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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