1

A

CPP Report

TITLED

‘BHARTI AIRTEL LIMITED’For fulfilling the requirement of the award of degree of BBA

Subject: CPP (IMS-306)

Under the Supervision of

Dr. Anil Kumar

Assistant professor

Submitted to: - Submitted by:-

The Director Pradeep Malik

MBA 5 year 3rd Sem.

Roll No. 12

Registration No. 12-UD- 08

Institute of Management Studies

Kurukshetra University, Kurukshetra

(Sept.2013)

2

DECLARATION

I, PRADEEP hereby declare that I have completed the report entitled assigned to

me by the Institute, to be submitted in the partial fulfillment of the MBA 5 Year

Degree from Kurukshetra University. Further, I declared that this is original work

done by me and the information provided in the study is authentic to the best of my

knowledge and belief.

Signature

PRADEEP MALIK

3

ACKNOWLEDGEMENT

In this project, I have made an honest and dedicated attempt to make the Project Report

so easy to understand for a person who is willing to get knowledge about the BHARTI

AIRTEL.

I am deeply indebted to my esteemed teacher & our chairman Prof. M.K Jain,

K.U.K., because he gave me opportunity of making project report. I am also thankful to

my lecturer as well as my supervisor (Guide) Dr. Anil Kumar for their kind support &

suggestion for making project report.

Signature

Pradeep Malik MBA 3rd semester

Roll No. 12

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CONTENTS

CHAPTER NO. TITLE OF THE CHAPTER PAGE NO.

1. Telecommunication Sector In India 5-9

1.1Introduction 1.2History

1.3 Players in the sector

5-6 6 7-9

2. Bharti Airtel Limited 10-29

2.1 Introduction 2.2 History 2.3 Subsidiaries

2.4 Achievements 2.5 Organizational Structure 2.6 Products & Services

1011-223

2323-2425-2627-29

3. Analysis & Discussion 30-38

3.1 Financial Analysis 3.1(a) Income

3.1(b) Expenditure 3.1(c) Profit 3.1(d) Assets 3.1(e) Liabilities 3.2 Capital Structure

3.3 Shareholding Pattern 3.4 Marketing Strategies

30-333031

31-3232333435

36-384. SWOT Analysis 39

5. Conclusion 40-41

6. Learning from the report 42

References 43

Annexure 1 Profit & Loss a/c

2 Balance Sheet

44-4744-4546-47

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CHAPTER – 1

TELECOMMUNICATION SECTOR IN INDIA

1.1 INTRODUCTION

India's telecommunication network is the second largest in the world based on the total

number of telephone users (both fixed and mobile phone). It has one of the lowest call tariffs in the

world enabled by the mega telephone networks and hyper-competition among them. It has the world's

third-largest Internet user-base with over 137 million as of June 2012. Major sectors of the Indian

telecommunication industry are telephony, internet and television broadcasting.

Telephone Industry in the country which is in an ongoing process of transforming into next

generation network, employs an extensive system of modern network elements such as digital telephone

exchanges, mobile switching centers, media gateways and signaling gateways at the core, interconnected

by a wide variety of transmission systems using fibre-optics or Microwave radio relay networks.

The access network, which connects the subscriber to the core, is highly diversified with different

copper-pair, optic-fibre and wireless technologies. DTH, a relatively new broadcasting technology has

attained significant popularity in the Television segment. The introduction of private FM has given a

fillip to the radio broadcasting in India. Telecommunication in India has greatly been supported by

the INSAT system of the country, one of the largest domestic satellite systems in the world. India

possesses a diversified communications system, which links all parts of the country by telephone,

Internet, radio, television and satellite.

Indian telecom industry underwent a high pace of market liberalisation and growth since 1990s

and now has become the world's most competitive and one of the fastest growing telecom markets. [7]

[8] The Industry has grown over twenty times in just ten years, from under 37 million subscribers in the

year 2001 to over 846 million subscribers in the year 2011 India has the world's second-largest mobile

phone user base with over 929.37 million users as of May 2012.] It has the world's third-largest Internet

user-base with over 137 million as of June 2012.

The total revenue of the Indian telecom sector grew by 7% to  283207 crore(US$45 billion) for

2010–11 financial year, while revenues from telecom equipment segment stood at 

117039 crore (US$19 billion).

Telecommunication has supported the socioeconomic development of India and has played a significant

role to narrow down the rural-urban digital divide to some extent. It also has helped to increase the

transparency of governance with the introduction of e-governance in India

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1.2 HISTORY

The history of Indian telecom can be started with the introduction of telegraph. The Indian postal

and telecom sectors are one of the worlds oldest. In 1850, the first experimental electric telegraph line

was started between Calcutta and Diamond Harbour. In 1851, it was opened for the use of the British

East India Company. The Posts and Telegraphs department occupied a small corner of the Public Works

Department, at that time.

Subsequently, the construction of 4,000 miles (6,400 km) of telegraph lines connecting Kolkata

(then Calcutta) and Peshawar in the north along with Agra, Mumbai (then Bombay) through Sindwa

Ghats, and Chennai (then Madras) in the south, as well as Ootacamund and Bangalore was started in

November 1853. William O'Shaughnessy, who pioneered the telegraph and telephone in India, belonged

to the Public Works Department, and worked towards the development of telecom throughout this

period. A separate department was opened in 1854 when telegraph facilities were opened to the public.

In 1890, two telephone companies namely The Oriental Telephone Company Ltd. and The

Anglo-Indian Telephone Company Ltd. approached the Government of India to establish telephone

exchanges in India. The permission was refused on the grounds that the establishment of telephones was

a Government monopoly and that the Government itself would undertake the work. In 1891, the

Government later reversed its earlier decision and a license was granted to the Oriental Telephone

Company Limited of England for opening telephone exchanges

At Calcutta, Bombay, Madras and Ahmedabad and the first formal telephone service was

established in the country. On 28 January 1892, Major E. Baring, Member of the Governor General of

India's Council declared open the Telephone Exchanges in Calcutta, Bombay and Madras. The exchange

in Calcutta named the "Central Exchange" had a total of 93 subscribers in its early stage. Later that year,

Bombay also witnessed the opening of a telephone exchange.

.

1.3 Major Players of the Sector

7

Vodafone :- Vodafone is a British multinational telecommunications company headquartered

in London and with its registered office in Newbury, Berkshire. It is the world's second-largest

mobile telecommunications company measured by both subscribers and 2011 revenues (in each

case behind China Mobile), and had 439 million subscribers as of December 2011.

Vodafone owns and operates networks in over 30 countries and has partner networks in over

40 additional countries Its Vodafone Global Enterprise division provides telecommunications and

IT services to corporate clients in over 65 countries.

Vodafone has a primary listing on the London Stock Exchange and is a constituent of the FTSE

100 Index. It had a market capitalisation of approximately £89.1 billion as of 6 July 2012, the

third-largest of any company listed on the London Stock Exchange. It has a secondary listing

on NASDAQ.

Idea: - In 2000, Tata Cellular was a company providing mobile services in Andhra Pradesh.

When Birla-AT&T brought Maharashtra and Gujarat to the table, the merger of these two entities was a

reality. Thus Birla-Tata-AT&T, popularly known as Batata, was born and was later rebranded as IDEA.

Then Idea set sights on RPG’s operations in Madhya Pradesh which was successfully acquired, helping

Batata have a million subscribers, and the licence to be the fourth operator in Delhi was clinched.

In 2004, Idea (the company had by then been rechristened) bought over the Escorts group’s Escotel

gaining Haryana, Uttar Pradesh (West) and Kerala — and licences for three more — UP (East),

Rajasthan and Himachal Pradesh. By the end of that year, four million Indians were on the company’s

network. In 2005, AT&T sold its investment in Idea, and the year after Tatas also bid good bye to pursue

an independent telecom business. And Idea was left only with one promoter, the AV Birla group. Rs

2,700 crore adding Punjab and Karnataka circles. Modi’s joint venture partner, Telekom Malaysia,

invested Rs 7,000 crore for a 14.99% stake in Idea. Just around then, Idea’s subsidiary, Aditya Birla

Telecom sold a 20% stake to US-based Providence Equity Partners for over Rs 2,0000 crore.

BSNL: - Bharat Sanchar Nigam Limited (abbreviated BSNL) is an Indian state-

owned telecommunications company headquartered in New Delhi, India. It was incorporated on 15

September 2000. It took over the business of providing of telecom services and network management

from the erstwhile Central Government Departments of Telecom Services (DTS) and Telecom

Operations (DTO), with effect from 1 October 2000 on going concern basis. It is the largest provider

8

of fixed telephony and fourth largest mobile telephony provider in India, and is also a provider

of broadband services. However, in recent years the company's revenue and market share plunged into

heavy losses due to intense competition in the Indian telecommunications sector.

BSNL is India's oldest and largest communication service provider (CSP). It had a customer base of 95

million as of June 2011. It has footprints throughout India except for the metropolitan cities

of Mumbai and New Delhi, which are managed by Mahanagar Telephone Nigam (MTNL).

MTNL: - Mahanagar Telephone Nigam Limited (MTNL) is a state-owned telecommunications service

provider in the metro cities of Mumbai and New Delhi in India and in the island nation

of Mauritius in Africa. The company had a monopoly in Mumbai and Delhi until 1992, when the

telecom sector was opened to other service providers. "Transparency makes us different" is the motto of

the company. The Government of India currently holds 100% stake in the company.[2] In recent years,

MTNL has been losing revenue and market share heavily due immense competition in the Indian

telecom sector

Reliance: - Reliance Communications Ltd. (commonly called RCOM) is an Indian internet

access (commonly called "broadband") and telecommunications company headquartered in Navi

Mumbai, India. RCOM is India's second largest telecom operator, only after Bharti Airtel. It is the 15th

largest mobile phone operator with over 150 million subscribers. Established in 2004, it is a subsidiary

of the Reliance Group. The company has five segments: Wireless segment includes wireless operations

of the company; broadband segment includes Internet access operations of the company; Global

segment include national long distance and international long distance operations of the company and

the wholesale operations of its subsidiaries; Investment segment includes investment activities of the

Group companies, and Other segment consists of the customer care activities and direct-to-home (DTH)

activities.

Videocon: - Videocon Telecom, formerly Videocon Mobile Services, is an Indian cellular service

provider that offers GSM mobile services in India. The company is a subsidiary of Videocon Industries,

and is headquartered at Gurgaon, Haryana. The company was known as Videocon Mobile Services, until

it changed its logo and rebranded to Videocon Telecom on 19 September 2013. At its peak, Videocon

held licences to provide mobile services in 18 out of 22 telecom circles of India. However, Videocon

launched commercial services only in 11 out of the 18 circles it held licences in. Following the 2G

spectrum scam, the Supreme Court cancelled 122 licences issued by the Indian Government in 2008,

9

including 21 licences belonging to Videocon. In the 2012 spectrum auction, Videocon won back

licences in 6 circles

Docomo :-Docomo is a trademark of the NTT Docomo corporation of JAPAN used in its home

market and in India in partnership with Tata Teleservices. It is an acronym of the phrase "Do

communications over the mobile network."

Aircel :- Aircel group is an Indian mobile network operator headquartered in Chennai, which offers

voice & data services ranging from postpaid and prepaid plans, 2G and 3G services, Broadband

Wireless Access (BWA), Long Term Evolution (LTE) to Value-Added-Services (VAS). In 2006, Aircel

was acquired by Malaysia’s biggest integrated communications service provider Maxis (Maxis

Communication Berhard) and is a joint venture with Sindya Securities & Investments Pvt Ltd - Maxis

holds 74% equity in the company.

Aircel commenced operations in 1999 by Chinnakannan Sivasankaran and today is the leading mobile

operator in Tamil Nadu, Assam, North-East India and Chennai.

It is India’s fifth largest GSM mobile service provider and seventh largest mobile service provider (both

GSM and CDMA) with a subscriber base of over 65.1 million. It has a market share of 7.33% among

wireless operators (includes GSM, CDMA, and FWP operators) in the country.

Aircel has also obtained permission from the Department of Telecommunications (DoT) to

provide international long distance (ILD) and national long distance (NLD) telephony services. It also

has the largest service in Tamil Nadu.

CHAPTER – 2

10

BHARTI AIRTEL LIMITED

2.1 INTRODUCTION

Bharti Airtel Limited, commonly known as Airtel, is an Indian

multinational telecommunications services company headquartered in New Delhi, India. It operates in

20 countries across South Asia, Africa, and the Channel Islands. Airtel has a GSM network in all

countries in which it operates, providing 2G, 3G and 4G services depending upon the country of

operation. Airtel is the world's third largest mobile telecommunications company by subscribers, with

over 275 million subscribers across 20 countries as of July 2013. It is the largest cellular service

provider in India, with 192.22 million subscribers as of August 2013. Airtel is the third largest in-

country mobile operator by subscriber base, behind China Mobile and China Unicom.Airtel is the largest

provider of mobile telephony and second largest provider of fixed telephony in India, and is also a

provider of broadband andsubscription television services. It offers its telecom services under the

"airtel" brand, and is headed by Sunil Bharti Mittal.

Bharti Airtel is the first Indian telecom service provider to achieve Cisco Gold Certification. It

also acts as a carrier for national and international long distance communication services. The company

has a submarine cable landing station at Chennai, which connects the submarine cable

connecting Chennai and Singapore.

Airtel is credited with pioneering the business strategy of outsourcing all of its business

operations except marketing, sales and finance and building the 'minutes factory' model of low cost and

high volumes. The strategy has since been copied by several operators.  Its network—base stations,

microwave links, etc.—is maintained by Ericsson and Nokia Siemens Network. whereas IT support is

provided by IBM,  and transmission towers are maintained by another company (Bharti Infratel Ltd. in

India).  Ericsson agreed for the first time to be paid by the minute for installation and maintenance of

their equipment rather than being paid up front, which allowed Airtel to provide low call rates of  

1/minute (US$0.02/minute).  During the last financial year (2009–10), Bharti negotiated for its strategic

partner Alcatel-Lucent to manage the network infrastructure for the tele-media business. On 31 May

2012, Bharti Airtel awarded the three-year contract to Alcatel-Lucent for setting up an Internet

Protocol access network (mobile backhaul) across the country. This would help consumers access

internet at faster speed and high quality internet browsing on mobile handsets

11

2.2 HISTORY

1995 - Bharti Cellular launched cellular services'AirTel'in Delhi

1996 - STET International Netherlands NV, or STET, a company promoted by Telecom Italia, Italy

acquired a 20% equity interest in Bharti Tele-Ventures. Bharti Telenet launched cellular services in

Himachal Pradesh.

1997 - British Telecom acquired a 21.05% equity interest in Bharti Cellular. Bharti Telenet obtained a

license for providing fixed-line services in Madhya Pradesh circle. Bharti Telecom and British Telecom

formed a 51% : 49% joint venture, Bharti BT, for providing VSAT services.

1998 - Bharti Telecom and British Telecom formed a 51% : 49% joint venture, Bharti BT Internet for

providing Internet services. First Indian private fixed-line services launched in Indore in the Madhya

Pradesh circle on June 4, 1998 by Bharti Telenet thereby ending fixed-line services monopoly of DoT

(now BSNL).

1999 - Warburg Pincus (through its investment company Brentwood Investment Holdings Limited)

acquired 19.05% equity interest in Bharti Tele-Ventures.

Bharti Tele-Ventures (by acquiring a 63.45% equity interest in SC Cellular Holdings) acquired an

effective 32.36% equity interest in Bharti Mobile (formerly JT Mobiles), the cellular services provider

in Karnataka and Andhra Pradesh circles. New York Life Insurance Fund, or NYLIF, acquired a 3%

equity interest in Bharti Cellular

2000 - Bharti Tele-Ventures acquired an effective equity interest of 40.5% in Bharti Mobinet (formerly

Skycell Communications), the cellular services provider in Chennai. Bharti Tele-Ventures acquired a

30.2% equity interest of Telecom Italia in Bharti Telenet and 18.8% from Bharti Telecom thereby

making Bharti Telenet a 100% subsidiary of Bharti Tele-Ventures.

SingTel (through its investment company Pastel Limited) acquired STET's 15.3% equity interest

in Bharti Tele-Ventures. Bharti Tele-Ventures acquired an additional effective 41.64% equity interest in

Bharti Mobile (by acquiring the remaining 36.55% equity interest in SC Cellular) resulting in Bharti

Tele-Ventures holding an effective 74% equity interest in Bharti Mobile.

12

2001 - Bharti Tele-Ventures acquired NYLIF's 3% equity interest in Bharti Cellular. Bharti Telesonic

entered into a joint venture, Bharti Aquanet, with SingTel for establishing a submarine cable landing

station at Chennai. Bharti Tele-Ventures issued additional equity for approximately US$ 481.30 million

to SingTel, Warburg Pincus, AIF group, IFC, NYLIF, and Seejay Cellular and Bharti Telecom. Bharti

Cellular acquired a 100% equity interest in Bharti Mobitel (formerly Spice Cell ), the cellular services

provider in Kolkata . Bharti Tele-Ventures acquired 85% and 15% in Bharti Telespatial from Bharti

Telecom and Intel, respectively.

Bharti Tele-Ventures acquired a 44% equity interest in Bharti Cellular from British Telecom,

thereby making Bharti Cellular its 100% subsidiary. Bharti Tele-Ventures acquired an additional 49%

equity interest in Bharti Mobinet from Millicom International and BellSouth International, thereby

owning 89.5% equity interest in Bharti Mobinet,which was further increased to 95.3% following an

issuance of additional equity shares by way of rights issue. Punjab license restored to Bharti Mobile by

the DoT and migration to NTP - 1999 accepted.Bharti Cellular entered into license agreements to

provide cellular services in eight new circles following the fourth operator cellular license bidding

process.

Bharti Telenet entered into license agreements to provide fixed-line services in the Haryana,

Delhi, Tamil Nadu and Karnataka circles . Bharti Telesonic entered into a license agreement with the

DoT to provide national long distance services across India.Bharti Aquanet, Bharti Telesonic and Bharti

Cellular entered into license agreements with the DoT to provide ISP services in India . Bharti

Telesonic launched national long distance services under the brand name of India One. Bharti Telenet

launched fixed line services in Haryana under the brand name of TouchTel.

2002 - Comes out with issue of 18.53 crore equity shares through book building route with a floor price

of Rs 45 per share, received bid for 18.55 crore shares. Through the issue, it becomes the first company

in India to come out with 100% book building issue. Issue price fixed at Rs 45 per share, floor price

fixed by the company. Raises Rs 834 crore. Shares listed on BSE, NSE and DSE, opens at 11%

premium to its issue price of Rs 45 . Enters into a 5-year agreement with Escotel and ETL of the Escorts

group to contract leased line connectivity for its cellular.

Operations.Mr. Ravi Akhoury ceases to be Director of Bharti Tele. DoT grants ILD Telephony

License to Bharti Telesonic, subsidiary of the company. Signs MoU with Telia AB to buy out their 26%

stake in Bharti Mobile. Ties up with SSC (Secondary School Certification) Board, Hyderabad, where

Bharti will announce SSC results to its customers on their mobile phones. ICICI Bank ties up with

Bharti for pre-paid mobile cards via ATM. Bharti forays into Mumbai with offers. Alpine International

13

Ltd. and ELM International Ltd. acquire shares of Bharti Tele-Ventures. Sunil Mittal, Chairman &

Managing Director of the company, bag Businessman of the year award by Business India

2003 -Airtel breaks interconnectivity with Tata Teleservices in Andhra Pradesh Circle

Company accorded its approval for amalgamation of its subsidiary companies viz: Bharti Telenet Ltd,

Bharti Telesonic Ltd, Bharti Broadband Networks Ltd and Bharti Comtel Ltd through scheme of

Amalgamation. The merged entity would be renamed as Bharti Infotel Ltd. Air Tel launches Local

direct dialling facility in Chennai circle. Mobilises 5 m long term foreign currency borrowings for

expansion of cellular operations. Bharti Cellular unveils CareTouch service. Bharti Group's cellular

brand Airtel has unveiled free multimedia messaging services (MMS) for its customers. The company

has also rolled out pan-India GPRS (General Packet Radio Services) for its

Corporate subscribers

Launches its `India One MeetXpress' audio-conferencing service

Punjab, Haryana get free incoming calls from Airtel

AirTel provides SMS facilities to hearing impaired in Chennai

Goa, Maharashtra gets 'voice portal' services by Bharti Cellular

Launches free additional connection to its new subscribers in New Delhi

Mr. Sin Hang Boon and Mr. Wong Hung Khim have resigned from the Board of Directors of Bharti

Tele Ventures Ltd with effect from February 27, 2003.

Airtel provides SMS cricket updates

-Bharti Mobinet Ltd, the Bharti group company that provides the AirTel mobile service in Chennai,

today launched its GPRS (General Packet Radio Service) network and an MMS (multi-media

messaging) on the GPRS platform

-AirTel unveils new ring tones for Karnataka cellular market

-AirTel Subscribers exceed 3 million marks

-AirTel unveils RAD system

-Mr. P M Sinha resigns from the Board of Directors of the Company with effect from March 31, 2003.

-Bharti TeleVentures announces the completion of merger with Bharti Mobitel

-Bharti Mobitel Ltd. merged with Bharti Cellular Ltd.

-AirTel reintroduces 'Mobile 2 Mobile' offer for Karnataka customers

-AirTel, Touchtel jointly offer freeTouchtel land line for post-paid

Airtel connection

14

-AirTel rolls out voice mail service for pre-paid customers

-AirTel unveils new scheme for pre-paid customers giving away free talk time worth Rs 10 crore

-Airtel surpasses 4 lakh subscriber base in Karnataka

-Bharti announces new tariff plan AirTel 012

-Offers 0-1-2, a new cellular package for the customers, which means zero charges on incoming calls,

Re 1 on mobile-to-mobile outgoing calls, Rs 2 on mobile-to-mobile STD calls

-Rolls out Airtel messenger service

-AirTel offers bundled handset, connection package for Rs 5715

-Airtel slashes SMS rates to 60 paise; excludes Delhi and Mumbai

-Bharti cellular, wholly owned subsidiary of Bharti Tele-Ventures, increases its stake to 100% in Bharti

Mobile

-Links distribution pact with Hathway Cable. With this alliance, Bharti is said to be the first telecom

firm to step into television distribution services

-Six cell operators move over from Bharti to VSNL

-Airtel augments cellular coverage in TN by including Arcot & Walajapet in its network

-Airtel ties up with Coke in Chennai to sell its Magic prepaid cards

-AirTel embarks on network expansion in Hyderabad

-Airtel unveils India One Long Distance Calling Card

-AirTel introduces unified tariff package in TN, Chennai

-Airtel becomes front runner in Karnataka's mobile services market

-Bharti Tele launches 'Always on' service to its subscribers

-SBI, AirTel announce EMI offer at Rs 299

-Bharti and MTV join hands to launch new SIM card

-AirTel unveils new post-paid scheme at zero rental

-AirTel launches `Happy Plan' in AP

-Airtel emerges as the highest selling pre-paid card

-Airtel join hands with Alcatel & Videocon to launch new scheme

-AirTel service provider touches 5 lakh customers in Punjab

-Airtel offers 5 new services for its customers in Mumbai

-Bharti launches first dual band network in Delhi

-Gets 14th place among top 25 Cos in India

-Bharti Mobile crosses 4 lakh mobile subscribers in AP

-Airtel holds top position in terms of dealer penetration

15

-Prof. V S Raju has been inducted on the Board of Directors of the Company.

-Touchtel launches SMS service in fixed line phones in Karnal, Panipat

-Airtel unveils special offers in Kerala

-AirTel launches InnoWest for the western region

-Bharti Tele-Ventures enters into an agreement with Telesystem (Mauritius) Pvt. Ltd

-Airtel slashes outgoing sms price to 30ps

- AirTel on December 16, 2003 announced the launch of expense tracker service, which provides

customers the option of tracking their day-to-day expenses on a daily or monthly basis. To avail of this

service, the customer should register himself by sending EXP REG Your mail ID{gt} to 3020. This

service will allow a user to track expenses, while on the move by sending an SMS. Each SMS sent to

3020 would cost Rs 3.

-AirTel introduces MTV Club Card in Chennai

2004 -Bharti unveils new card for Mecca piligrims

-AirTel enrolls 50,000 customers in its mobile service in 60 days

-Launches WAP enabled portal Service in Kerala

- Bharti Cellular's AirTel has extended its mobile connectivity to Karaikkal, Nagur, Mannargudi and

Kovilpalayam in Tamil Nadu circle.

-Airtel customer base touches new high of 5 lakh mark in Andhra Pradesh

- Mobile service provider AirTel is launching its first ever MMS (Multi Media service) downloads in

Tamil. The launch of this service has been timed to coincide with Pongal.

-AirTel tie up with MAA TV

-Airtel launches Rs 50 pre-paids recharge

-Airtel launched a family pack for its post-paid customers in Chennai on January 29. According to a

press release, the family pack may have a maximum of 10 members spread across the country. The

combined basic plan fixed charges/rental of all family members in the pack will have to be equal to Rs

450 but less than Rs 1000 for the family 450 pack and above Rs 1000 for the family 1000 pack. The

offerings under family pack 450 include 15 free mobile to mobile STD minutes within the family, 50

free local calling minutes to each family member, calls within the family in same circle at 50 paise per

minute, 25

free local SMS and one subscription alert service free for 3 months.

16

-Bharti Tele-Ventures enters into a three year service agreement with Ericsson

-Bharti Tele-Ventures (BTVL) has signed and received unified access service licence to provide GSM

services in five circles including Uttar Pradesh (East), West Bengal & Andaman Nicobar, Orissa, Bihar

and Jammu & Kashmir. The licence has been granted to Bharti Cellular Ltd (BCL), the cellular arm and

subsidiary of BTVL.

-Airtel announces the signing of the first-ever bilateral roaming agreement between an Indian mobile

service provider and its counterpart in Pakistan. This facility will be available to pre-paid as well as

post-paid customers. AirTel's roaming agreement is with Mobilink, the only GSM cellular service

provider in Pakistan

-Acquires switching systems from Tekelec that will give a technological edge to the company

-Bharti Tele-Ventures Ltd signed an information technology outsourcing deal with InfoTech major

IBM, estimated to be in the range of 0-750 million for a ten-year period.

-Jayant Khosla, new chief executive officer, Mumbai

-Signs MoU to join the South East Asia - Middle East - Western Europe 4 (SEA-ME-WE-4) consortium

along with 15 other global telecom operators.

-Bharti Tele-Ventures has struck a deal with Shyam Telecom to buy out the latter's 67.5 per cent stake

in cellular services company Hexacom for Rs 430 crore.

-Bharti Tele garners 0 m via FCCBs

- Samsung India Electronics Limited has tied up with cellular operator Bharti for bundling its mobile

handsets with a connection.

-The Bharti group finalised a Rs 500-crore deal to share its national long-distance (STD) network with

VSNL in a first-of-its-kind accord between two top telecom service providers in a bid to optimise

capacities in the NLD segment.

17

- Internet gateway and services provider, Videsh Sanchar Nigam Ltd. (VSNL) has signed a Right to Use

(RoU) agreement to deploy mobile telephony major, Bharti Tele-Ventures' existing National Long

Distance (NLD) backbone.

-Airtel offers talktime transfer service

-Airtel has announced money-back guarantee offer in case of call drop or poor network experience for

its subscribers

-Bharti launches 2-in-1 card

-- Airtel launched two-way international roaming and GPRS for prepaid customers in the Maharashtra

and Goa circles

-India's leading cellular company Bharti Tele-Ventures has bagged the Asian Mobile News operator of

the year award in India and the subcontinent

-Bharti Tele-Ventures Ltd has awarded a million equipment contracts to Swedish telecoms company

Ericsson

-Bharti Televentures announced formation of a new strategic business unit to offer various telecom and

IT services through a single contact

-Bharti Televentures unveiled a mobile portal featuring sports, entertainment and news among others

-Airtel ties up with Micro Tech to set up 'Mcops' vehicle security system

-Bharti Tele-Venture on July 19 launched ring back tone service which is a personalized mobile music

service where the caller hears songs and other sound clips instead of the traditional switchboard ring-

ring tone

-Airtel, a private telecom services provider, has commissioned its first 24x7 customer service centre in

Andhra Pradesh

-Airtel unveils Rs 199 prepaid card

-AirTel join hands with NMIMS to offer executive MBA programme

-AirTel introduces new scheme for hearing impaired in Maharashtra & Goa

-AirTel inks pact with JP Mobile

18

- Rolls out Enhanced Data Rate for Global Evolution (EDGE) network in Pune on September 9, 2004,

Ties up with Nokia for sale of Nokia 6230, an EDGE-enabled handset.

-AirTel unveils first virtual calling cards in India

-BTVL rolls out EDGE services in Bangalore

-Airtel rolls out Full Talktime Advantage card

-Airtel rolls out Wi-Fi services in Mumbai

-BTVL launches new 'Airtel Broadband Friendly Offer'

-Airtel launches GPRS services for pre-paid customers

-Airtel partners with ITPO to set up Wi-Fi network in Delhi

-Airtel launches EDGE services and a new pre-paid plan for Chennai

-Airtel introduces LAS in Karnataka

2005 -Airtel launches video services for its GPRS customers on February

22, 2005

-Airtel unveils new TV ad featuring Sachin, Sharukh

-Bharti Tele-Ventures launches telecom network in Andaman & Nicobar

-BTVL unveil fixed line, broadband services

-Bharti inks 5-m deal with Nokia for rural network expansion

-Bharti Tele Ventures Ltd has announced that Airtel, ICICI Bank & VISA have joined hands to launch

mChq - a revolutionary new service - a credit card on the mobile phone

-Bharti Tele Ventures - Airtel introduces BlackBerry Connect in

India

-Bharti Tele Ventures announces agreement with Vodafone

-Airtel unveils 'free flight' offer

-Airtel unveils starter pack

-Bharti Tele-Ventures launches under sea cable system

2006 -Airtel unveils Re 1 STD plans

-Airtel launches Net Xpert.

-Airtel launches Post2Pre recharging service on April 04, 2006.

-Airtel sets up customer centre

-Mobile service provider Airtel today announced the launch of `Save My Phone Contact' service for its

pre-paid and post-paid customers in Delhi

-Bharti Tele Ventures bags 'Wireless Service Provider of the Year' &'Competitive Service Provider of

the Year' awards

19

-Sunil Mittal bags CEO of the Year award

-Cellebrum join hands with Airtel

-Airtel Mega unveiled in Coimbatore

-Airtel joins hand with Microsoft

-Bharti Airtel Ltd has informed that Microsoft and the Company announced a strategic partnership that

will offer a range of software and services for small and medium businesses (SMBs) in India.

-Bharti Airtel Ltd on Nov 8, announced a first-of-its-kind alliance with the Adani Group for

establishing an end-to-end modern telecommunication network infrastructure for the latter's multi-sector

special economic zone (SEZ), located near Mundra Port in hutch district of Gujarat.

-Company has changed its name from Bharti Tele-Ventures Ltd. to

Bharti Airtel Ltd.

2007 -Bharti Airtel, telecom major, has come out with a slew of initiatives including buying out

SingTel's 50 per cent stake in joint venture under sea cable company Network i2i for 0 million.

-Bharti Airtel on Feb 11, has been awarded QCI-DL Shah National Award on Economics of Quality.

-Bharti Airtel Ltd has announced the following changes in the operational leadership structure and roles

in the Company effective April 01, 2007.

-Bharti Airtel Ltd on April 01, 2007, has announced the reduction in International Long Distance

Tariffs (ISD) for all its mobile customers in India.

-Airtel signs agreement with HTC for touch screen mobile.

2008 - Nokia Siemens Networks on Jan 3 declared that it has been awarded a multi million euro

contract from Bharti Airtel Ltd for deployment of a single interactive voice response (IVR) platform

across 23 circles. The three-year turnkey contract comprises designing, planning, systems integration

and optimization services to raise overall customer experience. The new IVR solution will enable Airtel

to deliver services such as voice SMS, televoting, call management services, caller ring back tone and

voice portal on a faster time-to-market basis and, therefore, reduce OPEX costs.

- Bharti Airtel Ltd on February 13, 2008 has announced that it has achieved the 60 million customer

mark. This landmark has catapulted Bharti Airtel into the club of top mobile operators in the world in

terms of subscriber base. The 60 million customer base covers mobile as well as fixed line and

broadband customers.

20

- Bharti Airtel tied up with US-based Apple Inc to bring the popular GSM-based iPhone in the country.

- Bharti Airtel Ltd has forged a technology alliance with Infosys Technologies Ltd to launch its Direct-

to-Home (DTH) television services. Infosys, through its digital convergence platform, will offer a suite

of products including devices, application servers and interactive applications for Airtel's DTH services.

2009 - Bharti Airtel has signed a five-year managed services deal valued at 0 million with Alcatel

Lucent for its fixed-line and broadband operations.

- Bharti Airtel launched the 'Airtel Advantage' initiative. The initiative is aimed at offering the added

advantage to Airtel customers to be in touch with each other at an affordable rate of 50 paise per minute,

be it a national long distance call (STD) or a local call.

- In order to create products and services for the small, medium and large enterprises, Bharti Airtel and

Cisco announced a strategic business alliance. The alliance would combine the strengths of Airtel's

network service and Cisco' Internet Protocol (IP) technologies.

- Bharti Airtel - Airtel and mChek announce milestone of One Million users; introduce a broad range of

new mCommerce services.

-Company has splits its Face value of Shares from Rs 10 to Rs 5

--Registered Office of the Company has been shifted to Aravali Crescent, 1, Nelson Mandela Road,

Vasant Kunj, Phase II, New Delhi - 110 070.

2010 - Bharti Airtel submitted its bid for 3G spectrum, the auction for which starts from April 9.

- Bharti Airtel has partnered with US-based software maker VMware Inc. It has done this in order to

focus on the cloud-based managed computer services market.

- Bharti Airtel, India's No.1 cellular carrier has won broadband spectrum in four circles. Earlier, Bharti

has said that it had tied up the entire financing requirement of .3 bn for the planned buy, through a series

of banks.

- Gearing up for the roll out its 3G services soon, Bharti Airtel on Monday said it has chosen Ericsson

India, Nokia Siemens Networks and Huawei Technologies as network partners to launch the third

generation mobile services. All the three partners will plan, design, deploy and maintain a state-of-the-

art 3G HSPA (high speed packet access) network in 13 telecom circles of the total 22 for which Bharti

Airtel has bagged the licences for over Rs.12,000 crore.

21

2011 - SBI and Airtel join hands to usher in a new era of financial inclusion for unbanked India

-Bharti Airtel in Kenya Unit increased after the price was reduced since august last year and the

Subscriber Base has gone up by 2 million doubling its base to 4 million.

-Bharti Airtel is planning to launch third generation services (3G) services in 1500 cities across India by

the end of March, 2012.

- Indian Telecom Giant Airtel is also looking to promote the education and social developments in

African countries along with its business. In the same row, it has adopted a primary school in Ajegunle,

Lagos in Nigeria. With this step, the company also announced its strategy to promote primary education

in the country as part of its corporate social responsibility.

-In order to strengthen its managed services offerings to enterprises in India, Bharti Airtel, India’s

telecom major, has partnered with Savvis. This partnership will strengthen managed services portfolio of

Bharti offering innovative solutions to enterprises operating in or expanding into India. For expansion of

its services platform in India, Savvis will use airtel's data centres, bandwidth capacity, network support

and provide managed services including intelligent hosting, disaster recovery, managed applications,

migration planning, consulting, a suite of network and security services and transformational services.

-Airtel launches 3G services in Mumbai

-Bharti Airtel to offer broadband TV for Rs 99

-Airtel 3G subscriber base touches 2 million marks

-Bharti Airtel, which brought Kuwait-based Zain, African cellular operations, last year, eyes big

revenue from the 15 African nations it operates in. The company had paid billion (Rs 40,000 crore) f the

acquisition. It is aiming to touch revenues worth billion (Rs22,000 crore) and reach 100 million

subscribers by the end of March, 2013. Zain was making revenues of .9 billion (Rs 13,200 crore) per

year at that point of time and had 44.2 million subscribers.

22

-Bharti Airtel announced the appointment of two new CEOs for its Broadband/Data and DTH/Media

services. The first appointment announced Rajiv Raj gopal is the CEO- Broadband/Data, while Shashi

Arora was announced as the CEO-DTH/ Media services.

-Bharti Airtel awarded license to operate 2G and 3G mobile services in Rwanda

-Bharti Airtel signs agreement with Nokia Siemens Networks to expand in 2G & 3G

-Bharti Airtel rises on TDSAT move to lift 3G roaming ban

2012 - In an agreement to jointly create an inspirational business model for mCommerce, country's

leading telecommunications company, Bharti Airtel has enrolled IT titan, Infosys as its technology

partner for

Airtel money

-The Giant in Telecom Industry Bharti Airtel partners with Singapore-based mobile content service

provider Novosol to offer sports value added services (VAS). This partnership estimates the revenue to

Rs.500 Crores yearly.

-Bharti Airtel, Axis Bank in deal to provide mobile banking services in un-banked areas

-Bharti and Qualcomm announce partnership for 4G

-Bharti Airtel ranks first in terms of subscriber in Cellular Operators Association of India (COAI)

-Bharti Airtel signs agreement with Opera Software Country's largest telephone services provider,

Bharti Airtel, has entered into an agreement with Opera Software to allow its subscribers to access the

latters unique proxy-server-based browser on their mobile phones.

-Bharti Airtel mulls expansion in Malawi; may invest up to Millions

-Bharti Airtel gets Euro Finance Treasury award

-Walmart likely to stay with Bharti for new Indian multi-brand retail Joint Venture

-Telecom giant Bharti Airtel introduced the world first intercontinental roaming facility, which would

offer free incoming calls to African businessmen, tourists and students while travelling in India, Sri

Lanka and Bangladesh, said the media reports.

23

-Bharti Airtel launches an Emergency Alert Service for its customers to alert message with location

details to 10 different mobile numbers.

2.3 SUBSIDIARY COMPANIES

Bharti Hecacom

Bharti Comtel

Bharti Aquanet

Bharti Broadband

Bharti Infratel

Bharti Telemedi

2.4 Achievements/ recognition

Airtel wins top honours at the 7th Frost & Sullivan ICT Awards 2008

Bharti Airtel has been awarded the 'Best Cellular Service Provider' and 'Best Broadband Service

Provider' at the 2008 V&D 100 Awards.

Bharti Airtel has been voted as India 's most innovative company , in a survey conducted by The

Wall Street Journal.

Airtel has been voted the 2nd Most Trusted Service Brand in the Annual Economic Times-Brand

Equity, Most Trusted Brands survey.

24

Airtel has won the Platinum Trusted Brand Award in the Mobile Service provider category in the

Reader's Digest Asia Trusted Brands Survey .

Airtel bagged 'Wireless Service Provider of the Year' award at the 2008 Frost & Sullivan Asia

Pacific ICT Awards.

Voted India’s most innovative company – in a survey conducted by The Wall Street Journal in

2008 

Winner of the “Gallup Great Workplace Award”- Gallup Consulting, 2008 

“2nd Most Trusted Service Brand” - Annual Economic Times-Brand Equity, Most Trusted

Brands survey 2008 

‘Best Content Service’ Award for its Farmer Information Dissemination Platform for Bharti

Airtel’s joint venture with IFFCO, IKSL (IFFCO Kisan Samachar) - World Communications

Awards 2008 

Best Project Management’ Award for its Gujarat e-GRAM project - World Communications

Awards 2008 

“Best Telecom Company” at the NDTV Profit Business Leadership Awards 

Best Carrier India for innovative products & services and efficient cost models and the Ovum

Telco-Transformation award recognizing philosophy and execution of a successful outsourcing

strategy at the Telecom Asia Awards 2008 

Sunil Bharti Mittal was awarded the GSM Association Chairman’s Award 2008. The highest

honour in global telecom sector, recognized his tremendous contribution to the development of

India’s telecom sector

Sunil Bharti Mittal adjudged the “Business Leader Transforming India, 2008 at the NDTV Profit

Business Leadership Awards 

Bharti Airtel has won the ‘Most Preferred Cellular Service Provider Brand’ award at the CNBC

Awaaz Consumer Awards in Mumbai.

Bharti Airtel has received the prestigious Business world-FICCI-SEDF Corporate Social

Responsibility Award 2009-2010.

25

2.5 ORGANISATIONAL STRUCTURE

Name Designation

Abhay Savargaonkar Senior Vice President

Ajay Lal Non Executive Director

Alexander Andrew President

Argha Basu Vice President

Ashish Arora Senior Vice President

Chua Sock Koong Non Executive Director

Craig Ehrlich Non-Executive Director

Girish Mehta Chief Marketing Officer

Gopal Vittal Joint Managing Director & CEO

Heera Lal Gupta Senior Vice President

Kaushal Modi Senior Vice President

Manish Kejriwal Non-Executive Director

Manoj Kohli CEO

Manoj Kohli Managing Director & CEO

Milan Rao Senior Vice President

Mukesh Bhavnani Company Secretary

Mukesh Bhavnani Secretary

26

Nikesh Arora Non-Executive Director

Obiageli Ezekwesili Non-Executive Director

Pulak Prasad Non-Executive Director

Rajan Bharti Mittal Non-Executive Director

Ravi Kaushal Senior Vice President

Sanjay Kapoor Chief Executive Officer

Sarvjit Singh Dhillon Group CFO

Shankar Halder Chief Technology Officer

Sheikh Faisal Thani Al-Thani Non-Executive Director

Srikanth Balachandran Chief Financial Officer

Sudeep Banerjee Senior Vice President

Sunil Bharti Mittal Chairman

Tan Yong Choo Non-Executive Director

Tsun-yan Hsieh Non-Executive Director

2.6 Products and services offered by the company

27

Mobile

Prepaid

Postpaid

Broadband & Internet

Speed on demand

Airtel PC secure

Airtel Net PC

IPTV

3G

On 18 May 2010, the 3G spectrum auction was completed and Airtel paid the Indian

government  122.95 billion (US$1.9 billion) for spectrum in 13 circles, the most amount spent by an

operator in that auction. Airtel won 3G licences in 13 telecom circles of India: Delhi, Mumbai, Andhra

Pradesh, Karnataka, Tamil Nadu, Uttar Pradesh (West), Rajasthan, West Bengal, Himachal Pradesh,

Bihar, Assam, North East, and Jammu & Kashmir.Airtel also operates 3G services

in Maharashtra & Goa and Kolkata circles through an agreement with Vodafone and in Gujarat through

an agreement with Idea. This gives Airtel a 3G presence in 15 out of 22 circles in India. Airtel is fined

by DoT 350 Crores for not stopping offering 3G Services through Roaming Pacts outside its Licensed

Zones in Seven Circles.

On 20 September 2010, Bharti Airtel said that it had given contracts to Ericsson India, Nokia

Siemens Networks (NSN) and Huawei Technologies to set up infrastructure for providing 3G services in

the country. These vendors would plan, design, deploy and maintain 3G–HSPA (third generation, high

speed packet access) networks in 13 telecom circles where the company had won 3G licences. While

Airtel awarded network contracts for seven 3G circles to Ericsson India, NSN would manage networks

in three circles. Chinese telecom equipment vendor Huawei Technologies was introduced as the third

partner for three circles.

On 24 January 2011, Airtel launched 3G services in Bangalore, Karnataka — its largest circle by

revenue. With this launch, Airtel became the third private operator (fifth overall) to launch its 3G

services in the country following Tata Docomo and Reliance Communications. On 27 January 2011,

28

Airtel launched 3G in Chennai and Coimbatore in Tamil Nadu. On 27 July 2011, 3G services were

launched in Kerala's 3 largest cities - Kochi, Kozhikode and Thiruvananthapuram.

Airtel 3G services are available in 200 cities through its network and in 500 cities through intra-

circle roaming arrangements with other operators. Airtel had about 5.4 million 3G customers of which 4

million are 3G data customers as of September 2012.

Wi-Fi

Airtel has plans to launch Wi-Fi services in India. It intends to start offering Wi-Fi services in

Delhi NCR, Mumbai and Bangalore in initial phase. All plans will be on secure wireless broadband

internet with unlimited usage and will be session or time based. Users can use the service by finding

a hotspot, selecting 'Airtel Wi-Fi Zone', activating the voucher and then login to start browsing.

Airtel intends to partner with establishments to set up hotspots which will be termed Wi-Fi Hangout

for an establishment owner and Wi-Fi Partner for the cafe and restaurant owners. Airtel Wi-Fi Partners

can offer services at zero investments and can earn commission on every Wi-Fi session sold.

Digital TV

The Digital TV business provides Direct-to-Home (DTH) TV services across India under the brand

name Airtel digital TV. It started services on 9 October 2008 and had about 7.9 million customers at the

end of December 2012

Data and IP Solutions

The iPhone 3G was rolled out in India in 2008 by Airtel. However, high prices and contract

bonds discouraged consumers and it was not as successful as the iPhone is in other markets of the

world. Airtel introduced the iPhone 4 on 27 May 2011 and the iPhone 5 on 2 November 2012

Wireless Internet

Data Card

USB Modem

The different services under mobile data are BlackBerry services, a web-enabled mobile email

solution working on 'Push Technology', USB modem that helps in getting instant access to Internet

29

and corporate applications, Airtel Data Card that gives the liberty to access the internet anytime,

Easy Mail is a platform that provides access to personal/corporate e-mails independent of handset

operating system and application services that shorten the queues at the billing section, off-load the

pressure on the billing staff and bring convenience to the user

Email on the go

Windows Mobile 5.0

Airtel Easy Mail

Calling Cards 

International Calling Cards

Airtel Call Home

Airtel World Calling Cards

Voice Solutions Conference

Enterprise business solutions

There are two kind of solutions offered by Airtel. One is GPRS Based Solutions like mobile

applications tools for enterprise, Track Mate, automatic meter reading solutions etc. and the other is

SMS Based Solutions like interactive SMS bulk SMS , inbound call center solutions

Airtel Money

Airtel has started a new m Commerce platform called Airtel Money in collaboration with Infosys

and SmartTrust (now Giesecke & Devrient). The platform was launched on 5 April 2012, at Infosys'

headquarters in Bangalore. Using Airtel Money, users can transfer money, pay bills and perform other

financial transactions directly on the mobile phone

30

CHAPTER: 3

ANALYSIS & INTERPRETATION

3.1 FINANCIAL ANALYSIS

3.1(a) INCOME ANALYSIS

Table 3.1(a)

Income Analysis

(2009-13)

  Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Sales Turnover 45350.90 41603.80 38017.70 35609.54 34048.32

Excise Duty .00 .00 .00 .00 .00

NET SALES 45350.90 41603.80 38017.70 35609.54 34048.32

Other Income 0 0 0 0 0

TOTAL INCOME 46814.00 42228.50 38338.90 35758.53 34284.31

Table. 3.1(a)

Table 3.1(a) shows that the Income of Bharti Aitel Ltd. Is increased rapidly in the year 2013 as compare

to past years due to increased sales turnover. The increased income shows that the Bharti Airtel Ltd. Is

on the path of success. It also helps the company to maintain the the goodwill of the company.

Table 3.1(b)

31

Expenditure Analysis

(2009-13)

  Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Manufacturing Expenses 12302.70 10502.80 9277.50 11882.41 8627.13

Material Consumed 183.60 236.50 353.10 313.63 281.65

Personal Expenses 1511.30 1391.50 1451.20 1401.66 1397.54

Selling Expenses .00 .00 .00 2404.91 2210.43

TOTAL EXPENDITURE 31880.20 27960.10 24677.40 21691.93 20855.54

Table 3.1 (b) shows the increment in the amount of expenditure in the year 2013 as compare to year

2012. It shows that the Company diversify its branches and provide quality products and services.

Manufacturing expenses is also increased in the year 2013 as compare to past years.

Table 3.1(c)

Profit Analysis

(2009-13)

  Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Profit and Loss for the Year 5096.30 5730.00 7716.90 8507.45 9287.72

Non Recurring Items .00 .00 .00 969.48 -1497.74

Other Non Cash Adjustments .00 .00 .00 -50.78 -46.15

Other Adjustments .00 .00 .00 .00 .00

REPORTED PAT 5096.30 5730.00 7716.90 9426.15 7743.84

32

Table 3.1(c) shows that the amount of reported profit after tax is decreased in the year 2013 as compare

to past two years. This table shows that the company makes less profit in the year 2013 as compare to

year 2012.

Table 3.1(d)

Assets Analysis

(2009-13)

  Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Net Block 43182.60 40440.80 40700.70 28022.84 25011.23

Total Current Assets 15470.70 23078.60 12589.70 10021.38 10466.63

Total Current Liabilities 20757.20 16764.70 17237.90 13638.30 14466.89

NET CURRENT ASSETS -5286.50 6313.90 -4648.20 -3616.92 -4000.26

Misc. Expenses .00 .00 .00 .00 .09

TOTAL ASSETS(A+B+C+D+E) 67126.00 63559.00 54344.70 41776.10 35357.61

Table. 3.1(d)

Table.3.1 (d) shows that the amount of total current assets is decreased in the year 2013 as compared to

year 2012. The amount of current liabilities is also increased in the year 2013 as compare to past years

which gives negative impact on investors.

Table 3.1(e)

33

Liabilities Analysis

(2009-13)

Particulars Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months

Share Capital 1898.80 1898.80 1898.80 2084.86 2014.46

Reserves & Surplus 52247.40 47530.80 42212.80 34650.19 25627.38

Net Worth 54146.20 49429.60 44111.60 36737.18 27643.96

Secured Loan 2.00 2.90 17.10 39.43 51.73

Unsecured Loan 12977.80 14126.50 10216.00 4999.49 7661.92

TOTAL LIABILITIES 67126.00 63559.00 54344.70 41776.10 35357.61

Table. 3.1(e)

Table 3.1 (e) shows that the amount of Net Worth is increased in the year 2013 as compared to past

years. Total liabilities are also increased in the year 2013 as compared to the past years. Increment in

total liabilities is not a good sign for the company.

3.2 Capital Structure - Bharti Airtel Ltd.

Period Instrument Authorized Issued - P A I D U P -

34

Capital Capital

From To   (Rs. cr) (Rs. cr)

Shares

(nos)

Face

Value

Capital

(Rs. Cr)

2012 2013 Equity Share 2500.0 1898.8 3797530096 5.0 1898.8

2011 2012 Equity Share 2500.0 1898.8 3797530096 5.0 1898.8

2010 2011 Equity Share 2500.0 1898.8 3797530096 5.0 1898.8

2009 2010 Equity Share 2500.0 1898.8 3797530096 5.0 1898.8

3.3 Shareholding Pattern - Bharti Airtel Ltd

35

Holder's Name No of Shares % Share Holding

Promoters 1741830892 43.57%

Foreign Promoter 865673286 21.66%

Foreign Institutions 640041198 16.01%

Financial Institutions 209287221 5.24%

Foreign Ocb 204952716 5.13%

Other Companies 141691710 3.54%

Bank Mutual Funds 140522274 3.52%

General Public 43862337 1.1%

Others 7063934 0.18%

Foreign NRI 2474479 0.06%

Foreign Industries 55 0%

3.4 MARKETING STRATEGIES -

1 . PROMOTIONAL  STRATEGY

Airtel to “Touch Tomorrow” with a new brand vision. The Bharti Mobile promoted AirTel

cellular service will go in for repositioning of its brand image. The new brand ethos is portrayed in two

36

distinct fashions - the tag line"TouchTomorrow", which underscores the leading theme for the new

brand vision, followed by "The Good Life", which underscores a more caring, more customer centric

organization. Aimed at re-engineering its image as just simply a cellular service provider  to an all out

information communications services provider, Touch Tomorrow is meant to embrace the new

generation of mobile communication services and the changing scope of customer needs and aspirations

that come along with it. The new communication is about a new dimension in the cellular category that

goes beyond the Internet, SMS, roaming, IVRS, etc. but which engulfs the whole gamut of wireless

digital broadband services that will constitute tomorrows cellular services. The new campaign is in two

phases - the first of which will communicate overall brand philosophy and the second products and

services. According to Mr. Jagdish Kini, Chief Operating Officer, Bharti Mobile Limited, Karnataka

"We are adopting a new brand- platform - Touch Tomorrow - not only to reflect our corporate ethos but

also business strategy". The new identity will have the logo in Red, Black and White colours along with

lower case typography to convey warmth. AirTel will incorporate the latest branding in all of its

communication and will soon be going in for an enhanced promotional drive to establish the brand's

presence.

2 . SALES DEPARTMENT AND STRATEGY

•

A.Major Accounts (Direct Channel)

Handles corporate (named and famed) accounts

Forecasting of sales

Mapping the accounts

Providing after sales support to the subscribers.

Maintaining call reports for records.

Providing Feedback to the marketing department regarding the requirement of the market.B.IDC

(indirect Channel)

•

37

Handling distribution

•

Maintaining records and level check of the channel partner 

•

Liaising between the channel partner and the company.

•

Target achievement

•

Training the executives of the channel

3. Distribution Support

1. Logistics

•

Monitor handset and SIM card requirements of channel partners and co-ordinate with stores

•

Settle areas of concerns such as incentive claims of channel partners2.Rental

•

Provide cellular services (SIM cards) on rent.

•

Provide cellular phones on rent

•

Useful for people visiting Delhi for a short interval.3.Telesales

•

Call customers and generate sales lead.

•

Follow up with the customers, if they need any assistance

•

Pass on the sales lead to the channel department.4 Audit

•

Consultant to the AirTel showrooms.

•

38

Monitor the operations at the AirTel distribution outlets Organize training.5.Retail

•

Locate shops to open retail counters.

•

Monitor the retail counters.

4. TARGET MARKET SEGMENT

Airtel has targeted the premium and upper middle class. The rationale behind it is that only those

segments should be targeted who value time and have the paying capacity. It also planning to target the

business tourists during their stay in the capital about 60% of the clientele are top executives of

corporate houses. About 15% are foreign organisations and the rest are professionals and small

businessmen. During the introduction stage there was intense pressure to get consumers across to

hook up with their brand, because getting them to switch brand loyalty later would be hard So far Airtel

marketers have been concentrating totally on the business executive class but now that the basic viable

volumes has beer) built up and prices have declined to a certain extent they are planning to venture

further afield.

CHAPTER 4

SWOT ANALYSIS

SWOT Analysis

39

Strength 1.Largest cellular service provider in India, with over 164.61 million

subscribers at the end of April 2011  

2.Largest Telecom operator in the world with 207.8 million

subscribers across 19 countries at the end of 2010 

3.Only Indian operator, with VSNL, that has an international

submarine cable

4.High brand visibility 

5.Strong advertising with celebrity brand ambassadors

Weakness 1.Price competition from Vodafone and BSNL.

2.Untapped Rural Market

Opportunity 1.Fast expanding cellular market 

2.Latest and low cost technology 

3.Untapped rural market

Threats 1.New entrant's low price offering 

2.Saturation point in Basic telephony service 

CHAPTER-5

CONCLUSION

40

India’s telecommunications network is the second largest in the world and has one of the lowest

call tariffs. The industry has grown over twenty times in just ten years, from under 37 million

subscribers in the year 2001 to over 846 million subscribers in the year 2011. India has the world’s

second largest mobile phone user base and third largest internet user base. The history of Indian telecom

can be started with the introduction of telegraph. In 1980, two telephone companies namely The Oriental

Telephone Company Ltd. And The Anglo-Indian Telephone Company Ltd. approached the Govt. of

India to establish telephone exchanges in India. There are so many major players of the sector are as

Vodafone, BSNL, MTNL, Reliance, Aircel etc.

Bharti Airtel Ltd. commonly known as Airtel is an Indian multinational telecommunications

Services Company headquartered in New Delhi, India. Airtel providing 2G, 3G and 4G services

depending upon the country of operation. It is the largest cellular service provider in India and the third

largest in country mobile operator. In 1995, Bharti Cellular launched cellular services in Delhi. In the

present scenario, Airtel launched so many new schemes like the GPRS services for prepaid customers,

‘Airtel broadband friendly offer’, full talk time advantage card etc. subsidiary companies are Bharti

Hecaom, Bharti Comtel, and Bharti Aquanet etc. It has been awarded the ‘Best Service Provider’ and

has been voted as India’s most trusted service branded in the Annual Economic Times.

Bharti Airtel is on the path of success. The income of Bharti Airtel is increased rapidly in the

year 2013 as compare to past years. Shareholding pattern of Bharti Airtel is also very good.

Bharti Airtel is the largest telecom operator in the world and having the high brand visibility. It

has strong advertising schemes. There are always two sides of a coin, so it has also some weaknesses

like price competition with Vodafone and BSNL and untapped rural market. There are some

opportunities also like fast expanding cellular market, latest and low cost technology. The threats of

Bharti Airtel are new entrant’s low price offering and saturation point in the basic telephony service.

At the end, we can conclude that Bharti Airtel is the most successful brand in India with largest market

share; HR dept. of Airtel achieves the apex point while fulfilling their objectives. Most successful brand

in India with largest market share. In Bharti Airtel the management works process smoothly.

HR department of Airtel achieves the apex point, while fulfilling their objectives. Some of

human resources management functions the Bharti Airtel are as- Analysis job and skills needed in the

organization, Assesses develops implements policies, procedures and systems. Recruits and select

workers Appraises performance. Reward workers though implementation of compensation system.

Designs and delivers training development and educational programs for employees to provide the

organization with the skilled resources it need.

41

CHAPTER-6

LEARNING FROM THE REPORT

I had learnt a lot threw this report. As like how to prepare and analyses various marketing and financial

aspect of Bharti Airtel Limited.

42

Threw this report I had known about which sector belongs, its complete company profile,

History, features, products, and services, it provides.

Before starting this report, I had never known about how to prepare it. But after proper analysis

and interpretation of report, I understand a lot of contents, concept as well as aspects that are

necessary for preparing and presenting a formal report.

At last this report provides a deep study profit of Bharti Airtel Limited.

REFERENCES

www.economictimes.com

www.shine.com

www.Wikipedia.com

www.moneycontrol.com

www.airtel.com

43

ANNEXURE

1. Profit & Loss - Bharti Airtel Ltd.

  Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

  12Months 12Months 12Months 12Months 12Months

44

INCOME:

Sales Turnover 45350.90 41603.80 38017.70 35609.54 34048.32

Excise Duty .00 .00 .00 .00 .00

NET SALES 45350.90 41603.80 38017.70 35609.54 34048.32

Other Income 0 0 0 0 0

TOTAL INCOME 46814.00 42228.50 38338.90 35758.53 34284.31

EXPENDITURE:

Manufacturing Expenses 12302.70 10502.80 9277.50 11882.41 8627.13

Material Consumed 183.60 236.50 353.10 313.63 281.65

Personal Expenses 1511.30 1391.50 1451.20 1401.66 1397.54

Selling Expenses .00 .00 .00 2404.91 2210.43

Administrative Expenses 17882.60 15829.30 13595.60 5982.64 8608.03

Expenses Capitalised .00 .00 .00 -293.31 -269.25

Provisions Made .00 .00 .00 .00 .00

TOTAL EXPENDITURE 31880.20 27960.10 24677.40 21691.93 20855.54

Operating Profit 13470.70 13643.70 13340.30 13917.61 13192.78

EBITDA 14933.80 14268.40 13661.50 14066.60 13428.77

Depreciation 6826.70 5916.00 4611.60 3890.08 3206.28

Other Write-offs .00 .00 .00 207.84 178.82

EBIT 8107.10 8352.40 9049.90 9968.68 10043.67

45

Interest 1652.30 1396.20 324.10 283.35 434.16

EBT 6454.80 6956.20 8725.80 9685.32 9609.50

Taxes 1358.50 1226.20 1008.90 1177.87 321.78

Profit and Loss for the Year 5096.30 5730.00 7716.90 8507.45 9287.72

Non Recurring Items .00 .00 .00 969.48 -1497.74

Other Non Cash Adjustments .00 .00 .00 -50.78 -46.15

Other Adjustments .00 .00 .00 .00 .00

REPORTED PAT 5096.30 5730.00 7716.90 9426.15 7743.84

KEY ITEMS

Preference Dividend .00 .00 .00 .00 .00

Equity Dividend 379.80 379.80 379.80 379.79 379.65

Equity Dividend (%) 20.00 20.00 20.00 20.00 20.00

Shares in Issue (Lakhs) 37975.30 37975.30 37975.30 37975.30 18982.40

EPS - Annualized (Rs) 13.42 15.09 20.32 24.82 40.79

Balance Sheet – Bharti Airtel Ltd.

Particulars Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months

Share Capital 1898.80 1898.80 1898.80 2084.86 2014.46

Reserves & Surplus 52247.40 47530.80 42212.80 34650.19 25627.38

46

Net Worth 54146.20 49429.60 44111.60 36737.18 27643.96

Secured Loan 2.00 2.90 17.10 39.43 51.73

Unsecured Loan 12977.80 14126.50 10216.00 4999.49 7661.92

TOTAL LIABILITIES 67126.00 63559.00 54344.70 41776.10 35357.61

Assets

Gross Block 71911.80 63885.40 59457.90 44212.53 37266.70

(-) Acc. Depreciation 28729.20 23444.60 18757.20 16187.56 12253.34

Net Block 43182.60 40440.80 40700.70 28022.84 25011.23

Capital Work in Progress 1030.80 4466.50 6479.20 1594.74 2566.67

Investments 28199.10 12337.80 11813.00 15773.32 11777.76

Inventories 2.10 32.10 34.40 27.24 62.15

Sundry Debtors 2246.80 2134.50 1461.90 2104.98 2550.05

Cash and Bank 362.70 481.20 133.20 816.74 2251.60

Loans and Advances 12859.10 20430.80 10960.20 7072.42 5602.83

Total Current Assets 15470.70 23078.60 12589.70 10021.38 10466.63

Current Liabilities 20061.70 16067.20 16610.30 12979.55 13832.49

Provisions 695.50 697.50 627.60 658.75 634.40

Total Current Liabilities 20757.20 16764.70 17237.90 13638.30 14466.89

NET CURRENT ASSETS -5286.50 6313.90 -4648.20 -3616.92 -4000.26

Misc. Expenses .00 .00 .00 .00 .09

47

TOTAL

ASSETS(A+B+C+D+E) 67126.00 63559.00 54344.70 41776.10 35357.61