bharti airtel
DESCRIPTION
STUDY ON RESEARCH ON BUSINESS OF BHARATI AIRTEL AND COMPARISON WITH OTHER COMPETITORSTRANSCRIPT
BHARTI
INDEXSr. No. Particulars 1 History2 Brand History3 New Highlights4 Achievements5 Management Teams6 Product & Service offered7 International Operations8 Shareholding Patterns9 Competitors10 Capital Structures11 Top Sellers & Buyers12 Future Plan13 Position and Ranking
HISTORY OF BHARTI AIRTEL
• Bharti Airtel formely known as Bharti Tele-Ventures LTD (BTVL).
• Bharti Airtel was founded in July 07, 1995 by Sunil Bharti Mittal.
• Bharti Airtel is the largest cellular service provider in India, with more than 261 million subscriber across 20 countries as of August 2012.
Brand History• Bharti group was established in 1983 by Sunil Mittal.
• In 1986 Bharti telecom was incorporated, first company to push button telephones.
• In early 90’s country’s first Fax machine and cordless phones were launched by BTL.
• In 1992, Sunil Mittal won a bid to set up a cellular network in Delhi.
New Highlights
• Bharti Airtel Launches Cloud Enablement Platform powered by HP.
• Airtel Rising Stars’ to bring alive young India’s soccer dreams.• Bharti and Qualcomm announce partnership for 4G.• Bharti airtel to observe Silent period from 30th June 2012. • Bharti Airtel acquired Zain South Africa.
Sunil Bharti Mittal• Founder, chairman and group CEO of Bharti Enterprises.• Sunil Bharti Mittal is an Indian telecom Mogul, philanthropist.• Son of Sat Paul (Former MP) and Lalita.• Padma Bhushan in 2007, from the President of India.• India’s third highest civilian honour.
Achievements• Airtel wins top honours at the 7th Frost & Sullivan ICT Awards .
• Bharti Airtel hs been awarded the 'Best Cellular Service Provider' and 'Best Broadband Service Provider' at the 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.
• 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.
Sr. No. Key People Designation
1 Sunil Bharti Mittal Chairman
2 Manoj Kohli Managing Director3 Sanjay Kapoor Chief Executive Officer
4 Sarvjit Singh Dhillon Chief Financial Officer 5 Girish Mehta Chief Marketing Officer6 Shankar Halder Chief Technology Officer7 Alexander Andrew President8 Argha Basu Vice President
9 Mukesh Bhavnani Secretary
Management Team
Products and services offered by the company
Mobile• Prepaid • Postpaid Broadband & Internet • Speed on demand• Airtel PC secure• Airtel Net PC• IPTV
Digital TV
Data and IP Solutions Wireless Internet• Data Card• USB Modem
Email on the go• Windows Mobile 5.0• Airtel Easy Mail
Calling Cards • International Calling Cards• Airtel Call Home• Airtel World Calling Cards
Voice SolutionsConferencing
Airtel as a Brand• There is an amazing consistency in the manner in which
AIRTEL has over the two years emerged as the countries top 2nd service brand in the Most Trusted Brands Survey.
• Brand ambassadors: - Sharukh Khan - A.R.Rehman - Vidya Balan - Madhavan - Sachin (Currently Dropped)
Countering The Threat
• Advertising Strategy - Kuch Bandhan atoot hote hain....’
- Barriers break when people talk’ - Har eak friend zaruri hota hai.’
Subscriber Base• Bharti Airtel has about 230.8 million subscribers Worldwide.• 169.18 million in India.• 46 million in Africa.• 4 million in Bangladesh.• 1.8 million in Sri Lanka.
1% 2%
21%
76%
subscribers world wide (in millions)
Sri Lanka Bangladesh Africa India
International Operations
• Africa• Airtel Africa is a subsidiary of Indian telecommunications company Airtel, that
operates in 17 countries across Africa.
• BhartiAirtel completed its $9 billion acquisition of African operations from Kuwait's Zain, making the firm the world's No. 5 wireless carrier by subscribers.
• The company has over 57% share of the mobile market of Seychelles. • Airtel has reported that its revenues for the fourth quarter of 2010 grew by 53%
to US$3.2 billion compared to the previous year, newly acquired Zain Africa division contributed US$911 million to the total.
• However, net profits dropped by 41% from US$470 million last year to US$291 million this year due to a US$188 million increase in radio spectrum charges in India and an increase of US$106 million in debt interest.
Sri Lanka
• Bharti Airtel Lanka (Pvt) Ltd is a subsidiary of Bharti Airtel Limited, the third largest mobile operator in the world, with over 240 million mobile customers as of December 2011.
• Airtel Lanka commenced commercial operations of services on 13 January 2009.
• All of these services are provided under the airtel brand.
• Net income-US$402.2 million (2010).
Bangladesh
• Airtel Bangladesh Ltd. is a GSM-based cellular operator in Bangladesh.
• Airtel is the sixth mobile phone carrier to enter the Bangladesh market, and originally launched commercial operations under the brand name "Warid Telecom" on 10 May 2007.
• Net income-18.282 billion (US$300 million) (2010).
Metro City Subscribers (INDIA)
9%
22%
8%43%
9%
9%
Metro City Subscribers
MumbaiDelhiChennaiHyderabadKolkattaKanpur
Telecom Operators in India
28%
24%16%
15%
10%4%
1% 1% 1% 1%0%
Telecom Operators by Subscriber count in India.
Bharti AirtelVodafone EssarIDEABSNLAircelUninorVideoconMTNLLoop MobileStelEtisalat
Shareholding PatternSr. No. Holder's Name No of Shares % Share Holding
1 Promoters 1741830892 43.572 ForeignPromoter 865673286 21.66 3 ForeignInstitutions 636306099 15.92 4 ForeignOcb 204952716 5.13
5 FinancialInstitutions 194783289 4.87
6 OtherCompanies 150693692 3.77
7 NBanksMutualFunds 149309202 3.74
8 GeneralPublic 43990219 1.1
9 Others 7420982 0.19
10 ForeignNRI 2439613 0.06
11 ForeignIndustries 112 0
Bharti Airtel CompetitorsSr.
No. Company Symbol
1 Idea Cellular Ltd. IDECEL
2 Mahanagar Telephone Nigam Ltd. MAHATE
3 Nettlinx Ltd. NETTLT
4 OnMobile Global Ltd. ONMGLO
5 Quadrant Televentures Ltd. HFCINF
6 Reliance Communications Ltd. RELCOL
7 Spice Communications Ltd. [Merged] SPICOM
8 Tata Communications Ltd. VIDSAN
9 Tata Teleservices (Maharashtra) Ltd. TAT182
Sensex Comparison(NSE)
Company Current Price Change (%Chg)
TODAY Low / High
EPS PE
Bharti Airtel Ltd. 288.65 1.55 (0.54%) 285.10 / 289.90 73.6131 12.75
Reliance Communications Ltd. 112.20 -0.10 (-0.09%) 111.90 / 113.50 37.11 3.02
Capital Structure
Period Instrument Authorized Capital Issued Capital - P A I D U P -
From To (Rs. cr) (Rs. cr) Shares (no's) 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
2008 2009 Equity Share 2500.0 1898.2 1898239796 10.0 1898.2
Current Ratio
Airtel Idea Reliance Tata MTNL Global0
0.51
1.52
2.5
0.600000000000001 0.5
0.8 0.600000000000001
0.600000000000001
2.1
0.600000000000001
0.600000000000001
0.80.70000000000000
10.70000000000000
1
2.3
0.4 0.4
1.14 0.700000000000001
0.700000000000001
2.2
2013 2012 2011
Liquid Ratio
Airtel Idea Reliance Tata MTNL Global0
0.5
1
1.5
2
2.5
0.600000000000001
0.5
0.8 0.600000000000001
0.600000000000001
2.1
0.600000000000001
0.600000000000001
0.700000000000001
0.700000000000001
0.700000000000001
2.3
0.4 0.4
1.11
0.700000000000001
0.700000000000001
2.2
2013 2012 2011
Cash Ratio
Airtel Idea Reliance Tata MTNL Global0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
0.4 0.4
0.600000000000001
0.3
0.600000000000001
1.5
0.40.5
0.600000000000001
0.4
0.600000000000001
1.7
0.3 0.3
0.8
0.5
0.700000000000001
0.9
2013 2012 2011
Debt Equity Ratio
Airtel Idea Reliance Tata MTNL Global
-6
-4
-2
0
2
4
6
8
1.45 0.860000000000001 1.11
7.21
-4.14
0.05
1.360.86000000000000
10.97000000000000
1
4.633.81
0.091.16 0.88
0.960000000000001
1.811.13
0.09
2013 2012 2011
Proprietory Ratio
Airtel Idea Reliance Tata MTNL Global-40
-20
0
20
40
60
80
100
39.5153.84
46.98
12.17
-31.85
94.98
41.3553.7
50.17
17.73 20.8
91.59
45.0453.28
50.38
35.5147.02
91.48
2013 2012 2011
Total Asset to Debt Ratio
Airtel Idea Reliance Tata MTNL Global0
20
40
60
80
100
120
140
57.2846.16
52.01
87.76
131.85
5.02
56.3946.3
48.64
82.19 79.2
8.41
52.3246.72 48.6
64.43
52.98
8.52
2013 2012 2011
Debtors Turnover
Airtel Idea Reliance Tata MTNL Global02468
101214161820
8.18
16.34
3.71 3.83
6.34
2.72
7.84
17.71
3.52 4.03
6.46
2.21
8.39
19.58
3.98 3.985.06
1.74
2013 2012 2011
Gross Profit Ratio
Airtel Idea Reliance Tata MTNL Global
-140
-120
-100
-80
-60
-40
-20
0
20 11.65 11.05 10.190.18
-126.1
6.9914.45 10.56 9.18
-0.2
-97.1
8.76
18.958.6
-0.47 -2.7
-70.26
12.66
2013 2012 2011
Operating Ratio
Airtel Idea Reliance Tata MTNL Global
-100
-80
-60
-40
-20
0
20
40 30.9426.57 28.9
11.97
-83.3
20.59
33.15 25.86 29.4
12.62
-53.21
21.9333.5824.13
37.47
10.27
-32.28
23.21
2013 2012 2011
Net Profit ratio
Airtel Idea Reliance Tata MTNL Global
-160
-140
-120
-100
-80
-60
-40
-20
0
20 2.82 4.51 3.62
-3.78
-152.22
6.513.1 3.7 5.02
-5.52
-129.25
13.0212.065.82 6.71
-5.85
-74.67
16.14
2013 2012 2011
Profit After Tax
Airtel Idea Reliance Tata MTNL Global
-6,000.00
-4,000.00
-2,000.00
0.00
2,000.00
4,000.00
6,000.00
8,000.00
2,266.901,010.93 744.00
-650.91
-5,322.30
47.18
2217.1
722.99 988
-783.97
-4104.15
83.09
7173
898.71 1505.82
-697.92
-2796.93
86.68
2013 2012 2011
Profit Before Tax
Airtel Idea Reliance Tata MTNL Global
-6,000.00
-4,000.00
-2,000.00
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
4,982.00
1,577.32
815.00
-430.71
-5,303.56
70.07
4,477.30
1,055.27 882.00
-718.02
-4,038.44
120.42
8952
996.86
-490.14-706.7
-2765.72
107.91
2013 2012 2011
EBIDTA
Airtel Idea Reliance Tata MTNL Global
-5,000.00
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
201320122011
Return on Equity
Airtel Idea Reliance Tata MTNL Global
-200
-150
-100
-50
0
50
100
150
200
4.5 7.07 2.2
-45.68
190.89
5.194.38 5.54 2.72
-34.35
-161.95
9.3814.71 7.31 3.72
-19.43-42.22
10.42
2013 2012 2011
Top Sellers and buyers
• Only Sellers
Stock Name Offer Quantity Sector Current
Price Price Change %
Sundaram Multi Pap Ltd. 2855537 Paper 8.70 -9.84
Shree Rama Multi-Tech Ltd. 907754 Packaging 3.21 -4.75
Jayant Mercantile Ltd. 829433 Finance 18.00 -1.90
Anukaran Commercial Enterprises Ltd. 818005 Service 10.43 -1.97
Turbotech Engineering Ltd. 495168 Information Technology 29.90 -1.97
• Only Buyers
Stock Name Bid Quantity Sector Current Price Price Change %
Chemplast Sanmar Ltd. 1739872 Petrochemicals 14.87 0.06
Ybrant Digital Ltd. 854006 Information Technology 13.38 1.98
Shrey Chemicals Ltd. 802108 Chemicals 6.22 4.89
Sanraa Media Ltd. 642977 Information Technology 0.05 0.00
Super Sales India Ltd. 619392 Textiles 376.10 5.00
Net Sales of TOP COMPANIES
Company Name Last Price Change % Change Net Sales(Rs. cr)
Bharti Airtel 290.00 2.90 1.01 45,350.90
Idea Cellular 126.75 -0.55 -0.43 22,043.44
Reliance Comm 110.15 -2.15 -1.91 12,135.00
Tata Comm 279.25 1.45 0.52 4,091.77
MTNL 14.25 0.10 0.71 3,428.66
Positions and Rankings
• Only ratios is left , will get it tomorrow......