Bharti –Airtel Enterprise Services BCG Matrix Study

BCG Matrix:-

StarSBU: Enterprise Services(Carriers & Corporates)Reason:-( Major Contributor to revenue in just 4 years of coming 04-08)

?SBU: Passive InfraReason:-(Very new approach but quick grip of market/Good Coloborations like-Indus Towers/Untaaped Market)

Cash CowSBU: Mobile ServicesReason:-(Legacy of Bharti)

DogSBU: Telemedia ServicesReason:-( Significant fall in ARPU/Other Big Players

existing in Market )

Data for BCG Matrix in following Manner:-

Strategic Business Unit

Market Share(SBU)

Market Share(Largest Competitor)

Relative Market Share

Market Growth Quadrant Relative

Market Share (in BCG Terms)

(%age change b/w FY 07-10)

in which the SBU

lies

Mobile Services 70.56%Reliance-CDMA/GSM--

>17.94% 24.79% 1.38 33.00% Cash Cow

Telemedia Services 9.22% BSNL-->37% 23% 0.62 44.00% DogEnterprise Services(Carriers & Corporates) 18.26% Atire Technology-->42.6% 14.50% 0.34 30.00% Star

Passive Infra 1.94% GTL Infra-->28.33%

NA(Newly Induced SBU)

0.00(SBU Started in

FY08) ?

Details and Reference/Links used to draw BCG Matrix:-

Market Share & Relative Market Share Mobile Services

Group CompanyAirtel(GSM)Reliance (CDMA + GSM)Vodafone Essar(GSM)BSNL(GSM)IDEA(GSM)Tata (CDMA)Aircel(GSM)Spice(GSM)MTNL(GSM)BPL(GSM)HFCL (CDMA)Shyam (CDMA)Total (All India)* CDMA figures include WLL servicesLink:- www.india-cellular.com/Market-Share.html

Market Share For Telemedia

Link:- http://voicendata.ciol.com/content/vNd100/2007vol-II/307071901.asp

Market Share-for Enterprise services

Link:- http://voicendata.ciol.com/content/Vnd100-2008/108060305.asp

Market Share-for Passive Infrastructure:-

Company Name LastPrice

% Chg GrossBlock

NetBlock

CWIP TotalAssets

GTL Infra 35.65 0.56 1,334.41 1,203.33 790.50 3,408.60

ITI 27.35 4.99 3,644.06 2,710.94 2.16 2,819.88

GTL 164.90 -1.41 373.46 222.24 19.62 1,625.44

HFCL 10.70 0.94 467.31 236.60 10.06 1,614.74

Siemens 398.15 -3.89 870.12 463.74 93.29 1,592.41

Gemini Comm

24.00 -5.70 115.07 95.63 0.00 283.13

Honeywell Autom

1,145.05

8.21 103.67 34.15 98.91 247.14

XL Telecom

125.70 -8.15 37.63 26.77 0.00 217.58

Avaya GlobalCon

101.65 -1.21 77.30 20.91 0.96 213.60

Astra Microwave

44.20 -0.56 94.92 61.45 22.08 177.83

MIC Electronics

94.00 -1.93 25.60 18.38 15.43 173.98

NELCO 56.55 0.80 52.01 20.82 0.79 114.10

Punj Comm

26.85 -0.56 51.59 9.03 0.00 108.95

Shyam Telecom

77.00 3.84 49.01 40.61 18.30 84.21

Aplab 52.90 4.96 31.99 13.29 5.47 64.86

Krone Comm

93.60 1.46 23.02 9.78 0.02 45.79

Kavveri Telecom

88.80 0.74 7.62 5.34 0.00 43.93

Ashco Ind 9.45 -3.96 28.98 17.32 1.49 36.83

Precision Elec

25.70 -4.81 29.24 16.87 1.82 31.96

Valiant Comm

22.20 -6.72 10.45 5.51 0.00 31.42

Munoth Comm

5.00 0.00 1.38 0.66 0.00 16.14

Link:- http://www.moneycontrol.com/stocks/marketinfo/totassets.php?optex=BSE&indcode=Telecommunications%20-%20Equipment&opttopic=totassets

Airtel enterprises arm looks overseas

Pradipta Mukherjee / Kolkata March 29, 2008

Bharti's Airtel Enterprise Services (AES) is planning to expand its reach globally this year, enhance its managed network services, and launch a variety of new products aimed at convergence of voice and data.  It plans to cover international destinations like Chicago, Frankfurt, Dubai, Tokyo, and Sydney, among other locations this year.  Currently, its international roadmap includes New York, London, India, Hongkong, Singapore, and Los Angeles.  The expansion of its global reach is expected to help AES customers connect with more locations globally.  Simultaneously, the expansion would help AES add more customers going forward.  Airtel Enterprise Services has invested close to Rs 623.9 crore as on September 2007.  According to Saurabh Goel, chief operating officer - east of Airtel Enterprise Services, AES is looking at 25 per cent growth for its enterprise services, with bulk of its business coming from the government sector.  

AES contributes close to 30 per cent to overall Bharti revenues now. Going forward, Airtel is looking to introduce enhancements of its managed network services portfolio.  It would also launch a variety of new products aimed at the convergence of voice and data, and roll out new value-added and wholesale products aimed at growing the mobility market.  In the next few months, Airtel would also introduce new internet and international data products to meet specific needs of different segments of corporate customers.  The company is planning to enhance its VSAT and conferencing product portfolio.  On the voice side, Airtel plans to introduce a number of value-added and application-based services for its fixed line, mobile and international calling corporates. It will also look at getting into VOIP services space soon, said Goel.  AES provides telecom services and solutions to large corporates, small and medium enterprises and to the national and international telecom carriers.  The group focuses on verticals like BFSI, IT, ITES, manufacturing and distribution, media and services, government and PSUs, education, telecom, and retail, among others. Bharti forms new SBU – “Enterprise Business” to offer comprehensive solutions to corporate customers Category: FY2004-200525-06-04

Strategic initiative is aimed at leveraging the group’s unique business capabilities and strengthen focus in the corporate account segment   

 Merges its Data & Broadband group with key corporate account functions of Mobility & Fixed Line 

  The new Strategic Business Unit (SBU) will provide end-to-end world class cutting edge ‘solutions’ and provide a ‘single point’ contact to large business customers 

  The SBU will be headed by Dr. Jai Menon in addition to his current responsibility as Corporate Director – IT & TechnologyLINK:- http://www.business-standard.com/india/storypage.php?autono=318284

   New Delhi, June 25, 2004: Bharti Tele-Ventures, India's leading telecom conglomerate, today announced a major initiative for leadership in the key corporate account segment. The announcement takes forward Bharti’s business strategy of providing high quality services to its customers by synergising and making all products and services available to them through a single window.This strategic initiative will merge the broadband & data group of Bharti Infotel Limited with the key corporate account functions of mobility and fixed line, thereby creating a new SBU – “Enterprise Business”. The SBU will be a part of Bharti Infotel Limited and will be headed by Dr. Jai Menon as its Joint President. Dr. Menon will also continue to spearhead the group’s IT & technology functions as Corporate Director – IT & Technology. Dr. Menon will report to Mr. Badri Agarwal, President, Bharti Infotel Limited for the Enterprise Business while he would continue to report to the Group Chairman & Managing Director for the IT & Technology function. Mr. Rajiv Sharma, currently the CEO of the broadband & data group, Bharti Infotel Limited will be redesignated as CEO – Enterprise Business and will report to Dr. Menon.Currently, the data & broadband group, Bharti Infotel Ltd., provides data solutions & broadband services

to corporates, while the mobility and fixed line businesses cater to the wireless and fixed line service requirements of large corporates. The creation of a new SBU will help Bharti further leverage the group’s unique business capabilities and strengthen focus on the corporate account segment. It will also allow for greater synergy and business planning, such that the SBU will be better placed to meet customer requirements. The SBU will focus on building strong IT & technology partners in order to deliver comprehensive solutions including data center, business continuity, recovery services and related systems integration capability.  It will thus lead Bharti’s foray in providing cutting edge technology through a host of solutions & world-class integrated products packaged as ‘solutions’ to lead India into the information age. According to Chairman and Group Managing Director, Bharti Enterprises, Mr. Sunil Bharti Mittal, “This initiative is designed to ensure that synergetic businesses are run along similar lines tapping the best resources available across our businesses through a ‘single point contact’. The customer is looking for a single stop solution provider who will take responsibility for the entire chain and deliver higher capacities, faster downloads, scale up the network as software evolution happens and use the available bandwidth to take care of his complete communication requirements and enterprise applications”.

Link:http://www.bharti.com/48.0.html?&tx_ttnews%5BpS%5D=1214044252&tx_ttnews%5Bpointer%5D=2&tx_ttnews%5Btt_news%5D=67&tx_ttnews%5BbackPid%5D=38&cHash=c92b7a125dBharti Airtel Q1 consolidated earnings climb 71% (Update1)

Bharti Airtel, India`s largest telecom operator, registered substantial growth of 71% in consolidated net profit for the quarter ended June, 2007. During the quarter, the company`s consolidated net profit climbed to Rs 14,242.2 million from Rs 8,313.9 million in the same quarter, last year.

The consolidated total income for the quarter jumped 53.94% to Rs 58,735.2 million compared with the corresponding quarter, a year ago.

Standalone Result:

Bharti Airtel reported a rise of 73.50% in net profit to Rs 14,129.2 million for the quarter ended June 2007 compared with Rs 8,143.8 million in the corresponding quarter of previous year. While the earnings of the company on quarter-on-quarter (Q-o-Q) basis rose 9.80%.

Lower cost of operations combined with robust revenue growth helped Bharti Airtel to post excellent financial performance during the quarter. The operating margin during the quarter climbed 306 basis points to 41.32%.

Quarterly results (Rs in mn)

As atJune, 2007(3)

June, 2006(3)

%Change

Net Sales 56116.20 36824.70 52.39

Net Profit 14129.20 8143.80 73.50

EPS 7.45 4.30 73.26

Net sales for the quarter surged 52.39% to Rs 56,116.2 million compared with the corresponding quarter, a year ago, while the same on Q-o-Q basis rose 7.53%. The total income for the quarter jumped 53.80% to Rs 56,914.5 million compared with the corresponding quarter, a year ago, while the same on Q-o-Q

basis jumped 8.39%.

The earnings per share (EPS) for the quarter climbed 73.25% to Rs 7.45 compared with the same quarter, a year ago, while the same on Q-o-Q basis rose 9.72%.

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. Bharti Group having a diverse business portfolio, has created global brands in the telecommunication sector. Bharti recently forayed into retail business as Bharti Retail under a MoU with Wal-Mart for the cash & carry business. It has successfully launched an international venture with EL Rothschild Group to export fresh agri-products exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance under a joint venture with AXA, world leader in financial protection and wealth management. 

 Bharti Airtel is India`s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. The company since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU`s) - mobile services, broadband & telephone services (B&T) & enterprise services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the B&T business offers broadband & telephone services in 94 cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. All these services are provided under the `Airtel` brand.Shares of the company declined Rs 13.80, or 1.46%, to trade at Rs 933, at the BSE. The total volume of shares traded was 343,475  (11.30 a.m., Thursday).Link:- http://www.myiris.com/shares/news/storyShow.php?fileR=20070726115048121&dir=2007/07/26