Airtel towards glory

8/14/2019 Airtel towards glory

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AIRTEL TOWARDS GLORY

1. Executive Summary 2

2. Introduction of Telecom Industry 3-4

3. Objective and methodology 5

4. Revenue and growth of Telecom Industry 6-7

5. Company profile of Airtel 8-10

6. Company History 11-14

7. SWOT Analysis 15-17

8. BCG Matrix 18

9. Strategies Adopted By Airtel 19-21

10. Recommendations 22

11. Analysis of Balance sheet and P&L 23-34

12. Revenue graph of Airtel 35-36

13. Conclusion 37

14. Bibliography 38-39

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Table of contents


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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 subscribers base and revenue.

The outcomes of these models are properly analyzed to find out the various aspects like

companies position and competitors position in the market.

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 to find the answer that why company is

looking for overseas market like Srilanka and South Africa.

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Executive Summar


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The total number oftelephones 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.

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http://en.wikipedia.org/wiki/Telephoneshttp://en.wikipedia.org/wiki/Telephones


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Objective:-

Airtel has to gear itself to meet competition in various segments-Basic services, long distance,

International Long Distance and Internet Service Provision. It has forayed into mobile service

provision as well.

1:-What are strategies that Airtel is implementing to defend and increase the market share and

revenue and profit

2:- To find out new opportunity for Airtel.

3:- To study the global deal of Airtel and wholesale services for global telecom companies.

4:- To analyze the sales progress of Airtel

Methodology to be applied:-

1. Yearly indusrtry report of last three year.

2. Various print media report and findings

3. Various economic research reports

4. Survey and interview with company people

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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. More than a billion people use the internet globally.

Under the Bharat Nirman Programme, the Government of India will ensure that 66,822

revenue villages in the country, which have not yet been provided with a Village Public

Telephone (VPT), will be connected. However doubts have been raised about what it would

mean for the poor in the country.

It is difficult to ascertain fully the employment potential of the telecom sector but the enormity

of the opportunities can be gauged from the fact that there were 3.7 million Public Call Offices

in December 2005 up from 2.3 million in December 2004.

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 Reliancewith 20.3%, BSNL with 18.6%, Vodafone with 14.7% subscriber base

(as per June 2005 data).

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http://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/w/index.php?title=Bharat_Nirman_Programme&action=edit&redlink=1http://en.wikipedia.org/wiki/Airtelhttp://en.wikipedia.org/wiki/Reliancehttp://en.wikipedia.org/wiki/Reliancehttp://en.wikipedia.org/wiki/BSNLhttp://en.wikipedia.org/wiki/Vodafonehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/Broadbandhttp://en.wikipedia.org/w/index.php?title=Bharat_Nirman_Programme&action=edit&redlink=1http://en.wikipedia.org/wiki/Airtelhttp://en.wikipedia.org/wiki/Reliancehttp://en.wikipedia.org/wiki/BSNLhttp://en.wikipedia.org/wiki/Vodafone


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Following list shows the GSM subscriber figure till Jan 2009

1 Bharti Airtel -------------------88382758--------------------- 33.04%

2 Vodafone Essar---------------- 63340024 ----------------------23.68%

3 BSNL---------------------------- 42673357 ---------------------15.95%

4 IDEA ---------------------------40016153 ----------------------14.96%

5 Aircel--------------------------- 16761397---------------------- 6.27%

6 Reliance Telecom --------------10353841--------------------- 3.87%

8 MTNL--------------------------- 4003807 ------------------------1.50%

9 BPL------------------------------ 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 cellularandBSNL/MTNL. There are many smaller players, with operations in

only a few state

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http://en.wikipedia.org/wiki/Bharti_Airtelhttp://en.wikipedia.org/wiki/Vodafone_Essarhttp://en.wikipedia.org/wiki/BSNLhttp://en.wikipedia.org/wiki/Reliance_Communicationshttp://en.wikipedia.org/wiki/MTNLhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/Airtelhttp://en.wikipedia.org/wiki/Airtelhttp://en.wikipedia.org/wiki/Reliance_Infocommhttp://en.wikipedia.org/wiki/Vodafonehttp://en.wikipedia.org/wiki/Idea_cellularhttp://en.wikipedia.org/wiki/Idea_cellularhttp://en.wikipedia.org/wiki/Idea_cellularhttp://en.wikipedia.org/wiki/BSNLhttp://en.wikipedia.org/wiki/BSNLhttp://en.wikipedia.org/wiki/MTNLhttp://en.wikipedia.org/wiki/MTNLhttp://en.wikipedia.org/wiki/Bharti_Airtelhttp://en.wikipedia.org/wiki/Vodafone_Essarhttp://en.wikipedia.org/wiki/BSNLhttp://en.wikipedia.org/wiki/Reliance_Communicationshttp://en.wikipedia.org/wiki/MTNLhttp://en.wikipedia.org/wiki/GSMhttp://en.wikipedia.org/wiki/Airtelhttp://en.wikipedia.org/wiki/Reliance_Infocommhttp://en.wikipedia.org/wiki/Vodafonehttp://en.wikipedia.org/wiki/Idea_cellularhttp://en.wikipedia.org/wiki/BSNLhttp://en.wikipedia.org/wiki/MTNL


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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.

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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 94 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 believe and adopt 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 it self and its also want to cover

other remain state .

4. 2nd most trusted service brand in India by ET survey- when ET did survey at that

time they found that its a most trusted brand of India .After BSNL people trust at Airtel

Services.

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5. Mr. Mittal awarded by Padama Bhashan 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

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Company history:-

Each year of Airtels existence has been marked by historic and far reaching milestones

including many firsts, all to which have been stepping stones to their success and performance.

A brief history of the Companys major events is:

1995-96

Mobile services under the brand name Airtel launched for the first time in Delhi and

Himachal Pradesh

1997-1998

The first private telecom service provider to obtain a license fro landline telephony in Madhya

Pradesh

Incorporation of Bharti BT VSAT Ltd. For providing VSAT solutions across India and Bharti

BT Internet Ltd.

1999-2000

The larges private sector telecom operator in India after acquiring JT Mobile for providing

cellular services in Punjab, Karnataka and Andhra Pradesh

Acquires Skycell, Chennai and expands its south Indian foot print Singapore

Telecommunications Ltd. (Sing Tel) acquires Telecom Italias equity stake in the Company.

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2001-2002

India One, Indias first private sector national and international long distance service launched.

Eastern foray through acquisition and new licenses for eight new circles across India.

Indias first private submarine cable landing station in a joint venture with Singtel.

Initial Public offering through Indias first 100% book-building issue.

First private operator to offer basic telephone services in Haryana Delhi Tamil Nadu and

Karnataka

2003-2004

Join the US $1 billion revenue club

Strategic partnerships with IBM and Ericsson for outsourcing of the companys core IT and

network activities.

Acquires a controlling stake in Hexacom, the leading mobile operator in Rajasthan and holding

a license to offer services in the NorthEast.

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First private operator to launch mobile services in Jammu and Kashmir.

Founding member of the Bridge Mobile Alliance, a consortium of seven leading mobile

operators in the region.

2005-2006

All-India foot print with the launch of mobile services in Assam.

Becomes Indias largest intergrated private operator based on the total customer base

2006-2008

Profit crosses US $ billion.

Receives license for providing 2G and 3G mobile services in Srilanka

Launch of Airtel CallHome service, a calling card service for various countries aimed at the

Indian diaspora.

Strategic partnership with Google, enabling search through mobile phones.

Strategic tie-up with Microsoft and becomes the first telecom operator to offer Microsoft

Windows Mobile 5.0 technology.

Facility Based operator license in Singapore, enabling the company to operate international

carrier facilities from Singapore.

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Joins international consortia of leading telecom companies to build 3 high bandwidth

submarine cables AAG, I-ME-WE AND Unity.

Receives US $ 1.275 billion investment from leading international investors in Bharti Infratel,

a subsidiary established with the aim to provide passive infrastructure services to all mobile

services operators in India

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SWOT AnalysisStrengths

1. Bharti Airtelhas 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 start-up 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.

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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.

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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 long-term 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 Inidan 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. Bharti Airtel since its

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inception has been at the forefront of technology and has steered the course of the telecom

sector in the country with its world class products and services. The businesses at Bharti Airtel

have been structured into three individual strategic business units (SBU's) - Mobile Services,

Airtel Telemedia Services & Enterprise Services.

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.

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LEASEDPRIVATE

CIRCUIT

ISP

CELLULAR SERVICE

BASIC TELEPHONE

(Fixed Line)

STARS QUESTIONMARKS

COWS DDDDDDOGS

HIGH

LOW

LOW

GROWTH %


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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

in India only VSNL have such cables.

Strategies adopted by Airtel

Strong network coverage area

Airtel with its network has covered almost each and every part of country,

increasing the mobility and trust in brand. It has wide and extensive presence in the

remotest of areas.

Advertisements

Airtel has been constantly involved in various advertisement campaign to attract

consumers.

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Many famous celebrities have the brand like Shahrukh khan, Aisi Azadi Aur Kahan,

Sachin Tendulkar and A.R Rehman who composed the signature tune of airtel ,

which was well appreciated by the customers.

Mission of Airtel

Mission of the company very well states that it caters to meet the need of its

customers byproviding error free service delivery, innovative products and cost

efficiency.

Vision of Airtel

To be the most admired brand by 2010

Value Added Services

Airtel provides various value added services like instant balance enquiry, 24 hr

recharge facility, caller line identification, call divert, call hold, Airtel Live Portal,

Hello Tunes & ring tones, Voice mail service, GPRS.

Schemes

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Airtel has been promoting various schemes to attract various segments consumers

by launching various plans, which offer discounts and reduced rates .

Pricing

The pricing strategy of airtel is customer based, there are various tarrif plans being

introduced to cater to flexible pricing requirements

Airtel's strategy for getting into new areas

The company is focusing its attention towards youth, women, senior citizens by

introducing new prepaid and post paid plans which offer lower call rates and more

value added services with affordable payment plans.

Companys Friendz prepaid plan is focused on younger generation the two post

paid plans among which by name Ladies Special are meant for women would

allow more women to talk for longer hours as there are some attractive discounts

being given and the next for senior citizens by name Senior, discount will be

allowed for one STD no and one Airtel local no.

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Recommendations-

There are following suggestions for marketing strategies for airtel-

1. Bharti Airtel needed to maximize its future flexibility and growth potential

by adopting a business-driven framework for integration, allowing it to

implement and deliver new services rapidly. With competition intensifying in

the Indian telecom services market, Bharti Airtel needed to find a way to focus

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on developing new services that could set it apart from the competition and

strengthen its customer relationships.

2. Improved cross-selling and targeting and a more seamless, efficient total

customer experience through end-to-end integration of customer-facing

processes.

3. Optimization of business processes and infrastructure, through flexible,

standardized integration framework, is needed.

4. Outsourcing of technology will provide Bharti Airtel to focus resources on

growing the business.

5. Flexible pricing model will enable Bharti Airtel to avoid major increases in

capital expenditures.

6. Better networkservices would be giving competitive benefit to the Bharti

Airtel.

Analysis On B/S And P&L

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Data interpretation

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From the above balance sheet of 2006 & 2007 the major changes were found in the

Particulars Values for

2006

Values for

2007

Difference (Increase

/Decrease)

Percentage of

change

Fixed assets 193056341 130068771 62987570 Increase 48.426

Current

assets

29542935 44454766 14911831 Increase 50.475

Current

Liabilities66991634 98446711 31455077 Increase 46.953

Net current

assets

37448699 53991945 16543246 Increase 24.694

Investments 7196981 7058179 138802 Decrease 1.928

Share capital 18938793 18959342 20549 Decrease 0.1085

Secured

loans

28633707 26644752596923

2Increase 90.69462

Inventory 177444 478145 300701 Decrease 169.462

Cash & Bank

Balances

3074285 7804605 4730320 Decrease 153.867

o The changes in the fixed assets were due to the capital work in progress it includes

Capital advances of 2, 00,443 and the other reasons are fluctuations of foreign

exchange rates, Buying computers.

o The investments are done in the different areas like Government securities, Mutual

funds and Debentures.

o The changes in current assets were due to the Debit outstanding for period exceeds six

months, Advances and loans given to subsidiary companies like Bharti comtel, Airtel

(USA), Bharti Hexacom, Bharti Broadband Ltd.

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o The changes in current liabilities are due to the outstanding due of small scale industries

undertakings, Advance received form customers is decreased and Advance Billing.

o The change in the share capital is due to

a) 1,516,390,970 Equity Shares issued as fully paid up bonus shares out of Share

premium account.

b) 20,088,445 Equity Shares are allotted as fully paid up upon the conversion of OCRD

without payment being received in cash.

c) 19,591,420 Equity shares are allotted as fully paid up on the conversion of FCCBs

d) 2,772,125 Equity Shares are allotted as fully paid up under the scheme of

amalgamation without payments being received in cash.

o The loans in above balance sheet were secured from banks as advances and also as term

loans and vehicle loans

o The inventory i.e. Stock in-Trade was increased.

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Data Interpretation

From the above Profit and loss statement of 2006 & 2007 the major changes were found in the

Particulars Values for 2006 Values for

2007

Difference Increase/

Decrease

Percentage

Networking

operating

11408836 19214108 7805272 Increase 68.41427

118

Cost of Sales of

goods

674043 220849 -453194 Decrease -67.23517

639

Personnel 11263414 7754523 -3508891 Decrease -31.15299

677

Sales and

Marketing

10691655 8013612 -2678043 Decrease -25.04797

433

Amministrative

and Others

16609713 11953078 -4656635 Decrease -28.03561

386

Other income 618980 935600 316620 Increase 51.15189

505

Finance expense 2558440 2256011 -302429 Decrease -11.82083

613

o The Expenditure was increased by 39.783 percent this is due to the inter connect

charges, Installation, Power & fuel, Rent, Insurance , Repairs and Maintenance and

also due to the Leased line Gate way charges, Increase in the cost of goods sold,

Personnel expenditure like salaries, wages, Bonus & Provident fund contribution, Staff

welfare and Recruitment and training.

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o The difference of Network operation is due to the Interconnect Charges and PSTN

Rentals, Installation, Power and Fuel, Insurance, Internet Access and Bandwidth

Charges.

o The change in Personnel is due to the Salaries, wages and Bonus, Contribution of

Provident and Other funds, Staff welfare Recruitment and Training.

o The change in the sales in the marketing expenditure is because of the Advertisement

and Marketing, Sales commission and Incentive, Sim card utilization.

o The change in the administrative and other expenditure is due to Legal and

professional, Rates and taxes, Power and Fuel, Travelling and conveyance rent,

Insurance, Provision for doubtful debts and advances, Collection and recovery

expenses.

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Data Interpretation

From the above Balance sheet of 2007 & 2008 the major changes were found in the

Particulars

Values for

2007

Values for

2008

Difference

Increase/

Decrease

Percentage

Fixed assets 193056341 190306475 2749866 Decrease

1.424385

22

Current assets 44454766 625101101805534

4Increase

40.61509

17

Current

Liabilities

98446711 1211009012265419

0Increase

23.01162

70

Net current assets 53991945 58590791 4598846 Increase8.517652

03

Investments 7058179 1095285281024703

49Increase

1451.795

83

Secured loans 2664475 524244 2140231 Decrease80.32467

93

Inventory 478145 568607 90462 Increase18.91936

54

Share capital 18959342 18979074 19732 Increase0.104075

34

Cash and Bank

Balances

7804605 5029390 2775215 Decrease35.55868

61

o The changes that took place in fixed assets are due to the capital work in progress i.e.

capital advances and it also includes goods in transit and also for the license fees for

unified access service for long distance for 7 to 17 years and 14 years.

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o The increase in current assets includes Goods in transit Rs.23,408 and also Net of

Provision for diminution in value Rs. 43,113 and also for Intrest Acquired on

Investment and Advances in cash

o The current liabilities are increased due to the advances to companies and also for

Fringe benefits tax, warranty and wealth tax.

o Investments in 2008 Increased due to the investment in Govt securities, Mutual funds,

Debentures and Bonds and also in IFFCO Kissan Sanchar Ltd of 100,000 equity shares.

o The changes in the share capital was due to

a) 1,516,390,970 Equity Shares issued as fully paid up bonus shares out of Share

Premium account.

b) 20,088,445 Equity Shares are allotted as fully paid up upon the conversion of

Optionally Convertible Redeemable Debentures without payment being received in

cash.

c) 21,315,734 Equity Shares are allotted as fully paid up opon the conversion of

Foreign Currency Convertible bonds.

d) 2,722,125 Equity Shares are allotted as fully paid up under the scheme of

amalgamation without payments being received in cash

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Data Interpretation

From the above Profit and loss statement of 2007 & 2008 the major changes were found in the

ParticularsValues for

2007

Values for

2008

DifferenceIncrease/

Decrease

Percentage

Profit before tax 46013712 697254232371171

1Increase

51.53183

686

Total Income 177944343 2570350967909075

3Increase

44.44690

495

Expenditure 88958316 1243490123539069

6Increase

39.78345

993

Profit after tax 40332265 624419222210965

7Increase

54.81878

342

Network

Operating

19214108 330047461379063

8Increase

71.77350

101

Cost of goods sold 220849 338502 117653 Increase53.27305

082

Sales and

Marketing

10691655 17849080 7157425 Increase66.94403

252

o The Expenditure was increased by 45.064 percent this is due to the inter connect

charges, Installation, Power & fuel, Rent, Insurance , Repairs and Maintenance and

also due to the Leased line Gate way charges, Increase in the cost of goods sold,

Personnel expenditure like salaries, wages, Bonus & Provident fund contribution, Staff

welfare and Recruitment and training

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o The difference of Network operation is due to the Interconnect Charges and PSTN

Rentals, Installation, Power and Fuel, Insurance, Internet Access and Bandwidth

Charges.

o The increase in the cost of goods sold is due to the opening stock addition of purchases,

Internal issues. Net provision for diminution in value of 30,824 thousand.

o The change in the sales in the marketing expenditure is because of the Advertisement

and Marketing, Sales commission and Incentive, Sim card utilization.

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Revenue graph

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Data Interpretation

From the above graph for revenue of airtel the interpretations are

a) There was a loss of Rs.2051million in the year 2003 and revenue was Rs. 30,554

million in the same year.

b) Thereafter there is a gradual increase in the in both the revenue and profit year after

year.

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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 everyday.

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.

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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

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http://www.airtel.in/http://www.coai.in/http://www.telecommagazine.com/http://www.hindustantimes.com/http://www.airtel.in/http://www.coai.in/http://www.telecommagazine.com/http://www.hindustantimes.com/


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Survey of Indian Industry -2004



News papers

The Hindu

The Times of Indaia

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Documents

Airtel towards glory