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8/8/2019 Bharti Airtel Limted & Indian Telecom
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Case study 2
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0
5
10
15
20
25
2000 2002 2004 2006 2008 2009
2.89
5.11
9.11
18.5
23.525
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0
20
400
80
100
120
140
1 0
180
200
2000 2002 2004 2005 2008 2009
1.88 .54
33.7
52.2
180190
26.7538.43 42.84 46.19
70 75
Mobile
Fixed
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Bharti Airtel Limited, one ofAsias leading
integrated telecom services providers with
operations in India and SriLanka.
The company is structured intofour strategicbusiness units -
Mobile, Telemedia, Enterprise and Digital TV
The mobile business offers services in India
and SriLanka. The Telemedia business provides
broadband, IPTV and telephone services in95
Indian cities.
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The Digital TV business provides Direct-to-Home
TV services across India
The Enterprise business provides end-to-end
telecom solutions to corporate customers andnational and internationallong distance services
to telcos.
Provides GSMmobile services in all the 22
telecom circles in India, and was the first private
operator tohave an all India presence.
Provides telemedia services (fixed line and
broadband services through DSL)in95 cities in
India.
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Sunil has built an incredibly successfulbusiness from scratch, one which has had a
truly transformational impact on ourindustry, on the customers he serves and onIndias economy. His brave and ambitiousstrategies will continue to resonate across
the country, our industry and the businesscommunity globally, becoming a benchmarkfor emerging markets worldwide
Craig Ehrlich , GSM Association Chairman in 2008
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NETSALES
PAT % PATINCREASE
2004-05 8142.44 1210.67 107%
2005-06 11259.12 2012.08 66%
2006-07 17851.61 4033.23 100%
2007-08 25761.11 6244.19 55%
2008--09 34048.32 7743.84 24%
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2005 2006 2007 2008 2009
EPS 6.53 10.62 21.27 32.9 40.79
Dividend /share
2.00
OPM % 36.81 35.86 40.65 41.37 38.74
Debt/equity 1.1 .65 .46 .32 .28
RNOW 26.06 27.42 35.23 32.04 33.74
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2004 2005 2006 2007 2008 2009
ROCE 9.9 % 15.7 % 21.5 % 31 % 33.3% 30.5%
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2009 2010 2011
PROFIT 7743.84 10012 11367
EPS
PE RATIO
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Company Sales (rs cr.) PAT (rs cr.) Market Cap (rscr.)
BhartiAirtelLtd. 34,048.32 7,743.84 107,697.43
Reliance
CommunicationsLtd.
15,086.66 4,802.67 34,448.61
Idea Cellular Ltd. 6,719.99 1,044.36 15,174.97
TataCommunications
Ltd.
3,749.43 515.95 10,888.43
Tata Teleservices
(Maharashtra)Ltd.
2,034.62 -159.60 4,714.53
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45.3
22.39
18.74
8.914.66
share holding pattern
promotors
foreign promoters
foreigninstn
others
financialinstn
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AT&T - the former SBC merged withAT&T creating the new AT&T (USA)
China Mobile - formerly China state-owned, now still state-controlled, one of twomobile phone monopolies in the entire China.
Vodafone - Britain's largest telecomoperator.
Verizon Communications - US-based telecom company formed after aseries ofmergers.
Telefonica - Multinational company with stakes in Dpain, LatinAmericaand Europe. Owns the O2 brand.
Deutsche Telekom - German telecom company, alsoowns t-mobile.
America Movil - Mexicanoperator controlled by the world's richest man -Carlos Slim.
NTT DoCoMo - One of Japan's telecomoperators.
France Telecom - One of France's telecom companies. NipponTelegraph & Telephone - Japan's second largest telecom operator.
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0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Mobile subs
Fixed line subs
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Today, innovationis about muchmore than
new products. It is about reinventing
business processes and building entirely new
markets that meet untapped customerneeds. Most important, as the Internet and
globalization widen the poolofnew
ideas, it's about selecting and executing the
right ideas and bringing t
hem tomarket inrecord time.
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In the 1990s, innovation was abouttechnology and controlof quality and cost.Today, it's about taking corporateorganizations built for efficiency andrewiring themfor creativity and growth."There are a lot of different things that fallunder the rubric ofinnovation," says VijayGovindarajan, a professor at Dartmouth
College's Tuck Sch
oolofBusiness and aut
horofTen Rules for Strategic Innovators: From
Idea to Execution. "Innovation does not havetohave anything to do with technology."
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Toyota Motor Corp., whichleapt 10 spots this
year to No. 4, is becoming a master ofmany as
well. The Japanese autogiant is best knownfor
anobsessive focus oninnovatingits
manufacturing processes. But thanks to the hot-
selling Prius, Toyota is earning evenmore respect
as a product innovator. It is also collaborating
more closely with suppliers togenerate
innovation. Last year, Toyota launched its ValueInnovation strategy. Rather than work with
suppliers just to cut costs ofindividual parts, it
is delvingfurther backin the design process to
find savings spanning entire vehicle systems
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