To study the different business aspects

of AIRTEL
Organization Structure
As an outcome of a restructuring exercise conducted within the company; a new integrated
organizational structure has emerged; with realigned roles, responsibilities and reporting
relationships of Bharti’s key team players. With effect from March 01, 2006, this unified
management structure of 'One Airtel' will enable continued improvement in the delivery of
the Group’s strategic vision.

Bharti Airtel - Organization Structure

Awards and Recognitions in year 2007-08
• Bharti Airtel has won the CNBC-TV18 India Business Leader Award for the
Outstanding Company of the year, 2007

• Bharti draws top honours at the NDTV Profit Business Leadership Awards 2007

• Bharti Airtel Ranked 3rd on Shareholder Returns in BusinessWeek IT 100 List.

• Sunil Bharti Mittal conferred Degree of Doctor of Science (Honoris Causa) by G. B.

Pant University

Corporate Governance
Bharti Airtel Limited firmly believes in the principles of Corporate Governance and is
committed to conduct its business in a manner, which will ensure sustainable, capital-efficient
and long-term growth thereby maximising value for its shareholders, customers, employees and
society at large. Company’s policies are in line with Corporate Governance guidelines
prescribed under Listing Agreement/s with Stock Exchanges and the Company ensures that
various disclosures requirements are complied in ‘letter and spirit’ for effective Corporate
Governance.
The Company is committed to maintain the highest standards of corporate governance and
benchmarking industry best practices. The Company meet the standards of the Securities and
Exchange Board of India’s Corporate Governance guidelines and have implemented all the
stipulations prescribed. A detailed report on corporate governance pursuant to the requirements
of Clause 49 of the Listing Agreement forms part of the Annual Report. A certificate from the
auditors of the Company, Price Waterhouse, Chartered Accountants, confirming compliance of
conditions of corporate governance as stipulated under the aforesaid Clause 49 is annexed to the
Corporate Governance Report.
During the financial year 2003-04, your Company was assigned highest Governance and
Value Creation (GVC) rating viz. ‘Level 1’ rating by CRISIL, which indicates that the
company’s capability with respect to creating wealth for all its stakeholders is the highest,
while adopting sound Corporate Governance practices.This rating was re-affirmed by
CRISIL on April 20,2006.
At Bharti Airtel, Corporate Social Responsibility (CSR) encompasses much more than social
outreach programs - is an integral part of the way the Company conducts its business.
Employees of Bharti Airtel across the country support community based initiatives, individually
or in groups. During the year, a large number of such initiatives were undertaken in e.g. the
areas of education, the environment and sports promotion. The Company is strongly committed
to the principles of environment conservation and preservation. This is achieved by minimizing
the consumption of energy and optimizing the use of material produced out of natural resources,
both in offices and technical spaces. Special emphasis is laid on health, environmental and
safety issues affecting the employees in particular and for the neighborhood and community in
general. The Company has put in place a process for continuous monitoring and
improvement in these areas.
Besides delivering its own programs and initiatives, Bharti Airtel works closely with Bharti
Foundation, the leading Corporate Social Responsibility vehicle for the Bharti Group. Bharti
Foundation believes in the power of education to bring about essential and critical growth in
India and thus has a strong focus on education, which extends from elementary education to
higher education.
Bharti Foundation is in the process of building a large number of high-quality pre-primary and
primary schools (Satya Bharti Schools) which will provide education that will allow the
students easy mainstreaming, with special emphasis on the English language. Bharti
Foundation’s programs further include Bharti Computer Centres, Bharti Libraries, the Bharti
School of Telecommunication Technology & Management at IIT Delhi, Bharti Scholarships,
Mid-day Meals and so on. In the year under review Bharti Foundation was awarded the coveted
Golden Peacock Award for Corporate Social Responsibility in the NGO category in recognition
of its education programs and plans.

SWOT Analysis Bharti Airtel

Strengths

• Bharti Airtel has more than 65 million customers (July 2008). It is the largest cellular
provider in India, and also supplies broadband and telephone services - as well as many
other telecommunications services to both domestic and corporate customers.
• 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.
• The company has covered the entire Indian nation with its network. This has
underpinned its large and rising customer base.

Weaknesses

• 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.
• 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.

Opportunities

• 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.
• 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.
• 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.
• 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

• 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.
• 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.
E – BUSINESS
OBJECTIVE
To study the online business transactions of the company and the e-business services provided
by Airtel.

Electronic Business, commonly referred to as "e Business" or "e-Business", may be defined as

the utilization of information and communication technologies (ICT) in support of all the
activities of business. Commerce constitutes the exchange of products and services between
businesses, groups and individuals and hence can be seen as one of the essential activities of any
business. Hence, electronic commerce or e Commerce focuses on the use of ICT to enable the
external activities and relationships of the business with individuals, groups and other
businesses.

Louis Gerstner, the former CEO of IBM, in his book, Who Says Elephants Can't Dance?
attributes the term "e-Business" to IBM's marketing and Internet teams in 1996.

Electronic business methods enable companies to link their internal and external data processing
systems more efficiently and flexibly, to work more closely with suppliers and partners, and to
better satisfy the needs and expectations of their customers.

In practice, e-business is more than just e-commerce. While e-business refers to more strategic
focus with an emphasis on the functions that occur using electronic capabilities, e-commerce is
a subset of an overall e-business strategy. E-commerce seeks to add revenue streams using the
World Wide Web or the Internet to build and enhance relationships with clients and partners
and to improve efficiency using the Empty Vessel strategy. Often, e-commerce involves the
application of knowledge management systems.

E-business involves business processes spanning the entire value chain: electronic purchasing
and supply chain management, processing orders electronically, handling customer service, and
cooperating with business partners. Special technical standards for e-business facilitate the
exchange of data between companies. E-business software solutions allow the integration of
intra and inter firm business processes. E-business can be conducted using the Web, the
Internet, intranets, extranets, or some combination of these.

In the emerging global economy, e-commerce and e-business have increasingly become a
necessary component of business strategy and a strong catalyst for economic development. The
integration of information and communications technology(ICT) in business has revolutionized
relationships within organizations and those between and among organizations and individuals.
Specifically, the use of ICT in business has enhanced productivity, encouraged greater customer
participation, and enabled mass customization, besides reducing costs.

With developments in the Internet and Web-based technologies, distinctions between traditional
markets and the global electronic marketplace-such as business capital size, among others-are
gradually being narrowed down. The name of the game is strategic positioning, the ability of a
company to determine emerging opportunities and utilize the necessary human capital skills
(such as intellectual resources) to make the most of these opportunities through an e-business
strategy that is simple, workable and practicable within the context of a global information
milieu and new economic environment. With its effect of leveling the playing field, e-commerce
coupled with the appropriate strategy and policy approach enables small and medium scale
enterprises to compete with large and capital-rich businesses. On another plane, developing
countries are given increased access to the global marketplace, where they compete with and
complement the more developed economies. Most, if not all, developing countries are already
participating in e-commerce, either as sellers or buyers. However, to facilitate e-commerce
growth in these countries, the relatively underdeveloped information infrastructure must be
improved.

Among the areas for policy intervention are:

● High Internet access costs, including connection service fees, communication

fees, and hosting charges for websites with sufficient bandwidth;

● Limited availability of credit cards and a nationwide credit card system;

● Underdeveloped transportation infrastructure resulting in slow and uncertain

delivery of goods and services;

● Network security problems and insufficient security safeguards;

● Lack of skilled human resources and key technologies (i.e., inadequate professional IT
workforce);

● Content restriction on national security and other public policy grounds, which greatly affect
business in the field of information services, such as the media and entertainment sectors;

● Cross-border issues, such as the recognition of transactions under laws of other ASEAN
member-countries, certification services, improvement of delivery methods and customs
facilitation; and

● The relatively low cost of labor, which implies that a shift to a comparatively capital intensive
solution (including investments on the improvement of the physical and network infrastructure)
is not apparent.
It is recognized that in the Information Age, Internet commerce is a powerful tool in the
economic growth of developing countries. While there are indications of ecommerce patronage
among large firms in developing countries, there seems to be little and negligible use of the
Internet for commerce among small and medium sized firms. E-commerce promises better
business for SMEs and sustainable economic development for developing countries. However,
this is premised on strong political will and good governance, as well as on a responsible and
supportive private sector within an effective policy framework. This primer seeks to provide
policy guidelines toward this end.

What is e-commerce?

Electronic commerce or e-commerce refers to a wide range of online business activities for
products and services. It also pertains to “any form of business transaction in which the parties
interact electronically rather than by physical exchanges or direct physical contact.” E-
commerce is usually associated with buying and selling over the Internet, or conducting any
transaction involving the transfer of ownership or rights to use goods or services through a
computer-mediated network. Though popular, this definition is not comprehensive enough to
capture recent developments in this new and revolutionary business phenomenon. A more
complete definition is: E-commerce is the use of electronic communications and digital
information processing technology in business transactions to create, transform, and redefine
relationships for value creation between or among organizations, and between organizations and
individuals. International Data Corp (IDC) estimates the value of global e-commerce in 2000 at
US$350.38 billion. This is projected to climb to as high as US$3.14 trillion by 2004.

Is e-commerce the same as e-business?

While some use e-commerce and e-business interchangeably, they are distinct concepts.

In e-commerce, information and communications technology (ICT) is used in inter-business or

inter-organizational transactions (transactions between and among firms/organizations) and in
business-to-consumer transactions (transactions between firms/organizations and individuals).
In e-business, on the other hand, ICT is used to enhance one’s business. It includes any process
that a business organization (either a for-profit, governmental or non-profit entity) conducts
over a computer-mediated network. A more comprehensive definition of e-business is: “The
transformation of an organization’s processes to deliver additional customer value through the
application of technologies, philosophies and computing paradigm of the new economy.”

Three primary processes are enhanced in e-business:

1. Production processes, which include procurement, ordering and replenishment

of stocks; processing of payments; electronic links with suppliers; and

production control processes, among others;

2. Customer-focused processes, which include promotional and marketing efforts,

selling over the Internet, processing of customers’ purchase orders and

payments, and customer support, among others; and

3. Internal management processes, which include employee services, training,

internal information-sharing, video-conferencing, and recruiting. Electronic

applications enhance information flow between production and sales forces

to improve sales force productivity. Workgroup communications and electronic

publishing of internal business information are likewise made more

efficient.
 E-Business Services
Airtel offers an internationally benchmarked, carrier class hosting, storage and business continuity
services. A range of services that help to keep your business running the way you want- 24x7.
Thanks to our world-class high tech Data Centers.
E-Business Services include:

• Managed Hosting

Here are some of the most compelling reasons why most of the businesses today prefer to
outsource their hosting requirement than reinventing the wheel themselves:
Large investment required
Both in terms of the network infrastructure and skilled manpower for it costs 5
to 6 times more to build a state-of-the-art data center on your own than to
outsource. Think of staffing experts on 24 x 7 schedules for all the network
management and monitoring, which a network of that scale, would require.
Lead time to host is reduced considerably
Connectivity

The change in web traffic can be unexpectedly high at times yet you need to accommodate
every customer that happens to type in your URL on the Browser and not be lacking, in terms
of capacity at any point in time. And for this you need a network with great bandwidth where
in you pay only for the bandwidth you need to use leading to optimum utilization It makes
perfect sense for you to host with Web Hosting Service from Airtel for it is a reliable and
secure service at an extremely competitive price. Besides, you have multiple options to
choose from. Pick the one that suits your requirements the best. Not to forget the value added
features and managed services we offer, once you choose to host with us. The Internet Data
Centre (IDC) is of international standard. Reason why, we sign up a Service Level Agreement
(SLA) of 99 per cent uptime. We make sure that all visitors to your site are served in an
instant. And this translates into repeat visits.
Web Hosting Service. It's the one-stop-shop for all your web requirements.

• Co-Location services

Customer can make use of state-of-the-art infrastructure by co-locating their server at the
Internet Data Centre of airtel. With co-location services, it not only provides rent space at
one of the best data centres but avail 24x7 monitoring, maintenance and administrative
support as well. These co-location services have the flexibility to grow in accordance with
growth in online business.

• BCR services
It is a limitless world. And today, organizations have realized the importance of a firm and
reliable infrastructure. E-business has not only revolutionized the way organizations perceive
situations, but also provided the critical proficiency to react in coach on demand. In today’s
comprehensive connected business market, a reliable and responsive e-business infrastructure
is indispensable to the success of a business enterprise.

Each business needs to have resilience at various stages of internal infrastructure to protect
the business from the dangers of technological, social and environmental factors. Every
organization needs a pervasive overview of all its functions on a multitude of levels and to
access the requirement accordingly.

Airtel has united to offer the complete disaster management solution covering all the
dynamics of risk to your business.

Today’s global economy demands 24x7 operations availability. Systems downtime can often
result in lost Revenue, lost productivity, lost opportunities, customer dissatisfaction, and even
a weakened market position. Eliminating these availability issues and inhibitors and
increasing the reliability and availability of business-critical systems have become paramount
in modern business environments.

If you aim to move closer to a continuous operations environment, We can help reduce
unplanned outages, reduce or potentially eliminate planned outages, and help lower the cost
associated with downtime, by identifying availability issues, inhibitors and exposures, and
delivering a comprehensive set of recommended improvements and tailored solutions.

• Airtel MATE
Mobile Application Tool for Enterprise or AIRTEL MATE is an integrated Telecom & IT
offers on-demand access to Enterprise business data from anywhere, anytime in a seamless
and secure manner. It enables your authorized users to access the business data through
mobile devices.

Create a sales order from your mobile device.

View purchase order or create procurement order.
Check available stock and route deliveries.
Monitor customer service call on your device and route new job tickets.

MARKETING MANAGEMENT
Marketing Management
Objectives:

 To study the effectiveness of advertising strategy of

AIRTEL Cellular service.

 To compare its success results with the market

competitors.

• People know about AIRTEL cellular service through

30 % Friends 70% Advertisements 5%

Other Sources

friends

advertisement
s

other sources
 • Feature of AIRTEL forced people to use AIRTEL is

35% Advertisements 20% Connectivity

10%Schemes

35%Goodwill

advertiseme
nt

connectivity

schemes

goodwill

• People’s first choice of cellular service when they

want to use mobile phone

AIRTEL 45% HUTCH 30% IDEA

8% RELIANCE 10% TATA INDICOM
5% OTHERS 2%

AIRTEL

HUTCH
TATA
INDICOM
RELIANCE

IDEA
 • Feature of AIRTEL is better than the people’s
previous cellular service.

Advertisements 25% Connectivity 60% Schemes

15%

ADVERTISEMENT
S

CONNECTIVITY

SCHEMES

• AIRTEL users in people’s phone book

Less than 30% : 15%

30% - 70% : 25%

More than 70% : 60%

0-30

30-70

70-100
• Type of advertisement mostly like by people in
AIRTEL is

Audio Visual : 85%

Print : 2%

Audio : 13%

Audio
Visual

Print

• Celebrity liked by people very much in AIRTEL

Audio

Sachin : 55%
Shahrukh : 38%

Kareena : 2%

A. R. Rehman : 5%

SACHIN

SHAHRUKH

KAREENA

A.R.
REHMAAN
• People take benefits of schemes offered by AIRTEL

YES : 85%

NO : 13%

CAN’T SAY : 2%

YES

NO

CAN’T
SAY

• People like most in AIRTEL is

NOKIA + AIRTEL : 86%

AIRTEL MAGIC : 5%

Postpaid services : 8%

AIRTEL Broadband : 1%

NOKIA +
AIRTEL

AIRTEL MAGIC

Postpaid
services

AIRTEL
Broadband
 • Service liked by people most in AIRTEL is

AIRTEL missed you service : 33%

Ring tones : 5%
Hello tunes : 22%
VOICE SMS : 40%

• AIRTEL is #1 in India

Yes : 95%

No : 5%

Yes
No
Conclusion:
AIRTEL’s Advertising has a major impact its users. People like the schemes provided by
airtel. AIRTEL had created a very good image in the mind of the new users of cellular service.
AIRTEL has adopted a very good strategy by providing a new connection with NOKIA who is
market leader in mobile sets, many new users buy Nokia sets and they get a free connection of
AIRTEL. AIRTEL is successful in capturing the highest market share by adopting Celebrity
Endorsement Strategy. A.R. Rehmaan’s tune for AIRTEL worked as free advertising for
AIRTEL as another service user uses it too. Other celebrities like Shahrukh Khan (bollywood)
and Sachin Tendulkar (Cricket) has also contributed very much in AIRTEL. Also the much
talked about new voice sms service is been liked by its users provided advertisements by saif-
kareena has popularized the same.
By virtue of its connectivity and advertising strategy AIRTEL is successful in grabbing the
highest market share in India, but there are still some recommendations from my study point of
view is that AIRTEL needs to make its network service more stronger than other service
providers to dominate the market in future too.

FINANCIAL MANAGEMENT
Financial Management

OBJECTIVE
• To study the ratio analysis and analyze the liquidity
position and soundness of the business.
• To study the market share of Airtel in comparison to its
competitors in the industry.

Financial management seeks to plan for the future such that a personal or business entity
has a positive flow of cash.

The term ‘financial management’ has a number of meanings including the administration and
maintenance of financial assets. The process of financial management may also include
identifying and trying to work around the various risks to which a particular project may be
exposed.

Some experts refer to financial management as the science of money management – the primary
usage of the term being in the world of financing business activities. However, the process of
financial management is important at all levels of human existence, because every entity needs
to look after its finances.

From an organizational standpoint, the process of financial management is the process

associated with financial planning and financial control. Financial planning seeks to quantify
various financial resources available and plan the size and timing of expenditures.

In the business world, this means closely monitoring cash flow. The inflow is the amount of
money coming into a particular company, while outflow is the record of the expenditure being
made by the company in various sources.

At the corporate level, the main aim of the process of business organization is to achieve the
various goals a company sets at a given point of time. Businesses also seek to generate
substantial amounts of profits with the help of a particular set of financial processes.

Financial planning aims to boost the levels of resources at their disposal, while also functioning
on money invested in them from external investors. Another goal companies have is to provide
investors with sufficient amounts of returns on their investments.

At the individual level, financial management mostly involves tailoring expenses as per the
financial resources the particular individual has.

Individuals who are in a favorable financial position, with surplus cash on hand or access to
funding, plan to either invest their money for a positive return (which normally means that they
have made more money after calculating the double impact of tax and inflation) or to spend it
on discretionary items.
Financial decision-making is also an important part of the modern day financial management
process. The particular entities involved in financial management also need to be able to take
the financial decisions that are intended to benefit them in the long run and achieve their
financial aims, which is the basic premise of financial management.

In the words of Finney and Miller:

“Financial analysis consists in separating facts according to some definite plan,

arranging them in groups according to certain circumstances and then presenting
them in a convenient and easily read and understandable form.”

In the words of John N. Myres:

“Financial statement analysis is largely a study of relationships among the various

financial factors in a business, as disclosed by a single set of statements and a study
of the trends of these factors as shown in a series of statements.”

The purpose of financial analysis depends on the needs of the person who is
analyzing these statements. These varying needs may be :—
 (i) To know the Earning Capacity or Profitability.

(ii) To know the Solvency and liquidity position of the business.

(iii) To know the Financial Strength of the firm.

(iv) To know the capability of payment of interest and dividend.

Balance sheet
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Sources of funds
Owner's fund
Equity share capital 1,897.91 1,895.93 1,893.88 1,853.37 1,853.37
Share application money 57.63 30.00 12.13 2.72 -
Preference share capital - - - - -
Reserves & surplus 18,283.82 9,515.21 5,437.42 2,675.38 2,971.49
Loan funds
Secured loans 52.42 266.45 2,863.37 3,959.88 1.36
Unsecured loans 6,517.92 5,044.36 1,932.92 1,034.41 625.00
Total 26,809.71 16,751.95 12,139.72 9,525.76 5,451.22
Uses of funds
Fixed assets
Gross block 28,115.65 26,509.93 17,951.74 13,240.63 31.84
Less : revaluation reserve 2.13 2.13 2.13 2.13 -
Less : accumulated depreciation 9,085.00 7,204.30 4,944.86 3,475.64 17.29
Net block 19,028.52 19,303.51 13,004.75 9,762.86 14.56
Capital work-in-progress 2,751.08 2,375.82 2,341.25 994.46 0.10
Investments 10,952.85 705.82 719.70 931.90 1,762.67
Net current assets
Current assets, loans & advances 8,439.38 5,406.81 3,338.88 2,486.31 3,688.36
Less : current liabilities & provisions 14,362.33 11,042.67 7,272.80 4,708.12 15.77
Total net current assets -5,922.95 -5,635.86 -3,933.92 -2,221.80 3,672.59
Miscellaneous expenses not written 0.20 2.66 7.94 58.35 1.30
Total 26,809.71 16,751.95 12,139.72 9,525.76 5,451.22

Ratios (Rs crore)

Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Per share ratios
Adjusted EPS (Rs) 34.08 21.20 10.60 6.29 -
Adjusted cash EPS (Rs) 52.16 34.34 18.84 12.66 0.03
Reported EPS (Rs) 32.90 21.27 10.62 6.53 -
Reported cash EPS (Rs) 50.99 34.41 18.86 12.90 0.03
Dividend per share - - - - -
Operating profit per share (Rs) 56.16 38.28 21.32 16.17 0.14
Book value (excl rev res) per share (Rs) 106.34 60.17 38.67 24.12 26.03
Book value (incl rev res) per share (Rs.) 106.35 60.18 38.68 24.13 26.03
Net operating income per share (Rs) 135.73 94.16 59.45 43.93 0.33
Free reserves per share (Rs) 83.18 49.88 28.11 12.31 16.03
Profitability ratios
Operating margin (%) 41.37 40.65 35.86 36.81 43.21
Gross profit margin (%) 29.08 27.47 23.14 24.29 37.06
Net profit margin (%) 23.99 22.46 17.80 14.83 0.58
Adjusted cash margin (%) 38.03 36.26 31.57 28.74 9.47
Adjusted return on net worth (%) 32.04 35.23 27.42 26.06 -
Reported return on net worth (%) 30.94 35.35 27.47 27.08 -
Return on long term funds (%) 28.52 29.83 21.28 20.41 0.42
Leverage ratios
Long term debt / Equity 0.30 0.43 0.61 0.98 0.10
Total debt/equity 0.32 0.46 0.65 1.10 0.12
Owners fund as % of total source 75.43 68.24 60.45 47.55 88.50
Fixed assets turnover ratio 1.03 0.74 0.72 0.74 1.98
Liquidity ratios
Current ratio 0.58 0.48 0.45 0.52 233.91
Current ratio (inc. st loans) 0.56 0.47 0.44 0.47 9.44
Quick ratio 0.55 0.47 0.44 0.48 233.91
Inventory turnover ratio 453.06 373.35 634.52 257.80 -
Payout ratios
Dividend payout ratio (net profit) - - - - -
Dividend payout ratio (cash profit) - - - - -
Earning retention ratio 100.00 100.00 100.00 100.00 100.00
Cash earnings retention ratio 100.00 100.00 100.00 100.00 100.00
Coverage ratios
Adjusted cash flow time total debt 0.66 0.81 1.34 2.13 104.71
Financial charges coverage ratio 27.77 26.09 17.22 9.52 1.28
Fin. charges cov.ratio (post tax) 25.60 24.13 16.08 8.54 1.29

Highlights for Full Year ended March 31, 2008

• Overall customer base crosses 6.4 crore.
• Highest ever-net addition of 2.5 crore customers in a year.
• Market leader with a market share of all India wireless subscribers at 23.8%(22.4% last year)
• Total Revenues of Rs. 27,025 crore (up 46% Y-o-Y).
• EBITDA of Rs. 11,372 crore (up 53% Y-o-Y).
• Cash Profit of Rs. 11,137 crore (up 52% Y-o-Y).
• Net Income of Rs. 6,701 crore (up 57% Y-o-Y).

Business and Financial Metrics

Total Revenue and Profit after Tax from 2003 to 2008 for Bharti Airtel[2]

In 2007/08, Bharti Airtel had total revenues of Rs. 270 billion, up 46.6% from Rs. 184 billion in
2006/07.[2] Its net profit was Rs. 64.0 billion, up 57.4% from Rs. 40.6 billion the previous year.
[2]
The company grew segment revenues by 54.9% in the Mobile Services segment, 27.2% in the
Telemedia Services segment, 25.3% in the Enterprise Services (Carriers) segment and 49.2% in
the Enterprise Services (Corporates) segment.[2] These increases were attributed to a 64.7%
increase in the company's subscriber base from 39.0 million in 2006/07 to 64.3 million in
2007/08.[2] As of 31 March 2008, Bharti Airtel's population coverage stood at 71% and its fiber
optics cable network was 73,787 route-kilometers.[2]

In the 3rd quarter of 2008/09, Bharti Airtel had total revenues of Rs. 96.3 billion, up 38.3%
from Rs. 69.6 billion in the 3rd quarter of 2007/08.[7] Its net profit wasRs. 21.6 billion, up 25.4%
from Rs. 17.2 billion the same quarter of the previous year.[7] The company grew segment
revenues by 41.5% in the Mobile Services segment, 15.8% in the Telemedia Services segment,
56.3% in the Enterprise Services (Carriers) segment and 23.8% in the Enterprise Services
(Corporates) segment.[7] Again, these increases were attributed to a 10.5% increase in the
company's subscriber base from 77.5 million in the 2nd quarter of 2008/09 to 85.7 million in the
3rd quarter of the same year.[7] As of 31 December 2008, Bharti Airtel's population coverage
stood at 79% and its fiber optics cable network was 90,205 route-kilometers.[7]

Annual Data[2] Units 2004 2005 2006 2007 2008

Total Customer Base 000s 7,141 11,842 20,926 39,013 64,268

Mobile Services 000s 6,504 10,984 19,579 37,141 61,985

Telemedia Services 000s 637 857 1,347 1,871 2,283

Based on Statement of
Operations

Rs. millio
Revenue 50,369 81,558 116,641 184,202 270,122
n

Rs. millio
EBITDA 17,055 30,658 41,636 74,407 114,018
n

Rs. millio
Cash Profit from Operations 14,363 28,219 40,006 73,037 111,535
n

Rs. millio
Earnings before Tax 5,527 15,832 23,455 46,784 73,115
n

Rs. millio
Net Profit 5,387 12,116 20,279 40,621 63,954
n

Key Ratios

Return on Equity (ROE) % 12.00% 23.70% 32.00% 43.10% 38.50%

Rs. millio
Earnings per Share (EPS) 3.15 6.53 10.78 21.43 34.23
n
[]Key Operating Metrics

Source: Average Revenue Per User (ARPU) from June 2007 to December 2008 for Bharti
Airtel

The following metrics are used as indicators of the company's health.

 Average revenue per user (ARPU) per month is computed by dividing the company's
total revenues (excluding equipment sales) during a certain period by its average customers
in the same period and then dividing this result by the number of months in the period. A
higher ARPU is better for the company.
 Churn is calculated by dividing the total number of disconnections during a certain
period by the average customers in the same period and then dividing the result by the
number of months in the period. A lower churn is better for the company.
 Minutes of usage (MoU) is the duration (in minutes) for which a customer uses the
network. It is expressed over a period of one month. Higher MoU is better for the company.
 Subscriber base refers to the number of individuals that use or subscribe to Bharti
Airtel's services. A larger subscriber base is better for the company.
The table below shows key operating metrics for Bharti Airtel over the past 7 quarters.

Dec Sep Jun Mar Dec Sep Jun

Parameters Unit
2008 2008 2008 2008 2007 2007 2007

Customers 000s 88,270 79,988 71,777 64,268 57,341 50,950 44,676

Average Revenue Per User

Rs. 324 331 350 357 358 366 390
(ARPU)

Minute
Minutes of Usage (MoU) 505 526 534 507 474 469 478
s

Post-Paid Voluntary Churn % 1.1% 1.1% 1.0% 1.0% 0.9% 1.1% 1.1%

Post-Paid Company-
% 1.2% 1.4% 1.4% 1.5% 1.8% 2.1% 2.5%
Initiated Churn

Pre-Paid Churn % 2.9% 3.2% 3.8% 4.3% 3.9% 3.8% 4.0%

Business Segments

Segment Contribution to Total Revenue in 2007/08 for Bharti Airtel[2]

Bharti Airtel has 5 business segments:

(i) Mobile Services;

(ii) (ii) Telemedia Services;

(iii) (iii) Enterprise Services - Carriers;

(iv) (iv) Enterprise Services - Coprorates; and

(v) (v) Passive Infrastructure Services.

Mobile Services (69.7% of revenue, 71.3% of EBIT, 76.2% of net profit)

The Mobile Services segment provides prepaid and postpaid mobile and fixed wireless services
in all of India's 23 telecom circles. In 2007/08, revenue and EBITfrom this segment stood
at Rs. 218 billion and Rs. 59.3 billion respectively. Net profit rose 71.9% from Rs. 29.6 billion
in 2006/07 to Rs. 51.0 billion in 2007/08.

Telemedia Services (9.1% of revenue, 7.3% of EBIT, 7.6% of net profit)

The Telemedia Services segment provides fixed line telephone and broadband (DSL) services in
15 telecom circles across India. In 2007/08, revenue and EBIT from this segment stood
at Rs. 28.6 billion and Rs. 6.1 billion respectively.[8] Net profit rose 227% from Rs. 1.6 billion in
2006/07 to Rs. 5.1 billion in 2007/08.

Enterprise Services - Carriers (14.0% of revenue, 13.6% of EBIT, 16.7% of net profit)
The Enterprise Services - Carriers segment provides long distance voice and data services to
carrier customers and other Airtel segments. In 2007/08, revenue and EBIT from this segment
stood at Rs. 43.8 billion and Rs. 11.3 billion respectively.[8] Net profit rose slightly
from Rs. 11.1 billion in 2006/07 to Rs. 11.2 billion in 2007/08.[8]

Enterprise Services - Corporate (4.4% of revenue, 6.3% of EBIT, 5.9% of net profit)
The Enterprise Services - Corporate segment provides voice and data services to corporate and
SMEs. In 2007/08, revenue and EBIT from this segment stood at Rs. 13.9 billion and Rs. 5.2
billion respectively.[8] Net profit rose 89.0% from Rs. 2.1 billion in 2006/07 to Rs. 3.9 billion in
2007/08.[8]
Passive Infrastructure Services (1.9% of revenue 1.1% of EBIT, 1.1% of net profit)
In 2007/08, Bharti Airtel formed a joint venture with Vodafone Essar and Idea Cellular to
merge their respective passive infrastructure assets in 16telecom circles across India. A
subsidiary, Bharti Infratel, was set up to manage the company's assets in this joint venture and
provide passive infrastructure services to all telecom operators in India on a non-discriminatory
basis. In the same year, revenue and EBIT from this segment stood at Rs. 6.0 billion and Rs. 1.2
billion.[8] Net profit was Rs. 0.74 million.[8]

Shareholding Pattern
The Indian promoter, Bharti Telecom Ltd, holds 45.3% of the total shares of Bharti Airtel Ltd.
[9]
The foreign promoters, Pastel Ltd and Indian Continent Investment Ltd, hold 15.6% and 6.3%
respectively.[9] Private corporations that hold more than 1% of the total shares of Bharti Airtel
include the Life Insurance Corporation of India (3.4%) and Europacific Growth Fund (1.5%).

Shareholding Pattern of Bharti Airtel Ltd[10]

Percent
Entity
age

Bharti Telecom Ltd (Indian Promoter) 45.30%

Foreign Promoters 21.85%

Foreign Institutional Investors 21.99%

Banks, Financial Institutions and Insurance 3.50%

Mutual Funds 2.97%

Private Corporate Bodies 2.63%

General Public 1.04%

Non Resident Indians, Overseas Corporate Bodies and Foreign

0.56%
Others
Others 0.16%
 FINANCIAL MANAGEMENT

Market Share
Bharti Airtel has a dominant market share across the GSM subscribers in the telecom sector.
Bharti Airtel's market share is facing competition since an aggressive entry strategy by the new
telecom operators is being pursued, as carried out by RCOM for its national GSM rollout.

GSM Market Share(%) Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
- 2007/2008[26] 2007 2007 2008 2008 2008 2008 2008 2008 2008 2008 2008

Bharti Airtel 33.0 33.2 33.3 33.5 33.4 33.6 33.7 33.9 34.2 34.4 34.5

Vodafone 24.0 24.0 23.9 23.9 23.8 23.9 24.0 24.1 24.2 24.3 24.3

BSNL/MTNL 21.7 21.5 21.3 21.1 21.2 20.8 20.4 20.0 19.7 19.4 19.1

Idea 14.9 15.0 15.0 15.1 15.2 15.3 15.5 15.5 15.4 15.1 15.1

Others 6.4 6.4 6.5 6.4 6.4 6.4 6.5 6.5 6.6 6.7 6.9

Bharti Airtel has been able to sustain highest revenues across India in line with its sharp
increase in subscriber market share in 2008. Bharti’s biggest revenue market share gains came
from circles Rajasthan, Bihar, Andhra Pradesh, Karnataka and Tamil Nadu.

Revenue Market Share(%) - 2007/2008[41] Dec 2007 Mar 2008 Jun 2008 Sep 2008

Bharti Airtel 29.8 29.9 31.2 32.7

Vodafone Essar 18.5 19.1 19.7 19.6

Reliance Communications 15.0 13.9 13.5 12.4

BSNL 14.1 14.5 11.7 11.4

Idea 8.1 8.6 9.5 10.0

Others 14.4 14.0 14.4 13.8

 OPERATIONS MANAGEMENT

Objective:
 • To study the various operations and services provision in various forms by
Airtel.

• To study the supply chain management of Airtel company.

Introduction to Operation Management

Operations management is an area of business that is concerned with the production of good
quality goods and services, and involves the responsibility of ensuring that business
operations are efficient and effective. It is the management of resources, the distribution of
goods and services to customers.

APICS The Association for Operations Management also defines operations management as
"the field of study that focuses on the effectively planning, scheduling, use, and control of a
manufacturing or service organization through the study of concepts from design
engineering, industrial engineering, management information systems, quality
management, production management, inventory management, accounting, and other functions
as they affect the organization".

Additionally, The Operations Management Body of Knowledge (OMBOK) Framework defines

the scope of operations management and the activities and techniques that are a part of the
operations management profession.

Operations also refer to the production of goods and services, the set of value-added activities
that transform inputs into many outputs. Fundamentally, these value-adding creative activities
should be aligned with market opportunity for optimal enterprise performance.

Operations as a Transformation Process

Operations management is about the way organizations produce goods and services. Everything
you wear, eat, sit on, use, read or knock about on the sports field comes to you courtesy of the
operations managers who organized its production. Every book you borrow from the library,
every treatment you receive at the hospital, every service you expect in the shops and every
lecture you attend at university all have been produced.
This definition reflects the essential nature of Operations Management; it is a central activity in
organizing things. Another way of looking at an operation is to consider it as a transformation
process.

Operations Management is all about providing customers with products and services.
Operations are a transformation process; they convert a set of resources (INPUTS) into services
and goods (OUTPUTS). These resources may be raw materials, information, or the customer
itself. These resources are transformed into the final goods or services by way of other
'transforming' resources - the facilities and staff of the operation.

 Raw Materials

An obvious example is a cabinet maker, who takes some wood, cuts and planes it, and
then polishes it until a piece of furniture is produced.

 Information

A tourist office gathers and provides information to holiday makers, and assists in
advising on places to stay or visit.
  Customers

At an airport, you are one of the many resources being processed. The operation you are
involved in is about processing your ticket and baggage, moving from ticket desk
through the customs and duty-free areas, to deliver you to the awaiting plane.

Extending the process...

If we add a few more parts to the transformation process, we can see the key elements that
operations managers need to consider. Operations is about designing services, products and
delivery systems;

1. Managing and controlling the operations system.

2. Finding ways to improve operations.

Operations Management is all about providing customers with products and services.

You survive by giving customers with what they want

 Every Product or Service is really a bundle of different attributes.
 Product, place, price, performance, quality, timing, service, etc.
 Customers are looking for a bundle of characteristics
 Total bundle provides the level of value customers deem appropriate
 Buying products with the attributes they want at the lowest price possible

• Attributes
• Price
• Quality
• Image
• Performance
• Safety
• Place – distribution
• Time – delivery, availability
Prepaid Airtel options:

Total Cost Control

Pre activated STD/ISD without deposits or rentals
Strong Network coverage
Instant Balance and Validity Enquiry
Recharge your Airtel Prepaid
Prepaid Roaming
More with Airtel Prepaid
Reach us Anytime Anywhere

Total Cost Control

You can control your Airtel Prepaid like never before. No more rentals or deposits – simply
recharge as much as you need to from as low as Rs. 10, to as high as Rs. 10,000/-.

Pre activated STD/ISD without deposits or rentals

You can now enjoy a pre-activated STD/ISD on your Airtel Prepaid. No more paying deposits or
having a minimum balance in your account to make an STD/ISD call. Hassle-free calls are here
to stay! Click here for more information on STD/ISD rates in your circle new.

Strong Network Coverage

Enjoy complete clarity when calling with Airtel’s world-class technology and unbreakable
network coverage that spans over 23 circles across the country.

Instant Balance and Validity Enquiry

Your account balance is updated on the screen of your handset at the end of each chargeable call.
You can also call 123 from your mobile phone and listen to the voice announcement or simply
dial *123#, press 'OK' or 'YES' button and your account balance will be displayed on the screen
of your handset.

Recharge your Airtel Prepaid

Recharging is Easy. The calling value on your card keeps reducing as you make calls or use any
other chargeable service. Choose the Airtel Prepaid Recharge Coupon that’s right for you, from a
variety of tailor– made recharge coupons with different denominations, which are available at a
number of outlets across your city. Simply follow the procedure mentioned below, to recharge
your phone.

Gently scratch the silver panel on the reverse of the recharge card for a 16-digit
number.
Call '123' and choose your preferred language.
Follow the voice announcement and enter the 16-digit recharge number, when
requested.
Your prepaid account will be automatically recharged by the calling value amount
and validity of your coupon.

More Recharge options:

Flexible recharge voucher

Postpaid Airtel Connection
Features
Easy Billing
Easy Payment Options. Anytime, Anywhere.
Credit Limit
Strong Network Coverage
Long Distance Calling Facility
Widest Roaming (National and International)
GPRS - Roaming

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Enjoy a host of rich features only with Airtel e-bill. Register free on ‘My Airtel’ section and
view your monthly bill with call details for last three months. Sort your calls between personal
and official or analyze your usage, at the click of a button. To change your tariff plan call our
IVR at 121 and leave a request, you can also send in your requests through
email 121@airtelindia.com, log your request on My Airtel section of the website or SMS the
change to 121.

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You can choose from a host of convenient payment options only with Airtel. Walk into any
Airtel relationship centre and make your payments by cash or credit card. Drop a cheque at any
of the drop boxes for making payments or simply log on to My Airtel section and pay instantly
through your credit card. You can also opt for easy payment options like.

Standing Instructions
You can give us standing instructions to debit your credit card account for your monthly Airtel
bills. All you have to do is fill the Standing Instruction Form and mail, fax it to us or drop it
any of our relationship centres.

Electronic Clearing System

Fill an ECS form and mail fax it to us or drop it any of our relationship centres to directly debit
your bank account for your monthly Airtel bill.

Pay while roaming

Airtel has introduced 'Anywhere payment' that offers you the convenience of making payments
while you roam. Walk in to any Airtel Relationship Centre in the country, make payments by
cash or credit card and enjoy uninterrupted Airtel Services.
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Your pre-set credit limit mentioned on your monthly bill helps you keep your mobile charges
in control, keeps track of your usage and ensures that your mobile phone is not misused.
Should you exceed your credit limit, you will be informed via a voice or a non-voice message
to make an interim payment and reduce your account balance below your credit limit. You may
also choose to pay us an additional refundable deposit to enhance your credit limit or opt for
our convenient payment method of Credit Card Standing instruction .

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Enjoy complete clarity when calling with Airtel .It offers you world class technology and
unbreakable network coverage that spans over 23 circles across the country.

Error! Hyperlink reference not valid.--Call long distance calls in India and Overseas with
STD / ISD facility on your Airtel phone. Click here for more information on STD/ISD rates.

Error! Hyperlink reference not valid.--Airtel's roaming service allows you to stay connected
and use your mobile phone to make or receive calls from almost anywhere in India and also
over 160 countries, abroad. Click here for more information on Airtel Roaming.

Call management Services

Call waiting, call hold, call divert and Caller Line Identification Presentation, help you do more
with your Airtel Postpaid connection!

Conference call
You can hold a teleconference with 5 people simultaneously with Call Conferencing service
from Airtel. In fact, you can set up a conference even when the other five are using a landline
phone. To know more, call customer service at 121.

Missed call alert

A missed call alert is a SMS that you will receive for all the calls that you missed. The SMS
will detail the CLI and the time when the call was made. To activate, dial *135*2# then press
the call button and wait for the request to be completed.

Voice Mail
When your handset is switched off, or you’re too busy to answer the phone, Airtel Voicemail
will answer your calls and record a message. The best part is that there's no extra monthly cost
for setting up Voicemail - you just pay for the phone call when you use the service.

SMS (Short Messaging Service)

Send messages quickly and easily, using text, if it's too noisy to talk or you don't have much
time.

MMS (Multi-media Messaging Service):

Jazz up your messages with pictures, images and video clippings, with MMS from Airtel! To
activate MMS on your phone, SMS 'MMS' to 56465 and save service settings.

GPRS (General Packet Radio Services)

Log on to the internet, with GPRS that allows data transmission at a higher speed. Access e-
mails and internet across Airtel's pan-India presence using 'Mobile Office' with your phone or a
phone and laptop both.
Supply chain management at Airtel
Bharti Airtel understands the importance of partners to remain competitive in a
dynamic business environment. As a step in that direction, the Supply Chain
(SCM) function has been created with a mandate to develop partner relationships
to maximize mutual opportunities for growth and profitability. The SCM
organization has a central core team of supply chain subject mater experts and
execution teams operating under different business divisions across the country.

Supply Chain Philosophy

At the center of Bharti Airtel's Supply Chain Philosophy is partnership and
collaboration. The Supply Chain characteristics have therefore been defined using
the same approach, shown in the table below.

Bharti Airtel
Supply Chain Characteristics
Approach

Number & Structure Fewer; Clustered

Procurement personnel Limited

Outsourcing Strategic

Nature of Interactions Cooperative, positive-sum

Relationship focus Mutually-beneficial

Relationship focus Performance

Contract length Long-term

Pricing practices Target costing

Price Changes Downward

Quality Designed-in

Delivery Smaller Quantities (JIT)

Inventory buffers Minimized, eliminated

Communication Extensive; multi-level

Communication Collaborative; two-way

Role in development Substantial

Production flexibility High

Technology sharing Extensive

Dedicated investments Substantial

Mutual commitment High

Governance Self-governing

Future Expectations Considerable

 HUMAN RESOURSE MANAGEMENT

Objective:
To study the recruitment and selection procedure of the employees at Airtel.

Human resource management (HRM) is the strategic and coherent approach to the
management of an organisation's most valued assets - the people working there who
individually and collectively contribute to the achievement of the objectives of the business.
The terms "human resource management" and "human resources" (HR) have largely replaced
the term "personnel management" as a description of the processes involved in managing
people in organizations. In simple sense, Human Resource Management(HRM) means
employing people ,developing their resources, utilizing maintaining and compensating their
services in tune with the job and organizational requirement.

Its features include:

• Organizational management
• Personnel administration
• Personnel management
• Manpower management
• Industrial management

But these traditional expressions are becoming less common for the theoretical discipline.
Sometimes even industrial relations and employee relations are confusingly listed as
synonyms, although these normally refer to the relationship between management and workers
and the behavior of workers in companies.

The theoretical discipline is based primarily on the assumption that employees are individuals
with varying goals and needs, and as such should not be thought of as basic business resources,
such as trucks and filing cabinets. The field takes a positive view of workers, assuming that
virtually all wish to contribute to the enterprise productively, and that the main obstacles to
their endeavors are lack of knowledge, insufficient training, and failures of process.

HRM is seen by practitioners in the field as a more innovative view of workplace management
than the traditional approach. Its techniques force the managers of an enterprise to express their
goals with specificity so that they can be understood and undertaken by the workforce, and to
provide the resources needed for them to successfully accomplish their assignments. As such,
HRM techniques, when properly practiced, are expressive of the goals and operating practices
of the enterprise overall. HRM is also seen by many to have a key role in risk reduction within
organizations.

Synonyms such as personnel management are often used in a more restricted sense to describe
activities that are necessary in the recruiting of a workforce, providing its members with
payroll and benefits, and administrating their work-life needs. So if we move to actual
definitions, Torrington and Hall (1987) define personnel management as being:

“a series of activities which: first enable working people and their employing organisations to
agree about the objectives and nature of their working relationship and, secondly, ensures that
the agreement is fulfilled" (

While Miller (1987) suggests that HRM relates to:

".......those decisions and actions which concern the management of employees at all levels in
the business and which are related to the implementation of strategies directed towards
creating and sustaining competitive advantage"

The goal of human resource management is to help an organization to meet strategic goals by
attracting, and maintaining employees and also to manage them effectively. The key word here
perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between the management of an
organization's employees, and the overall strategic direction of the company (Miller, 1989).

The basic premise of the academic theory of HRM is that humans are not machines, therefore
we need to have an interdisciplinary examination of people in the workplace. Fields such as
psychology, industrial engineering, industrial, Legal/Paralegal Studies and organizational
psychology, industrial relations, sociology, and critical theories: postmodernism, post-
structuralism play a major role. Many colleges and universities offer bachelor and master
degrees in Human Resources Management.

One widely used scheme to describe the role of HRM, developed by Dave Ulrich, defines 4
fields for the HRM function:

• Strategic business partner

• Change management
• Employee champion
• Administration

However, many HR functions these days struggle to get beyond the roles of administration and
employee champion, and are seen rather as reactive than strategically proactive partners for the
top management. In addition, HR organizations also have the difficulty in proving how their
activities and processes add value to the company. Only in the recent years HR scholars and
HR professionals are focusing to develop models that can measure if HR adds value.

Business practice

Human resources management comprises several processes. Together they are supposed to
achieve the above mentioned goal. These processes can be performed in an HR department, but
some tasks can also be outsourced or performed by line-managers or other departments. When
effectively integrated they provide significant economic benefit to the company.

• Workforce planning
• Recruitment (sometimes separated into attraction and selection)
• Induction and Orientation
• Skills management
• Training and development
• Personnel administration
• Compensation in wage or salary
• Time management
• Travel management (sometimes assigned to accounting rather than HRM)
• Payroll (sometimes assigned to accounting rather than HRM)
• Employee benefits administration
• Personnel cost planning
 • Performance appraisal

Careers

The sort of careers available in HRM are varied. There are generalist HRM jobs such as human
resource assistant. There are careers involved with employment, recruitment and placement and
these are usually conducted by interviewers, EEO (Equal Employment Opportunity) specialists
or college recruiters. Training and development specialism is often conducted by trainers and
orientation specialists. Compensation and benefits tasks are handled by compensation analysts,
salary administrators, and benefits administrators.

Professional organizations

Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the
organization. Human Resource Management can also be performed by line managers.

Human Resource Management is the organizational function that deals with issues related to
people such as compensation, hiring, performance management, organization development,
safety, wellness, benefits, employee motivation, communication, administration, and training.

Airtel’s HR Policy:

Airtel believes that one of the most important drivers of growth and success for any
organization is its people. At Bharti Airtel, our ‘Mantra’ for employee delight focuses on 5
Ps –
• People,
• Pride,
• Passion,
• Processes and
• Performance.

Bharti Airtel has been recognized among the Best Employers in the Country for two
successive years – being 14th in 2003 & jumping ahead of several other large
conglomerates to an enviable position of the 2nd Best Employer in the Country in 2004.
This is a clear demonstration & acknowledgement of the robust, progressive, people as
well as business aligned Human Resource practices, which the organization has developed
and implemented remarkably in a very short span of time.

Bharti Airtel follows an “open door policy” to approach the management, which helps
resolve issues with mutual agreements. It encourage people to stand up against any unfair
treatment for which they have the Office of the Ombudsman, where employees can raise
any issues regarding business and workplace conduct. Bharti ensures transparency through
the various communication policies, strategies and plans. . Regular Employee
Communication Forums provides a platform for the employees to raise issues that require
resolution.

Its leaders strongly believe in facilitating and initiating activities that help employees
manage their health and well-being. Company’s focus always remains to redefine
leadership; we develop leaders who enable performance and inspire their people to
unleash their potential. Their people orientation reflects in our vision of being “targeted
by top talent”, and a key aspect of our business focus “building a best-in-class leadership
team that nurtures talent at every level.”

Employee friendly HR policies have been put in place, which amply reflect the
organization’s concern for its people. Some typical examples of these policies and
practices include a family-day at office, half day leave for birthdays, gifts for
anniversaries, compulsory 10 days off, festival celebration with family, no official
meetings on weekends, five day weeks, concierge services, call center engagement
programs etc. These “care” policies and practices are applied across the organizational
levels without any discrimination.

From self-management workshops to aerobics sessions, yoga classes to provision of

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

Bharti Airtel offers a flexible compensation structure to its employees wherein the
employees have the flexibility to structure their fixed component of their compensation
according to their requirements within the ambit of legislation.

“Even a sweeper in the corporate office must understand that, if he does not keep the office
clean, the visiting shareholders could question the company’s ability to manage a business if
they cannot manage their premises well”
-Mr. Akhil Gupta (HR- Airtel)
Our Performance Linked Incentive (PLI) schemes are linked with the variable component
of our compensation structure. This component is linked to both the individual
performance against his/ her set KRAs (Key Result Areas) and the overall performance of
the business entity that an employee belongs to.
Our leaders and managers understand the need to bring clarity to employees about how
their roles, goals and actions align the realization of organization’s vision and goals.
The mechanisms like Performance Management System (PMS) and Talent Management
Process (TMP) are the key sources of identifying the training needs of the employees and
check to competency levels for promotion.

The goal of human resource management is to help an organization to meet strategic goals by
attracting, and maintaining employees and also to manage them effectively.

The process involves carrying out a skills analysis of the existing workforce, carrying out
manpower forecasting, and taking action to ensure that supply meets demand. This may include
the development of training and retraining strategies. Through HRP an organization strives to
have the right number & the right kind of people at the right place at the right time.

RECRUITMENT

Bharti Airtel Limited has moved to the Billion Dollar league and this is a testimony to the
importance that they attach to our "people". Today, Bharti is a formidable player in the telecom
business with unparalleled energy, passion and creativity unleashed by the talent pool within.
Their Management Trainee program, christened Bharti Young Leaders' Program has been
designed to provide young leaders an accelerated path to reach their career goals.

The Young Leaders Program, in its 5th year since inception, has successfully groomed young
leaders of BA year on year. These employees have now gained senior positions at various
locations within BA. Our Goal –

• Nurture and create a pool of potential talent (Young Leaders) who can deliver superior
business performance.

• Provide Young Leaders with a holistic understanding and exposure to the business and
the organization.

• Facilitate Young Leaders in gaining insight into their own strengths, development areas,
and provide opportunities for self development.

According to Edwin B. Flippo, “Recruitment is the process of searching the candidates for
employment and stimulating them to apply for jobs in the organization”. Recruitment is the
activity that links the employers and the job seekers.

Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified
applicants for the future human resources needs even though specific vacancies do not exist.

RECRUITMENT Process

Trends in Recruitment

1. OUTSOURCING
The outsourcing firms help the organization by the initial screening of the candidates
according to the needs of the organization and creating a suitable pool of talent for the final
 selection by the organization. Outsourcing firms develop their human resource pool by
employing people for them and make available personnel to various companies as per their
needs. In turn, the outsourcing firms or the intermediaries charge the organizations for their
services.
2. POACHING/RAIDING

“Buying talent” (rather than developing it) is the latest mantra being followed by the
organizations today. Poaching means employing a competent and experienced person
already working with another reputed company in the same or different industry; the
organization might be a competitor in the industry. A company can attract talent from
another firm by offering attractive pay packages and other terms and conditions, better than
the current employer of the candidate. But it is seen as an unethical practice and not openly
talked about. It has become a challenge for human resource managers to face and tackle
poaching, as it weakens the competitive strength of the firm.

3. E-Recruitment
Many big organizations use Internet as a source of recruitment. E- recruitment is the use of
technology to assist the recruitment process. They advertise job vacancies through
worldwide web. The job seekers send their applications or curriculum vitae i.e. CV through
e mail using the Internet. Alternatively job seekers place their CV’s in worldwide web,
which can be drawn by prospective employees depending upon their requirements.

Top 5 Job Sites

1 www.naukri.com

2 www.monsterindia.com
3 www.clickjobs.com
4 www.jobstreet.com
5 in.jobs.yahoo.com

Recruitment through AIRTEL Website

 Recruitment Process
The recruitment process is the basic procedure, however there are few changes in different
departments, for e.g. IT dept & Customer Care dept cannot have same type of recruitment
process as the abilities & skills required are different in different department. However the
basic process is as following :

1. Prepare the organizational chart with the support of respective departments based on
industry norms & projection of growth.

2. Co-ordinate with all departments for their manpower requirements.

3. Create the job profile and person specification as per department requisition.

4. Create the company profile for advertising the company to attract prospective candidates
& also for the consultants etc.

5. Follow internal or external methods of Recruitment

Commonly used External Methods

i. Co-ordinate with recruitment agencies & HR consultants e.g.. HEED

 Consultancy, ABC Consultancy etc

ii. Advertisements in print e.g.. Times Ascent, Hindustan Times etc

iii. Web - in own website or portals like naukri.com, monster.com etc.

iv. Campus Recruitments

Commonly used Internal Methods (IJR – Internal Job Requirement)

i. Employees Referral

ii. Transfer & Promotions

6. Application Scrutiny & Preliminary Screening .

7. Shortlist for preliminary interview – telephonic, video conferencing, personal interview.

8. Organizing further rounds of interview with department heads etc depending upon the
position.

9. Briefing company profile to potential candidates, convincing them about the

organisational strength & about their career path & Compensation.

10. Providing offer letter to selected candidates & help them in joining formalities within the
organization.

11. Induction, followed by training as required.

12. Taking monthly/quarterly feedback from the department about the candidates who have
joined.

13. Organizing market survey of salaries, job opportunities etc.

MANAGEMENT OF TECHNOLOGY,
 INNOVATION & CHANGE

Management of Technology, Innovation and Change (MTIC)

Objective of the study:

• To analyse the basic technology used by Airtel in its operations of telecommunication.

• To understand the various ventures and acquisitions with Airtel.

Bharti Airtel Ltd is one of the largest mobile telecoms providers in India (26.5% market share).
In August 2006 the company awarded Ericsson an extension to the existing contract of US$1bn
to upgrade and develop its GSM/GPRS network.

The new three year services agreement will see Ericsson manage design, development and
deployment of the network, including capacity and coverage, enabling the operator to expand
in rural India and reach out to all the towns and cities across 15 regions.

Ericsson is a long-term partner of Bharti and manages more than 70% of the company's
existing GSM/GPRS network within 15 of the 23 Indian telecoms regions. To meet increased
demand for value-added services at that time Bharti required a Mobile Packet Backbone
Network (M-PBN) and Ericsson was able to provide the technology, alongside enhanced data
rates for GSM Evolution (EDGE) technology.

Following these earlier successes, Ericsson was optimistic of winning new orders from Bharti
(previous orders obtained were worth US$650m in 2004 and 2005). Bharti’s ambition is to
bring its network to every one of the 5,200 towns described as census towns by the Indian
authorities by March 2007, an expansion of 1,000 over the present total.

Bharti hopes to achieve with Ericsson's expertise a competitive edge over its rivals – ultimately
by having better coverage and eventually with more cost-effective technology in place.

GSM (Global System for Mobile communications: originally from Groupe Spécial Mobile)
is the most popular standard for mobile phones in the world. Its promoter, the GSM
Association, estimates that 80% of the global mobile market uses the standard GSM is used by
over 3 billion people across more than 212 countries and territories. Its ubiquity makes
international roaming very common betweenmobile phone operators, enabling subscribers to
use their phones in many parts of the world. GSM differs from its predecessors in that both
signaling and speech channels are digital, and thus is considered asecond generation (2G)
mobile phone system. This has also meant that data communication was easy to build into the
system.
The ubiquity of the GSM standard has been an advantage to both consumers (who benefit from
the ability to roam and switch carriers without switching phones) and also to network operators
(who can choose equipment from any of the many vendors implementing GSM). GSM also
pioneered a low-cost (to the network carrier) alternative to voice calls, the Short message
service (SMS, also called "text messaging"), which is now supported on other mobile standards
as well. Another advantage is that the standard includes one worldwide Emergency telephone
number,112. This makes it easier for international travellers to connect to emergency services
without knowing the local emergency number.
Newer versions of the standard were backward-compatible with the original GSM phones. For
example, Release '97 of the standard added packet data capabilities, by means of General
Packet Radio Service (GPRS). Release '99 introduced higher speed data transmission
using Enhanced Data Rates for GSM Evolution.
GSM services are a standard collection of applications and features available to mobile
phone subscribers all over the world.In order to gain access to GSM services, a user needs
three things:

 A subscription with a mobile phone operator. This is usually either a Pay As You
Go arrangement, where all GSM services are paid for in advance (commercially called
 "prepaid"), or a Pay Monthly option where a bill is issued each month for line rental,
normally paid for a month in advance, and for services used in the previous month
(commercially called "postpaid").
 A mobile phone which is GSM compliant and operates at the same frequency as the
operator. Most phone companies sell phones from third-party manufacturers.
 A SIM ("Subscriber Identity Module") card which is activated by the operator once the
subscription is granted. After activation the card is then programmed with the
subscriber's MSISDN ("Mobile Subscriber Integrated Services Digital Network
Number") (the telephone number). Personal information such as contact numbers of friends
and family can also be stored on the SIM by the subscriber.

Major agreements and alliances

During the year Bharti Airtel has entered into following major agreements and alliances:
• With Microsoft to offer software and services for the Small and Medium Business (SMB)
market in India. The partnership will start off by offering to Indian SMBs Microsoft solutions
for Hosted Messaging and Collaboration. It will also offer other hosted applications like CRM,
Accounting, ERP, Unified Communications and select Microsoft ISV applications;
• With Google to offer search services on Airtel Mobile. As part of the agreement, Airtel will
bring Google search to the Airtel Live mobile WAP portal. Google will also incorporate
advertising through its Mobile Ads product on the Airtel Live mobile portal;
• With Adani Group to connect Mundra Port and Special Economic Zone. This is a first-of-its-
kind alliance with the Adani group for setting up the Telecommunications Network
Infrastructure for its multi-sector Special Economic Zone (SEZ) located at Mundra port;
• A three-year contract with Nokia at an estimated value of US$ 400 mn to expand its managed
GSM/GPRS/EDGE networks in eight Airtel circles and deploy a pan India WAP solution
across its networks;
• A three-year network expansion contract with Ericsson at an estimated value of USD 1 bn .
The contract will enable Bharti Airtel to rapidly expand its mobile services footprint further
and reach out to all towns and cities in 15 telecom circles in the country;
• With Microsoft to offer Microsoft’s latest Windows Mobile 5.0 technology to its customer.
With this agreement, Bharti Airtel has become the first Indian telecom company to offer
Microsoft’s latest Mobile 5.0 technology to its customers;
• With IBM to deliver India’s first ‘Service Delivery Platform’ (SDP). This platform will
enable Airtel to deliver a suite of unique, innovative products, services and applications, to its
over 39 million customers spanning mobile, landline and broadband services. Airtel is
investing over USD 100 Million in this delivery platform.
Mergers & Acquisitions
• During the year, the Company has sold 2.36% of its investments in Forum I Aviation Limited
which has resulted in reduction of its shareholding in the JV
from 16.6% to 14.2%;
• Pursuant to a rights issue made by Bharti Hexacom Limited (BHL) during the year, the
Company subscribed to 43,750,000 shares of BHL for an aggregate consideration of Rs. 875
mn resulting in increase in its stake from 68.5% to 68.89%;
• On 17 April 2007, the Hon’ble High Court of Delhi approved the amalgamation of Satcom
Broadband Equipment Limited (SBEL) and Bharti Broadband Limited (BBL) into Bharti Airtel
Limited. On completion of all procedural formalities, SBEL and BBL will stand dissolved
(without the process of winding up) into Bharti Airtel Limited. The appointed date of the
amalgamation is October 1, 2005;
• At its meeting held on 26 April 2007, the Board approved the acquisition of 12,25,000 equity
shares of Rs. 10 each of Bharti Aquanet Limited (“Aquanet”) comprising 49% of the equity
from Singtel i2i Limited for the consolidated consideration of Rs. 154.5 mn. Post acquisition,
Aquanet will become a wholly owned subsidiary of, and will be merged with Bharti airtel.
References

1. ↑ 1.0 1.1 1.2 Bharti Airtel Report (Jan 2009), Emkay Research
2. ↑ 2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 Annual Report (2007/08),
Bharti Airtel
3. ↑ Bharti Airtel reports 37 percent jump in Q2 net profit,
becomes world's third largest mobile operator (Nov 2008),
International Business Times
4. ↑ Telecom Subscriber Update (Nov 2008), India Infoline
5. ↑ Bharti sees 8.3m Q3 subscriber additions sustaining ahead
(Jan 2009), MoneyControl.com
6. ↑ 6.0 6.1 Bharti Airtel Report (Feb 2009), Indiabulls
7. ↑ 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 Quarterly Report (Dec 2008), Bharti
Airtel
8. ↑ 8.00 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 8.09 8.10 8.11 8.12 8.13 8.14 Segment
Contribution, Annual Report (2007/08), Bharti Airtel
9. ↑ 9.0 9.1 Promoter and Promoter Group (Dec 2008), Bharti Airtel,
Mumbai Stock Exchange
10. ↑ Shareholding Pattern (Dec 2008), Bharti Airtel, Mumbai
Stock Exchange
11.0 11.1 11.2
11. ↑ Investor Presentation (Jan 2009), Bharti Airtel
12. ↑ Quarterly Performance Analysis of Companies (Aug 2008),
India Telecom Report, Cygnus Business Consulting and Research
13. ↑ A Review of the Indian Mobile Market (Nov 2007), Mobile &
Wireless
14. ↑ 14.0 14.1 Unlocking the Indian Telecom Industry’s Potential (Apr
2006), Frost & Sullivan
15.0 15.1 15.2 15.3 15.4 15.5 15.6
15. ↑ Report on the Indian Telecom Sector
(Mar 2008), Macquire Research
16. ↑ Phones and handsets get cheaper (Nov 2006), Telephony
Online
17.0 17.1
17. ↑ Telecom Update (Sep 2008), ArthaMoney
18.0 18.1
18. ↑ AT&T answers the need for speed in Suffolk County
(Jul 2008), AT&T Media Newsroom
19. ↑ ADC Shown the Gate (May 2008), Voice&Data
20.0 20.1 20.2
20. ↑ End of the era of access deficit charge (Oct 2008),
The Times of India
21.0 21.1
21. ↑ TRAI scraps access deficit charge (Mar 2008), The
Financial Express
22. ↑ IT & Telecom (Mar 2008), Alliance for US India Business
23. ↑ Telecom cos get more time on FDI (Mar 2006), Hindu
Business Line
24. ↑ DoT wants a spin in retail FDI norms (Sep 2005), The Indian
Express
25. ↑ Indian Telecom Industry (Sep 2008), Bharti Airtel
26.0 26.1
26. ↑ Report on Indian Telecom - Credit Suisse 14 October
2008
27. ↑ Reliance Communications - Google Finance
28. ↑ Reliance Communication Expands Relationship With Intec
To Transform Its OSS/BSS for Next Generation Readiness - INTEC
29. ↑ Reliance Communications adds a record Five Million New
Subscribers in Jaunary 2009 - News - Indian Cellular website
30.0 30.1
30. ↑ Reliance Communications - Annual Report 2007-2008
RESEARCH PROJECT REPORT

ON
 BHARTI AIRTEL

Submitted for the partial fulfillment for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

(MBA)

UNDER THE SUPERVISION OF

MR UMAIR UJALA

SUBMITTED BY

MEGHNA AGGARWAL

0431913908

________________________________________________________________

GITARATTAN INTERNATIONAL BUSINESS SCHOOL

(Affiliated to GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY)
ROHINI, NEW DELHI 110085
(YEAR 2008-2010)