitment agencies & HR consultants e.g.. HEED Consultancy,
               ABC Consultancy etc
         ii.   Advertisements in print e.g.. Times Ascent, Hindustan Times etc

        iii.   Web - in own website or portals like, etc.

        iv.    Campus Recruitments

       Commonly used Internal Methods (IJR – Internal Job Requirement)

          i.   Employees Referral

         ii.   Transfer & Promotions

6. Application Scrutiny & Preliminary Screening .

7. Shortlist for preliminary interview – telephonic, video conferencing, personal interview.

8. Organizing further rounds of interview with department heads etc depending upon the position.

9. Briefing company profile to potential candidates, convincing them about the organisational
   strength & about their career path & Compensation.

10. Providing offer letter to selected candidates & help them in joining formalities within the

11. Induction, followed by training as required.

12. Taking monthly/quarterly feedback from the department about the candidates who have joined.

13. Organizing market survey of salaries, job opportunities etc.

                          INNOVATION & CHANGE
Bharti Airtel Ltd is one of the largest mobile telecoms providers in India (26.5% market share). In
August 2006 the company awarded Ericsson an extension to the existing contract of US$1bn to
upgrade and develop its GSM/GPRS network.

The new three year services agreement will see Ericsson manage design, development and
deployment of the network, including capacity and coverage, enabling the operator to expand in
rural India and reach out to all the towns and cities across 15 regions.

Ericsson is a long-term partner of Bharti and manages more than 70% of the company's existing
GSM/GPRS network within 15 of the 23 Indian telecoms regions. To meet increased demand for
value-added services at that time Bharti required a Mobile Packet Backbone Network (M-PBN) and
Ericsson was able to provide the technology, alongside enhanced data rates for GSM Evolution
(EDGE) technology.

Following these earlier successes, Ericsson was optimistic of winning new orders from Bharti
(previous orders obtained were worth US$650m in 2004 and 2005). Bharti‟s ambition is to bring its
network to every one of the 5,200 towns described as census towns by the Indian authorities by
March 2007, an expansion of 1,000 over the present total.

Bharti hopes to achieve with Ericsson's expertise a competitive edge over its rivals – ultimately by
having better coverage and eventually with more cost-effective technology in place.

GSM (Global System for Mobile communications: originally from Groupe Spécial Mobile) is the
most popular standard for mobile phones in the world. Its promoter, the GSM Association, estimates
that 80% of the global mobile market uses the standard GSM is used by over 3 billion people across
more than 212 countries and territories. Its ubiquity makes international roaming very common
betweenmobile phone operators, enabling subscribers to use their phones in many parts of the world.
GSM differs from its predecessors in that both signaling and speech channels are digital, and thus is
considered asecond generation (2G) mobile phone system. This has also meant that data
communication was easy to build into the system.
The ubiquity of the GSM standard has been an advantage to both consumers (who benefit from the
ability to roam and switch carriers without switching phones) and also to network operators (who
can choose equipment from any of the many vendors implementing GSM). GSM also pioneered a
low-cost (to the network carrier) alternative to voice calls, the Short message service (SMS, also
called "text messaging"), which is now supported on other mobile standards as well. Another
advantage is that the standard includes one worldwide Emergency telephone number,112. This
makes it easier for international travellers to connect to emergency services without knowing the
local emergency number.
Newer versions of the standard were backward-compatible with the original GSM phones. For
example, Release '97 of the standard added packet data capabilities, by means of General Packet
Radio Service (GPRS). Release '99 introduced higher speed data transmission using Enhanced Data
Rates for GSM Evolution.
GSM services are a standard collection of applications and features available to mobile
phone subscribers all over the world.In order to gain access to GSM services, a user needs three

       A subscription with a mobile phone operator. This is usually either a Pay As You
    Go arrangement, where all GSM services are paid for in advance (commercially called
    "prepaid"), or a Pay Monthly option where a bill is issued each month for line rental, normally
    paid for a month in advance, and for services used in the previous month (commercially called
       A mobile phone which is GSM compliant and operates at the same frequency as the operator.
    Most phone companies sell phones from third-party manufacturers.
       A SIM ("Subscriber Identity Module") card which is activated by the operator once the
    subscription is granted. After activation the card is then programmed with the
    subscriber's MSISDN ("Mobile Subscriber Integrated Services Digital Network Number") (the
    telephone number). Personal information such as contact numbers of friends and family can also
    be stored on the SIM by the subscriber.

Major agreements and alliances

During the year Bharti Airtel has entered into following major agreements and alliances:
• With Microsoft to offer software and services for the Small and Medium Business (SMB) market
in India. The partnership will start off by offering to Indian SMBs Microsoft solutions for Hosted
Messaging and Collaboration. It will also offer other hosted applications like CRM, Accounting,
ERP, Unified Communications and select Microsoft ISV applications;
• With Google to offer search services on Airtel Mobile. As part of the agreement, Airtel will bring
Google search to the Airtel Live mobile WAP portal. Google will also incorporate advertising
through its Mobile Ads product on the Airtel Live mobile portal;
• With Adani Group to connect Mundra Port and Special Economic Zone. This is a first-of-its-kind
alliance with the Adani group for setting up the Telecommunications Network Infrastructure for its
multi-sector Special Economic Zone (SEZ) located at Mundra port;
• A three-year contract with Nokia at an estimated value of US$ 400 mn to expand its managed
GSM/GPRS/EDGE networks in eight Airtel circles and deploy a pan India WAP solution across its
• A three-year network expansion contract with Ericsson at an estimated value of USD 1 bn . The
contract will enable Bharti Airtel to rapidly expand its mobile services footprint further and reach
out to all towns and cities in 15 telecom circles in the country;
• With Microsoft to offer Microsoft‟s latest Windows Mobile 5.0 technology to its customer. With
this agreement, Bharti Airtel has become the first Indian telecom company to offer Microsoft‟s latest
Mobile 5.0 technology to its customers;
• With IBM to deliver India‟s first „Service Delivery Platform‟ (SDP). This platform will enable
Airtel to deliver a suite of unique, innovative products, services and applications, to its over 39
million customers spanning mobile, landline and broadband services. Airtel is investing over USD
100 Million in this delivery platform.

Mergers & Acquisitions
• During the year, the Company has sold 2.36% of its investments in Forum I Aviation Limited
which has resulted in reduction of its shareholding in the JV
from 16.6% to 14.2%;
• Pursuant to a rights issue made by Bharti Hexacom Limited (BHL) during the year, the Company
subscribed to 43,750,000 shares of BHL for an aggregate consideration of Rs. 875 mn resulting in
increase in its stake from 68.5% to 68.89%;
• On 17 April 2007, the Hon‟ble High Court of Delhi approved the amalgamation of Satcom
Broadband Equipment Limited (SBEL) and Bharti Broadband Limited (BBL) into Bharti Airtel
Limited. On completion of all procedural formalities, SBEL and BBL will stand dissolved (without
the process of winding up) into Bharti Airtel Limited. The appointed date of the amalgamation is
October 1, 2005;
• At its meeting held on 26 April 2007, the Board approved the acquisition of 12,25,000 equity
shares of Rs. 10 each of Bharti Aquanet Limited (“Aquanet”) comprising 49% of the equity from
Singtel i2i Limited for the consolidated consideration of Rs. 154.5 mn. Post acquisition, Aquanet
will become a wholly owned subsidiary of, and will be merged with Bharti airtel.

To top