To study the different business aspects of AIRTEL

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 Governance. 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 andimprovement 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 AirtelStrengths

Bharti Airtel has more than 65 million customers (July 2008). 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.

Weaknesses

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.

Opportunities

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.

Threats

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.

E – BUSINESS

OBJECTIVE

To study the online business transactions of the company and the e-business services provided by Airtel.

Electronic Business, commonly referred to as "e Business" or "e-Business", may be defined as the utilization of information and communication technologies (ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and hence can be seen as one of the essential activities of any business. Hence, electronic commerce or e Commerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesses.

Louis Gerstner, the former CEO of IBM, in his book, Who Says Elephants Can't Dance? attributes the term "e-Business" to IBM's marketing and Internet teams in 1996.

Electronic business methods enable companies to link their internal and external data processing systems more efficiently and flexibly, to work more closely with suppliers and partners, and to better satisfy the needs and expectations of their customers.

In practice, e-business is more than just e-commerce. While e-business refers to more strategic focus with an emphasis on the functions that occur using electronic capabilities, e-commerce is a subset of an overall e-business strategy. E-commerce seeks to add revenue streams using the World Wide Web or the Internet to build and enhance relationships with clients and partners and to improve efficiency using the Empty Vessel strategy. Often, e-commerce involves the application of knowledge management systems.

E-business involves business processes spanning the entire value chain: electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners. Special technical standards for e-business facilitate the exchange of data between companies. E-business software solutions allow the integration of intra and inter firm business processes. E-business can be conducted using the Web, the Internet, intranets, extranets, or some combination of these.

In the emerging global economy, e-commerce and e-business have increasingly become a necessary component of business strategy and a strong catalyst for economic development. The integration of information and communications technology(ICT) in business has revolutionized relationships within organizations and those between and among organizations and individuals.

Specifically, the use of ICT in business has enhanced productivity, encouraged greater customer participation, and enabled mass customization, besides reducing costs.

With developments in the Internet and Web-based technologies, distinctions between traditional markets and the global electronic marketplace-such as business capital size, among others-are gradually being narrowed down. The name of the game is strategic positioning, the ability of a company to determine emerging opportunities and utilize the necessary human capital skills (such as intellectual resources) to make the most of these opportunities through an e-business strategy that is simple, workable and practicable within the context of a global information milieu and new economic environment. With its effect of leveling the playing field, e-commerce coupled with the appropriate strategy and policy approach enables small and medium scale enterprises to compete with large and capital-rich businesses. On another plane, developing countries are given increased access to the global marketplace, where they compete with and complement the more developed economies. Most, if not all, developing countries are already participating in e-commerce, either as sellers or buyers. However, to facilitate e-commerce growth in these countries, the relatively underdeveloped information infrastructure must be improved.

Among the areas for policy intervention are:

● High Internet access costs, including connection service fees, communication

fees, and hosting charges for websites with sufficient bandwidth;

● Limited availability of credit cards and a nationwide credit card system;

● Underdeveloped transportation infrastructure resulting in slow and uncertain

delivery of goods and services;

● Network security problems and insufficient security safeguards;

● Lack of skilled human resources and key technologies (i.e., inadequate professional IT workforce);

● Content restriction on national security and other public policy grounds, which greatly affect business in the field of information services, such as the media and entertainment sectors;

● Cross-border issues, such as the recognition of transactions under laws of other ASEAN member-countries, certification services, improvement of delivery methods and customs facilitation; and

● The relatively low cost of labor, which implies that a shift to a comparatively capital intensive solution (including investments on the improvement of the physical and network infrastructure) is not apparent.

It is recognized that in the Information Age, Internet commerce is a powerful tool in the economic growth of developing countries. While there are indications of ecommerce patronage among large firms in developing countries, there seems to be little and negligible use of the Internet for commerce among small and medium sized firms. E-commerce promises better business for SMEs and sustainable economic development for developing countries. However, this is premised on strong political will and good governance, as well as on a responsible and supportive private sector within an effective policy framework. This primer seeks to provide policy guidelines toward this end.

What is e-commerce?

Electronic commerce or e-commerce refers to a wide range of online business activities for products and services. It also pertains to “any form of business transaction in which the parties interact electronically rather than by physical exchanges or direct physical contact.” E-commerce is usually associated with buying and selling over the Internet, or conducting any transaction involving the transfer of ownership or rights to use goods or services through a computer-mediated network. Though popular, this definition is not comprehensive enough to capture recent developments in this new and revolutionary business phenomenon. A more complete definition is: E-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals. International Data Corp (IDC) estimates the value of global e-commerce in 2000 at US$350.38 billion. This is projected to climb to as high as US$3.14 trillion by 2004.

Is e-commerce the same as e-business?

While some use e-commerce and e-business interchangeably, they are distinct concepts.

In e-commerce, information and communications technology (ICT) is used in inter-business or inter-organizational transactions (transactions between and among firms/organizations) and in business-to-consumer transactions (transactions between firms/organizations and individuals).

In e-business, on the other hand, ICT is used to enhance one’s business. It includes any process that a business organization (either a for-profit, governmental or non-profit entity) conducts over a computer-mediated network. A more comprehensive definition of e-business is: “The transformation of an organization’s processes to deliver additional customer value through the application of technologies, philosophies and computing paradigm of the new economy.”

Three primary processes are enhanced in e-business:

1. Production processes, which include procurement, ordering and replenishment

of stocks; processing of payments; electronic links with suppliers; and

production control processes, among others;

2. Customer-focused processes, which include promotional and marketing efforts,

selling over the Internet, processing of customers’ purchase orders and

payments, and customer support, among others; and

3. Internal management processes, which include employee services, training,

internal information-sharing, video-conferencing, and recruiting. Electronic

applications enhance information flow between production and sales forces

to improve sales force productivity. Workgroup communications and electronic

publishing of internal business information are likewise made more

efficient.

E-Business ServicesAirtel offers an internationally benchmarked, carrier class hosting, storage and business continuity services. A range of services that help to keep your business running the way you want- 24x7. Thanks to our world-class high tech Data Centers. 

E-Business Services include:

Managed Hosting

Here are some of the most compelling reasons why most of the businesses today prefer to outsource their hosting requirement than reinventing the wheel themselves:

Large investment required Both in terms of the network infrastructure and skilled manpower for it costs 5 to 6 times more to build a state-of-the-art data center on your own than to outsource. Think of staffing experts on 24 x 7 schedules for all the network management and monitoring, which a network of that scale, would require.Lead time to host is reduced considerablyConnectivity

The change in web traffic can be unexpectedly high at times yet you need to accommodate every customer that happens to type in your URL on the Browser and not be lacking, in terms of capacity at any point in time. And for this you need a network with great bandwidth where in you pay only for the bandwidth you need to use leading to optimum utilization It makes perfect sense for you to host with Web Hosting Service from Airtel for it is a reliable and secure service at an extremely competitive price. Besides, you have multiple options to choose from. Pick the one that suits your requirements the best. Not to forget the value added features and managed services we offer, once you choose to host with us. The Internet Data Centre (IDC) is of international standard. Reason why, we sign up a Service Level Agreement (SLA) of 99 per cent uptime. We make sure that all visitors to your site are served in an instant. And this translates into repeat visits.

Web Hosting Service. It's the one-stop-shop for all your web requirements.

Co-Location services

BCR servicesIt is a limitless world. And today, organizations have realized the importance of a firm and reliable infrastructure. E-business has not only revolutionized the way organizations perceive situations, but also provided the critical proficiency to react in coach on demand. In today’s comprehensive connected business market, a reliable and responsive e-business infrastructure is indispensable to the success of a business enterprise.

Each business needs to have resilience at various stages of internal infrastructure to protect the business from the dangers of technological, social and environmental factors. Every organization needs a pervasive overview of all its functions on a multitude of levels and to access the requirement accordingly.

Airtel has united to offer the complete disaster management solution covering all the dynamics of risk to your business.

Today’s global economy demands 24x7 operations availability. Systems downtime can often result in lost Revenue, lost productivity, lost opportunities, customer dissatisfaction, and even a weakened market position. Eliminating these availability issues and inhibitors and increasing the reliability and availability of business-critical systems have become paramount in modern business environments.

If you aim to move closer to a continuous operations environment, We can help reduce unplanned outages, reduce or potentially eliminate planned outages, and help lower the cost associated with downtime, by identifying availability issues, inhibitors and exposures, and delivering a comprehensive set of recommended improvements and tailored solutions.

Airtel MATEMobile Application Tool for Enterprise or AIRTEL MATE is an integrated Telecom & IT

Customer  can make use of state-of-the-art infrastructure by co-locating their server at the Internet Data Centre of airtel. With co-location services, it not only provides rent space at one of the best data centres but avail 24x7 monitoring, maintenance and administrative support as well. These co-location services have the flexibility to grow in accordance with growth in online business.

Co-Location services

BCR servicesIt is a limitless world. And today, organizations have realized the importance of a firm and reliable infrastructure. E-business has not only revolutionized the way organizations perceive situations, but also provided the critical proficiency to react in coach on demand. In today’s comprehensive connected business market, a reliable and responsive e-business infrastructure is indispensable to the success of a business enterprise.

Each business needs to have resilience at various stages of internal infrastructure to protect the business from the dangers of technological, social and environmental factors. Every organization needs a pervasive overview of all its functions on a multitude of levels and to access the requirement accordingly.

Airtel has united to offer the complete disaster management solution covering all the dynamics of risk to your business.

Today’s global economy demands 24x7 operations availability. Systems downtime can often result in lost Revenue, lost productivity, lost opportunities, customer dissatisfaction, and even a weakened market position. Eliminating these availability issues and inhibitors and increasing the reliability and availability of business-critical systems have become paramount in modern business environments.

If you aim to move closer to a continuous operations environment, We can help reduce unplanned outages, reduce or potentially eliminate planned outages, and help lower the cost associated with downtime, by identifying availability issues, inhibitors and exposures, and delivering a comprehensive set of recommended improvements and tailored solutions.

Airtel MATEMobile Application Tool for Enterprise or AIRTEL MATE is an integrated Telecom & IT

MARKETING MANAGEMENT

Marketing Management

Objectives:

To study the effectiveness of advertising strategy of AIRTEL Cellular service.

To compare its success results with the market competitors.

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

35%Goodwill

People’s first choice of cellular service when they want to use mobile phone 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%

Conclusion:

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

Financial Management

OBJECTIVE

To study the ratio analysis and analyze the liquidity position and soundness of the business.

To study the market share of Airtel in comparison to its competitors in the industry.

Financial management seeks to plan for the future such that a personal or business entity

has a positive flow of cash.

The term ‘financial management’ has a number of meanings including the administration and

maintenance of financial assets. The process of financial management may also include

identifying and trying to work around the various risks to which a particular project may be

exposed.

Some experts refer to financial management as the science of money management – the primary

usage of the term being in the world of financing business activities. However, the process of

financial management is important at all levels of human existence, because every entity needs

to look after its finances.

From an organizational standpoint, the process of financial management is the process

associated with financial planning and financial control. Financial planning seeks to quantify

various financial resources available and plan the size and timing of expenditures.

In the business world, this means closely monitoring cash flow. The inflow is the amount of

money coming into a particular company, while outflow is the record of the expenditure being

made by the company in various sources.

At the corporate level, the main aim of the process of business organization is to achieve the

various goals a company sets at a given point of time. Businesses also seek to generate

substantial amounts of profits with the help of a particular set of financial processes.

Financial planning aims to boost the levels of resources at their disposal, while also functioning

on money invested in them from external investors. Another goal companies have is to provide

investors with sufficient amounts of returns on their investments.

At the individual level, financial management mostly involves tailoring expenses as per the

financial resources the particular individual has.

Individuals who are in a favorable financial position, with surplus cash on hand or access to

funding, plan to either invest their money for a positive return (which normally means that they

have made more money after calculating the double impact of tax and inflation) or to spend it

on discretionary items.

Financial decision-making is also an important part of the modern day financial management

process. The particular entities involved in financial management also need to be able to take

the financial decisions that are intended to benefit them in the long run and achieve their

financial aims, which is the basic premise of financial management.

In the words of Finney and Miller:

“Financial analysis consists in separating facts according to some definite plan,

arranging them in groups according to certain circumstances and then presenting

them in a convenient and easily read and understandable form.”

In the words of John N. Myres:

“Financial statement analysis is largely a study of relationships among the various financial factors in a business, as disclosed by a single set of statements and a study of the trends of these factors as shown in a series of statements.”

The purpose of financial analysis depends on the needs of the person who is

analyzing these statements. These varying needs may be :—

(i)      To know the Earning Capacity or Profitability.

(ii)      To know the Solvency and liquidity position of the business.

(iii)     To know the Financial Strength of the firm.

(iv)     To know the capability of payment of interest and dividend.

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[2] 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 Operations

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

Airtel

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.

Parameters UnitDec 2008

Sep 2008

Jun 2008

Mar 2008

Dec 2007

Sep 2007

Jun 2007

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

Average Revenue Per User (ARPU)

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-Initiated Churn

% 1.2% 1.4% 1.4% 1.5% 1.8% 2.1% 2.5%

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

2007/08.[8]

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 (1.5%).

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%

FINANCIAL MANAGEMENT

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(%) - 2007/2008[26]

Nov 2007

Dec 2007

Jan 2008

Feb 2008

Mar 2008

Apr 2008

May 2008

Jun 2008

Jul 2008

Aug 2008

Sep 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[41] 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

OPERATIONS MANAGEMENT

Objective:

To study the various operations and services provision in various forms by Airtel.

To study the supply chain management of Airtel company.

Introduction to Operation Management

Operations management is an area of business that is concerned with the production of good

quality goods and services, and involves the responsibility of ensuring that business

operations are efficient and effective. It is the management of resources, the distribution of

goods and services to customers.

APICS The Association for Operations Management also defines operations management as

"the field of study that focuses on the effectively planning, scheduling, use, and control of a

manufacturing or service organization through the study of concepts from design

engineering, industrial engineering, management information systems, quality

management, production management, inventory management, accounting, and other functions

as they affect the organization".

Additionally, The Operations Management Body of Knowledge (OMBOK) Framework defines

the scope of operations management and the activities and techniques that are a part of the

operations management profession.

Operations also refer to the production of goods and services, the set of value-added activities

that transform inputs into many outputs. Fundamentally, these value-adding creative activities

should be aligned with market opportunity for optimal enterprise performance.

Operations as a Transformation Process

Operations management is about the way organizations produce goods and services. Everything

you wear, eat, sit on, use, read or knock about on the sports field comes to you courtesy of the

operations managers who organized its production. Every book you borrow from the library,

every treatment you receive at the hospital, every service you expect in the shops and every

lecture you attend at university all have been produced.

This definition reflects the essential nature of Operations Management; it is a central activity in

organizing things. Another way of looking at an operation is to consider it as a transformation

process.

Operations Management is all about providing customers with products and services.

Operations are a transformation process; they convert a set of resources (INPUTS) into services

and goods (OUTPUTS). These resources may be raw materials, information, or the customer

itself. These resources are transformed into the final goods or services by way of other

'transforming' resources - the facilities and staff of the operation.

Raw Materials

An obvious example is a cabinet maker, who takes some wood, cuts and planes it, and

then polishes it until a piece of furniture is produced.

Information

A tourist office gathers and provides information to holiday makers, and assists in

advising on places to stay or visit.

Customers

At an airport, you are one of the many resources being processed. The operation you are

involved in is about processing your ticket and baggage, moving from ticket desk

through the customs and duty-free areas, to deliver you to the awaiting plane.

Extending the process...

If we add a few more parts to the transformation process, we can see the key elements that

operations managers need to consider. Operations is about designing services, products and

delivery systems;

1. Managing and controlling the operations system.

2. Finding ways to improve operations.

Operations Management is all about providing customers with products and services.

You survive by giving customers with what they want

Every Product or Service is really a bundle of different attributes.

Product, place, price, performance, quality, timing, service, etc.

Customers are looking for a bundle of characteristics

Total bundle provides the level of value customers deem appropriate

Buying products with the attributes they want at the lowest price possible

Attributes

Price

Quality

Image

Performance

Safety

Place – distribution

Time – delivery, availability

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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.

 

 Supply Chain Characteristics

Bharti Airtel Approach

 

 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  

HUMAN RESOURSE MANAGEMENT

Objective:

To study the recruitment and selection procedure of the employees at Airtel.

Human resource management (HRM) is the strategic and coherent approach to the

management of an organisation's most valued assets - the people working there who

individually and collectively contribute to the achievement of the objectives of the business.

The terms "human resource management" and "human resources" (HR) have largely replaced

the term "personnel management" as a description of the processes involved in managing

people in organizations. In simple sense, Human Resource Management(HRM) means

employing people ,developing their resources, utilizing maintaining and compensating their

services in tune with the job and organizational requirement.

Its features include:

Organizational management

Personnel administration

Personnel management

Manpower management

Industrial management

But these traditional expressions are becoming less common for the theoretical discipline.

Sometimes even industrial relations and employee relations are confusingly listed as

synonyms, although these normally refer to the relationship between management and workers

and the behavior of workers in companies.

The theoretical discipline is based primarily on the assumption that employees are individuals

with varying goals and needs, and as such should not be thought of as basic business resources,

such as trucks and filing cabinets. The field takes a positive view of workers, assuming that

virtually all wish to contribute to the enterprise productively, and that the main obstacles to

their endeavors are lack of knowledge, insufficient training, and failures of process.

HRM is seen by practitioners in the field as a more innovative view of workplace management

than the traditional approach. Its techniques force the managers of an enterprise to express their

goals with specificity so that they can be understood and undertaken by the workforce, and to

provide the resources needed for them to successfully accomplish their assignments. As such,

HRM techniques, when properly practiced, are expressive of the goals and operating practices

of the enterprise overall. HRM is also seen by many to have a key role in risk reduction within

organizations.

Synonyms such as personnel management are often used in a more restricted sense to describe

activities that are necessary in the recruiting of a workforce, providing its members with

payroll and benefits, and administrating their work-life needs. So if we move to actual

definitions, Torrington and Hall (1987) define personnel management as being:

“a series of activities which: first enable working people and their employing organisations to

agree about the objectives and nature of their working relationship and, secondly, ensures that

the agreement is fulfilled" (

While Miller (1987) suggests that HRM relates to:

".......those decisions and actions which concern the management of employees at all levels in

the business and which are related to the implementation of strategies directed towards

creating and sustaining competitive advantage"

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 key word here

perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between the management of an

organization's employees, and the overall strategic direction of the company (Miller, 1989).

The basic premise of the academic theory of HRM is that humans are not machines, therefore

we need to have an interdisciplinary examination of people in the workplace. Fields such as

psychology, industrial engineering, industrial, Legal/Paralegal Studies and organizational

psychology, industrial relations, sociology, and critical theories: postmodernism, post-

structuralism play a major role. Many colleges and universities offer bachelor and master

degrees in Human Resources Management.

One widely used scheme to describe the role of HRM, developed by Dave Ulrich, defines 4

fields for the HRM function:

Strategic business partner

Change management

Employee champion

Administration

However, many HR functions these days struggle to get beyond the roles of administration and

employee champion, and are seen rather as reactive than strategically proactive partners for the

top management. In addition, HR organizations also have the difficulty in proving how their

activities and processes add value to the company. Only in the recent years HR scholars and

HR professionals are focusing to develop models that can measure if HR adds value.

Business practice

Human resources management comprises several processes. Together they are supposed to

achieve the above mentioned goal. These processes can be performed in an HR department, but

some tasks can also be outsourced or performed by line-managers or other departments. When

effectively integrated they provide significant economic benefit to the company.

Workforce planning

Recruitment (sometimes separated into attraction and selection)

Induction and Orientation

Skills management

Training and development

Personnel administration

Compensation in wage or salary

Time management

Travel management (sometimes assigned to accounting rather than HRM)

Payroll (sometimes assigned to accounting rather than HRM)

Employee benefits administration

Personnel cost planning

Performance appraisal

Careers

The sort of careers available in HRM are varied. There are generalist HRM jobs such as human

resource assistant. There are careers involved with employment, recruitment and placement and

these are usually conducted by interviewers, EEO (Equal Employment Opportunity) specialists

or college recruiters. Training and development specialism is often conducted by trainers and

orientation specialists. Compensation and benefits tasks are handled by compensation analysts,

salary administrators, and benefits administrators.

Professional organizations

Human Resource Management (HRM) is the function within an organization that focuses on

recruitment of, management of, and providing direction for the people who work in the

organization. Human Resource Management can also be performed by line managers.

Human Resource Management is the organizational function that deals with issues related to

people such as compensation, hiring, performance management, organization development,

safety, wellness, benefits, employee motivation, communication, administration, and training.

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.

RECRUITMENT

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 organization. 

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

1. OUTSOURCINGThe 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.

2. POACHING/RAIDING

“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-RecruitmentMany 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

1 www.naukri.com

2 www.monsterindia.com

3 www.clickjobs.com

4 www.jobstreet.com

5 in.jobs.yahoo.com

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 RecruitmentCommonly 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 etciii. Web - in own website or portals like naukri.com, monster.com 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

organization.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.

MANAGEMENT OF TECHNOLOGY,

INNOVATION & CHANGE

Management of Technology, Innovation and Change (MTIC)

Objective of the study:

To analyse the basic technology used by Airtel in its operations of telecommunication.

To understand the various ventures and acquisitions with Airtel.

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 Mobileis 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 (2Gmobile 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 things:

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 "postpaid").

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 networks;• 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 JVfrom 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.

References

1. ↑ 1.0 1.1 1.2 Bharti Airtel Report (Jan 2009), Emkay Research2. ↑ 2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 Annual Report (2007/08),

Bharti Airtel

3. ↑  Bharti Airtel reports 37 percent jump in Q2 net profit, becomes world's third largest mobile operator (Nov 2008), International Business Times

4. ↑  Telecom Subscriber Update (Nov 2008), India Infoline

5. ↑  Bharti sees 8.3m Q3 subscriber additions sustaining ahead (Jan 2009), MoneyControl.com

6. ↑ 6.0 6.1 Bharti Airtel Report (Feb 2009), Indiabulls

7. ↑ 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 Quarterly Report (Dec 2008), Bharti Airtel

8. ↑ 8.00 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 8.09 8.10 8.11 8.12 8.13 8.14 Segment Contribution, Annual Report (2007/08), Bharti Airtel

9. ↑ 9.0 9.1 Promoter and Promoter Group (Dec 2008), Bharti Airtel, Mumbai Stock Exchange

10. ↑  Shareholding Pattern (Dec 2008), Bharti Airtel, Mumbai Stock Exchange

11. ↑ 11.0 11.1 11.2 Investor Presentation (Jan 2009), Bharti Airtel

12. ↑  Quarterly Performance Analysis of Companies (Aug 2008), India Telecom Report, Cygnus Business Consulting and Research

13. ↑  A Review of the Indian Mobile Market (Nov 2007), Mobile & Wireless

14. ↑ 14.0 14.1 Unlocking the Indian Telecom Industry’s Potential (Apr 2006), Frost & Sullivan

15. ↑ 15.0 15.1 15.2 15.3 15.4 15.5 15.6 Report on the Indian Telecom Sector

(Mar 2008), Macquire Research

16. ↑  Phones and handsets get cheaper (Nov 2006), Telephony Online

17. ↑ 17.0 17.1 Telecom Update (Sep 2008), ArthaMoney

18. ↑ 18.0 18.1 AT&T answers the need for speed in Suffolk County (Jul 2008), AT&T Media Newsroom

19. ↑  ADC Shown the Gate (May 2008), Voice&Data

20. ↑ 20.0 20.1 20.2 End of the era of access deficit charge (Oct 2008), The Times of India

21. ↑ 21.0 21.1 TRAI scraps access deficit charge (Mar 2008), The Financial Express

22. ↑  IT & Telecom (Mar 2008), Alliance for US India Business

23. ↑  Telecom cos get more time on FDI (Mar 2006), Hindu Business Line

24. ↑  DoT wants a spin in retail FDI norms (Sep 2005), The Indian Express

25. ↑  Indian Telecom Industry (Sep 2008), Bharti Airtel

26. ↑ 26.0 26.1 Report on Indian Telecom - Credit Suisse 14 October 2008

27. ↑  Reliance Communications - Google Finance

28. ↑  Reliance Communication Expands Relationship With Intec To Transform Its OSS/BSS for Next Generation Readiness - INTEC

29. ↑  Reliance Communications adds a record Five Million New Subscribers in Jaunary 2009 - News - Indian Cellular website

30. ↑ 30.0 30.1 Reliance Communications - Annual Report 2007-2008

RESEARCH PROJECT REPORT

ON

BHARTI AIRTEL

Submitted for the partial fulfillment for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

(MBA)

UNDER THE SUPERVISION OF

MR UMAIR UJALA

SUBMITTED BY

MEGHNA AGGARWAL

0431913908

________________________________________________________________

GITARATTAN INTERNATIONAL BUSINESS SCHOOL

(Affiliated to GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY)

ROHINI, NEW DELHI 110085

(YEAR 2008-2010)