SECURITY ANALYSIS AND

PORTFOLIO MANAGEMENT
ASSIGNMENT (FINANCE)
SUBMITTED TO:

Ms. SANAM SHARMA

BY:

SHIRIN KAPOOR
MBA-3A
059

BHARTI AIRTEL
Bharti Airtel, incorporated on July 7, 1995 is the flagship company
of Bharti Enterprises. The Bharti Group, has a diverse business
portfolio and has created global brands in the telecommunication
sector. Bharti Airtel, is Asias leading integrated telecom services
provider with operations in India and Sri Lanka. Bharti Airtel has
been at the forefront of the telecom revolution and has
transformed the sector with its world-class services built on
leading edge technologies.
Bharti Enterprises is one of Indias leading business groups with
interests in telecom, retail, manufacturing, agri business and
financial services. Bharti has recently forayed into retail business
as Bharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash &
carry business. It has successfully launched an international
venture with EL Rothschild Group to export fresh agri products
exclusively to markets in Europe and USA and has launched Bharti
AXA Life Insurance Company Ltd under a joint venture with AXA,

world leader in financial protection and wealth management.

Bharti Airtel is Indias largest integrated and the first private
telecom services provider with a footprint in all the 23 telecom
circles. Bharti Airtel since its inception has been at the forefront of
technology and has steered the course of the telecom sector in
the country with its world class products and services.
The businesses at Bharti Airtel have been structured into three
individual strategic business units (SBUs) - Mobile Services, Airtel
Telemedia Services & Enterprise Services. The mobile business
provides mobile & fixed wireless services using GSM technology
across 23 telecom circles while the Airtel Telemedia Services
business offers broadband & telephone services in 95 cities and
has recently launched India's best Direct-to-Home (DTH) service,
Airtel digital TV. The Enterprise services provide end-to-end
telecom solutions to corporate customers and national &
international long distance services to carriers. All these services
are provided under the Airtel brand. Airtel's high-speed optic fibre
network currently spans over 90,205 kms covering all the major
cities in the country.
The company has two international landing stations in Chennai
that connects two submarine cable systems - i2i to Singapore and
SEA-ME-WE-4 to Europe.
Bharti Airtel (Singapore) Private Limited, a wholly owned
subsidiary was incorporated on 2nd April, 2007 and will obtain a
license to enable interconnecting the i2i cable with other
submarine cable systems landing in Singapore to provide
increased onward connectivity to US West Coast and also to cater
to connectivity requirements in Asia Pacific and for carrying the
business of International Calling Card Services.

Products and services offered by the company:

Mobile
Prepaid
Postpaid
Broadband & Internet
Speed on demand
Airtel PC secure
Airtel Net PC
IPTV
Digital
TV
,Data
SolutionsConferencing

and

Wireless Internet
Data Card
USB Modem
Email on the go
Windows Mobile 5.0
Airtel Easy Mail
Calling Cards
International Calling Cards
Airtel Call Home

IP

Solutions,

Voice

 Airtel World Calling Cards

Milestones:
2014

Airtel crosses 200 million mobile customer mark in India

2013 Airtel signs definitive agreement to fully acquire Warid

Uganda
2012 Bharti Airtel move one notch in the world wide ranking to
be the fourth largest mobile operator in the world in terms of
subscribers.
2011
Bharti Airtel and other global telcos launch EIG for
Commercial use
2011
Bharti Airtel partners with Savvis for enhancing Managed
Service offerings
2010
Bharti Airtel launches high capacity direct terrestrial link
between India and China
2010
Bharti Airtel rated as Indias Best Enterprise Connectivity
Provider
2010
Bharti Airtel launches Global Data Services in Thailand &
Malaysia
Achievements/ recognition: Bharti Airtel ranked fourth in Transparency 2013
Airtel wins top honours at the 7th Frost & Sullivan ICT Awards
2008
Bharti Airtel hs been awarded the 'Best Cellular Service
Provider' and 'Best Broadband Service Provider' at the 2008
V&D 100 Awards.
Bharti Airtel has been voted as India 's most innovative

company , in a survey conducted by The Wall Street Journal.

Airtel has been voted the 2nd Most Trusted Service Brand in
the Annual Economic Times-Brand Equity, Most Trusted
Brands survey.
Airtel has won the Platinum Trusted Brand Award in the
Mobile Service provider category in the Reader's Digest Asia
Trusted Brands Survey .
Airtel bagged 'Wireless Service Provider of the Year' award
at the 2008 Frost & Sullivan Asia Pacific ICT Awards.
Voted Indias most innovative company in a survey
conducted by The Wall Street Journal in 2008
Winner of the Gallup Great Workplace Award- Gallup
Consulting, 2008
2nd Most Trusted Service Brand - Annual Economic TimesBrand Equity, Most Trusted Brands survey 2008
Best Content Service Award for its Farmer Information
Dissemination Platform for Bharti Airtels joint venture with
IFFCO, IKSL (IFFCO Kisan Samachar) - World Communications
Awards 2008
Best Project Management Award for its Gujarat e-GRAM
project - World Communications Awards 2008
Best Telecom Company at the NDTV Profit Business
Leadership Awards
Best Carrier India for innovative products & services and
efficient cost models and the Ovum Telco-Transformation
award recognizing philosophy and execution of a successful
outsourcing strategy at the Telecom Asia Awards 2008
Sunil Bharti Mittal was awarded the GSM Association

Chairmans Award 2008. The highest honour in global

telecom sector, recognized his tremendous contribution to
the development of Indias telecom sector
Sunil Bharti Mittal adjudged the Business Leader
Transforming India, 2008 at the NDTV Profit Business
Leadership Awards
Bharti Airtel has won the Most Preferred Cellular Service
Provider Brand award at the CNBC Awaaz Consumer Awards
in Mumbai.
Bharti Airtel has received the prestigious BusinessworldFICCI-SEDF Corporate Social Responsibility Award 20092010.

CURRENT SCENARIO
Airtel is a name that connects with millions of people in India.
Today, this telecom giant is amongst the most trusted
telecommunication brands in the world. The companys modest
journey from a regional operator limited to the city of Delhi to
second largest mobile operator in the Asia Pacific region is
nothing short of inspiring.From the humble beginnings in the
Indian telecom industry in 1986; Airtel had its roots in Bharti
Telecom Limited. Founded in 1986 by Sunil Bharti Mittal , the
company was the first in India to offer push button telephones.
The company then went on to launch various telecom
technologies to the Indian market and had innovation at its
heart.Going on to acquire license to build a cellular network in
Delhi, Bharti Telecom Limited laid the ground work for the
mobile operations of the company in the year 1992. It began
operations in Delhi in the year 1995 as Bharti Tele-Ventures.

The service was extended to various other states by various

acquisitions and partnerships. The company went through
some amazing strategic planning. The goal was always larger
than life. Sunil Bharti Mittal rebranded all of his mobile telecom
ventures under a single brand named Airtel in 2003. The
company has grown to be Indias largest mobile operator, with
consistent hard work and everyday innovation. Airtel had
always adopted various cutting edge strategies to be one step
ahead of competition. From acquiring regional operators in its
early years, rebranding entire operations under one umbrella to
outsourcing activities to various corporations, Airtel always set
standards in the industry. Airtel built a smart Minutes Factory
model aiming at low cost and high volume output. By
outsourcing daily operations and retaining core functions like
finance, sales, marketing and management, the brand built
sustainable business model that worked wonders over a period
of time for the company. In 2004, Airtel went ballistic with
glitzy ideas. The collaboration with world famous music
composer A R Rahman brought out their theme song which was
an instant hit among subscribers. The tune went on to make a
unique place in Airtels history. The company rebranded itself in
2010 with a new logo and a new theme song to establish global
identity. Today, company offers various products such as 2G,
3G and 4G wireless services, High Speed Internet, Fixed line
telephony and DTH services. In a span of 19 years, the
company went from offering mobile telephony services in one
city in India to expanding its operations in over 20 countries.
Being 4th largest mobile operator in the world with a
subscriber base of over 250 million, the story of Airtels
success will forever motivate those who dare to dream.

SWOT ANALYSIS

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 worlds 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.

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 its been 4

years that Airtel has acquired Zains 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. The company lacks nationwide
3G license with spectrum in 13 out of 22 telecom service
areas. Airtels 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.

CONCLUSION
Beta measures the stock volatility to the market i.e. the degree to
which price fluctuates in relation to the overall market. It can be
used to compare the risks of one share with the risk of other
shares .On the basis of the data our beta value is 0.847391067.
The beta lies between 0 and 1. this shows that the particular
stock has less volatility than the market. In case of rise and fall
the share price will show less fluctuation than market.