AIRTEL

Company profile of Airtel

India's largest and world's third largest cellular service provider with more than 82 million subscribers Bharti Airtel is a merger between Bharti Group and Airtel its a well know Ned brand in India as well as Asia . Owned by Mr. Sunil Bharti Mittal, 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 first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel 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 Teliemedia 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. Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers. The group offers high speed broadband internet with a best in class network. With Landline services in 95 cities we help you stay in touch with your friends & family and the world. Get world class entertainment with Indias, best direct to home (DTH) service, digital TV in more than 150 cities. 1. Enterprise Services- provides a broad portfolio of services to large Enterprise and Carrier customers. This division comprises of the Carrier and Corporate business unit. Enterprise Services is regarded as the trusted communications partner.

2. Diverse business portfolio - Mr. Sunil Bharti believes and adopts strategy of diversification, they always come with new product in new area like mobile, land line, DTH, and broad band. 3. Operations in all 23 circles -In India there are 28 states and Airtel operate or rotate their services in 23 states, its a big achievement in itself and it also wants to cover the other remaining states. 4. 2nd Most Trusted Service Brand in India A survey conducted by ET found that Airtel was the 2nd most trusted brand of India, after BSNL. 5. Mr. Mittal awarded by Padama Bhushan in 2007 and GSM Association chairmans award in 2008 Vision 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

Organizational Structure

Board of Directors
The board of directors of the Company has an optimum mix of executive and nonexecutive 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

Sunil Bharti Mittal is the Founder Chairman and Group CEO of Bharti Enterprises headquartered at New Delhi, India. Bharti Enterprises is one of India's leading business groups with interests in telecom, financial services, retail, manufacturing, and agri-business. Bharti Airtel Limited, a group company of Bharti Enterprises, is India's leading integrated telecom services provider. Bharti has joint ventures with AXA for financial services, with Wal-Mart for retail, and with Del Monte for its agri-business. Bharti Teletech, another group company, is India 's largest manufacturer and exporter of telephone terminals

Rajan Bharti Mittal

Rajan Bharti Mittal is the Managing Director of Bharti Enterprises and Group Lead Director of Bharti's Wholesale and Retail Business . He is actively involved in overseeing the activities of the Group at the corporate level and has rich experience in the field of marketing and brand management. He is the Chairman of the Board ESOP Compensation Committee and a member of the Board HR Committee.

Akhil Gupta
Akhil is the Deputy Group CEO and Managing Director of Bharti Enterprises and a Director of Bharti Airtel Limited. He has been closely associated with a range of strategic, financial, mergers and acquisitions and business performance issues of the group. He has spearheaded the transformational initiatives that include the outsourcing deals undertaken by the group in the areas of information technology (IT) with IBM, network management with Ericsson and Nokia and outsourcing of Call Centres management to leading international BPOs using common Nortel platform across India. He has also been responsible for conceptualizing and implementing the separation of passive mobile infrastructure and forming Indus Towers a Joint Venture with Vodafone and Idea, which has become a largest tower company in the world. With innovative thought leadership, he has been able to guide Airtel in becoming perhaps the lowest cost producer of minutes worldwide and ensuring that it provides very high ROE despite the lowest tariffs in the world.

Rakesh Bharti Mittal N. Kumar Craig Ehrlich Paul OSullivan

Chua Sock Koong Mauro Sentinelli

Pulak Chandan Prasad Ajay Lal Manoj Kohli Nikesh Arora

Bashir Abdulla Currimjee Arun Bharat Ram Quah Kung Yang

Executive Summary
This report on Bharti Airtel is done to find out certain objective regarding the strategic approach adopted by Airtel to stand strongly in the competitive telecom market, to find out new opportunity for Airtel, to study the global deal of Airtel and wholesale services for global telecom companies and to analyze the sales progress of Airtel. This analysis is done using various models like SWOT analysis, BCG Matrix, analysis of balance sheet and profit and loss account of last two year and observing various strategies that is Airtel implanting to increase its subscriber base and revenue. Corporate Social Responsibilities (CSR) undertaken by Airtel have been evaluated and assessed in light of its current market position. This report on Airtel is not just giving description about the company but it also talks about the various marketing strategy adopted by the company. SWOT analysis of Airtel helps to find out the weak points of the company and to find out the way to overcome this problem. Similarly BCG matrix is used to prioritize which products within company product mix get more funding and attention. The analysis is also tries to find out what are the different strategic options available to the company under the different market condition and also suggestions and recommendations have been drawn which would help the company to improve on its operations and profitability. And on the basis of the report a conclusion has been drawn regarding the companys performance and some suggestions which would help the company to improve its operations.

INTRODUCTION OF TELECOM INDUSTRY

Amidst all the talk of slowdown in the Indian economy, telecom is one sector that has had a fairly good year in terms of subscriber additions and revenue growth in 2008. Mobile service companies have managed to add subscribers at the rate of eight million a month in 2008. This makes India the second fastest in growth for mobile services in the world. However, even as this gives some reason to cheer for the telecom incumbents, there are a few trends in key metrics of the companies that suggest increasing pressure on margins. This is not the situation only this year the subscriber base of Indian telecom industry is increasing day-by-day and year-by-year. If we just have a glance on the Indian telecom industry it is divided into 23 circles spread all over the country with 9 Operators in the country. A large population, low telephony penetration levels, and a rise in consumers' income and spending owing to strong economic growth have helped make India to be among the fastest-growing telecom markets in the world. The first and largest operator is the state-owned incumbent BSNL, which is also the 7th largest telecom company in the world in terms of its number of subscribers. Subsequently, after the telecommunication policies were revised to allow private operators, companies such as Bharti Telecom, Tata Indicom, Vodafone, MTNL, Idea, Vodafone and BPL have entered the space as Major Operators in India. However, rural India still lacks strong infrastructure. The total number of telephones in the country crossed the 300 million mark on June 18 2008. The overall tele-density has increased to 36.98% in March 2009. In the wireless segment, 15.87 million subscribers have been added in March 2009. The total wireless subscribers (GSM, CDMA & WLL (F)) base is more than 391.76 million now. The wire line segment subscriber base stood at 38.22 million with a decline of 0.13 million in October 2008.

Revenue and growth of telecom Industry:The total revenue in the telecom service sector was Rs. 86,720 crore in 2005-06 as against Rs. 71, 674 crore in 2004-2005, registering a growth of

21%. The total investment in the telecom services sector reached Rs. 200,660 crore in 2005-06, up from Rs. 178,831 crore in the previous fiscal. Telecommunication is the lifeline of the rapidly growing Information Technology industry. Internet subscriber base has risen to 6.94 million in 2005- 2006. Out of this 1.35 million were broadband connections. The value added services (VAS) market within the mobile industry in India has the potential to grow from $500 million in 2006 to a whopping $10 billion by 2009. On the other hand, in the mobile telephony space, Airtel controls 21.4% subscriber base followed by Reliance with 20.3%, BSNL with 18.6%, Vodafone with 14.7% subscriber base (as per June 2005 data). Following list shows the GSM subscriber figure till Jan 2009 1 2 3 4 5 6 8 9 Bharti Airtel Vodafone Essar BSNL IDEA Aircel Reliance Telecom MTNL BPL 88382758 33.04% 63340024 23.68% 42673357 15.95% 40016153 14.96% 16761397 6.27% 10353841 3.87% 4003807 1.50% 2007303 0.75%

The mobile service has seen phenomenal growth since 2000. In September 2004, the number of mobile phone connections has crossed fixed-line connections. Currently there are an estimated 201.29 million mobile phone users in India compared to 39.73 million fixed line subscribers. India primarily follows the GSM mobile system, in the 900 MHz band. Recent operators also operate in the 1800 MHz band. The dominant players are Airtel, Reliance Infocomm, Vodafone, Idea cellular and BSNL/MTNL.

HISTORY
The company history sections lists out major chronological events that happened to the company. Bharti Tele-Ventures was incorporated on July 7, 1995 as a company with limited liability under the Companies Act, for promoting telecommunications services. Bharti Tele-Ventures received certificate for commencement of business on January 18, 1996. The Company was initially formed as a wholly-owned subsidiary of Bharti Telecom Limited. The chronology of events since Bharti Tele-Ventures was incorporated in 1995 is as follows: 1995 - Bharti Cellular launched cellular services 'AirTel' in Delhi 1996 - STET International Netherlands NV, or STET, a company promoted by Telecom Italia, Italy acquired a 20% equity interest in Bharti Tele-Ventures - Bharti Telenet launched cellular services in Himachal Pradesh 1997 - British Telecom acquired a 21.05% equity interest in Bharti Cellular - Bharti Telenet obtained a license for providing fixed-line services in Madhya Pradesh circle - Bharti Telecom and British Telecom formed a 51%: 49% joint venture, Bharti BT, for providing VSAT services 1998 - Bharti Telecom and British Telecom formed a 51% : 49% joint venture, Bharti BT Internet for providing Internet services - First Indian private fixed-line services launched in Indore in the Madhya Pradesh circle on June 4, 1998 by Bharti Telenet thereby ending fixed-line services monopoly of DoT (now BSNL) 1999 - Warburg Pincus (through its investment company Brentwood Investment Holdings Limited) acquired a 19.05% equity interest in Bharti Tele-Ventures

- Bharti Tele-Ventures (by acquiring a 63.45% equity interest in SC Cellular Holdings) acquired an effective 32.36% equity interest in Bharti Mobile (formerly JT Mobiles), the cellular services provider in Karnataka and Andhra Pradesh circles - New York Life Insurance Fund, or NYLIF, acquired a 3% equity interest in Bharti Cellular 2000 - Bharti Tele-Ventures acquired an effective equity interest of 40.5% in Bharti Mobinet (formerly Skycell Communications), the cellular services provider in Chennai - Bharti Tele-Ventures acquired a 30.2% equity interest of Telecom Italia in Bharti Telenet and 18.8% from Bharti Telecom thereby making Bharti Telenet a 100% subsidiary of Bharti Tele-Ventures - SingTel (through its investment company Pastel Limited) acquired STET's 15.3% equity interest in Bharti Tele-Ventures - Bharti Tele-Ventures acquired an additional effective 41.64% equity interest in Bharti Mobile (by acquiring the remaining 36.55% equity interest in SC Cellular) resulting in Bharti Tele-Ventures holding an effective 74% equity interest in Bharti Mobile. 2001 - Bharti Tele-Ventures acquired NYLIF's 3% equity interest in Bharti Cellular - Bharti Telesonic entered into a joint venture, Bharti Aquanet, with SingTel for establishing a submarine cable landing station at Chennai - Bharti Tele-Ventures issued additional equity for approximately US$ 481.30 million to SingTel, Warburg Pincus, AIF group, IFC, NYLIF, and Seejay Cellular and Bharti Telecom - Bharti Cellular acquired a 100% equity interest in Bharti Mobitel (formerly Spice Cell), the cellular services provider in Kolkata - Bharti Tele-Ventures acquired an additional 49% equity interest in Bharti Mobinet from Millicom International and BellSouth International, thereby owning 89.5% equity interest in Bharti Mobinet, which was further increased to 95.3% following an issuance of additional equity shares by way of rights issue - Bharti Cellular entered into license agreements to provide cellular services in eight new circles following the fourth operator cellular license bidding process - Bharti Telenet entered into license agreements to provide fixed-line services in the Haryana, Delhi, Tamil Nadu and Karnataka circles - Bharti Telesonic entered into a license agreement with the DoT to provide national long distance services across India - Bharti Aquanet, Bharti Telesonic and Bharti Cellular entered into license agreements with the DoT to provide ISP services in India - Bharti Telesonic launched national long distance services under the brand name of "IndiaOne" - Bharti Telenet launched fixed line services in Haryana under the brand name of "TouchTel". 2002 - Comes out with issue of 18.53 crore equity shares through book building route with a floor price of Rs 45 per share, received bid for 18.55 crore shares. Through

the issue, it becomes the first company in India to come out with 100% book building issue -Shares listed on BSE, NSE and DSE, opens at 11% premium to its issue price of Rs 45 -Enters into a 5-year agreement with Escotel and ETL of the Escorts group to contract leased line connectivity for its cellular operations -DoT grants ILD Telephony License to Bharti Telesonic, subsidiary of the company -Signs MoU with Telia AB to buy out their 26% stake in Bharti Mobile -Ties up with SSC (Secondary School Certification) Board, Hyderabad, where Bharti will announce SSC results to its customers on their mobile phones -ICICI Bank ties up with Bharti for pre-paid mobile cards via ATMs -Bharti forays into Mumbai with offers -Sunil Mittal, Chairman & Managing Director of the company, bags Businessman of the year award by Business India 2003 -Airtel breaks interconnectivity with Tata Teleservices in Andhra Pradesh Circle -Company accorded its approval for amalgamation of its subsidiary companies viz: Bharti Telenet Ltd, Bharti Telesonic Ltd, Bharti Broadband Networks Ltd and Bharti Comtel Ltd through scheme of Amalgamation. The merged entity would be renamed as "Bharti Infotel Ltd" -Mobilises $315 m long term foreign currency borrowings for expansion of cellular operations -Bharti Group's cellular brand Airtel has unveiled free multimedia messaging services (MMS) for its customers. The company has also rolled out pan-India GPRS (General Packet Radio Services) for its corporate subscribers -Launches its `IndiaOne MeetXpress' audio-conferencing service -AirTel provides SMS facilities to hearing impaired in Chennai -Airtel provides SMS cricket updates -AirTel Subscribers exceed 3 million mark -Bharti TeleVentures announces the completion of merger with Bharti Mobitel -Bharti Mobitel Ltd. merged with Bharti Cellular Ltd. -AirTel rolls out voice mail service for pre-paid customers -Bharti announces new tariff plan AirTel 012, a new cellular package for the customers, which means zero charges on incoming calls, Re 1 on mobile-to-mobile outgoing calls, Rs 2 on mobile-to-mobile STD calls -AirTel offers bundled handset, connection package for Rs 5715 -Inks distribution pact with Hathway Cable, with this alliance, Bharti is said to be the first telecom firm to step into television distribution services -Airtel unveils IndiaOne Long Distance Calling Card -AirTel unveils new post-paid scheme at zero rental -Airtel emerges as the highest selling pre-paid card -Gets 14th place among top 25 Cos in India -Airtel holds top position in terms of dealer penetration -Airtel slashes out going sms price to 30ps - AirTel on December 16, 2003 announced the launch of expense tracker service, which provides customers the option of tracking their day-to-day expenses on a daily or monthly basis 2004

-AirTel enrolls 50,000 customers in its mobile service in 60 days -Airtel launches Rs 50 pre-paids recharge -AirTel launched a family pack for its post-paid customers in Chennai on January 29. -Bharti Tele-Ventures enters into a three year service agreement with Ericsson, awards a $15 million equipment contract. -Bharti Tele-Ventures (BTVL) has signed and received unified access service license to provide GSM services in five circles including Uttar Pradesh (East), West Bengal & Andaman Nicobar, Orissa, Bihar and Jammu & Kashmir. -Airtel announces the signing of the first-ever bilateral roaming agreement between an Indian mobile service provider and its counterpart in Pakistan. This facility will be available to pre-paid as well as post-paid customers. AirTel's roaming agreement is with Mobilink, the only GSM cellular service provider in Pakistan -Acquires switching systems from Tekelec that will give a technological edge to the company. -Bharti Tele-Ventures has struck a deal with Shyam Telecom to buy out the latter's 67.5 per cent stake in cellular services company Hexacom for Rs 430 crore. -Bharti Tele garners $100 m via FCCBs - Samsung India Electronics Limited has tied up with cellular operator Bharti for bundling its mobile handsets with a connection. -The Bharti group finalised a Rs 500-crore deal to share its national long-distance (STD) network with VSNL in a first-of-its-kind accord between two top telecom service providers in a bid to optimise capacities in the NLD segment. -Airtel offers talktime transfer service -Airtel has announced money-back guarantee offer in case of call drop or poor network experience for its subscribers -India's leading cellular company Bharti Tele-Ventures has bagged the "Asian MobileNews operator of the year" award in India and the subcontinent -Bharti Televentures unveiled a mobile portal featuring sports, entertainment and news among others -Airtel ties up with Micro Tech to set up 'Mcops' vehicle security system -Bharti Tele-Venture on July 19 launched ring back tone service which is a personalized mobile music service where the caller hears songs and other sound clips instead of the traditional switchboard "ring-ring" tone -Airtel, a private telecom services provider, has commissioned its first 24x7 customer service centre in Andhra Pradesh -AirTel join hands with NMIMS to offer executive MBA programme - Rolls out Enhanced Data Rate for Global Evolution (EDGE) network in Pune on September 9, 2004, followed by Bangalore -Airtel rolls out Full Talktime Advantage card -Airtel rolls out wi-fi services in Mumbai -Airtel launches GPRS services for pre-paid customers -Airtel launches EDGE services and a new pre-paid plan for Chennai 2005 -Airtel launches video services for its GPRS customers on February 22, 2005 -Airtel unveils new TV ad featuring Sachin, Sharukh -Bharti Tele-Ventures launches telecom network in Andaman & Nicobar

-BTVL unveil fixed line, broadband services -Bharti inks $125-m deal with Nokia for rural network expansion -Bharti Tele Ventures Ltd has announced that Airtel, ICICI Bank & VISA have joined hands to launch mChq - a revolutionary new service - a credit card on the mobile phone -Bharti Tele Ventures - Airtel introduces BlackBerry Connect in India -Bharti Tele Ventures announces agreement with Vodafone -Bharti Tele-Ventures launches undersea cable system 2006 -Airtel unveils Re 1 STD plans -Airtel launches Post2Pre recharging service on April 04, 2006. -Airtel sets up customer centre -Mobile service provider Airtel today announced the launch of `Save My Phone Contact' service for its pre-paid and post-paid customers in Delhi -Bharti Tele Ventures bags 'Wireless Service Provider of the Year' & 'Competitive Service Provider of the Year' awards -Sunil Mittal bags CEO of the Year award -Bharti Airtel Ltd has informed that Microsoft and the Company announced a strategic partnership that will offer a range of software and services for small and medium businesses (SMBs) in India. -Bharti Airtel Ltd on Nov 8, announced a first-of-its-kind alliance with the Adani Group for establishing an end-to-end modern telecommunication network infrastructure for the latter's multi-sector special economic zone (SEZ), located near Mundra Port in Kutch district of Gujarat. 2007 -Bharti Airtel, telecom major, has come out with a slew of initiatives including buying out SingTel's 50 per cent stake in joint venture undersea cable company Network i2i for $110 million. -Bharti Airtel on Feb 11, has been awarded QCI-DL Shah National Award on Economics of Quality. -Bharti Airtel Ltd on April 01, 2007, has announced the reduction in International Long Distance Tariffs (ISD) for all its mobile customers in India. -Airtel signs agreement with HTC for touch screen mobile. 2008 - Nokia Siemens Networks on Jan 3 declared that it has been awarded a multi million euro contract from Bharti Airtel Ltd for deployment of a single interactive voice response (IVR) platform across 23 circles. The three-year turnkey contract comprises designing, planning, systems integration and optimisation services to raise overall customer experience. The new IVR solution will enable Airtel to deliver services such as voice SMS, televoting, call management services, caller ring back tone and voice portal on a faster time-to-market basis and, therefore, reduce OPEX costs. - Bharti Airtel Ltd on February 13, 2008 has announced that it has achieved the 60 million customer mark. This landmark has catapulted Bharti Airtel into the club of top mobile operators in the world in terms of subscriber base - Bharti Airtel tied up with US-based Apple Inc to bring the popular GSM-based iPhone in the country.

- Bharti Airtel Ltd has forged a technology alliance with Infosys Technologies Ltd to launch its Direct-to-Home (DTH) television services. Infosys, through its digital convergence platform, will offer a suite of products including devices, application servers and interactive applications for Airtel's DTH services. 2009 - Bharti Airtel signed a five-year managed services deal valued at $500 million with Alcatel Lucent for its fixed-line and broadband operations. - Bharti Airtel launched the 'Airtel Advantage' initiative. The initiative is aimed at offering the added advantage to Airtel customers to be in touch with each other at an affordable rate of 50 paise per minute, be it a national long distance call (STD) or a local call.

SWOT Analysis
Strengths
1. Bharti Airtel has more than 65 million customers (July 2008). It is the largest cellular provider in India, and also supplies broadband and telephone services - as well as many other telecommunications services to both domestic and corporate customers. 2. Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with whom they hold a strategic alliance. This means that the business has access to knowledge and technology from other parts of the telecommunications world. 3. The company has covered the entire Indian nation with its network. This has underpinned its large and rising customer base. Weaknesses 1. An often cited original weakness is that when the business was started by Sunil Bharti Mittal over 15 years ago, the business has little knowledge and experience of how a cellular telephone system actually worked. So the startup business had to outsource to industry experts in the field. 2. Until recently Airtel did not own its own towers, which was a particular strength of some of its competitors such as Hutchison Essar. Towers are important if your company wishes to provide wide coverage nationally. 3. The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal the lack of any real emerging market investment opportunity for the business once the Indian market has become mature. Opportunities 1. The company possesses a customized version of the Google search engine which will enhance broadband services to customers. The tie-up with Google can only enhance the Airtel brand, and also provides advertising opportunities in Indian for Google. 2. Global telecommunications and new technology brands see Airtel as a key strategic player in the Indian market. The new iPhone will be launched in India via an Airtel distributorship. Another strategic partnership is held with BlackBerry Wireless Solutions. 3. Despite being forced to outsource much of its technical operations in the early days, this allowed Airtel to work from its own blank sheet of paper, and to question industry approaches and practices - for example replacing the Revenue-Per-Customer model with a Revenue-Per-Minute model which is

better suited to India, as the company moved into small and remote villages and towns. 4. The company is investing in its operation in 120,000 to 160,000 small villages every year. It sees that less well-off consumers may only be able to afford a few tens of Rupees per call, and also so that the business benefits are scalable - using its 'Matchbox' strategy. 5. Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to create a new independent tower company called Indus Towers. This new business will control more than 60% of India's network towers. IPTV is another potential new service that could underpin the company's longterm strategy. Threats 1. Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a 5.6% stake in the Airtel business sold it back to Airtel, and instead invested in its rival Hutchison Essar. Knowledge and technology previously available to Airtel now moves into the hands of one of its competitors. 2. The quickly changing pace of the global telecommunications industry could tempt Airtel to go along the acquisition trail which may make it vulnerable if the world goes into recession. Perhaps this was an impact upon the decision not to proceed with talks about the potential purchase of South Africa's MTN in May 2008. This opened the door for talks between Reliance Communication's Anil Ambani and MTN, allowing a competing Indian industrialist to invest in the new emerging African telecommunications market. 3. Bharti Airtel could also be the target for the takeover vision of other global telecommunications players that wish to move into the Indian market. Airtel comes to you from Bharti Airtel Limited, India's largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles.

BCG MATRIX

BCG Matrix is used to find out the relative growth prospects of the product line. Within the Airtel product line leased, private, circuit are among star. Airtel is going to have a submarine cable between Singapore and Chennai with the collaboration of Singtel. This will help to Airtel to maintain its position in IPLC market. Right now in India, only VSNL have such cables.

Marketing Strategy
STP Analysis
Segmentation On the basis of Geography -divided Indian market in telecom circles. -Subdivided States into category A, B and C.

Targeting Earlier elite class above age group of 25 years. Corporate people and business men. Again targeted youth by introducing YOUTOPIA plan. Targeted women and senior citizens by introducing post paid plans. Positioning Tagline - Power to Keep in Touch. Positioned in premium category aimed at elite class of society. Perception of aspirational and lifestyle brand. Airtel decided that the brand should always connote leadership - be it in network, innovations, offerings or services Sponsored games like Golf.

Repositioning Tagline- Touch Tomorrow. Started to capturing mass market.

New look and the feel of the brand logo indicated the core values of the brand i.e. leadership, performance and dynamism.

Tagline- Live Every Moment. Brand Ambassador Sachin Tendulkar Shahrukh Khan Kareena Kapoor.

The advertisement which changed the whole look of Airtel in the minds of Indian consumers was full with emotions and reactions, which one will experience in a lifetime.

Tagline- Express Yourself.

Changed its logo to give more energetic and younger look. Advertisements in regional languages with emotional touch. Advertisements were made to highlight the capability of Airtel's network coverage. In 2002, Airtel signed on music composer A. R Rehman and changed its tune to Live every moment. Used 360 degree marketing. e.g. organized Airtel Scholar Hunt with NDTV.

First Mover Advantage Electronic recharge Hello tunes Airtel Live! Portfolio manager Song catcher

Easy music Black berry handsets M-cheques

Rural Strategies

Airtel follows Match-box strategy The firm expands regularly in Bihar, piggybacking on 300 distributors and more than 50,000 retail outlets selling Airtel prepaid cards Covers over 4,00,000 villages and hopes to expand to other 1,00,000 by 2009

Integrated Management Communication(IMC) Tools Advertisements Sales promotion Publicity and events

Airtel Advertisements Airtel basically uses two appeal to connect to the users Emotional Humorous Total advertising budget of Airtel is Rs. 150 crore

Internet Advertising Massive advertising through Google AdSense BidVertisers Sponsor online games at Zapak.com Sales Promotion Friendz pre-paid plan Ladies special plan Senior citizen plan

YOUTOPIA
Special tariff plan for youth- Youtopia Reduced tariffs, access to cell phones 14-19 years of age Expand customer base (limited to the older age groups till now) Deviation from earlier positioning for older people symbolizing dignity and power

Re 0.25 for 30 seconds- night!, special bidding portal, music download facilities, SMS at affordable prices

Publicity and Events Sponsored events Delhi half marathon Delhi golf tournament Sponsored TV shows Big Boss KBC Indian Idol

Corporate Governance
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 maximizing 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. During the financial year 2003-04, the Company was assigned highest Governance and Value Creation (GVC) rating viz. Level 1 rating by CRISIL, which indicates that the companys capability with respect to creating wealth for all its stakeholders is the highest, while adopting sound Corporate Governance practices. This rating was re-affirmed by CRISIL on April 20, 2006.

Corporate Responsibility at Bharti Airtel

Overview
At Bharti, CSR is a way of life. Each department and employee strives to be sensitive to the stakeholders and environment within their work context. Bharti encourages employees to take decisions and design business-linked processes that are sensitive to communities and environment. Corporate Social Responsibility (CSR) in Bharti encompasses much more than only 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 in the Corporate Values, which stem from its deepest held beliefs. These Values are:

To To To To

be responsive to the needs of their customers. trust and respect their employees. continuously improve their services innovatively and expeditiously. be transparent and sensitive in their dealings with all stakeholders.

They encourage their employees to take decisions and design business processes, keeping in mind the following: Ethics, fairness and being correct. Meeting and going beyond compliances and legal requirements. Showing respect and sensitivity towards stakeholders and communities. Nurturing the environment. They practice their CSR beliefs and commitments through a three-pronged approach: Engaging with stakeholders. Ensuring stakeholder sensitive policies and practices . Undertaking programs for their employees, community and environment. Bharti Airtel sensitizes its employees towards CSR issues at various forums. They feel that it is 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 noisemaking DG sets at extra cost, investing in consumer awareness campaigns to ensure safe use of mobile are some examples of the above.

Employees at Airtel
Bharti Airtel believes that one of the most important drivers of growth and success for any organization is its people. At Bharti Airtel, the Mantra for employee delight focuses on 5 Ps People, Pride, Passion, Processes and Performance. Bharti Airtel has been recognized among the Best Employers in the Country for two successive years being 14th in 2003 & jumping ahead of several other large conglomerates to an enviable position of the 2nd Best Employer in the Country in 2004. This is a clear demonstration & acknowledgement of the robust, progressive, people as well as business aligned Human Resource practices, which the organization has developed and implemented remarkably in a very short span of time. Bharti Airtel follows an open door policy to approach the management, which helps resolve issues with mutual agreements. They encourage people to stand up against any unfair treatment for which they have the Office of the Ombudsman, where employees can raise any issues regarding business and workplace conduct. Bharti ensures transparency through the various communication policies, strategies and plans. Regular Employee Communication Forums provides a platform for the employees to raise issues that require resolution. Bharti Airtels leaders strongly believe in facilitating and initiating activities that help employees manage their health and well-being. Their focus always remains to redefine leadership; develop leaders who enable performance and inspire their people to unleash their potential. Their people orientation reflects in their vision of being targeted by top talent, and a key aspect of our business focus building a best-in-class leadership team that nurtures talent at every level. Employee friendly HR policies have been put in place, which amply reflect the organizations concern for its people. Some typical examples of these policies and practices include a family day at office, half day leave for birthdays, gifts for anniversaries, compulsory 10 days off, festival celebration with family, no official meetings on weekends, five day weeks, concierge services, call center engagement programs etc. These care policies and practices are applied across the organizational levels without any discrimination.

From self-management workshops to aerobics sessions, yoga classes to provision of relaxation/meditation rooms, they ensure that every employee keeps a check on his/her fitness. Tie-ups with leading health service organizations enable their employees to undertake periodical health checkups depending upon their age. This facility is also extended to employee family members at discounted rates. The company provides Flexible Group Mediclaim insurance to all employees, covering all kinds of illnesses, accidents and hospital coverage for serious ailments. Apart from these specific engagements, they regularly organize health check up camps, eye check-up camps and stress management sessions. Some of their offices have opened gymnasiums/fitness facilities to ensure that the fitness fanatics do not have to worry about time constraints to remain fit. At many of their locations, they have hired psychologists who undertake personal counseling sessions for employees.

Environment, Health and Safety

At Bharti, there is a belief in the philosophy to refuse, reduce, reuse and recycle. The company has taken many initiatives in this regard, both within the offices for the benefit of their employees; and for outside world for the convenience of the people Few examples of the initiatives taken are mentioned below: (a) Most of the new Airtel buildings recycle waste water for sanitary and cooling of equipment purposes e.g. DG sets and AC systems. These buildings also have rain water harvesting systems for ground water replenishment where appropriate. (b) All Airtel offices have energy efficient light fittings and DG sets. They also ensure automation that enables energy savings in their buildings. Building Management System (BMS) Intelligent Building concept is being followed in all the new Airtel building and campuses that are coming up. The BMS controls The Heating, Ventilation and Air conditioning (HVAC) system,, electricity load management, water management, parking management, security and safety systems to ensure an efficiently run building on optimal resources. (c) New buildings also incorporate the concept of and Energy Wheel which optimizes energy efficiency in buildings. The AC system in their buildings adds a certain amount of fresh air periodically; In the process of adding this fresh air the cool air within the building vents out which may result into higher usage of energy to bring the cooling/ temperature back. The Energy

Wheel concept ensures that as we bring the fresh air in it is pre-cooled thereby optimizing energy efficiency. (d) Air quality is checked periodically in all Bharti Airtel offices, and based on the results, duct cleaning, carpet cleaning, chair and sofa shampooing is undertaken. Water quality is also monitored in cooling towers for DG sets and Air Conditioner systems so that water born diseases such as legionella, etc. are avoided. (e) Use of air curtains on major office exits and double glazing also results in significant energy saving. (f) At the time of oil change in DG sets etc, the discarded oil for disposal is only sent to companies/ vendors approved by the Central Pollution Control Board (CPCB) for proper disposal as per CPCB approved processes. All Bharti Airtel offices follow the basic requirements specified by the Pollution Control Board) and ensure statutory compliance. (g) All Bharti Airtel offices have fire alarm systems. Periodic fire drills are carried out in Bharti Airtel offices as a practice. All Airtel offices are provided with First Aid boxes and have identified people as First Aid specialists. Bharti Airtel takes all its equipment from its key vendors, namely Nokia and Ericsson, who comply with all the required health and safety norms. There is an induction manual for sub-contractors to ensure that they follow all the safety and statutory compliances as well as Bharti Standard Operating Procedures. Bharti Airtel is in the process of finalizing its Environment/ Health & Safety Policy (EHS) and will apply for ISO 14001 compliance within the next 3 years for each of its facilities.

Community Initiatives
Corporate Social Responsibility is embedded in, and built upon, the stated values of Bharti the institution. These values guide all their activities and each employee is encouraged to take decisions and design business-linked processes that are sensitive to communities and environment. We have an obligation to fulfill to society and the communities in which we operate, and help improve the quality of life for everyone, today and in the future.

Based on the basic guidelines and direction provided in the Code of Conduct, Bharti has undertaken many community programs. Bhartis contribution to society is structured through two channels, namely, (a) Bhartis Corporate Social Responsibility (CSR) Initiatives, including initiatives undertaken by way of employee mobilization as well as running environment related programs; and (b) Bharti Foundation, a separate vehicle established in 2000 to lead the CSR agenda of Bharti Group of Companies CSR Initiatives @ Bharti Airtel Bharti Airtel has a nation-wide presence that has grown at an exponential rate in the recent years. Each local office undertakes special programs for the local community, thereby reaching out to people. Many projects like material collection drive and blood donation camps are organized for the welfare of the underprivileged community. Bharti constantly searches for new, innovative ways of reducing the consumption of resources, with the aim of leaving a better and greener earth for future generations.

Response to Disaster:Bharti Airtels response to Tsunami Disaster: Bharti Airtel undertook the following initiatives for immediate relief and rehabilitation to Tsunami victims:
Built a mobile network in Andaman & Nicobar Islands in less than 3 months

to aid rapid rehabilitation of the island contributions from employees.

Donated Rs. 1 Crore to the Prime Ministers Relief Fund, in addition to Created 29 Airtel Crisis Communications centres in Tamil Nadu. Raised resources for Tsunami victims by initiatives such as a Benefit

Cricket Match.

Employees of Bharti Airtel also contributed through a Donation Collection Drive, with a difference. All employees were not only given the freedom to choose the amount they wished to donate, but also the agency they wished to donate to. One of the most memorable actions was the heroic way in which a Bharti employee reestablished connections after Tsunami hit Tamil Nadu. After being washed away by the wave, this employee went back to work on restoring connectivity for the struck region. Word of his dedication spread

within Bharti and he received tremendous response from his fellow Bhartians. Over 80 emails were addressed to him and presented to him in recognition. Bharti Airtels response to Assam, Bihar and West Bengal floods: Bharti Airtel also partnered with an NGO to provide relief to the flood victims in the flood hit areas of Assam, Bihar and West Bengal. A Material Collection Drive was undertaken across Bharti offices, for collection of material such as clothes, utensils, footwear, blankets, dry ration and monetary donations. 55 cartons of clothes and 65 kilos of ration were dispatched, in addition to monetary contributions. Bharti Airtel during Mumbai Floods: Bharti Airtel employees climbed up the towers to restore the networks so that their customers could conveniently reach its employees. Bharti Airtels response to Kashmir earthquake: Bharti Airtels Rapid Response Team responded to the Kashmir earthquake by bringing more than 2000 food packets and water bottles to the affected area. Money, clothes, woolens and blankets were also collected from employees to distribute among earthquake victims.

Other initiatives of Bharti Airtel

Bharti Airtel employees have undertaken varied initiatives to reach out to the local community. Some of such initiatives are listed below:Airtel Ashiana for underprivileged children at the Mohali office of Airtel. BIL North tied up with an NGO to distribute daily surplus food to needy children. Airtel Experience Centre by Access MP for the benefit of the benefit of visually impaired people as well as people from deprived section of society. Mobile Services Jammu & Kashmir donated free medicines, stationery, clothes and other utility items at the Missionaries of Charity Home for Destitutes. Mobile Services MP & CG supported the WalkaThon to create awareness about diabetes on World Diabetes Day, organized by the Indian Medical Association. Airtel Maharashtra & Goa team visited the Thalassemia Ward of Sassoor Hospital to interact with children as well as the families affected. Airtel Kerala team visited an old age home and shared a day full of fun with the members of the home.

A tree plantation drive was carried out by Access-NCR, Access-North and Access-UP West Circles, where in free tree saplings were planted. Airtel Madhya Pradesh & Chhatisgarh planted trees on its fourth Circle Inception Day In Tamil Nadu, Airtel has adopted a corporation park in Chennai city. Mobile Services Rajasthan supported the Red Ribbon Caravan initiative of the Rajasthan State AIDS Control Society, to spread awareness about HIV/ AIDS. During the month-long campaign a caravan of five vans covered 32 districts of Rajasthan, to spread the awareness of HIV/ AIDS. Airtel Delhi organized a Blood Donation Camp in association with Indian Red Cross Society

Bharti Foundation
Although CSR is executed at all levels in the organization, the Promoters of Bharti Enterprises established Bharti Foundation in 2000 with a vision, To help underprivileged children and youth of our country realize their potential. Bharti Foundations mission is to create and support programs that bring about sustainable changes through education, use of technology and information and best practice sharing. Bharti Foundation has established itself the goals of improving accessibility and quality of education at the school level for underprivileged children, and to provide education and training opportunities to youth.

Financial Highlights
BHARTI AIRTEL PERFORMANCE AT A GLANCE

Consolidated Summarized Statement of Operations

Consolidated Summarized Balance Sheet

Awards and Recognition

Bharti Airtel has received recognition for its innovative practices across the world, some are as follows:
3rd Largest Wireless Operator In The World Largest Private Integrated Telecom Company In India Largest Wireless Operator In India Largest Private Fixed Line Operator In India Largest Telecom Company Listed On Indian Stock Exchanges Sunil Bharti Mittal - Gsm Association Chairmans Award 2008 Sunil Bharti Mittal - Chosen For Padma Bhushan Awards In 2007 Airtel was Chosen As The 2nd Most Trusted Service Brand In India In The Most Trusted Brands 2008 Survey Conducted By The Economic Times - Brand Equity Awarded With Top Honors At The Gsma Mobile World Congress Conference 2008 In Barcelona For The Category Best Billing/ Customer Care Solution. Adjudged As The Best Carrier India At The Telecom Asia Award 2008 Adjudged As Company Of The Year At The Cnbc India Business Leader Awards 2007 Economic Times Company Of The Year 2007 Award For Corporate Excellence
Gallup Great Workplace Award For 2008 -Airtel is one of the only 20

companies worldwide and the only company from India to receive the prestigious award. The other winners include companies like Standard Chartered, Qwest Communications and Campbell Soup Company etc. Airtel is one of the only 20 companies worldwide and the only company from India where Organization engagement score is higher in more than 50% of the population.

Subscriber Base
The Airtel subscriber base according to COAI - Cellular Operator Association of India as of November 2008 was:
hennai - 2,011,299 C Delhi - 4,418,296 Mumbai - 2,718,885 Kolkata - 2,178,061 Gujarat - 3,690,661 Andhra Pradesh - 8,094,328 Karnataka - 8,995,538 Tamil Nadu - 5,392,458 Kerala - 2,013,424 Punjab - 3,554,406 Haryana - 1,170,378 Uttar Pradesh (West) - 2,071,723 Uttar Pradesh (East) - 5,124,948 Rajasthan - 6,032,480 Madhya Pradesh - 4,040,871 West Bengal & Andaman and Nicobar - 3,004,647 Himachal Pradesh - 887,594 Bihar - 6,419,357 Orissa - 2,496,123 Assam - 1,241,186 North Eastern States - 766,763 Jammu & Kashmir - 1,391,606 The total is 78,908,993 connections in India till November 2008. In 2009 Airtel was launched in Sri Lanka also.

Conclusion
The company analysis has outlined a scenario of the Bharti Airtel. i.e, current scenario, future perspective, business development, retention of customers, Hr policies, study of different financial reports to know and understand the stand of the company

Bharti Airtel speedy activity is one of its best attributes that has made it gain an international status across the world. It is always updated with the latest data and is highly competent. Quality remains the prime concern and is maintained strictly by the team.

With such achievements, Bharti Airtel is still ruling the Indian telecom Industry and is aiming high to gain popularity and success around the world in brand building by making new discoveries every day.

Based on the above, observations can be made that it promises unprecedented and efficient control over the market.

From the analysis on the reports the conclusions drawn were, there was a continuous increase in the share capital, Differed tax liability, unsecured loans, Stock options.

The profits are transferred into reserves in surplus The company has invested the funds in fixed assets.

The cost of sale of goods is been reduced by company with other expenditures but the sale of goods has been reduced. The profit is been increased due to the service revenue but not by the sale of goods.

Bibliography
Internet
www.airtel.in www.coai.in www.dot.gov.in www.telecommagazine.com/ www.hindustantimes.com

Magazines
Survey of Indian Industry -2004 Survey of Indian Industry -2007 Survey of Indian Industry -2008

News papers
The Hindu The Times of India