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Company Report on Airtel
- 1. COMPANY REPORT ON AIRTEL SUBMITTED BY SHREYA MISHRA B.COM (H) ENROLLMENT NO-A7004615105 Under guidance of: Dr. Richa Raghuvanshi Assistant Professor ABS, Lucknow (COMPANY REPORT IN PARTIAL FULFILMENT OF THE AWARD OF FULL TIME B.COM (H) (2015-18) AMITY BUSINESS SCHOOL AMITY UNIVERSITY UTTAR PRADESH LUCKNOW
- 2. DECLARATION Title of project is “COMPANY REPORT ON AIRTEL.”I understand what plagiarism is and am aware of the University’s policy in this regard I declare that (a)The work submitted by me in partial fulfillment of the requirement for the award of degree B.COM(H),assessment in this COMPANY REPORT is my own; it has not previously been presented for another assessment. (b)I declare that this COMPANY REPORT is my original work. Wherever work form other source has been used, all debts (for words data, arguments and ideas) have been appropriately acknowledged. (c)I have not used work previously produced by another student or any other person to submit it as my own. (d)I have not permitted, and will not permit, anybody to copy my work with the purposeof passing it off as his or her own work. (e)The work conforms to the guidelines for layout, content and style as set out in the Regulations and Guidelines. Date: Signature Shreya Mishra
- 3. STUDENT’S CERTIFICATE Certified that this report has been prepared, based on Company Report undertaken by Ms. Shreya Mishra on the topic: “Company Report on Airtel”. The duration of this Project was from 9th January, 2017 to 23rd January, 2017 under the able guidance of Dr. Richa Raghuvanshi (Faculty Guide, Amity Business School) in the partial fulfilment of the requirement for the award of the degree B.COM (H) from AMITY UNIVERSITY UTTAR PRADESH. Date: 23rd January, 2017 Signature Ms. Shreya Mishra (Student) Signature Dr. Richa Raghuvanshi (Faculty Guide) Signature (Director) Amity Business School, AUUP
- 4. FACULTY’S CERTIFICATE Certified that this report has been prepared, based on Company Report undertaken by Ms. Shreya Mishra on the topic: “Company Report on Airtel”. The duration of this Project was from 9th January, 2017 to 23rd January, 2017 under the guidance of Dr. Richa Raghuvanshi (Faculty Guide, Amity Business School) in the partial fulfilment of the requirement for the award of the degree B.COM (H) from AMITY UNIVERSITY UTTAR PRADESH. Date: 23rd January, 2017 Signature (Faculty Guide) Dr. RichaRaghuvanshi Assistant Professor, Amity Business School, Amity University, Lucknow.
- 5. ACKNOWLEDGEMENT I’d like to express my greatest gratitude to the people who have helped & supported me throughout my project. I’m grateful to Dr. Khushboo Agnihotri (Faculty Guide, Amity Business School) for his continuous support for the project, from initial advice & encouragement to this day. Special thanks of mine goes to my colleague who helped me in completing the project by giving interesting ideas, thoughts & made this project easy and accurate. I wish to thank my parents for their undivided support & interest who inspired me & encouraged me to go my own way, without which I would be unable to complete my project. At last but not least I want to thanks my friends who appreciated me for my work & motivated me and finally to God who made all the things possible…
- 6. Introduction Flipkart, a company which started with a mere investment of Rs. 4, 00,000 to develop its website, has undoubtedly grown up to be one of the biggest e-commerce players in the Indian peninsula. In this fast pacing world, shortage of time is big crisis and acts as a big push for consumers to shop online. In this article, we will venture into how the company grew in such a short span of time. Flipkart was founded by Mr. Sachin Bansal and Binny Bansal, alumni of Indian Institute of Technology Delhi, in October 2007. In its initial phase of operation, Flipkart was registered as Flipkart Online Services Pvt. Ltd and sold only books. Co- Founder of Flipkart and achiever of Entrepreneur of the Year Award 2012-2013 from Economic Times, Mr. Sachin in an interview acknowledged that how he thought founding the company was most ridiculous thing he has ever done and how others around him thought he was insane doing so. Soon, the company grew bigger and ventured into selling other products such as electronic goods, e-books, stationery supplies, fashion and life style products as well. As more and more consumers turned to Flipkart for shopping, investors turned to Flipkart to support the company’s future strategy. The company raised US$1 million in 2009 from venture capital funds Accel India, and later on US$10 million in 2010 and US$20 million in June 2011 from Tiger Global. But company took everyone by surprise when it announced that it raised $1 billion from already existing investors including Tiger Global Management LLC, Accel Partners, and Morgan Stanley Investment Management and a new investor Singapore sovereign-wealth fund GIC. New York-based private equity company Tiger Global Management LLC is the largest investor in the company today. Till today, the company has privately raised about $2.7 billion in multiple rounds of funding.
- 7. History Flipkart was founded on 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of Technology Delhi. They worked for Amazon.com, and left to create their new company incorporated in October 2007 as Flipkart Online Services Pvt. Ltd.[9] The first product they sold was the book Leaving Microsoft To Change The World to a customer from Hyderabad. Flipkart now employs more than 33,000 people. In October and November 2011, Flipkart acquired the websites Mime360.com and Chakpak.com. Later, in February 2012, the company revealed its new Flyte Digital Music Store. Flyte, a legal music download service in the vein of iTunes and Amazon.com, offered DRM-free MP3 downloads. But it was shut down on 17 June 2013 as paid song downloads did not get popular in India due to the advent of free music streaming sites. After the success of its 2014 Big Billion Sale, Flipkart carried out a second Big Billion Sale where it is reported that they saw a business turnover of $300 million in gross merchandise volume. In 2015, Flipkart bought a minority stake in navigation and route optimization startup MapmyIndia to help improve its delivery using Map my India assets.
- 8. Company Profile Logo: Airtel adopted the free form A to represent the relationship without boundaries that the company has with its customers. It is also meant to convey the idea of freedom or not being confined within the space of a closed circle or box. It is meant to be a symbol that invites people into the Airtel family. The full name of the company is BhartiAirtel. It is based in India, but has customers throughout India, Bangladesh, Sri Lanka and Africa. The new logo was designed to celebrate the company passing the 200 million customer mark. The company is also making a push for a global presence and wanted to create a logo that conveyed this to customers all over the world. As well, it wanted to present itself as a youthful company because it believes that society as a whole is experiencing a youth renaissance in which even older people are embracing more youthful ideas and habits. Airtel aspires to marry those youthful tendencies with its services with the hope of increasing profit margins. Mission–“Hunger to win customers for life.” Vision- “Our vision is to enrich the lives of our customers. Our obsession is to win customers for life through an exceptional experience.” Tagline – “The smartphone Network”. Objectives-Grow market share profitably. Accelerate non-mobile businesses.
- 9. Marketing Strategies of BhartiAirtel Airtel is the world’s 3rd largest mobile telecommunication Indian MNC operating in 20 countries across Asia & Africa. Airtel has presence in 22 telecom circles across India & is India’s largest integrated telecom service provider. Segmentation, targeting, positioning in the Marketing strategy of Airtel Airtel uses mix of segmentation strategies to segment its offerings like basic Call /SMS plans, prepaid / Post-paid plans, VAS – Data, caller tunes etc. Apart from geographically segmenting the market in East, West, North, South & central, the market is also segmented in each region on the basis of demographic variables like age, Income, Social groups. Different geographic regions are handled independently and different campaigns are run according to the preferences of people in each region. Airtel has targeted the generation Z of 15-25 ages, generation X & baby Boomers by using different campaigns over the period of time i.e. campaign like “Har Ek friend Jaruri hota hai”/ “Jo tera hai wo mera hai ” to target Gen Z and recently launched campaign of “one touch internet” targeting Gen X & baby boomers. Airtel has been successful in top-of-the-mind recall amongst cellular phone users and is enjoying a leadership position in most markets. After changing its logo it has repositioned itself as Young, Energetic & International brand. It has evolved itself as a torch bearer of the telecom industry in India. Marketing mix of Airtel BhartiAirtel Limited (BhartiAirtel) is one of India’s most popular providers of integrated telecommunication services and is based in India and headquartered in New Delhi. Basically, the company is tasked with the work of operating telecommunication services in the larger Indian subcontinent. The company’s business services include mobile services, enterprise services and Telemedia services.
- 10. The mobile services comprise of fixed wireless services and mobile services which use GSM network technology across major telecommunication circles in the country. With a Pan-India presence, Airtel an established player in providing 3G services is now planning aggressively to roll out its 4G services in a phased manner. These services are now available in metros and big cities like Bangalore and Mumbai. The company also provides world class landline telephone and broadband services and the enterprise unit across 95 cities in India. Some of BhartiAirtel competitors include the following: Idea Tata Docomo. Reliance Communications Limited Bharat Sanchar Nigam Ltd. Vodafone (strongest competitor) Products in the marketing mix of Airtel The company provides a wide array of products and services. In order to retain the maximum number of customers, Airtel has tried to provide as many products and services as possible in order to keep the customers. The following is a list of its products: Airtel Pre-paid services Blackberry Wireless Handheld Airtel Post-paid services Value added services like instant balance inquiry, caller line identification, 24 hour recharge facility, multimedia messaging service, call wait & call Hold, Caller divert, Airtel Live portal SMS based information services Voice mail services Hello tunes, Ring tones, Ringtones and hello tunes offers
- 11. Easy post-pay bill payment solutions Enterprise Solutions Place in the marketing mix of Airtel Airtel’s penetration in India is quite impressive because the services and networks can be found even in India’s remotest regions. Currently, gross subscriber base has pass the 200 million mark while the total wireless subscriber base for CDMA, GSM and WLL is about 162 million. Clearly, the customer base of Airtel is strong in India. It is also worth mentioning that millions of the network’s lines are added per year. Airtel enjoys a well distributed network of distributors including even businesses like groceries and chemist outlets. One of the things that have made BhartiAirtel a force to reckon in telecommunication industry in India and Africa is that it has the strategy of making the first moves and emerging as a winner. It has managed to buy Kuwait’s Zain and Tata steel in the past, making it a top 5 wireless carrier in the world by subscription. Wider distribution network as compared to competitors Network is widespread bringing many customers daily to Airtel Fourth largest mobile operator in the world with presence in 20 countries Promotion in the Marketing mix of Airtel Airtel engages in aggressive marketing strategy ranging from traditional print media to social network marketing. However, the company’s recent rebranding efforts bombed in the market and were not received positively. The company also engages in large scale TV and print advertising. The company frequently uses big celebrities who endorse the services. The company also managed to create its signature tune from Oscar winning musician A.R.Rahman which has become one of the most downloaded tunes in India. It is also interesting to note that even such seemingly redundant activities like providing wallpapers and screensavers to computer users has proved a very effective
- 12. marketing strategy. The company also offers special discounts and offers to its subscribers. Apart from that Airtel has been hiring several figures from Bollywood right from the legendary AmitabhBachhan to VidyaBalan as their brand ambassadors. The God of cricket, Sachin Tendulkar too has been a part of their advertisement campaigns too. The advantage of Airtel is that I goes regional with its advertisement efforts. Some salient points about the promotions of Airtel are Uses ATL and BTL activities Makes an effort to go regional Recent rebranding effort has failed in the market Has good word of mouth and a good brand image second only to Vodafone. Price in the marketing mix of Airtel The company uses competitive pricing strategy just like any other network providers because of the competition which is present in this sector. However, Airtel also provides flexible pricing mechanism depending on the prevailing market conditions. For instance, when the company relaxes taxation, it also reduces its prices across all affected products. The make my plan introduced by Airtel was a smart strategy as customers could now modify their plan as they see fit. Analysis of Advertisements and Marketing Campaigns Airtel Jingle by A. R. Rahaman 16 states, 600 million people, one service provider One network that connects India, like A.R Rahaman moves India with his music. TG: People who need wireless network , people who want to connect on the go, people who want to be the part of the revolution of wireless communication. This music went on to become the “Airtel Signature Tune”.
- 13. Communication Boundaries ‘Express yourself platform making the breaking of communication barriers its focal point.’ “Deewarein gir jaati hain, Faasle mit jaate hain, Jahan do baatein ho jaati hain (Barriers break when people talk)”. Connecting cultures, longing to communicate without any barriers the society places, making new friends, caring, unity, peace, free mindedness. TG: long distance relationship Street Performer “Dil Jo Chahe Pass Laye” Wherever you go, carry your entertainment with you. Entertainment anywhere any day…. TG: On the Go entertainment lovers, Demanding. Har Ek Friend Zaroori hota Hai Besides entertaining one and all with its catchy jingle, the ad served to position Airtel as a brand that stands for friendship, and helps one to stay in touch with all kinds of friends. Jo Tera Hai Wo Mera Hai “Friendship is all about sharing” Picturisation: vibrant, peppy, colorful and pretty much bursting with youth, and the upbeat mood of the ad is complemented by an anthem that has started creating quite a buzz on the digital space.
- 14. Organization Structure BhartiAirtel announced a new organization structure for its operations in India and South Asia. The new structure has been aimed at driving greater business and functional synergies, providing a common interface to customers, and creating a de- layered and more agile organization. In addition, the new structure would provide more meaningful, empowered roles and enhance employee engagement. The transformed organisation structure had two distinct Customer Business Units (CBU) with clear focus on B2C (Business to Customer) and B2B (Business to Business) segments. BhartiAirtel’s B2C business unit would serve the retail consumers, homes and small offices, by combining the erstwhile business units - Mobile, Telemedia, Digital TV, and other emerging businesses (like M-commerce, M-health, M-advertising etc). The B2C organization consisted of Consumer Business and Market Operations. Market Operations group would lead the ‘go-to-market’ strategy. This vertical would take products and services to customers in South Asia with speed and efficiency. Market Operations would complement the Consumer Business by building a robust ‘go-tomarket’ ecosystem and leverage BhartiAirtel’s vast distribution reach. Market Operations in India & South Asia was be divided in three regions (each headed by an Operations Director): North, East & Bangladesh; South & Sri Lanka; and West. The B2B business unit would continue its focus on serving large corporate and carriers through BhartiAirtel’s wide portfolio of telecommunication solutions. Organizational Culture The company has put in place a culture statement to capture its HR strategy and has named it as ‘AIR culture’. The statement reads as follows: “Our values are imbibed in what we do and how we do it”. To further elaborate on this, three elements have been introduced which are as follows:
- 15. Alive – This means that the company’s employees are alive to the needs of the customers. They are driven by passion, energy and a can-do attitude. The Airtel family believes that there is always a way to do things and they would not accept a ‘no’ for an answer. Inclusive –Airtel recognizes that it is in the business of serving diverse communities and it necessitates to align employees to their diverse customer group in terms of working, anticipating, adapting & delivering solutions enrich their lives. Respectful – The company staff are always reminded of the fact that humility and honesty are the necessary qualities for achieving mutual respect for customers and communities at large, since any company exists in relation to these stakeholders and Airtel is not an exception to the case.
- 16. Human Resource Management Strategies at Airtel Airtel strives to align its HR strategy with its corporate strategy. The HR team kept checking to see if the organization teams had the attitude that would help realize the vision of the company. The emphasis of the HR team has been aligning the corporate objectives with those of the various groups objectives and individual objective of the company. The emphasis of the company has been to recruit young people. The average age is just 26 years. The company wanted to bring in young entrants and mould them as per the business organization and at the same time, enhance their interaction and creativity . Senior management was advised by the HR management to walk the talk. The employees were encouraged to put forward their views openly and, at the same time, to play a more proactive role in team building efforts. This was further augmented by a reward and recognition system coupled with a strong training program. The motto behind the training programs was – “We let our employee decide their training needs, and if the individual does not know what his training needs are, then we don’t need him”. The company put in place a state-of-the-art learning centre to encourage employees to log on to customized training program developed by British Telecom (BT), as a part of the continuous development of its employees. Airtel seeks to certify every employee on quality and IT and the motto behind that is – “To be ahead in the business, we need to train, develop and re-certify our employees on a continuous basis”. HR steering committee (HRSC) of the company has been the focal point of all the HR activity of the company. HRSC consists of the CEO, the COO and all other functional heads. The committee meets once a week to discuss various initiatives and the plan of action on the same. As a part of the planning process, the entire organization is
- 17. measured on five performance parameters: profitability, market share, brand saliency, customer satisfaction, and employee satisfaction. Further, each employee is given individual targets, that are linked to these five parameters. Performance-related bonuses gave further boost to these activities and around 60% of the employees have been on a variable pay structure. The organization also conducts an internal employee satisfaction survey called PACE (Progressive Assessment of Culture and Environment), the inputs of which go into the company’s annual strategy. A philosophy of constant monitoring has been inculcated to make the system as transparent and efficient as possible. ‘Measurement Boards’ for every department are prominently displayed where the performance indicators of the same are displayed graphically. This is with a notion that only through constant feedback an individual can perform at the level expected of him/her. Along with this, formal job description documents which clearly capture the KRAs are issued to all employees. The HR department endeavors to constitute cross-functional teams in times of product or service launches. Such teams typically constitute high performers from each department. A host of key HR initiatives like the managers’ communication forum, the ‘open house’ , ‘family group meetings’, HR intranet add as supportive HR initiatives as part of the process. Specific HR Policies Adopted by Airtel To augment the above HR strategy, the company has embarked on a series of innovative and important HR policies with a view to integrate the business policies and strategies of the company with those of people related companies. Company with a view to derive competitive advantage through people and their development have initiated the following HR policies: Recruitmentand Selection In BhartiAirtel, recruitment and selection policy seems to follow a system commonly found in a corporate set up in the private sector. It starts with the manpower budgeting at the end of the financial year, where the top management and the Head of the Departments (HODs) are involved. Wherever there is a vacant position, the concerned
- 18. manager requests for manpower through Manpower Requisition Form (MRF). This has to be then approved by the GM-HR. On approval the form is forwarded to the recruitment manager. The CVs are sourced using various methods and initial screening takes place. The shortlisted candidates are required to fill a format and mark the date of functional interview. Once this is done, the shortlisted candidates are called for interview as per the requirements (qualifications and experience of the candidate are matched with the requirement). The functional interview is conducted by the function manager. Once, the candidate is through this stage, he/she is scheduled for salary negotiations with the HR. Once, all conditions are satisfied and an agreement is reached, the offer letter is issued. Talent Management As a part of development of talent pipeline, Airtel initiated two specific programs: BhartiAirtel Young Leader Program (BYLP) -This program is created with a view to create a future pool pf business leaders drawn from premium business schools across the country to instill a fresh and energetic outlook into the working of the organization. The young leaders are provided with leadership inputs on periodic basis and an accelerated career track, which would enable them to be a part of the higher level management positions, a much needed initiative for effective succession planning within the company. Technical Leaders Program - BhartiAirtel attracts and absorbs the finest talent from the most prestigious technical campuses across India. The objective of the program is to create a “future technology leadership pool” that will not only infuse fresh energy into the organization, but also generate a constant stream of talent in order to deliver superior business performance. A combination of technical training and on-the-job skill and knowhow helps technical leaders understand different aspects of the department for smooth functional role-play. Performance management At Airtel, the HR team measures the individual’s performance linked to Organizational goals by giving employees a feedback, rewarding them, based on their
- 19. achievements against set performance goals and required competencies and working out a plan for their development. The method which Airtel follows for Appraisal is 180-degree. Performance Management System (PMS) at Airtel includes, developing job descriptions, selecting appropriate people with an appropriate selection process and providing effective orientation, education and Training. Coaching and feedback is provided which is followed by compensation, recognition and reward for people’s contributions. Promotional and career development opportunities for staff are provided. Leadership and other competencies of individuals are assessed and improved through various workshops and training programs. Developmental gaps are identified during PMS and Self Development Plans. Training and Development Airtel allows the employees to identify their training needs. This motivates the employee to achieve better results. The company offers ‘study while work’ programmes, leadership development programs, general management programs, action-learning experiences, feedback tools and development relationships. The senior management interacts with the employees through open houses, employee forums and help lines. Airtel in conjunction with some of the leading institutes across the world like, Centre for Creative Leadership (CCL), INSEAD Business School, Indian School of Business Hyderabad (ISB), Indian Institute of Management (Ahmadabad) has developed a suite of customized programs to cater to the top talent in Junior, Middle and Senior management. These programs cover leadership and general management skills and enable Airtel to manage the careers of ambitious and talented employees while build an internal leadership pipeline. The above programs envisage to develop the following competencies among Airtel employees: Achieving Business Success Displaying Entrepreneurial Spirit Empowering and Developing Delighting the Customer Winning with Others
- 20. Reward Management Reward and Recognition Policy of BhartiAirtel is exclusive and it’s the most vital motivation factor for the employees. The success of the rewards and recognition system at Airtel is attributable to the following measures: The reward is matched to the person The reward is matched to the achievement The rewards are timely and specific Some of the areas that are rewarded at Airtel are – cost-saving suggestions, exceptional customer service and the attainment of sales goals. Employee Benefits at Airtel An array of family friendly benefits has been designed for the employees: Flexibility: Employees can opt for flexible work timings, flexibility to work from home, work from a remote location, or work part time for specified periods of time. Day care centre: A day care centre facility is provided within the office premises to support working parents. Easy day: A Grocery shopping centre to help employees take care of their personal chores is available at office. Health and Fitness Centre: World-class fitness centre and spa facility in office. Concierge Desk: Small errands like bill payments, finding a plumber, etc. Food Court: Cafeteria has a multi-cuisine food court that includes counters like Costa Coffee, Banana Leaf and Healthy sip n bite. Fun@work: At Airtel, all achievements and launches are celebrated with zest. Sabbatical Policy: Employees can opt for leave of 6 months for personal reasons. Leave of up to one year may be applied for, to pursue higher education. ESOPs Some of the growth benefits available are as follows:
- 21. Career Progression: Based on the defined career paths, career discussions between ‘employee and manager’ help them chalk out employees’ career progression. The process supports self-analysis of employees, keeping in mind their long-term and short-term career plans. At Airtel, career growth is fuelled by opportunities that help employees diversify into different functions of work. The opportunities available in all Strategic Business Units (SBUs) across functions are internally advertised for employees to choose their growth trajectory. Continuing Education Opportunities: The program offers a range of courses in General Management, Human Resources, Marketing & Sales, Finance, IT, Networks and Supply Chain from premier educational bodies and institutes. Benefits for women include the following: Maternity/ postnatal benefits: Maternity leave may be extended up to 6 months. Employees may also opt for flexible work options after joining back from maternity leave. Mentoring program: Designed for high potential middle management women employees, the program involves mentormentee sessions and flexible interactions to encourage a higher ratio of women employees in the top management. Social & learning events focused on women’s interests: “Astitva, a celebration of womanhood” organizes events such as senior leadership interactions, health awareness programs, parenting workshops, etc.
- 22. Corporate Governance at Airtel BhartiAirtel has a firm belief in maintaining transparency with a view to maximizing shareholder value with a long-term basis. The company has, therefore, embarked on developing sound policies and practices related to corporate governance for this purpose. The company’s commitment towards compliance is backed up by an independent and fully informed Board, comprehensive processes, policies and communication. Due attention is paid by the company to ensure that various disclosures required are compiled in both ‘letter and spirit’ for effective corporate governance. For this purpose, the company has created the office of an ombudsperson, which is an independent forum for employees and external stakeholders of the company to raise concerns and complaints about improper practices which are in breach of the Bharti Code of Conduct. If any stakeholder (employee, associate, strategic partner, vendor) observes unprofessional behavior, he/she can approach the Ombudsperson to voice his or her concerns. The Office aims to provide a fair and equitable redressal mechanism. The process is designed to offer protection to the complainant provided the disclosure is made in good faith and the alleged action constitutes a genuine and serious breach of Bharti Code of Conduct. The Ombudsperson will treat all disclosures in a confidential and sensitive manner.
- 23. Financial Statements of Bharti Airtel The financial statements of the company has been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The financial statements have been prepared to comply in all material respects with the accounting standards nortified under section 133of the Companies Act, 2013 read with rule 7 of the Companies(Accounts) Rules, 2014 issued by the Ministry of Corporate Affairs. The financial statements have been prepared under the historical cost convention and on an accrual basis except in case of assets for which revaluation is carried out and certain derivative financial instruments. Telecom administrator BhartiAirtel's combined benefit amid July-September quarter declined insignificantly to Rs 1,461 crore from Rs 1,462 crore in past quarter however that was a long ways in front of investigators' evaluations on superior to expected operational execution. Income amid the quarter slipped 3.5 percent to Rs 24,671.5 crore contrasted and Rs 25,572.9 crore in past quarter, which missed desires. Remarking on the outcomes, Naveen Kulkarni of Phillip Capital said that EBIDTA numbers were unquestionably superior to anticipated. He included that incomes didn't spring any shocks yet EBIDTA numbers were an astonishment. The organization's compelling cost administration may have prompted to solid edges amid the second quarter, Kulkarni said. BhartiAirtel's combined EBITDA (profit before intrigue, assessment, devaluation and amortization) fell by 1.3 percent year-on- year to Rs 9,466.2 crore however edge extended by 90 premise focuses to 38.4 percent in Q2, which outperformed investigators' evaluations of Rs 9,250 crore and 36.3 percent, separately. Edge development proceeded for fourth straight quarters. Bhavesh Gandhi of IIFL said he anticipates that the stock will see a positive predisposition when the business sectors open on Wednesday. He said that IIFL keeps up a purchase on the stock. In the interim, Prakash Diwan of Altamount Capital said the edges and benefit look superior to anything expected because of rental cost diminishment work out.
- 25. Current Position in the Market
- 26. Airtel SWOT analysis One of the top telecommunication companies in India, Airtel has spread across far and wide in the last 2 decades of its existence. The company is known for its availability and its smart range of value added services. Here we present you the SWOT analysis of Airtel to understand the strengths, weaknesses, opportunities and threats for the company. Strengths in the SWOT analysis of Airtel 1. Renowned Telecom company: With its 19+ years of rich experience in telecom industry this MNC had travelled far to become world’s 3rd largest telecom operator overseas with operations in nearly 20 countries. 2. High Brand Equity: It is one of the pioneer brands in telecommunication having a high brand recall and with a whopping subscriber base. 3. Extensive infrastructure: With the formation of Indus tower & due to its partnership with Idea & Vodafone, the infrastructure of Airtel has extended in all parts of the country resulting into nationwide penetration. 4. Strategic Alliances: The company has top notch stakeholders, namely Sony Ericsson, Nokia and singtel, and the recent one being Apple. Such strategic alliances boost the brand equity and the bottom line of the company. 5. Torchbearer of the telecom Industry: With its number 1 spot due to its excellent services in developing economies, Airtel has interconnected the life of people in an highly efficient way. Thus, where Vodafone is an external entrant, Airtel is a leading nationwide player in India and the torchbearer of the telecom industry in India.
- 27. Weaknesses in the SWOT analysis of Airtel 1. Outsourced Operations: Outsourcing operations helped Airtel in lowering its cost. But on the other hand, they are running the risk of being dependent on some other companies which may affect its operations. 2. Venturing into African operations: Although it’s been 4 years that Airtel has acquired Zain’s Africa business, but Airtel is still struggling to turn around the unit which was bought at a whoppy 9 billion dollars. 3. High Debt: With its acquisitions turning out to bad investment, and credit being high and margins being low, Airtel group is under high debt. Airtel does not have as deep pockets as Vodafone. Opportunities in the SWOT analysis of Airtel 1. Strategic Partnership: Partnering with smart phone companies is going to be a smart strategy as far as MNP (mobile number portability in India) is concerned. This will ensure fixed cash flows in the future and a higher customer base. 2. Market Development: With fierce competition in the telecom industry & shrinking margins, venturing out in new markets/developing economies will prove fruitful for the company. 3. VAS: VAS (Value Added services) is going to future of the telecommunication industry & by specializing itself in this vertical Airtel can differentiate itself in highly competitive market. With introduction of unique services, Airtel can avail higher margins. 4. Untapped geography of the current market: Although it is currently providing 3G & 4G services, but these services are limited to specific geographical locations. Expansion of these services to most of its regions will help the company get more margins and customers. 5. LTE: The whole wireless world is moving towards LTE (long term evolution or 4G). LTE for mobile broadband can be a good solution for India where fixed broadband penetration is otherwise low. Airtel has taken the lead with this version of LTE in 4 cities, but deployment needs to catch up pace. Despite a weak LTE ecosystem in India, Airtel should portray itself as the embracer of that technology.
- 28. The company lacks nationwide 3G license with spectrum in 13 out of 22 telecom service areas. Airtel’s LTE network for mobile broadband is still confined to only 4 cities in India. Threats in the SWOT analysis of Airtel 1. Government Regulatory Framework: With the auction of spectrum & change in the government policies on a regular basis, it is a potential threat to the stability & existence of this industry thereby affecting the players. 2. Competition: Price war in the home market and declining margins due to this is adversely affecting the overall business of the group. 3. MNP (Mobile number portability): MNP gives the customer independence to change the service provider while retaining the number and as Airtel charges are premium over other service providers, it can see slump in subscriber base in the next fiscal year with PAN India MNP applicable from May 3rd 2015.
- 29. Bharti Airtel’s Awards and Recognitions (for the year 2016-2017) Bharti Airtel is conferred with the "Certificate of Recognition for Excellence in Corporate Governance 2016" by the Institute of Company Secretaries of India (ICSI). Bharti Airtel ranked first in a listing of 100 emerging market multinational companies by Transparency International on corporate transparency and reporting. According to the study, the Company topped the list with a cumulative score of 7.3 out of 10. Bharti Airtel was positioned among the top eight companies in the listing of top BSE 100 listed companies in FTI Consulting’s ‘India Disclosure Index 2016’ Report with a composite score of 10 out of 10. Bharti Airtel was recognized as the ‘Firm of the Year – Telecom’ at the 3rd edition of ICICI Lombard & CNBC-TV18 India Risk Management Awards. Bharti Airtel secured the second position in Interbrand’s ‘Best Indian Brands Report 2016’. Bharti Airtel has been declared winner of ‘Golden Peacock Award for Excellence in Corporate Governance’ for the year 2016.