bharti airtel limted & indian telecom

8/8/2019 Bharti Airtel Limted & Indian Telecom

1/18

Case study 2


2/18

0

5

10

15

20

25

2000 2002 2004 2006 2008 2009

2.89

5.11

9.11

18.5

23.525


3/18

0

20

400

80

100

120

140

1 0

180

200

2000 2002 2004 2005 2008 2009

1.88 .54

33.7

52.2

180190

26.7538.43 42.84 46.19

70 75

Mobile

Fixed


4/18

Bharti Airtel Limited, one ofAsias leading

integrated telecom services providers with

operations in India and SriLanka.

The company is structured intofour strategicbusiness units -

Mobile, Telemedia, Enterprise and Digital TV

The mobile business offers services in India

and SriLanka. The Telemedia business provides

broadband, IPTV and telephone services in95

Indian cities.


5/18

The Digital TV business provides Direct-to-Home

TV services across India

The Enterprise business provides end-to-end

telecom solutions to corporate customers andnational and internationallong distance services

to telcos.

Provides GSMmobile services in all the 22

telecom circles in India, and was the first private

operator tohave an all India presence.

Provides telemedia services (fixed line and

broadband services through DSL)in95 cities in

India.


6/18

Sunil has built an incredibly successfulbusiness from scratch, one which has had a

truly transformational impact on ourindustry, on the customers he serves and onIndias economy. His brave and ambitiousstrategies will continue to resonate across

the country, our industry and the businesscommunity globally, becoming a benchmarkfor emerging markets worldwide

Craig Ehrlich , GSM Association Chairman in 2008


7/18

NETSALES

PAT % PATINCREASE

2004-05 8142.44 1210.67 107%

2005-06 11259.12 2012.08 66%

2006-07 17851.61 4033.23 100%

2007-08 25761.11 6244.19 55%

2008--09 34048.32 7743.84 24%


8/18

2005 2006 2007 2008 2009

EPS 6.53 10.62 21.27 32.9 40.79

Dividend /share

2.00

OPM % 36.81 35.86 40.65 41.37 38.74

Debt/equity 1.1 .65 .46 .32 .28

RNOW 26.06 27.42 35.23 32.04 33.74


9/18

2004 2005 2006 2007 2008 2009

ROCE 9.9 % 15.7 % 21.5 % 31 % 33.3% 30.5%


10/18

2009 2010 2011

PROFIT 7743.84 10012 11367

EPS

PE RATIO


11/18

Company Sales (rs cr.) PAT (rs cr.) Market Cap (rscr.)

BhartiAirtelLtd. 34,048.32 7,743.84 107,697.43

Reliance

CommunicationsLtd.

15,086.66 4,802.67 34,448.61

Idea Cellular Ltd. 6,719.99 1,044.36 15,174.97

TataCommunications

Ltd.

3,749.43 515.95 10,888.43

Tata Teleservices

(Maharashtra)Ltd.

2,034.62 -159.60 4,714.53


12/18

45.3

22.39

18.74

8.914.66

share holding pattern

promotors

foreign promoters

foreigninstn

others

financialinstn


13/18

AT&T - the former SBC merged withAT&T creating the new AT&T (USA)

China Mobile - formerly China state-owned, now still state-controlled, one of twomobile phone monopolies in the entire China.

Vodafone - Britain's largest telecomoperator.

Verizon Communications - US-based telecom company formed after aseries ofmergers.

Telefonica - Multinational company with stakes in Dpain, LatinAmericaand Europe. Owns the O2 brand.

Deutsche Telekom - German telecom company, alsoowns t-mobile.

America Movil - Mexicanoperator controlled by the world's richest man -Carlos Slim.

NTT DoCoMo - One of Japan's telecomoperators.

France Telecom - One of France's telecom companies. NipponTelegraph & Telephone - Japan's second largest telecom operator.


14/18

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Mobile subs

Fixed line subs


15/18

Today, innovationis about muchmore than

new products. It is about reinventing

business processes and building entirely new

markets that meet untapped customerneeds. Most important, as the Internet and

globalization widen the poolofnew

ideas, it's about selecting and executing the

right ideas and bringing t

hem tomarket inrecord time.


16/18

In the 1990s, innovation was abouttechnology and controlof quality and cost.Today, it's about taking corporateorganizations built for efficiency andrewiring themfor creativity and growth."There are a lot of different things that fallunder the rubric ofinnovation," says VijayGovindarajan, a professor at Dartmouth

College's Tuck Sch

oolofBusiness and aut

horofTen Rules for Strategic Innovators: From

Idea to Execution. "Innovation does not havetohave anything to do with technology."


17/18

Toyota Motor Corp., whichleapt 10 spots this

year to No. 4, is becoming a master ofmany as

well. The Japanese autogiant is best knownfor

anobsessive focus oninnovatingits

manufacturing processes. But thanks to the hot-

selling Prius, Toyota is earning evenmore respect

as a product innovator. It is also collaborating

more closely with suppliers togenerate

innovation. Last year, Toyota launched its ValueInnovation strategy. Rather than work with

suppliers just to cut costs ofindividual parts, it

is delvingfurther backin the design process to

find savings spanning entire vehicle systems


18/18

bharti airtel limted & indian telecom

Documents