bsnl vs airtel

7/30/2019 Bsnl vs Airtel

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BSNL

VS

AIRTEL


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TABLE OF CONTENTS

DIFFERENT TYPES OF BUSINESS ENTITY-:

An active, in which different person exchange something of value whether goods or

service for service for mutual gain or Profit.

In other word, An enterprise engaged in production and distribution of good for sale

in market or rendering services for a price. There are many types of business entity defined

in the legal systems of various countries. These include corporations, partnerships, sole

traders, and other specialized types of organization.

It should be remembered, however, that the regulations governing particular types of

entity, even those described as roughly equivalent, may differ to a greater or lesser extent

between countries. The form of organization will be decided by various factors, such as-

A. Size and nature of the business to be started.

B. Technical difficulties

C. Market conditions (i.e.- competition and scope of the article in the market)

D. Capital required starting the business and the means to collect the funds.

E. Limitations and restriction put forth by the government (i.e. - grant of loan,

license, foreign exchange and other such things.

Depending on which type of business entity you choose will also influence the legal

structure. Various type of business organization on the basic of various social, economic and

human requirements are mentioned below.

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A. Public Sector

1. Departmental organization

2. Public corporations

3. Government company

B. Private Sector

1. Individual ownership or Sole proprietorship

2. Partnership

3. Joint stock company

4. Co-operative organization

C. Joint Sector

Ownership and control shared by private entrepreneur, state and public.

OBJECTIVEOBJECTIVE

To make a comparative analysis of trend of productivity of these two sectors which have

been taken into account particularly after the liberalization of Indian economy.

NATURE OF CHANGES IN INDIAN BUSINESS ENVIRONMENT AFTER

ECONOMIC PLAN

TRENDS OF PRIVATE SECTOR (Power), PUBLIC SECTOR (Power)

UNDERTAKINGS IN INDIAN ECONOMY

BEHAVIOUR OF THESE UNDERTAKING AFTER NEW ECONOMY POLICY.

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For the following Companies:

1. BHARAT SANCHAR NIGAM LTDs.

2. BHARTI AIRTEL LIMITED.

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PART I

STUDY OF THE TREND OF

MANAGERIAL ECONOMICS

at

BHARAT SANCHAR NIGAM LTD.

A PUBLIC SECTOR UNIT

www.bsnl.co.in

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PUBLIC SECTOR UNITPUBLIC SECTOR UNIT


Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest

Telecommunications Company providing comprehensive range of telecom services in India:

Wire-line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN,

VSAT, VoIP services, IN Services etc. Presently it is one of the largest & leading public

sector units in India.

BSNL has installed Quality Telecom Network in the country and now focusing on

improving it, expanding the network, introducing new telecom services with ICT applications

in villages and wining customer's confidence. Today, it has about 47.3 million line basic

telephone capacity, 4 million WLL capacity, 48.11 Million GSM Capacity, more than 37382

fixed exchanges, 44966 BTS, 3140 Node B ( 3G BTS), 287 Satellite Stations, 480196 Rkm

of OFC Cable, 63730 Rkm of Microwave Network connecting 602 Districts, 7330

cities/towns and 5.5 Lakhs villages.

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BSNL has more than 2.5 million WLL subscribers and 2.5 million Internet Customers

who access Internet through various modes viz. Dial-up, Leased Line, DIAS, Account Less

Internet (CLI). BSNL has been adjudged as the NUMBER ONE ISP in the country.

BSNL has set up a world class multi-gigabit, multi-protocol convergent IP

infrastructure that provides convergent services like voice, data and video through the same

Backbone and Broadband Access Network. At present there are 0.6 million DataOne

broadband customers.

The company has vast experience in Planning, Installation, network integration and

Maintenance of Switching & Transmission Networks and also has a world class ISO 9000

certified Telecom Training Institute.

Scaling new heights of success, the present turnover of BSNL is more than Rs.351,

820 million (US $ 8 billion) with net profit to the tune of Rs.99, 390 million (US $ 2.26

billion) for last financial year. The infrastructure asset on telephone alone is worth about

Rs.630, 000 million (US $ 14.37 billion).

BSNL plans to expand its customer base from present 47 millions lines to 125 million

lines by December 2007 and infrastructure investment plan to the tune of Rs. 733 crores (US$

16.67 million) in the next three years.

The turnover, nationwide coverage, reach, comprehensive range of telecom services

and the desire to excel has made BSNL the No. 1 Telecom Company of India.

Bharat Sanchar Nigam Limited has got net fixed assets valuing more than Rs. 54698

Crores (US $ 13.67 billion), which are in the form of Land, Buildings Cables, Apparatus &

Plants etc. as on 31.03.2008.

VISION OF BSNL

To become the largest telecom Service Provider in Asia.

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MISSION OF BSNL

To provide world class State-of-art technology telecom services to its customers on

demand at competitive prices.

To provide world class telecom infrastructure in its area of operation and to contribute to

the growth of the country's economy.

BOARD OF DIRECTORS

Corporate structure of BSNL Board consists of CMD & Five full time Directors,

Human Resource (HR), Consumer Mobility, Consumer Fixed Access, Finance, Enterprise,

who manage the entire gamut of BSNL operations. There are five other Directors in the full

Board of BSNL.

CMD - Shri Kuldeep Goyal

Director - Consumer Fixed Access(CFA)- Shri Rajesh Wadhwa

Director - Consumer Mobility(CM)-Shri R.K.Aggarwal

Director (Enterprise) - Shri Rajendra Singh

Director (HR)- Shri Gopal Das

Shri J.S.Deepak, I.A.S., Govt. Director

Shri P.K.Mittal, Govt. Director

Shri Mahesh Shah, Director

Dr. S.K.Kak, Director

Sanjiv Gupta, Director

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SERVICES PROVIDED BY BSNL

Services provided by BSNL are as follows-

BSNL LANDLINE

BSNL MOBILE

POSTPAID

PREPAID

BSNL WLL

INTERNET SERVICES

BROADBAND

WI-FI

DIAL UP INTERNET

BSNL MANAGED NETWORK SERVICES

BSNL MPLS-VPN

ISDN

LEASED LINE

INTELLIGENT NETWORK

VIDEO CONFERENCING

AUDIO CONFERENCING

I NET

TELEX/ TELEGRAPH

EPABX

INMARSAT

KU-BAND

TRANSPONDER

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SOCIAL COMMITMENT

BSNL is committed to provide quality Telecom Services at affordable price to the

citizens of the remotest part of the Country. BSNL is making all effort to ensure that the

main objectives of the new Telecom Policy 1999 (salient points indicated below) are

achieved:

Access to telecommunications is of utmost importance for achievement of the

country's social and economic goals. Availability of affordable and effective

communications for the citizens is at the core of the vision and goal of the new Telecom

policy 1999.

Strive to provide a balance between the provision of universal service to all uncovered

areas, including the rural areas, and the provision of high-level services capable of

meeting the needs of the country's economy;

Encourage development of telecommunication facilities in remote, hilly and tribal

areas of the country;

Transform in a time bound manner, the telecommunications sector to a greater

competitive environment in both urban and rural areas providing equal opportunities andlevel playing field for all players.

GROWTH PLAN

BSNL's future plan include a fast expansion programme of increasing the present 34

million lines to twice that number by 2005 and some 120 million lines by 2010.

The shift in demand from voice to data domination, and from wire line to wireless,

has revolutionized the very nature of the network. BSNL has already set in place several

measures that should enable it to evolve into a fully integrated multi-operator by 2005 and

its incumbent status, size, infrastructure and human resource should certainly, give it a

distinct advantage. Consolidation of the network and maintaining high quality of service

comparable to International standards is the key aim of the Growth Plan.

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STUDY OF THE TREND OF MANAGERIAL ECONOMICS

For discussing the trend of managerial economics in any public sector undertaking,

we require at least seven parameters as follows:

Employment and Wages

Sales

Total Cost

Total income

Investment pattern

Productivity

Profit after tax

No. of Users (subscribers)

EMPLOYMENT & WAGES

Here we will try to analyse the nature of the movement of employment, average productivity

and wage rate in the BSNL during the last decade. We will also try to examine the

relationship between changes in employment and money wage rate and between net sale &

total income during that period.

As we have discussed about production earlier, so by knowing employment we can

easily evaluate the productivity of the company for different years.

Employment by BSNL

Year Employment in cr

2001 INR 2,748.70

2002 INR 5,203.10

2003 INR 7,302.39

2004 INR 6,810.892005 INR 8,393.02

2006 INR 7,833.61

2007 INR 7,693.56

2008 INR 8,808.91

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SALES

Sales and other incomes has been tremendously increased over the last decade. The main

reason to this may be the increased productivity and the marketing strategies of the company.

It is also accompanying with the degradation of value of currency.

The main reason to this may be the increased productivity and the marketing

strategies of the company. It is also accompanying with the degradation of value of currency.

Net Sales of BSNL

Year Net Sale in cr

2001 INR 11,663.89

2002 INR 24,297.21

2003 INR 25,293.00

2004 INR 31,399.00

2005 INR 33,450.04

2006 INR 36,138.93

2007 INR 34,616.21

2008 INR 32,359.53

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TOTAL COSTS

DIFFERENT COST OF BSNLIN INR Cr.

Year 2008 2007 2006 2005 2004 2003 2002 2001

Raw Materials 0.00 0 0 0 0 0 0 0

Power & Fuel

Cost1687.36 1522.5 1357.64 0 1144.82 1050.94 891.52 357.29

Employee Cost 8808.917693.5

67833.61 8393.02 6810.89 7302.39 5203.1 2748.7

Other

Manufacturing

Expenses

8558.257995.2

67432.27 0 4562.09 4266.25 4169.47 1926.35

Selling and

Administration

Expenses

3136.183156.1

43176.1

11364.2

42704.37 2371.91 1941.35 24.59

Miscellaneous

Expenses

12141854.8

12495.62 534.38 2848.16 2022.5 884.39 2505.76

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Less: Pre-

operative

Expenses

Capitalised

429.55 452.27 474.99 0 436.2 1089.73 1403.89 690.78

TotalExpenditure

33636.43

21770 21820.25

20291.64

17634.13

15924.26

11685.94

6871.91

TOTAL INCOME

Year 2008 2007 2006 2005 2004 2003 2002 2001

Sales

Turnover33093.49 34616.21 36138.93 33450.04 31399.34 25293.15 24297.21 11663.89

Excise Duty 0 0 0 0 0 0 0 0

Net Sales 33093.49 34616.21 36138.93 33450.04 31399.34 25293.15 24297.21 11663.89

Other Income 5883.81 5252.21 4620.61 4405.91 5192.93 3204.88 3483.5 87.43

Stock

Adjustments0 0 0 0 0 0 0 0

Total Income 3008.50 39868.42 40759.54 37855.95 36592.27 28498.03 27780.71 11751.32

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INVESTMENT PATTERN

Investments of BSNL

Year Investments in INR Cr

2001 0.00

2002 0.00

2003 200.00

2004 200.00

2005 200.00

2006 200.00

2007 200.00

2008 200.00

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PRODUCTIVITY

Productivity BSNL

Year Productivity

2001 1.71

2002 2.38

2003 1.79

2004 2.08

2005 1.87

2006 1.87

2007 1.83

2008 1.13

PROFIT

PROFIT BEFOR TAX, TAX & NET PROFIT OF BSNL in INR Cr.

Year 2008 2007 2006 2005 2004 2003 2002 2001

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Operating Profit 17257.55 18098.42 18939.29 17564.31 18958.14 12573.77 16094.77 4879.41

Interest 472.58 796.6 1120.62 29.29 88.24 364.55 496.46 274.28

Gross Profit 16784.97 17301.82 17818.67 17535.02 18869.9 12209.22 15598.31 4605.13

Depreciation 8921.93 9149.31 9376.69 9624.86 9873.74 9551.31 8746.13 3858.08

Profit Before Tax 7863.04 8152.51 8441.98 7910.16 8996.16 2657.91 6852.18 747.05

Tax 733.88 767.59 801.3 -513.8 2045.2 204.33 540.01 0

Fringe Benefit tax 33 37 41 0 0 0 0 0

Deferred Tax 424.12 -457.95 -1340.02 -1759.33 974.44 1009.13 0 0

Reported Net Profit 6672.04 7805.87 8939.7 10183.29 5976.52 1444.45 6312.17 747.05

Extraordinary Items 100.89 7.06 535.33 1589.95 1529.14 1231.31 2112.34 -1.77

Adjusted Net Profit 3009.39 7798.81 8404.37 8593.34 4447.38 213.14 4199.83 748.82

NO. OF USERS (SUBSCRIBERS)

No. of Subscribers of BSNL

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Year Subscribers in Million

2001 0.82

2002 2.04

2003 5.962004 8.88

2005 14.80

2006 24.78

2007 35.92

2008 45.28

2009 57.30

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SUMMARY OF MAIN FINDINGS

As per the discussion done above, we can conclude

Economic Parameters BSNL

Employment Upward trend followed byconstant

Sales Upward trend

Total Cost Upward trend

Total Income Upward trend

Investment Pattern Steadily Constant

Productivity No Such Pattern

Net Profit Upward trend followed bydownward

No. of Subscribers Upward trend

BSNL has shown a sharp upward trend in the number of subscribers, which helpBSNL to make more income by more sales hence more profit during last few years accept in

year 2008. In year 2008 its shown huge decrement in its profit. One of the reasons for this is

recession period over that period.

BSNL has also shown an upward trend in total expenditure (cost) over that period of

time but employment cost has been almost constant during last few years.

BSNL has shown no particular pattern in it productivity but it has shown a bit of

negativity in it pattern.

BSNL has start investing since 2003 & after that a constant investment of Rs. 200 cr

is made every year.

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PART II

STUDY OF THE TREND OF


at

BHARTI AIRTEL LIMITED.

A PRIVATE SECTOR UNIT

www.airtel.co.in

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PUBLIC SECTOR UNITPUBLIC SECTOR UNIT

BHARTI AIRTEL LIMITED

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti

Group, has a diverse business portfolio and has created global brands in the

telecommunication sector. Bharti has recently forayed into retail business as Bharti Retail

Pvt. Ltd. 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

Company Ltd under a joint venture with AXA, world leader in financial protection and

wealth management.

Airtel comes to you from Bharti Airtel Limited, Indias largest integrated and the firstprivate telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel

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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 (SBUs) -

Mobile Services, Airtel Telemedia Services & Enterprise Services. The mobile business

provides mobile & fixed wireless services using GSM technology across 23 telecom circles

while the Airtel Telemedia Services business offers broadband & telephone services in 95

cities and has recently launched India's best Direct-to-Home (DTH) service, Airtel digital

TV. 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.

We are one of Asia leading providers of telecommunication services with presence in

all the 22 licensed jurisdictions (also known as Telecom Circles) in India, and in Srilanka.

We served an aggregate of 105,195,762 customers as of June 30, 2009; of whom 102,367,881

subscribe to our GSM services and 2,827,881 use our Telemedia Services either for voice

and/or broadband access delivered through DSL. We are the largest wireless service provider

in the country, based on the number of subscribers as of June 30, 2009. We also offer an

integrated suite of telecom solutions to our enterprise customers, in addition to providing long

distance connectivity both nationally and internationally. We have recently forayed intomedia by launching our DTH and IPTV Services. All these services are rendered under a

unified brand Airtel.

The company also deploys, owns and manages passive infrastructure pertaining to

telecom operations under its subsidiary Bharti Infratel Limited. Bharti Infratel owns 42% of

Indus Towers Limited.

Bharti Infratel and Indus Towers are the two top providers of passive infrastructure

services in India.

Company shares are listed on The Stock Exchange, Mumbai (BSE) and The National

Stock Exchange of India Limited (NSE).

The company has a strategic alliance with SingTel. The investment made by SingTel

is one of the largest investments made in the world outside Singapore, in the company.

The company mobile network equipment partners include Ericsson and Nokia. In thecase of the broadband and telephone services and enterprise services (carriers), equipment

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suppliers include Siemens, Nortel, Corning, among others. The Company also has an

information technology alliance with IBM for its group-wide information technology

requirements and with Nortel for call center technology requirements. The call center

operations for the mobile services have been outsourced to IBM Daksh, Hinduja TMT,

Teletech & Mphasis.

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 Bhartis 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 strategic vision.

VISION & PROMISE OF AIRTEL

By 2010 Airtel will be the most admired brand in India:

Loved by more customers

Targeted by top talent

Benchmarked by more businesses

We at Airtel always think in fresh and innovative ways about the needs of our

customers and how we want them to feel. We deliver what we promise and go out of our wayto delight the customer with a little bit more

BOARD OF DIRECTORS

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The board of directors of the Company has an optimum mix of executive and non-

executive directors, which consists of two executive and fourteen non-executive

directors.The Chairman and Managing Director, Mr. Sunil Bharti Mittal, is an Executive

Director and the number of Independent Directors on the Board is 50% of the total board

strength. The independence of a director is determined on the basis that such director

does not have any material pecuniary relationship with the Company, its promoters or its

management, which may affect the independence of the judgment of a Director. The board

members possess requisite skills, experience and expertise required to take decisions,

which are in the best interest of the Company.

The composition of the Board is as under:

Sunil Bharti Mittal

Rajan Bharti Mittal

Akhil Gupta

Rakesh Bharti Mittal

Chua Sock Koong

N. Kumar

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SERVICES PROVIDED BY AIRTEL

Services provided by AIRTEL are as follows-

AIRTEL LANDLINE

AIRTEL MOBILE

POSTPAID

PREPAID

AIRTEL WLL

INTERNET SERVICES

BROADBAND

WI-FI

DIAL UP INTERNET

AIRTEL MANAGED NETWORK SERVICES

AIRTEL MPLS-VPN

ISDN

LEASED LINE

INTELLIGENT NETWORK

VIDEO CONFERENCING

AUDIO CONFERENCING

I NET

TELEX/ TELEGRAPH

EPABX

INMARSAT

KU-BAND

TRANSPONDER

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AWARDS AND RECOGNITIONS

Voted Indias most innovative company in a survey conducted by The WallStreet Journal in 2008

Winner of the Gallup Great Workplace Award- Gallup Consulting, 2008

2nd Most Trusted Service Brand - Annual Economic Times-Brand Equity,Most Trusted Brands survey 2008

Best Content Service Award for its Farmer Information DisseminationPlatform for Bharti Airtels joint venture with IFFCO, IKSL (IFFCO KisanSamachar) - World Communications Awards 2008

Best Project Management Award for its Gujarat e-GRAM project - WorldCommunications Awards 2008

Best Telecom Company at the NDTV Profit Business Leadership Awards

Best Carrier India for innovative products & services and efficient cost models andthe Ovum Telco-Transformation award recognizing philosophy and execution of asuccessful outsourcing strategy at the Telecom Asia Awards 2008

Sunil Bharti Mittal was awarded the GSM Association Chairmans Award 2008.The highest honour in global telecom sector, recognized his tremendous contributionto the development of Indias telecom sector

Sunil Bharti Mittal adjudged the Business Leader Transforming India, 2008 at the

NDTV Profit Business Leadership Awards

CORPORATE RESPONSIBILITY AT BHARTI AIRTEL

At Bharti, CSR is a way of life. Each department and employee strives to be sensitive to thestakeholders and environment within their work context. Bharti encourages employees totake decisions and design business-linked processes that are sensitive to communities andenvironment.

Corporate Social Responsibility (CSR) in Bharti encompasses much more thanonly social outreach programs. It is an integral part of the way Bharti conducts its business.The essence of Bhartis commitment to Corporate Social Responsibility is embedded inthe Corporate Values, which stem from its deepest held beliefs. These Values are:

To be responsive to the needs of our customers

To trust and respect our employees

To be transparent and sensitive in our dealings with all stakeholders

We encourage our employees to take decisions and design business processes, keeping inmind the following:

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Ethics, fairness and being correct

Meeting and going beyond compliances and legal requirements

Showing respect and sensitivity towards stakeholders and communities, and

Nurturing the environment

We practice our CSR beliefs and commitments through a three-prongedapproach:

Engaging with stakeholders

Ensuring stakeholder sensitive policies and practices

Undertaking programs for our employees, community and environment

Bharti Airtel sensitizes its employees towards CSR issues at various forums. We feel that itis important that each employee should understand the importance of environmental, social

and economical aspects while taking business decisions. At Bharti, each employee is

sensitized towards CSR issues and thus operations at the ground level are influenced. Such

sensitization exercises have resulted in many socially and environmentally sensitive

decisions on the ground. For example, Confidence Plan for hearing impaired people, covers

noise-making DG sets at extra cost, investing in consumer awareness campaigns to ensure

safe use of mobile are some examples of the above.

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. Companys 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.

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FACTSHEET

Business

Description

Provides GSM mobile services in all the 22 telecom circles in

India, and was the first private operator to have an all India

presence.

Provides telemedia services (fixed line and broadband

services through DSL) in 95 cities in India.

Established July 07, 1995, as a Public Limited Company

Proportionate

Revenue

Rs. 369,615 million (year ended March 31, 2009-Audited)

Rs. 270,250 million (year ended March 31, 2008-Audited)

As per US GAAP Accounts

Proportionate

EBITDA

Rs. 151,678 million (year ended March 31, 2009 - Audited)

Rs. 113,715 million (year ended March 31, 2008 - Audited)

As per US GAAP Accounts

Shares in Issue 1,898,373,280 as at June 30, 2009

Listings The Stock Exchange, Mumbai (BSE)

The National Stock Exchange of India Limited (NSE)

Market

Capitalisation

Customer Base 102,367,881 GSM mobile and 2,827,881 Telemedia

Customers (status as on June 30, 2009)

Operational

Network

Provides GSM mobile services in all the 22 telecom circles in

India, and was the first private operator to have an all India

presence.

Provides telemedia services (fixed line) in 95 cities in India.

Registered Office Bharti Airtel Limited

(A Bharti Enterprise)

Aravali Crescent, 1 Nelson Mandela Road, Vasant Kunj Phase

II

New Delhi - 110 070

Tel. No.: +91 11 4666 6100

Fax No.: +91 11 4666 6411

STUDY OF THE TREND OF MANAGERIAL ECONOMICS

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For discussing the trend of managerial economics in any public sector undertaking,

we require at least seven parameters as follows:


Sales

Total Cost

Total income

Investment pattern

Productivity

Profit after tax


EMPLOYMENT & WAGES

Here we will try to analyze the nature of the movement of employment, average productivity

and wage rate in the AIRTEL during the last decade. We will also try to examine the

relationship between changes in employment and money wage rate and between net sale &

total income during that period.

As we have discussed about production earlier, so by knowing employment we caneasily evaluate the productivity of the company for different years.

SALES

Employment by AirTel

Year Employment in INR Cr

2001 7.99

2002 19.35

2003 18.94

2004 16.84

2005 488.13

2006 754.99

2007 1102.03

2008 1306.70

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Sales and other incomes has been tremendously increased over the last decade. The main

reason to this may be the increased productivity and the marketing strategies of the company.

It is also accompanying with the degradation of value of currency.

The main reason to this may be the increased productivity and the marketing

strategies of the company. It is also accompanying with the degradation of value of currency.

Net Sales of AIRTEL

Year Net Sale in INR Cr

2001 0.00

2002 0.00

2003 0.00

2004 0.00

2005 7903.03

2006 11231.47

2007 17851.60

2008 25761.11

TOTAL COSTS

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DIFFERENT COST OF AIRTEL IN INR Cr.

Year 2008 2007 2006 2005 2004 2003 2002 2001

Raw Materials 155.3 53.95 54.42 83.7 0 0 0 0

Power & Fuel

Cost 1045.16 658.78 26.98 16.69 0.38 0.1 0.12 0.12EmployeeCost

1306.57 1102.03 754.99 488.1316.8

418.9

419.3

57.99

OtherManufacturingExpenses

8184.4 5813.824404.7

83139.4

81.29 2.41 1.21 1.67

Selling andAdministrationExpenses

3747.17 2250.331330.0

7869.69 15 10.5

26.42

13.19

MiscellaneousExpenses

1056.99 887.6 671.92 538.32 4.16 5.85 6.64 1.84

Less: Pre-operativeExpensesCapitalised

112.4 1.8 0.85 0.03 0 0 0 0

TotalExpenditure

15383.19

10764.71

7242.31

5135.98

37.67

37.853.7

424.81

TOTAL INCOME

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Year 2008 2007 2006 2005 2004 2003 2002 2001

Sales

Turnover25761.11 17851.6 11231.47 7903.03 0 0 0 0

Excise Duty0 0 0 0 0 0 0 0

Net Sales 25761.11 17851.6 11231.47 7903.03 0 0 0 0

Other

Income359.91 148.49 94.3 122.02 63.15 72.9 66.2 57.85

Stock

Adjustments9.05 30.07 -13.84 11.57 0 0 0 0

Total Income26130.07 18030.16 11311.93 8036.62 63.15 72.9 66.2 57.85

INVESTMENT PATTERN

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INVESTMENTS OF AIRTEL

Year Investments in INR Cr

2001 794.47

2002 1899.67

2003 1467.79

2004 1762.67

2005 931.90

2006 719.70

2007 1102.03

2008 1306.57

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PRODUCTIVITY

Productivity AIRTEL

Year Productivity

2001 2.33

2002 1.23

2003 1.93

2004 1.68

2005 1.56

2006 1.56

2007 1.67

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2008 1.70

PROFIT

PROFIT BEFOR TAX, TAX & NET PROFIT OF AIRTEL in INR Cr.

Year 2008 2007 2006 2005 2004 2003 2002 2001

Operating Profit10746.88 7265.45 4069.62 2900.64 25.48 35.1 12.46 33.04

Interest607.76 310.78 236.81 317 21.36 31.23 9.09 29

Gross Profit10139.12 6954.67 3832.81 2583.64 4.12 3.87 3.37 4.04

Depreciation3166.58 2353.3 1547.02 1019.36 3.87 3.6 3.23 3.45

Profit Before Tax6972.54 4601.37 2285.79 1564.28 0.25 0.27 0.14 0.59

Tax859.36 495.03 166.52 8.61 -0.12 0.05 0.01 0.2

Fringe Benefit tax37.23 25.5 19.05 0 0 0 0 0

Deferred Tax-168.24 47.61 88.14 345 0 0 0 0

Reported Net Profit 6244.19 4033.23 2012.08 1210.67 0.37 0.22 0.13 0.39

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Extraordinary Items48.38 31.19 12.57 28.22 13.29 23.13 47.59 28.09

Adjusted Net Profit6195.81 4002.04 1999.51 1182.45 -12.92 -22.91 -47.46 -27.7

NO. OF USERS (SUBSCRIBERS)

No. of Subscribers of AIRTEL

Year Subscribers in Million

2001 0.77

2002 1.11

2003 3.36

2004 9.83

2005 16.30

2006 22.77

2007 52.96

2008 82.92

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2009 107.99

SUMMARY OF MAIN FINDINGS

As per the discussion done above, we can conclude

Economic Parameters AIRTEL

Employment Upward trend

Sales Upward trend

Total Cost Upward trend

Total Income Sharp Upward trend

Investment Pattern No Such Pattern

Productivity Almost Constant

Net Profit Sharp Upward trend

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No. of Subscribers Sharp Upward trend

AIRTEL has shown a sharp upward trend in the number of subscribers, which help

AIRTEL to make more income by more sales hence more profit during last few years acceptin year 2008. In year 2008 its shown huge decrement in its profit. One of the reasons for this

is recession period over that period.

AIRTEL also has shown an upward trend in total expenditure (cost) over that period

of time with increase in employment cost as well during last few years.

AIRTEL has shown no particular pattern in it productivity but it has shown a bit of

negativity in it pattern.

AIRTEL has not shown any certainty in its investments.

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PART III

COMPARATIVE ANALYSIS OF THE TREND OF


At


A PUBLIC SECTOR UNIT

www.bsnl.co.in

&

BHARTI AIRTEL LIMITED.

A PRIVATE SECTOR UNIT

www.airtel.co.in

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http://www.bsnl.co.in/http://www.airtel.co.in/http://www.bsnl.co.in/http://www.airtel.co.in/


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COMPARATIVE ANALYSIS

For doing Comparatives analysis between a public sector undertakings (BHARAT

SANCHAR NIGAM LIMITED) & private sector undertakings (BHARTI AIRTEL

LIMITED) we require following parametersof managerial economics:


Sales

Total Cost

Total income

Investment pattern

Productivity

Profit after tax


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COMPARATIVE ANALYSIS IN BSNL & AIRTEL ON THE BASIS OF

EMPLOYMENT & WAGES

Comparative Analysis of BSNL & Airtel in Terms of Employment provided by them in

INR Cr.

Year BSNL AIRTEL

2001 2748.70 7.99

2002 5203.10 19.35

2003 7302.39 18.94

2004 6810.89 16.84

2005 8393.02 488.13

2006 7833.61 754.99

2007 7693.56 1102.03

2008 8808.91 1306.70

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SALES

Comparative Analysis of BSNL & AIRTEL in Terms of NET SALES in cr.Year BSNL AIRTEL

2001 11663.89 0.00

2002 24297.21 0.00

2003 25293.00 0.00

2004 31399.00 0.00

2005 33450.04 7903.03

2006 36138.93 11231.47

2007 34616.21 17851.60

2008 32359.53 25761.11

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TOTAL COST

Comparative Analysis of BSNL & Airtel in Terms of Expenditure in Cr.

Year BSNL AIRTEL

2001 6871.91 24.81

2002 11685.94 53.74

2003 15924.26 37.80

2004 17634.13 37.67

2005 20291.64 5135.98

2006 21820.25 7242.31

2007 21770.00 10764.71

2008 33636.43 15383.19

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TOTAL INCOME

Comparative Analysis of BSNL & Airtel in Terms of Total Income in cr.

Year BSNL AIRTEL

2001 11751.32 57.85

2002 27780.71 66.20

2003 28498.03 72.90

2004 36592.27 63.15

2005 37855.95 8036.62

2006 40759.54 11311.93

2007 39868.42 18030.16

2008 38053.40 26130.70

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INVESTMENT PATTERN

Comparative Analysis of BSNL & AIRTEL in Terms of Investments in cr.

Year BSNL AIRTEL

2001 0.00 794.47

2002 0.00 1899.67

2003 200.00 1467.79

2004 200.00 1762.67

2005 200.00 931.90

2006 200.00 719.70

2007 200.00 1102.03

2008 200.00 1306.57

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PRODUCTIVITY

Comparative Analysis of BSNL & AIREL in Terms of ProductivityYear BSNL AIRTEL

2001 1.71 2.33

2002 2.38 1.23

2003 1.79 1.93

2004 2.08 1.68

2005 1.87 1.56

2006 1.87 1.56

2007 1.83 1.67

2008 1.13 1.70

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PROFIT AFTER TAX

Comparative Analysis of BSNL & Airtel in Terms of Net Profit in INR Cr.

Year BSNL AIRTEL

2001 748.82 -27.70

2002 4199.83 -47.46

2003 213.14 -22.91

2004 4447.38 -12.92

2005 8593.34 1182.45

2006 8404.37 1999.51

2007 7798.81 4002.04

2008 3009.39 6195.81

COMPARATIVE ANALYSIS IN BSNL & AIRTEL ON THE BASIS OFNO. OF USERS (SUBSCRIBERS)

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Comparative Analysis of BSNL & Airtel in Terms of Subscribers in Million

Year BSNL AIRTEL

2001 0.82 0.77

2002 2.04 1.112003 5.96 3.36

2004 8.88 9.83

2005 14.80 16.30

2006 24.78 22.77

2007 35.92 52.96

2008 45.28 82.92

2009 57.30 107.99

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SUMMARY COMPARITIVE ANALYSIS

Shown below is the performance of BSNL and AIRTEL in the following economicparameters over the last 10 years, as discussed above:

Economic Parameters BSNL AIRTEL

Employment Upward trend followed byconstant

Upward trend

Sales Upward trend Upward trend

Total Cost Upward trend Upward trend

Total Income Upward trend Sharp Upward trend

Investment Pattern Steadily Constant No Such Pattern

Productivity No Such Pattern Almost Constant

Net Profit Upward trend followed bydownward

Sharp Upward trend

No. of Subscribers Upward trend Sharp Upward trend

In the above analysis we have found that no of subscribers in both BSNL & Airtel has beenincresed wich helps to increase their sale & total income. Althoug we also find someincerase in cost to the both the companies.

Both Airtel & BSNL have shown an upward trend in profit except in 2008 by BSNL.Althoug Airtel have shown some loses till 2004 but after that it showed a great degree ofupward trend

BSNL has shown an constant investment pattern where as no perticular pattern is shownby Bharti Airtel.

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CONCLUSION

Telecom sector is one of the sectors which are really booming in India. In every organization

whether it is public or private company or even on the individual level telecommunication

plays a very important role for transformation of information. It is one sector touching life

every where. Due to the ever increasing need of computer hardware and system software

applications in both public and private sectors, Which helped telecom sector to plays an

important role to connect them world wide. Thus we see the growth of telecom sector helps

in the growth of IT sector & vice versa. Telecom industry has grown exponentially in the past

10 years. The New Economic Policy adopted by the Govt. of India since 1991 has helped

augment the growth with easier access to international markets.

This has been mainly due to:-

The rise in the telecom sector and the boom in the Indian economy.

The rise in the demand in the market due to good economic conditions.

Fall in the price of phone (handset).

The availability of new technologies in India and outside.

The emergence of new markets.

The investments by these companies for their expansion.

It has been observed that the total income, sales, no. of user (subscribers) of the two

companies have increased during the time period. This helps to providing more employment

as the employment cost & wages increasing.

Bharat Sanchar Nigam limited has made the income of more than Rs. 30853 cr with a

profit of more than Rs. 3009 Cr in year 2008. BSNL has succeed to add more 12 million

Subscribers to his network in last year making its 57 millions subscriber enterprise with the

growth rate of 22.36%.

Bharti Airtel limited is one company which has shown the growth rate of 44.47% last

year in his income & making a profit of RS. 6195.35 cr with the growth rate of 54.79% as

compared to 2007. Airtel has added 25 million people in 2008 with the growth rate of more

than 30%. Which makes its no subscriber more than 110 million people.

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BIBLIOGRAPHY

Retrieved from following websites:

www.bsnl.co.in www.airtel.co.in

www.trie.com

www.bworld.com

www.business2.com

www.business-today.com

Retrieved from following books:

Wage-productivity Relationship in Indian Public Sector

Author:-Dr. P.K. Chakrabarti

Investment Decision in Indian Public Sector


Coal Industry in West Bengal


CAPITALINE Database.
http://www.bsnl.co.in/http://www.airtel.co.in/http://www.trie.com/http://www.bworld.com/http://www.business2.com/http://www.business-today.com/http://www.bsnl.co.in/http://www.airtel.co.in/http://www.trie.com/http://www.bworld.com/http://www.business2.com/http://www.business-today.com/

bsnl vs airtel

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