8/14/2019 Airtel towards glory
1/43
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
1 | P a g e
Table of contents
8/14/2019 Airtel towards glory
2/43
AIRTEL TOWARDS GLORY
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.
2 | P a g e
Executive Summar
8/14/2019 Airtel towards glory
3/43
8/14/2019 Airtel towards glory
4/43
AIRTEL TOWARDS GLORY
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.
4 | P a g e
http://en.wikipedia.org/wiki/Telephoneshttp://en.wikipedia.org/wiki/Telephones8/14/2019 Airtel towards glory
5/43
AIRTEL TOWARDS GLORY
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
5 | P a g e
8/14/2019 Airtel towards glory
6/43
AIRTEL TOWARDS GLORY
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).
6 | P a g e
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/Vodafone8/14/2019 Airtel towards glory
7/43
AIRTEL TOWARDS GLORY
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
7 | P a g e
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/MTNL8/14/2019 Airtel towards glory
8/43
AIRTEL TOWARDS GLORY
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.
8 | P a g e
8/14/2019 Airtel towards glory
9/43
AIRTEL TOWARDS GLORY
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.
9 | P a g e
8/14/2019 Airtel towards glory
10/43
AIRTEL TOWARDS GLORY
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
10 | P a g e
8/14/2019 Airtel towards glory
11/43
AIRTEL TOWARDS GLORY
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.
11 | P a g e
8/14/2019 Airtel towards glory
12/43
AIRTEL TOWARDS GLORY
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.
12 | P a g e
8/14/2019 Airtel towards glory
13/43
AIRTEL TOWARDS GLORY
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.
13 | P a g e
8/14/2019 Airtel towards glory
14/43
AIRTEL TOWARDS GLORY
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
14 | P a g e
8/14/2019 Airtel towards glory
15/43
AIRTEL TOWARDS GLORY
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.
15 | P a g e
8/14/2019 Airtel towards glory
16/43
AIRTEL TOWARDS GLORY
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.
16 | P a g e
8/14/2019 Airtel towards glory
17/43
AIRTEL TOWARDS GLORY
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
17 | P a g e
8/14/2019 Airtel towards glory
18/43
AIRTEL TOWARDS GLORY
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.
18 | P a g e
LEASEDPRIVATE
CIRCUIT
ISP
CELLULAR SERVICE
BASIC TELEPHONE
(Fixed Line)
STARS QUESTIONMARKS
COWS DDDDDDOGS
HIGH
LOW
LOW
GROWTH %
8/14/2019 Airtel towards glory
19/43
AIRTEL TOWARDS GLORY
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.
19 | P a g e
8/14/2019 Airtel towards glory
20/43
AIRTEL TOWARDS GLORY
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
20 | P a g e
8/14/2019 Airtel towards glory
21/43
AIRTEL TOWARDS GLORY
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.
21 | P a g e
8/14/2019 Airtel towards glory
22/43
AIRTEL TOWARDS GLORY
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
22 | P a g e
8/14/2019 Airtel towards glory
23/43
AIRTEL TOWARDS GLORY
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
23 | P a g e
8/14/2019 Airtel towards glory
24/43
AIRTEL TOWARDS GLORY
Data interpretation
24 | P a g e
8/14/2019 Airtel towards glory
25/43
AIRTEL TOWARDS GLORY
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.
25 | P a g e
8/14/2019 Airtel towards glory
26/43
AIRTEL TOWARDS GLORY
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.
26 | P a g e
8/14/2019 Airtel towards glory
27/43
AIRTEL TOWARDS GLORY
27 | P a g e
8/14/2019 Airtel towards glory
28/43
AIRTEL TOWARDS GLORY
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.
28 | P a g e
8/14/2019 Airtel towards glory
29/43
AIRTEL TOWARDS GLORY
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.
29 | P a g e
8/14/2019 Airtel towards glory
30/43
8/14/2019 Airtel towards glory
31/43
AIRTEL TOWARDS GLORY
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.
31 | P a g e
8/14/2019 Airtel towards glory
32/43
AIRTEL TOWARDS GLORY
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
32 | P a g e
8/14/2019 Airtel towards glory
33/43
AIRTEL TOWARDS GLORY
33 | P a g e
8/14/2019 Airtel towards glory
34/43
AIRTEL TOWARDS GLORY
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
34 | P a g e
8/14/2019 Airtel towards glory
35/43
AIRTEL TOWARDS GLORY
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.
35 | P a g e
8/14/2019 Airtel towards glory
36/43
AIRTEL TOWARDS GLORY
Revenue graph
36 | P a g e
8/14/2019 Airtel towards glory
37/43
AIRTEL TOWARDS GLORY
37 | P a g e
8/14/2019 Airtel towards glory
38/43
AIRTEL TOWARDS GLORY
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.
38 | P a g e
8/14/2019 Airtel towards glory
39/43
AIRTEL TOWARDS GLORY
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.
39 | P a g e
8/14/2019 Airtel towards glory
40/43
AIRTEL TOWARDS GLORY
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
40 | P a g e
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/8/14/2019 Airtel towards glory
41/43
AIRTEL TOWARDS GLORY
Survey of Indian Industry -2004
Survey of Indian Industry -2007
Survey of Indian Industry -2008
News papers
The Hindu
The Times of Indaia
41 | P a g e
8/14/2019 Airtel towards glory
42/43
AIRTEL TOWARDS GLORY
42 | P a g e
8/14/2019 Airtel towards glory
43/43
AIRTEL TOWARDS GLORY