aditya birla final

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    Diversification of ADITYA BIRLAGROUP

    Into Telecom industry (Idea Cellular)

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    ADITYA BIRLA GROUPGlobal Vision, Indian Values

    A $24 billion conglomerate

    In the League of Fortune 500

    Anchored by an extraordinary force of 100,000employees belonging to over 25 different nationalities

    Over 50 per cent of its revenues flow from itsoperations across the world

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    Has 85 state-of-the-art manufacturing units andsectoral services spanning over 20 countries

    Best employer in India and among the top 20 in Asiaby the Hewitt-Economic Times and Wall StreetJournal Study 2007

    Includes companies like Grasim, Hindalco, Nuvo, etc

    ADITYA BIRLA GROUP

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    Hindalco is the largest aluminium rolling company andone of the three biggest producers of primaryaluminium in Asia

    Number One producer of viscose staple fibre

    Third largest producer of insulators in the world and thefourth largest producer of carbon black

    Eleventh largest cement producer and the secondlargest in India

    ADITYA BIRLA GROUP

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    In India, the Group holds a frontrunnerposition as:

    Indias leading copper producer

    A premier branded garments player

    Second largest player in viscose filament yarn

    Second largest in the chlorine alkali sector

    A leading player in life insurance and asset management

    ADITYA BIRLA GROUP

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    WHY TELECOM SECTOR?

    Year endingMarch 31

    Direct Exchange Lines(DELs) (in millions)

    Waiting List(in millions)

    Demand(in millions)

    1981 2.15 0.45 2.6

    1983 2.47 0.66 3.13

    1985 2.90 0.84 3.74

    1987 3.49 1.12 4.61

    1989 4.17 1.42 5.59

    1991 5.07 1.96 7.03

    1993 6.80 2.85 9.65

    1995 9.80 2.15 11.95

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    WHY TELECOM SECTOR?

    No.of Telephones in India

    2030

    120

    0

    20

    40

    60

    80

    100

    120

    140

    1980 1985 1995

    Year

    Telephones(inlakhs

    )

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    Teledensity in 1995

    10.5

    62.57

    9.8

    2.66.2

    16.113.2

    9.6

    0.8

    0

    10

    20

    30

    40

    50

    60

    70

    World U.S Mexico Africa Asia Argent ina Chile Malaysia India

    Country/Continent

    Teledensity

    WHY TELECOM SECTOR?

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    8 million fixed telephone lines with 2.5 millionlines in waiting

    Out of 6,00,000 villages, only 1,40,000 hadphone connections

    Only 1,00,000 STD PCOs in the country

    INDIAN TELECOM SECTOR-1995

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    WHY TELECOM SECTOR?

    Liberalization in India post 1991

    National Telecom policy formulated in 1994

    which accorded highest priority to developingtelecom services in India

    Private Companies in telecom were chosen on

    the basis of their previous 10 years trackrecord

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    Decision to allow Private Sectorcompanies to set up base in India to

    manufacture mobile equipments toenble India become a majormanufacturing base and exporter ofmobile equipment

    Mobile cellular service started in fourmetros in 1995

    WHY TELECOM SECTOR?

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    India's Gross National Income Per Capita

    430640

    960

    1370

    1820

    0

    500

    1000

    1500

    2000

    1975 1980 1985 1990 1995

    Year

    GrossNationalIncome

    PerCapita($)

    WHY TELECOM SECTOR?

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    IDEA CELLULAR LTD

    Indias leading GSM mobile service operator

    Has licences to operate in 11 circles

    Pioneered music messaging concept

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    MILESTONES

    1995- Incorporated as Birla Communications Ltd

    1996- Changed name to Birla AT&Tcommunication Ltd

    2000- Merged with Tata Cellular Ltd

    2001- Acquired RPG cellular Ltd 2002- Changed name to Idea Cellular Ltd

    2004- Acquired Escotel Mobile Communication

    2006- Reached 10 million subscribers.

    Became part of Aditya Birla Group after

    buying out Tatas stake

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    FINANCIAL DATA

    2002 2003 2004 2005 2006

    SALES(Rs. cr)

    671.22 851.48 1165.52 1632.04 2007.07

    PBIDT

    (Rs. Cr)

    166.62 301.22 252.06 523.83 729

    Rate of growth -Sales(%) 108.94 26.86 36.88 40.03 22.98

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    FINANCIAL DATA

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    REFERENCES

    www.mckinsey.com

    www.pib.nic.in www.indiateleconnews.com

    www.indiaonestop.com

    http://www.mckinsey.com/http://www.pib.nic.in/http://www.indiateleconnews.com/http://www.indiaonestop.com/http://www.indiaonestop.com/http://www.indiateleconnews.com/http://www.pib.nic.in/http://www.mckinsey.com/
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    THANK YOU