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Bharti –Airtel Enterprise Services BCG Matrix Study

BCG Matrix:-

Star ?
SBU: Enterprise SBU: Passive Infra
Services(Carriers & Reason:-(Very new
Corporates) approach but quick grip of
Reason:-( Major market/Good
Contributor to revenue in Coloborations like-Indus
just 4 years of coming 04- Towers/Untaaped Market)
08)
Cash Cow Dog
SBU: Mobile Services SBU: Telemedia Services
Reason:-(Legacy of Bharti) Reason:-(Significant fall in
ARPU/Other Big Players
existing in Market)
Data for BCG Matrix in following Manner:-

Market Growth Quadrant


Relative
Relative Market Share in which
Strategic Market Market Share(Largest Market (in BCG (%age change the SBU
Business Unit Share(SBU) Competitor) Share Terms) b/w FY 07-10) lies

Reliance-CDMA/GSM--
Mobile Services 70.56% >17.94% 24.79% 1.38 33.00% Cash Cow

Telemedia
Services 9.22% BSNL-->37% 23% 0.62 44.00% Dog
Enterprise
Services(Carriers
& Corporates) 18.26% Atire Technology-->42.6% 14.50% 0.34 30.00% Star
NA(Newly 0.00
Induced (SBU Started in
Passive Infra 1.94% GTL Infra-->28.33% SBU) FY08) ?
Details and Reference/Links used to draw BCG Matrix:-

 Market Share & Relative Market Share Mobile Services

Group Company
Airtel(GSM)
Reliance (CDMA + GSM)
Vodafone Essar(GSM)
BSNL(GSM)
IDEA(GSM)
Tata (CDMA)
Aircel(GSM)
Spice(GSM)
MTNL(GSM)
BPL(GSM)
HFCL (CDMA)
Shyam (CDMA)
Total (All India)
* CDMA figures include WLL services
Link:- www.india-cellular.com/Market-Share.html

Market Share For Telemedia


Link:- http://voicendata.ciol.com/content/vNd100/2007vol-II/307071901.asp

Market Share-for Enterprise services

Link:- http://voicendata.ciol.com/content/Vnd100-2008/108060305.asp

Market Share-for Passive Infrastructure:-

Company Name Last % Chg Gross Net CWIP Total


Price Block Block Assets
GTL Infra 35.65 0.56 1,334.41 1,203.33 790.50 3,408.6
0
ITI 27.35 4.99 3,644.06 2,710.94 2.16 2,819.8
8
GTL 164.90 -1.41 373.46 222.24 19.62 1,625.4
4
HFCL 10.70 0.94 467.31 236.60 10.06 1,614.7
4
Siemens 398.15 -3.89 870.12 463.74 93.29 1,592.4
1
Gemini 24.00 -5.70 115.07 95.63 0.00 283.13
Comm
Honeywell 1,145.0 8.21 103.67 34.15 98.91 247.14
Autom 5
XL 125.70 -8.15 37.63 26.77 0.00 217.58
Telecom
Avaya 101.65 -1.21 77.30 20.91 0.96 213.60
GlobalCon
Astra 44.20 -0.56 94.92 61.45 22.08 177.83
Microwav
e
MIC 94.00 -1.93 25.60 18.38 15.43 173.98
Electronics
NELCO 56.55 0.80 52.01 20.82 0.79 114.10
Punj 26.85 -0.56 51.59 9.03 0.00 108.95
Comm
Shyam 77.00 3.84 49.01 40.61 18.30 84.21
Telecom
Aplab 52.90 4.96 31.99 13.29 5.47 64.86
Krone 93.60 1.46 23.02 9.78 0.02 45.79
Comm
Kavveri 88.80 0.74 7.62 5.34 0.00 43.93
Telecom
Ashco Ind 9.45 -3.96 28.98 17.32 1.49 36.83
Precision 25.70 -4.81 29.24 16.87 1.82 31.96
Elec
Valiant 22.20 -6.72 10.45 5.51 0.00 31.42
Comm
Munoth 5.00 0.00 1.38 0.66 0.00 16.14
Comm

Link:- http://www.moneycontrol.com/stocks/marketinfo/totassets.php?
optex=BSE&indcode=Telecommunications%20-%20Equipment&opttopic=totassets
Airtel enterprises arm looks overseas

Pradipta Mukherjee / Kolkata March 29,


2008

Bharti's Airtel Enterprise Services (AES) is planning to expand its reach globally this year, enhance its
managed network services, and launch a variety of new products aimed at convergence of voice and data.
 
It plans to cover international destinations like Chicago, Frankfurt, Dubai, Tokyo, and Sydney, among
other locations this year.
 
Currently, its international roadmap includes New York, London, India, Hongkong, Singapore, and Los
Angeles.
 
The expansion of its global reach is expected to help AES customers connect with more locations
globally.
 
Simultaneously, the expansion would help AES add more customers going forward.
 
Airtel Enterprise Services has invested close to Rs 623.9 crore as on September 2007.
 
According to Saurabh Goel, chief operating officer - east of Airtel Enterprise Services, AES is looking at
25 per cent growth for its enterprise services, with bulk of its business coming from the government
sector.
 
AES contributes close to 30 per cent to overall Bharti revenues now. Going forward, Airtel is looking to
introduce enhancements of its managed network services portfolio.
 
It would also launch a variety of new products aimed at the convergence of voice and data, and roll out
new value-added and wholesale products aimed at growing the mobility market.
 
In the next few months, Airtel would also introduce new internet and international data products to meet
specific needs of different segments of corporate customers.
 
The company is planning to enhance its VSAT and conferencing product portfolio.
 
On the voice side, Airtel plans to introduce a number of value-added and application-based services for its
fixed line, mobile and international calling corporates. It will also look at getting into VOIP services
space soon, said Goel.
 
AES provides telecom services and solutions to large corporates, small and medium enterprises and to the
national and international telecom carriers.
 
The group focuses on verticals like BFSI, IT, ITES, manufacturing and distribution, media and services,
government and PSUs, education, telecom, and retail, among others.
Bharti forms new SBU – “Enterprise Business” to offer comprehensive solutions to corporate customers
Category: FY2004-2005
25-06-04

Strategic initiative is aimed at leveraging the group’s unique business capabilities and strengthen focus in
the corporate account segment
 
 
Merges its Data & Broadband group with key corporate account functions of Mobility & Fixed Line 
 
  The new Strategic Business Unit (SBU) will provide end-to-end world class cutting edge ‘solutions’
and provide a ‘single point’ contact to large business customers 
  The SBU will be headed by Dr. Jai Menon in addition to his current responsibility as Corporate
Director – IT & Technology
LINK:- http://www.business-standard.com/india/storypage.php?autono=318284
 
 
 
New Delhi, June 25, 2004: Bharti Tele-Ventures, India's leading telecom conglomerate, today announced
a major initiative for leadership in the key corporate account segment. The announcement takes forward
Bharti’s business strategy of providing high quality services to its customers by synergising and making
all products and services available to them through a single window.
This strategic initiative will merge the broadband & data group of Bharti Infotel Limited with the key
corporate account functions of mobility and fixed line, thereby creating a new SBU – “Enterprise
Business”. The SBU will be a part of Bharti Infotel Limited and will be headed by Dr. Jai Menon as its
Joint President. Dr. Menon will also continue to spearhead the group’s IT & technology functions as
Corporate Director – IT & Technology. Dr. Menon will report to Mr. Badri Agarwal, President, Bharti
Infotel Limited for the Enterprise Business while he would continue to report to the Group Chairman &
Managing Director for the IT & Technology function. Mr. Rajiv Sharma, currently the CEO of the
broadband & data group, Bharti Infotel Limited will be redesignated as CEO – Enterprise Business and
will report to Dr. Menon.
Currently, the data & broadband group, Bharti Infotel Ltd., provides data solutions & broadband services
to corporates, while the mobility and fixed line businesses cater to the wireless and fixed line service
requirements of large corporates.
The creation of a new SBU will help Bharti further leverage the group’s unique business capabilities and
strengthen focus on the corporate account segment. It will also allow for greater synergy and business
planning, such that the SBU will be better placed to meet customer requirements. The SBU will focus on
building strong IT & technology partners in order to deliver comprehensive solutions including data
center, business continuity, recovery services and related systems integration capability.  It will thus lead
Bharti’s foray in providing cutting edge technology through a host of solutions & world-class integrated
products packaged as ‘solutions’ to lead India into the information age.
According to Chairman and Group Managing Director, Bharti Enterprises, Mr. Sunil Bharti Mittal, “This
initiative is designed to ensure that synergetic businesses are run along similar lines tapping the best
resources available across our businesses through a ‘single point contact’. The customer is looking for a
single stop solution provider who will take responsibility for the entire chain and deliver higher
capacities, faster downloads, scale up the network as software evolution happens and use the available
bandwidth to take care of his complete communication requirements and enterprise applications”.

Link:http://www.bharti.com/48.0.html?&tx_ttnews%5BpS%5D=1214044252&tx_ttnews%5Bpointer
%5D=2&tx_ttnews%5Btt_news%5D=67&tx_ttnews%5BbackPid%5D=38&cHash=c92b7a125d
Bharti Airtel Q1 consolidated earnings climb 71% (Update1)

Bharti Airtel, India`s largest telecom operator, registered substantial growth of 71% in consolidated net
profit for the quarter ended June, 2007. During the quarter, the company`s consolidated net profit climbed
to Rs 14,242.2 million from Rs 8,313.9 million in the same quarter, last year.

The consolidated total income for the quarter jumped 53.94% to Rs 58,735.2 million compared with the
corresponding quarter, a year ago.

Standalone Result:

Bharti Airtel reported a rise of 73.50% in net profit to Rs 14,129.2 million for the quarter ended June
2007 compared with Rs 8,143.8 million in the corresponding quarter of previous year. While the earnings
of the company on quarter-on-quarter (Q-o-Q) basis rose 9.80%.

Lower cost of operations combined with robust revenue growth helped Bharti Airtel to post excellent
financial performance during the quarter. The operating margin during the quarter climbed 306 basis
points to 41.32%.

Quarterly results (Rs in mn)


June, June,
As at %Change
2007(3) 2006(3)

Net Sales 56116.20 36824.70 52.39


Net Profit 14129.20 8143.80 73.50
EPS 7.45 4.30 73.26
Net sales for the quarter surged 52.39% to Rs 56,116.2 million compared with the corresponding quarter,
a year ago, while the same on Q-o-Q basis rose 7.53%. The total income for the quarter jumped 53.80%
to Rs 56,914.5 million compared with the corresponding quarter, a year ago, while the same on Q-o-Q
basis jumped 8.39%.

The earnings per share (EPS) for the quarter climbed 73.25% to Rs 7.45 compared with the same quarter,
a year ago, while the same on Q-o-Q basis rose 9.72%.

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises.


Bharti Group having a diverse business portfolio, has created global brands
in the telecommunication sector. Bharti recently forayed into retail
business as Bharti Retail 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 under a
joint venture with AXA, world leader in financial protection and wealth
management. 

 Bharti Airtel is India`s largest integrated and the first private telecom services provider with a footprint in
all the 23 telecom circles. The company 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 (SBU`s) -
mobile services, broadband & telephone services (B&T) & enterprise services. The mobile business
provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the
B&T business offers broadband & telephone services in 94 cities. 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.
Shares of the company declined Rs 13.80, or 1.46%, to trade at Rs 933, at the BSE. The total volume of
shares traded was 343,475  (11.30 a.m., Thursday).
Link:- http://www.myiris.com/shares/news/storyShow.php?
fileR=20070726115048121&dir=2007/07/26

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