STUDENTS UNDERTAKING

I hereby declare that the Project Work with the title A Study On Investment In The
Mutual Funds In India submitted by me for partial fulfillment of the degree of B.Com.
(Honours) under the Guru Gobind Singh Indraprastha University is my original work and
has not been submitted earlier to any other University for the fulfillment of the
requirement for any course of study.
I also declare that no chapter of this manuscript in whole or in part has been
incorporated in this report from any earlier work done by others or by me. However,
extracts of any literature which has been used for this report has been duly
acknowledged providing details of such literature in the references.

Signature
Name- Abhay Tripathi
Roll No.- 02914188813

CERTIFICATE OF SUPERVISOR
This is to certify that Mr. Siddhant Mishra, a student of B.Com (Honours) in a Jagannath
International Management School under the Guru Gobind Singh Indraprastha University
has worked under my supervision and guidance for his project work and prepared a
Project Report with the title A Study On Investment In The Mutual Funds In India.
The project which he is submitting is his genuine and original work to the best of my
knowledge.

Pooja Rana
Assistant Professor

ACKNOWLEDGEMENT

Before we get into thick of things, I would like to add a few words of appreciation for the
people who have been a part of this project right from its inception. The writing of this
project has been one of the significant academic challenges I have faced and without the
support, patience, and guidance of the people involved, this task would not have been
completed. It is to them I owe my deepest gratitude.

It gives me immense pleasure in presenting this project report on A Study On

Investment In The Mutual Funds In India. It has been my privilege to have a team of
project is a result of sheer hard work, and determination put in by me with the help of my
project
guide.
I hereby take this opportunity to add a special note of thanks for Proffessor Pooja Rana,
who undertook to act as my mentor despite his many other academic and professional
commitments. His wisdom, knowledge, and commitment to the highest standards
inspired and motivated me. Without his insight, support, and energy, this project wouldnt
have kick-started and neither would have reached fruitfulness.

I also feel heartiest sense of obligation to my library staff members & seniors, who
helped me in collection of data & resources material & also in its processing as well as in
drafting manuscript. The project is dedicated to all those people, who helped me while
doing this project.

Abhay Tripathi
02914188813

Chapter 1

Introduction

History
The history of telecommunication industry started with the first public demonstration of
Morses electric telegraph, Baltimore to Washington in 1844. In 1876 Alexander Graham
Bell filed his patent application and the first telephone patent was issued to him on 7th of
March. In 1913, telegraph was popular way of communication. AT&T commits to dispose
its telegraph stocks and agreed to provide long distance connection to independence
telephone system. In 1956, the final judgment limited the Bell System to Common Carrier
Communications

and

Government

projects

but

preserving

the

long-standing

relationships between the manufacturing, researches and operating arms of the Bell
System. In this judgment AT&T retained bell laboratories and Western Electric Company.
This final judgment brought to a close the justice departments seven year-old antitrust
suit against AT&T and Western Electric which sought separation of the Bell Systems
Manufacturing from its operating and research functions. AT&T was still controlling the
telecommunication industry.
In 1982 , AT&T was requested to divestiture its stock ownership in Western Electric;
termination of exclusive relationship between AT&T and Western Electric; divestiture by
Western Electric of its fifty percent interest in Bell Telephone Laboratories, AT&T s
telecommunication research and development facility, is a jointly owned subsidiary in
which AT&T and Western Electric each own 50% of the stock; separation of telephone
manufacturing from provision of telephone service and the compulsory licensing of
patents owned by AT&T on a non-discriminatory basis. It was telecommunication act of
1996 that true competition was allowed. The act of 1996 opened the market to all
competitors. AT&T being the first telecommunication company paved the road for the
telecommunication industry as well as set the policy and standards for others to follow.

Telecommunication in India
India's telecommunication network is the second largest in the world based on the total
number of telephone users (both fixed and mobile phone). It has one of the lowest call
tariffs in the world enabled by the mega telephone networks and hyper-competition
among them. It has the world's third-largest Internet user-base. According to the Internet
and Mobile Association of India (IAMAI), the Internet user base in the country stood at
190 million at the end of June, 2013. Major sectors of the Indian telecommunication
industry are telephony, internet and television broadcast Industry in the country which is
in an ongoing process of transforming into next generation network, employs an
extensive system of modern network elements such as digital telephone exchanges,
mobile switching centres, media gateways and signaling gateways at the core,
interconnected by a wide variety of transmission systems using fibre-optics or Microwave
radio relay networks. The access network, which connects the subscriber to the core, is
highly diversified with different copper-pair, optic-fibre and wireless technologies. DTH, a
relatively new broadcasting technology has attained significant popularity in the
Television segment. The introduction of private FM has given a fillip to the radio
broadcasting in India. Telecommunication in India has greatly been supported by the
INSAT system of the country, one of the largest domestic satellite systems in the world.
India possesses a diversified communications system, which links all parts of the country
by telephone, Internet, radio, television and satellite.
Indian telecom industry underwent a high pace of market liberalization and growth since
the 1990s and now has become the world's most competitive and one of the fastest
growing telecom markets. The Industry has grown over twenty times in just ten years,
from under 37 million subscribers in the year 2001 to over 846 million subscribers in the
year 2011. India has the world's second-largest mobile phone user base with over
929.37 million users as of May 2012. It has the world's second-largest Internet user-base
with over 300 million as of June 2015.
The total revenue of the Indian telecom sector grew by 7% to 2832 billion (US$42
billion) for 201011 financial year, while revenues from telecom equipment segment
stood at 1170 billion (US$17 billion).
Telecommunication has supported the socioeconomic development of India and has
played a significant role to narrow down the rural-urban digital divide to some extent. It

also has helped to increase the transparency of governance with the introduction of egovernance in India. The government has pragmatically used modern telecommunication
facilities to deliver mass education programmes for the rural folk of India.

Beginning of telecommunication in India

The era of telecommunication in India started from the year of 1851 with the initiative
from govt. of India near the city of Calcutta now known as Kolkata. However the rapid
growth in telecom industry came into picture after the year of 2002-03 onwards as the
more number of service providers came into existence. Since 2002-03 there is rapid
change in the technology and increase in numbers of subscribers in the Indian telecom
industry till now. The following are the milestones in the Indian telecom industry.
1851 First operational land lines were laid by the government near Calcutta.
1881 Telephone services introduced in India.
1883 Merger with postal system.
1923 Formation of Indian radio Telegraph Company.
1932 Merger of ETC and IRT into Indian Radio and Cable Communication
Company.
1947 Nationalization of all foreign telecommunication companies to form the
posts, telephone and telegraph, a monopoly run by the governments ministry of
communications.
1985 Department of telecommunication established , an exclusive provider of
domestic and long-distance services that would be its own regulator.
1986 Conversion of dot into two wholly government owned companies the
VSNL for international telecommunication and MTNL for services in metropolitan
areas.
1997 Telecom regulatory authority created.
Telecommunication is important not only because of its role in bringing the benefits of
communication to every corner of India but also in serving the new policy objectives of
improving the global competitiveness of the Indian economy and stimulating and
attracting foreign direct investment. Indian Telecom industry is one of the fastest growing

telecom markets in the world. In telecom industry, service providers are the main drivers;
whereas equipment manufacturers are witnessing growth and decline in successive
quarters as sales is dependent on order undertaken by the companies.
Today the Indian telecommunications network with over 375 Million subscribers is
second largest network in the world after China. India is also the fastest growing telecom
market in the world with an addition of 9- 10 million monthly subscribers. The teledensity
of the Country has increased from 18% in 2006 to 33% in December 2008, showing a
stupendous annual growth of about 50%, one of the highest in any sector of the Indian
Economy. The Department of Telecommunications has been able to provide state of the
art world-class infrastructure at globally competitive tariffs and reduce the digital divide
by extending connectivity to the unconnected areas.
India has emerged as a major base for the telecom industry worldwide. Thus Indian
telecom sector has come a long way in achieving its dream of providing affordable and
effective communication facilities to Indian citizens. As a result common man today has
access to this most needed facility. The reform measures coupled with the proactive
policies of the Department of Telecommunications have resulted in an unprecedented
growth of the telecom sector.
There is a cut-throat competition in the Telecom industry as more and more advanced
technology is developed in very short time. Once the people get addicted to 2G
technology by the time new players come up with latest technology called 3G and EDGE.
The thrust areas presently are:
1. Building a modern and efficient infrastructure ensuring greater competitive
environment
2. With equal opportunities and level playing field for all stakeholders.
3. Strengthening research and development for manufacturing, value added services.
4. Efficient and transparent spectrum management
5. To accelerate broadband penetration
6. Universal service to all uncovered areas including rural areas.
7. Enabling Indian telecom companies to become global players.

Recent things to watch in Indian telecom sector are:

1. 3G and BWA auctions
2. MVNO
3. Mobile Number Portability
4. New Policy for Value Added Services
5. Market dynamics once the recently licensed new telecom operators start rolling out
6. Services.
7. Increased thrust on telecom equipment manufacturing and exports.
8. Reduction in Mobile Termination Charges as the cost per line has substantially
reduced
9. Due to technological advancement and increase in traffic.
India's telecom sector has shown massive upsurge in the recent years in all respects of
industrial growth. From the status of state monopoly with very limited growth, it has
grown in to the level of an industry. Telephone, whether fixed landline or mobile, is an
essential necessity for the people of India. This changing phase was possible with the
economic development that followed the process of structuring the economy in the
capitalistic pattern. Removal of restrictions on foreign capital investment and industrial
de-licensing resulted in fast growth of this sector. At present the country's telecom
industry has achieved a growth rate of 14 per cent. Till 2000, though cellular phone
companies were present, fixed landlines were popular in most parts of the country, with
government of India setting up the Telecom Regulatory Authority of India, and measures
to allow new players country, the featured products in the segment came in to
prominence.
Today the industry offers services such as fixed landlines, WLL, GSM mobiles, CDMA
and IP services to customers. Increasing competition among players allowed the prices
drastically down by making the mobile facility accessible to the urban middle class
population, and to a great extend in the rural areas. Even for small shopkeepers and
factory workers a phone connection is not an unreachable luxury. Major players in the
sector are BSNL, MTNL, Reliance, Bharti Teleservices, Vodafone Essar, BPL, Tata, Idea,
etc. With the growth of telecom services, telecom equipment and accessories
manufacturing has also grown in a big way.

Indian Telecom sector, like any other industrial sector in the country, has gone through
many phases of growth and diversification. Starting from telegraphic and telephonic
systems in the 19th century, the field of telephonic communication has now expanded to

make use of advanced technologies like GSM, CDMA, and WLL to the great 3G
Technology in mobile phones. Day by day, both the Public Players and the Private
Players are putting in their resources and efforts to improve the telecommunication
technology so as to give the maximum to their customers.
The wireless subscriber crossed the 261 million subscriber mark at the end of the
financial year in comparison to the subscriber base of 165.11 million at the end of March,
2009. It added 95.9 million subscribers in the financial year 2008-09 registering an
annual growth rate of about 58.12%. The total subscriber base of wireless services has
grown from 33.69 million in March, 05 to 261.07 million in March, 09.

Background
Indian telecommunications sector has undergone a major process of transformation
through significant policy reforms, particularly beginning with the announcement of NTP
1994. Historically, the process of expansion of the network was rather slow, being owned
and managed by the Government under the assumption that telecommunications was a
natural monopoly best run as a state-owned monopoly. By the early 1990s, this concept
of a natural monopoly was increasingly challenged in many countries by technological
changes, especially in the wireless field and by laudable success in several countries in
lowering the cost of services for common man. Policy makers in our country began
process of reforms in the 1990s that led to gradual ushering in competition for greater
consumer welfare, particularly in terms of lowering of tariffs and improvement in quality of
service.

First Phase - The Eighties

Telecom reforms in India began in the 1980s with the launch of a Mission Better
Communication program. Private manufacturing of customer premise equipment was
allowed in 1984 and the Center for Development of Telematics (C-DOT) was established
for the development of indigenous technologies. Private franchises were freely given for
public call offices (PCOs) that offered local, domestic and international calling services.
Two large corporate entities were spun off from the Department of Telecommunications,
e.g. Mahanagar Telephone Nigam Limited (MTNL) for Delhi and Mumbai and Videsh
Sanchar Nigam Limited (VSNL) for all international services. Significantly, this began the
process of corporatization of services that had hitherto been under a government
department. A high-powered Telecom Commission to direct telecommunications policies
was set up in 1989 with full powers of the Government.
Second Phase - The Early Nineties
The second phase of reform commenced with the general liberalization of the economy
in the early 1990s and announcement of a New Economic Policy (NEP)-1991. Telecom
equipment manufacturing was de-licensed in 1991 and value-added services were
declared open to the private sector in 1992, following which radio paging, cellular mobile
and other value added services were opened gradually to the private sector. National
Telecom Policy was announced in 1994, with a major thrust on universal service and
qualitative improvement in telecom services and also, opening of private sector
participation in basic telephone services. An independent statutory regulator was
established in 1997. Progressively there was growth in private sector provision of
telecom services in the country.
Third Phase - The late Nineties
The most important landmark in telecom reforms, however, came with the New Telecom
Policy 1999 (NTP-99) which can be termed as the new, or third, generation of reforms.
Its

first

qualitative

difference

was

the

acceptance

by

the

government

that

telecommunications was a sufficiently important for common man whereas earlier it had
been viewed as a cash cow. For example, the private sector had earlier been asked to
bid for licenses to provide telecom services through a sealed bid auction in which the
bidder paid a fixed fee. This proved unaffordable to the private sector owing to unrealistic
calculations of the revenue potential of a license, resulting in a near zero rollout of lines.
Rather than insisting on the prior fulfillment of its revenue obligations, NTP-99 allowed

private providers to migrate from fixed license fee regime to a revenue sharing regime.
The second qualitative difference was that the regulator was strengthened, domestic
long distance services were opened to the private sector, and the state-owned basic
service provider under the Department of Telecommunications was corporatised.

Introduction to the Sample

Companies

INTRODUCTION
BHARTI AIRTEL LIMITED
Bharti Airtel Limited, the company's existence was marked in the year 1995. It is a
leading Indian telecommunication service provider through three strategic business units
namely Mobile Services, Broadband & Telephone Services and Enterprise Services. The
company has started with providing mobile service to single circle entity and now it
grown to offer services to all 23 telecom circles of India. One of the largest integrated
private telecom service providers with an all India mobile footprint, through a combination
of organic and inorganic growth.
During the year 1997-98 Bharti Airtel Ltd becomes the first private telecom operator to
obtain a license to provide basic telephone services in the state of Madhya Pradesh and
in the same period the company forms Bharti BT VSAT Ltd., focused on providing VAST
solutions across India and Bharti BT Internet Ltd. The company acquired JT Mobiles,
cellular services operator in Punjab, Karnataka and Andhra Pradesh and becomes the
largest private telecom operator in India during the period of 1999-2000. Also expands its
South Indian footprint by acquiring Skycell, Chennai.
The company acquired a 30.20% equity interest of Telecom Italia in Bharti Telenet and
18.8% from Bharti Telecom thereby making Bharti Telenet a 100% subsidiary of Bharti
Tele-Ventures. BTVL also holds an effective 74% equity in Bharti Mobile and 100% equity
in Bharti Cellular. Bharti Telenet has entered into license agreements to provide fixed-line
services in the Haryana, Delhi, Tamil Nadu and Karnataka Circles. Airtel launched
IndiaOne, India's first private sector national and international long distance service in
the year of 2001-02.
The company incorporated India's first private submarine cable landing station with joint
venture from SingTel in the same year. In 2002-03 the company made a brief corporate
restructuring by merging all the mobile operations into Bharti Cellular Limited and all
fixed line, long distance and data services into Bharat Infotel Limited. Bharti Airtel made a
historic strategic partnership with IBM and Ericsson for outsourcing the company's core
IT and network activities and also launched Blackberry wireless solution India, as a result
of an exclusive tie-up with Research in Motion (RIM). BTVL's two subsidiaries Bharti

Cellular Ltd and Bharti Infotel Ltd have been merged with the company in the year of
2004. Subsequently Bharti Broadband Ltd and Satcom Broadband Equipment Ltd has
become the subsidiaries of the company after the above said merger. During the year
2005 Bharti Airtel Ltd expand its wing to Rajasthan and North East Circles also by the
acquisition of Bharti Hexacom, which owns Licenses to operate cellular services in the
Rajasthan and North East Circles.
Bharti Airtel Ltd noted as 'Indian Mobile Operator of the Year 2005' by Asian Mobile
News, became the top-most Telecom Company and was featured amongst the top three
companies across the sectors in the ET 500 published in June 2005 and the company
Introduced Stock and Portfolio Tracker on the mobile in association with the Bombay
Stock Exchange, it was the first of its kind. The agreement was emerged with Ericsson
and the company in 2005-06 to provide managed services and expands its GSM/GPRS
network into rural India in 15 circles under managed capacity expansion. During the year
2006-07 Bharti Airtel has entered into agreement with Microsoft to offer software and
services for the Small and Medium business market in India. The company also has an
agreement with Google to offer services on Airtel Mobile. Also an agreement with Adani
Group to connect Mundra Port and special Economic Zone. A Three year contract with
Nokia

at

an

estimated

value

of

US$400

million

to

expand

its

managed

GSM/GPRS/EDGE networks in eight Airtel circles and deploy a pan India WAP solution
across its networks.
The company was conferred many awards during the year 2006-07, such as Best Indian
Carrier Award in the Telecom Asia Awards 2006, Wireless Service Provider of the year
and the competitive Service Provider of the year award in the Telecom Asia Awards
2006, Most Preferred Cellular Service Provider Award in the telecom category for the
year 2006 at the Awaaz Consumer Awards 2006, MIS Asia II Excellence Award 2006 for
Best Knowledge Management, Most Customer Responsive Telecom Company in India
by the Avaya-Economic Times Global Connect Awards and Nasscom IT Innovation
Award for the Business Model Innovation for the year 2006. The company received a
letter of offer from Telecommunications Regulatory Commission of Sri Lanka to provide
2G and 3G mobile services in Sri Lanka on January 2007. This was the first international
operation of the company. Bharti Airtel introduced the Blackberry 8800 business phone in
March 2007. Bharti Airtel and GSM Association launched the Global money transfer pilot

project in India. This initiative enable 25 million of NRI's to remit their money to India
through mobile phones.
During the year 2007, the company also incorporated Bharti Airtel (USA) Ltd, Bharti Airtel
(UK) Ltd, Bharti Airtel (Canada) Ltd, Bharti Airtel (Hongkong) Ltd as a wholly owned
subsidiary of the company for providing international calling services and wholesale
voice switching and data products in the respective countries. Bharti Infratel Ltd has
been incorporated as a wholly owned subsidiary with an initial investment of Rs.500000
and also acquired the Submarine Network Cable System from Network i2i by way of
purchase of all the assets or equity for an overall consideration of US$110 million. In
August of the same year Wal-mart formally marked its entry into India by signing two
agreements with Bharti Enterprises.
During January 2008, the company has signed a MoU with VeriSign, Inc agreed to form
a strategic market partnership for jointly launch best-in-class security services, to deliver
VeriSign's identity protection, managed security and fraud detection services, and to
support the development of the next-generation Internet infrastructure in the Indian
market. The company has achieved the 60 million-customer marks on February 2008.
This landmark has catapulted Bharti Airtel into the club of top mobile operators in the
world in terms of subscriber base. The 60 million-customer base covers mobile as well
as fixed line and broadband customers. Bharti Airtel has overtaken State-run Bharat
Sanchar Nigam Ltd as the largest National Long Distance (NLD) service provider in
terms of revenue, amount of Rs 709 crore. The company has joined hands with five
international companies including Internet giant Google, Global Transit, KDDI
Corporation, Pacnet and SingTel have formed the Unity Bandwidth Consortium which will
together invest about $300 million to construct the new high-bandwidth, sub-sea cable
system linking the US and Japan. As on March 2008, Bharti Airtel and Micro
Technologies India have tied up to offer micro lost mobile tracking system to secure the
mobile handsets of Airtel subscribers. As on May 2008, in a bid to gain quicker foothold
into the rural areas, Bharti Airtel has formed a joint venture with IFFCO, which will offer
customized mobile services to a target base of 55 million farmers across the country.
Bharti Airtel Ltd is amongst the fastest growing telecom companies in the world and its
moving to attain the position of most admired brand in India with the three domains as
loved by more customers, targeted by top talent and benchmarked by more business.

Brand positioning by Bharti Airtel

Market segmentation

Geographical segment (metropolitans & cities India)

Demographic segment - middle income groups

People age group of 20 to 28 year

Target marketing

People who living in cities and towns.

Poor or middle income group people.

Youngsters in big cities.

Businessmen

Positioning

Creating brands (Shahrukh khan & Sachin Tendulker)

Ads and promotions

Promotion for study of poor childrens.

Marketing mix
Price:

low price strategy

Place:

maximum outlets and service centers

Product:

verities available for various groups

Promotion:

various schemes for pre-paid and post-paid

MARKETING STRATEGIES OF AIRTEL.

Targets the rural India
The main targeted customers of Airtel are from rural India.

By offering cheap and light mobile sets Idea attracts most of the customers of small
villages and towns.

Offering cheap handsets

AIRTEL offers cheap and free connections to all customers.

The cost for these sets was Rs-799-849-1099\set and onward.

Free support and services

In every district and big towns Vodafone opens its service centers to provide better
support and services.

Strong logistics and supply chain

Airtel has a strong logistic and supply all over India.

In every small town the potential customers can easily purchase the Vodafone SIM &
Sets.

Targeting youngsters in metropolitans

Vodafone attracts youngsters by offering colorful handset at very low prices.

 IDEA CELLULAR LIMITED

IDEA Cellular Limited, a part of the Aditya Birla Group and an India's leading Global
System for Mobile communication (GSM) Mobile Services operator was began its
journey in the year 1995 as in the name of Birla Communications Limited for providing
GSM-based services in the Gujarat and Maharashtra Circles. Later the company has
licenses to operate in all 22 Service Areas. Presently, operations exist in 11 Service
Areas covering Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh,
Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh, UP-East, Rajasthan
and Kerala. With a customer base of over 24 million, IDEA Cellular's footprint currently
covers approximately 60% of India's telecom population. The company's operational 11
Service Areas are broken up into Established and New Service Areas. The established
service areas are Delhi, Andhra Pradesh, Gujarat and Maharashtra, Haryana, Kerala,
Madhya Pradesh and Uttar Pradesh (West) and the New Service Areas are Uttar
Pradesh (East), Rajasthan and Himachal Pradesh.
Changed its name to Birla AT&T Communications Limited followed by joint venture
between Grasim Industries and AT&T Corporation in the year 1996. After a year, in 1997,
commenced its operations in the Gujarat and Maharashtra. Migrated to revenues share
license fee regime under New Telecommunications Policy ('NTP') Circles in the year
1999. During the year 2000, the company merged with Tata Cellular Limited, thereby
acquired original license for the Andhra Pradesh Circle. IDEA acquired RPG Cellular
Limited and consequently the license for the Madhya Pradesh (including Chattisgarh)
Circle in the year 2001, and in the same year changed its name from Birla AT&T
Communications Limited to Birla Tata AT&T Limited. Obtained license for providing GSMbased services in the Delhi Circle. Again in year later, in 2002, the company altered its
name to Idea Cellular Limited and launched 'Idea' brand name and commenced its
commercial operations in Delhi Circle. During the year, the company reached one million
subscriber mark consecutively in the year 2003, reached two million subscriber mark.
During the year 2004, the company acquired Escotel Mobile Communications Limited
(subsequently renamed as Idea Mobile Communications Limited), reached the four

million subscriber mark and the first operator in India to commercially launched EDGE
services 2005. Reached the five million subscriber mark in the year 2005 and IDEA won
an Award for the 'Bill Flash' service at GSM Association Awards in Barcelona, Spain. The
Company became a part of the Aditya Birla Group in the year 2006, subsequent to the
TATA Group transferred its entire shareholding in the Company to the Aditya Birla Group.
In the same year 2006, IDEA acquired Escorts Telecommunications Limited
(subsequently renamed as Idea Telecommunications Limited).
The Company reached the 10 million subscriber mark and also launched New Circles for
obtain more and more customers. IDEA has extended its reach to 500 towns in Andhra
Pradesh in August of the year 2006. Received Letter of Intent from the DoT for a new
UAS License for both Mumbai and Bihar Circles. ABNL, the parent of Aditya Birla
Telecom Limited, agreed to transfer its entire shareholding in Aditya Birla Telecom
Limited to the Company for the consideration of Rs. 100 million. In 2007, the company
won an award for the 'CARE' service in the 'Best Billing or Customer Care Solution' at
the GSM Association Awards in Barcelona, Spain.
The Initial Public Offering aggregating to Rs. 28,187 million and the company listed in
both Bombay Stock Exchange and the National Stock Exchange during the year 2007.
IDEA merged seven of its subsidiaries and reached the twenty million subscriber mark in
the same year 2007. As on February 2008, IDEA Cellular Ltd tied up with Southern
Biotechnologies Ltd to bio-diesel for operating IDEA's gensets at all towers in the Andhra
Pradesh region. The Company with Geodesic, an innovator in communication,
collaboration and entertainment applications on mobile and Internet platforms jointly
announced the launch of 'Idea Radio', a truly differentiated mobile music service for IDEA
customers in the same year 2008.
Customer Service and Innovation are the drivers of this Cellular Brand. A brand known
for their many firsts, IDEA is only the operator to launch General Packet Radio Service
(GPRS) and EDGE in the country. IDEA has seen phenomenal growth since its
inception, the company's footprint idea is to first achieve critical mass, then drill deep
instead of spreading thin, however, does not increasing geographic footprint only, it also
drills deep and successfully attempts to provide excellent network coverage in all its
circles of operations.

BRAND POSITIONING BY IDEA

Market segmentation
Geographical segment (rural India)

Demographic segment - middle income groups

Target marketing

People living in small towns and villages.

Poor and middle income groups.

Youngsters in big cities.

Businessmen

Positioning

Creating brands

Ads and promotions

Marketing mix

Price : low price strategy

Place : maximum outlets and service centers

Product : verities available for various groups

Promotion: various schemes for pre-paid and post-paid

Services provided by IDEA

Mobile services with GSM technology

Fixed-line connections
National and international long distance services
VSAT, Internet services and network solutions
Broadband services

Services provided by IDEA.

mobile services with GSM technology

fixed-line telephone services

Universal Internetworking

VoIP (Voice over Internet Protocol)

Interactive Television

Visual Communication

Broadband Portal

Telecommuting

Chapter 2

Objective of the Study

Objectives

The main object of the present study is to examine the overall financial efficiency of the
selected telecom companies. More specifically it seeks to dwells upon mainly the
following issues:
1.
2.
3.
4.

To assess the liquidity management efficiency;

To observe the financial performance position and areas of weakness, if any
To investigate the profitability of the companies.
To analyze the market of companies

Literature Review
A non-systematic literature review was undertaken to identify the financial ratios included
in articles in peer-reviewed journals, industry publications, and articles in magazines and
newspaper.
To identify ratios in peer-reviewed articles, searches of academic databases using
keywords such as financial management, Solvency, profitability and liquidity and
ratio analysis were undertaken. Articles published prior to 1995 were excluded from the
searches in order to ensure that only the most recent studies were included. This
exclusion was important because of the many changes in telecom since 1995 and the
likely lower relevance of articles prior to these changes. Ratios were selected from the
articles if results showed that they were statistically significant in explaining a dimension
of Telecom Companys financial performance, such as profitability or financial distress.
To identify ratios in industry publication, the websites of various organizations were
reviewed. Some of the major literature reviewed is
Lazaridis and Tryfonidis (2006) conducted a cross sectional study by using a sample of
131firms listed on the Athens Stock Exchange for the period of 2001-2004 and found
statistically significant relationship between profitability, measured through gross
operating profit and cash conversion cycle and its components. Based on the results
analysis of annual data by using correlation and regression tests, they suggest that
managers can create profits for their companies by correctly handling the cash
conversion cycle and by keeping each component of the conversion cycle at an optimum
level.

Garcia-Terual et al (2007) collected a panel of 8872 small to medium-sized

enterprises from Spain covering the period 1996-2002. They tested the effects of working
capital management on SME profitability using the panel data methodology. The results,
which are robust to the presence of endogeneity, demonstrated that managers could
create value by reducing their inventories and the number of days for which their
accounts are outstanding. Moreover, shortening the cash conversion cycle also improves
the firms profitability.
Mathuva (2009) examined the influence of working capital management components on
corporate profitability by using a sample of 30 firms listed on Nairobi Stock Exchange for
the periods 19932008. He used Pearson and Spearman s correlations, the pooled
ordinary least squares and the fixed effects regression models to conduct data analysis.
The key findings of his study were that there exists a highly significant negative

relationship between the time it takes for firms to collect cash from their customers and
profitability, there exists a highly significant positive relationship between the period taken
to convert inventories to sales and profitability and there exists a highly significant
positive relationship between the time it takes for firms to pay its creditors and
profitability.
Praveen kataria in his study attempted to predict corporate sickness of the companies.
Financial information about all the sick companies was collected for five years before
sickness. Healthy companies were matched with the sick companies on the basis of
industry composition size. 54 financial ratios and 8 macro economic variables were taken
to study their effect along with financial ratios. Two group linear discriminate analyses
were applied in two parts. In the first part, only financial ratio was taken in discriminate
analysis, while the macroeconomic variable was included along with the financial ratios
in the second part. The result showed that macroeconomic variable had very little impact
on discriminate function
Rekha Pai dealt with the prediction of industrial sickness using multiple discriminate
analyses. The data set constitutes 21 financial ratios of 34 Indian sick companies in
200001 and 38 contemporary non sick companies, both selected irrespective of size and
industry category 3 years prior to sickness. The multiple discriminate analyses (MDS)
showed greater accuracy in predicting industrial sickness up to three years in advance.
The model was validated further using a test model, while exhibited very high predictive
accuracy of the proposed model.
Berryman, (1983) indicated that poor or careless financial management is a major
cause of small business failure. In addition, a major survey by the Insolvency Practitioner
Society, (CIMA 1994) indicated that 20% of UK corporate failures (the vast majority of
which are small firms) were due to bad debts or poor credit management. According to
Peel and Wilson (1994), if the financial/working capital management practices in the
small firm sector could be improved significantly, then fewer firms would fail and
economic welfare would be increased substantially.

Chapter 3

Research Methodology

RESEARCH DESIGN
Universe of the Study
The present study adopts an analytical and descriptive research design. The data of the
sample companies (for a period of Five years from 2011 to 2015) has been collected
from the annual reports and the balance sheet published by the companies and the
websites of the companies.
A finite sample size of four companies listed on the National Stock Exchange (NSE) has
been selected for the purpose of the study. They are IDEA CELLULAR & BHARTI
AIRTEL.
The variables used in the analysis of the data are Debt-Equity Ratio (DER), Long Term
Debt-Equity Ratio, Current Ratio, Fixed Assets and Earning Per Share (EPS). While
interpreting the results, the statistical tool of one-way Analysis of Variance (ANOVA) has
been used.
Sample of the Study
Sampling Technique: The study is done with special reference to private sector
telecommunication companies. The reason being that the data or the financial
statements are readily available for them. Apart from this, private sector
companies have shown best performance in the previous year so it is interesting
to know the best performing company out the selected sample companies. Thus,
the technique of Convenience Sampling is being adopted for the study. The
election of sample companies is made on the basis of market capitalization.
Sample Size: Two Private Sector companies are chosen as sample size for the
study on profitability and market share.

Data Collection
Financial statements are the raw data collected from various websites such as
http://money.livemint.com , http://www.moneycontrol.com and other company websites.
Time Period of the Study
The study has been conducted during January 2016 to February 2016.
Tools used for Analysis
Ratio Analysis: Ratios have been calculated for the past one year for the
purpose of analysis. Ratios being designed are named as Return on Assets,
Return on Capital Employed, Return on Equity, Gross Profit Margin, and Net Profit
Margin.
Financial Analysis
The section of study embodies the calculation and analysis of selected variables taken
into reflection for the study purpose. The ratios are being calculated by the aid of raw
data available on the concerned website. The raw data encompasses Year Result and
Balance Sheet of the sample companies. After calculation of ratios, analysis of individual
ratio is being done.
The ratios being calculated for the purpose of analysis of financial performance are:

Return on Assets
Return on Capital Employed
Return on Equity
Gross Profit Margin
Net Profit Margin

DATA COLLECTION METHOD

There two type of method of data collection.

1. Primary data
2. Secondary data

Primary data was collected using the following techniques

Questionnaire Method
Direct Interview Method and
Observation Method

The main tool used was, the questionnaire method. Further direct interview method,
where a faceto-face formal interview was taken. Lastly observation method has been
continuous with the questionnaire method, as one continuously observes the
surrounding environment he works in.

Data used for the research work was Secondary in nature.

Primary data:
Primary data is that which is the collected for the first time and thus happen to be
originated in character.

Secondary data

Secondary data refer to the data that has been already collected .the secondary data,
which has been used to carry out this study, are as follow:

Companys internet site

Other relevant study material and websites.

Chapter 4

Data analysis
(Profitability and Market Share)

Profitability

A profitability ratio is a measure of profitability, which is a way to measure a

company's performance. Profitability is simply the capacity to make a profit, and a profit
is what is left over from income earned after you have deducted all costs and expenses
related to earning the income.
BALANCE SHEET DATA
BHARTI AIRTEL IDEA CELLULAR

BHARTI
AIRTEL/
IDEA CELLULAR

Current assets

Rs m

222,010

154,656

143.6%

Current liabilities

Rs m

634,435

173,961

364.7%

-44.8

-6.1

731.0%

0.3

0.9

39.4%

Inventory Days

Days

64.5%

Debtors Days

Days

27

11

235.1%

Net fixed assets

Rs m

579,157

406,741

142.4%

Share capital

Rs m

19,987

35,978

55.6%

"Free" reserves

Rs m

511,539

193,521

264.3%

Net worth

Rs m

619,564

230,273

269.1%

Long term debt

Rs m

452,283

166,032

272.4%

Total assets

Rs m

1,898,316

604,668

313.9%

Interest coverage

2.5

5.7

43.1%

Debt to equity ratio

0.7

0.7

101.2%

Sales to assets ratio

0.5

0.5

93.1%

Return on assets

6.6

7.0

94.0%

Return on equity

8.4

13.9

60.3%

Return on capital

16.7

15.1

110.8%

Exports to sales

Imports to sales

4.0

4.2

96.5%

Exports (fob)

Rs m

NA

NA

Imports (cif)

Rs m

37,221

13,196

282.1%

Fx inflow

Rs m

37,274

4,855

767.8%

Fx outflow

Rs m

67,393

17,647

381.9%

Net fx

Rs m

-30,119

-12,792

235.4%

Net working cap to sales

Current ratio

Return on Assets
Return on assets (ROA) is a financial ratio that shows the percentage of profit that a
company earns in relation to its overall resources (total assets). Return on assets is a
key profitability ratio which measures the amount of profit made by a company per dollar
of its assets. It shows the company's ability to generate profits before leverage, rather
than by using leverage. Unlike other profitability ratios, such as return on equity (ROE),
ROA measurements include all of a company's assets including those which arise from
liabilities to creditors as well as those which arise from contributions by investors. So,
ROA gives an idea as to how efficiently management use company assets to generate
profit, but is usually of less interest to shareholders than some other financial ratios such
as ROE.
Return on assets gives an indication of the capital intensity of the company, which will
depend on the industry. Capital-intensive industries (such as railroads and thermal power
plant) will yield a low return on assets, since they must possess such valuable assets to
do business. Shoestring operations (such as software companies and personal services
firms) will have a high ROA: their required assets are minimal. The number will vary
widely across different industries. This is why, when using ROA as a comparative
measure, it is best to compare it against a company's previous ROA figures or the ROA
of a similar company.
Calculation (formula)

Return on assets is calculated by dividing a company's net income (usually annual

income) by its total assets, and is displayed as a percentage. There are two acceptable
ways to calculate return on assets: using total assets on the exact date or average total
assets:
ROA = Net Income after tax / Total assets (or Average Total assets)

Return on Captial

Return on capital employed (ROCE) is a measure of the returns that a business is

achieving from the capital employed, usually expressed in percentage terms.
Capital employed equals a company's Equity plus Non-current liabilities (or Total
Assets Current Liabilities), in other words all the long-term funds used by the
company. ROCE indicates the efficiency and profitability of a company's capital
investments.

ROCE should always be higher than the rate at which the company borrows otherwise
any increase in borrowing will reduce shareholders' earnings, and vice versa; a good
ROCE is one that is greater than the rate at which the company borrows.
Calculation (formula)

ROCE = EBIT / Capital Employed = EBIT / (Equity + Non-current Liabilities) = EBIT /

(Total Assets - Current Liabilities)

Return on Equity

Return on equity (ROE) is the amount of net income returned as a percentage of

shareholders equity. It reveals how much profit a company earned in comparison to the
total amount of shareholder equity found on the balance sheet.
ROE is one of the most important financial ratios and profitability metrics. It is often said
to be the ultimate ratio or the mother of all ratios that can be obtained from a companys
financial statement. It measures how profitable a company is for the owner of the
investment, and how profitably a company employs its equity.
Calculation (formula)
Return on equity is calculated by taking a years worth of earnings and dividing them by
the average shareholder equity for that year, and is expressed as a percentage:
ROE = Net income after tax / Shareholder's equity

INCOME DATA
Net Sales

Rs m

921,351

315,269

292.2%

Other income

Rs m

24,788

4,875

508.5%

Total revenues

Rs m

946,139

320,144

295.5%

Gross profit

Rs m

310,905

107,938

288.0%

Depreciation

Rs m

155,311

53,036

292.8%

Interest

Rs m

73,252

10,452

700.9%

Profit before tax

Rs m

107,130

49,325

217.2%

Minority Interest

Rs m

-1,248

Prior Period Items

Rs m

Extraordinary Inc (Exp)

Rs m

Tax

Rs m

54,047

17,396

310.7%

Profit after tax

Rs m

51,835

31,929

162.3%

Gross profit margin

33.7

34.2

98.6%

Effective tax rate

50.4

35.3

143.0%

Net profit margin

5.6

10.1

55.6%

Gross Profit Margin

Gross profit margin (gross margin) is the ratio of gross profit (gross sales less cost of
sales) to sales revenue. It is the percentage by which gross profits exceed production
costs. Gross margins reveal how much a company earns taking into consideration the
costs that it incurs for producing its products or services. Gross margin is a good
indication of how profitable a company is at the most fundamental level, how efficiently a
company uses its resources, materials, and labour. It is usually expressed as a
percentage, and indicates the profitability of a business before overhead costs; it is a
measure of how well a company controls its costs.
Gross margin measures a company's manufacturing and distribution efficiency during the
production process. The higher the percentage, the more the company retains on each
dollar of sales to service its other costs and obligations, the better the company is
thought to control costs. Investors use the gross profit margin to compare companies in
the same industry and also in different industries to determine what are the most
profitable. A company that boasts a higher gross margin than its competitors and industry
is more efficient.

Calculation (formula)
Gross margin is calculated as gross profit divided by total sales (revenue).
Gross profit margin = Gross profit / Revenue

Net Profit Margin

Net profit margin (or profit margin, net margin, return on revenue) is a ratio of
profitability calculated as after-tax net income (net profits) divided by sales (revenue). Net
profit margin is displayed as a percentage. It shows the amount of each sales dollar left
over after all expenses have been paid.
Net profit margin is a key ratio of profitability. It is very useful when comparing companies
in similar industries. A higher net profit margin means that a company is more efficient at
converting sales into actual profit.
Calculation (formula)
Net profit margin = Profit (after tax) / Revenue

Market Share

Growth/Decline in Subscribers

Service
Provider

Subscriber base
(millions)
Net
Dec-14 Mar-15

Addition
s

Rate of Market Market

Growth Share Share
Dec-14 Mar-15
(%)
(%)
(%)

Bharti

220.60

229.43

8.83

4.00

22.72

23.02

Vodafone

178.75

183.88

5.13

2.87

18.41

18.45

IDEA
Relianc
e

150.54

157.81

7.27

4.83

15.50

15.84

107.48

110.65

3.17

2.95

11.07

11.10

Tata

67.78

67.99

0.21

0.31

6.98

6.82

Aircel

78.67

81.40

2.72

3.46

8.10

8.17

Quadrant

2.74

2.96

0.22

8.09

0.28

0.30

Sistema

9.04

8.92

-0.11

-1.26

0.93

0.90

Telewings

43.63

45.62

1.99

4.55

4.49

4.58

Videocon

6.45

7.13

0.68

10.56

0.66

0.72

BSNL

98.32

93.64

-4.68

-4.76

10.13

9.40

MTNL

6.97

7.06

0.09

1.31

0.72

0.71

Total

970.97

996.49

25.52

2.63

100

100

Bharti is the leading operator in access segment in terms of

number of subscribers. During the quarter, Bharti recorded
the highest net addition of 8.83 million subscribers followed
by Idea Cellular (7.27 million).
Sistema Shyam (-0.11

BSNL

(-4.76

million) and

million) recorded the net decline in

subscribers during the QE Mar-15.

Market Share of the operators in total rural

subscriber base Q.E. Mar-15

Service
Provider

No. of
Total
Subscribe
rs (in

No. of
Rural
Subscribe
rs (in

Percenta
ge of
Rural
subscrib

Market
share of
Rural
subscribers

Vodafone

183.88

97.91

53.24

23.35

IDEA

157.81

89.29

56.58

21.29

BSNL

93.64

34.53

36.87

8.23

Aircel
Reliance
Comm.

81.40

28.65

35.20

6.83

110.65

27.75

25.08

6.62

Tata

67.99

17.30

25.44

4.12

Telewings

45.62

14.19

31.12

3.39

Sistema

8.92

1.96

21.98

0.47

Quadrant

2.96

0.12

4.19

0.03

Videocon

7.13

0.00

0.00

0.00

MTNL

7.06

0.00

0.00

0.00

Total

996.49

419.31

42.08

100

Bharti

229.43

107.61

46.90

25.66

IDEA continues to be the service provider with highest proportion of

rural subscribers (56.58%), followed by Vodafone (53.24%) to their
total subscribers.

List of Cellular Mobile (GSM & CDMA) Service Providers currently

providing service [As on 31st March, 2015]
Sl.No.

Service Provider

1
2
3
4
5
6
7

Bhart
i

Aircel Group
Reliance
Communications
Reliance Telecom Ltd
Vodafon
e
Tata Teleservices

All
AllIndia
India
All India (except Assam & NE)
Kolkata, MP, WB, HP, Bihar,
Orissa, Assam & NE
All India
All India except Assam, NE & J&K

BSNL

All
India Gujarat,
Delhi, Kolkata,
Karnataka, Tamil Nadu (incl.
Chennai), Kerala, UP(W),
& W.B.
All IndiaRajasthan
(except Delhi
& Mumbai)

10

MTNL

Delhi & Mumbai

11

Quadran
t
Telewings
Communications

12

IDEA

Area of Operation

Sistema Shyam Telelink

Videocon
13

Telecommunications
Ltd

Punja
b
MH, Gujarat, AP, UP(W), UP(E),
Bihar
Gujarat, Haryana, UP(W), UP(E),
MP, Bihar

Rural Wireless Subscriber base and Market Share

Service
Provider

Bharti

Subscriber
s at the
end of Mar15 (in
millions)

Rural
Subscribers
Dec-14

Mar-15

% of Rural
subscribers
in
Dec-14 Mar-15

Market Share
of Rural
Subscribers
(%)Mar-15
Dec-14

226.02

101.25

107.61

46.61

47.61

25.74

25.98

Vodafone

183.80

93.79

97.91

52.49

53.27

23.85

23.64

IDEA

157.81

83.25

89.29

55.31

56.58

21.17

21.56

BSNL
Relianc
e
Aircel

77.22

27.83

29.52

34.19

38.23

7.07

7.13

109.47
81.40

26.70
27.84

27.75
28.65

25.12
35.38

25.35
35.20

6.79
7.08

6.70
6.92

Tata

66.32

16.92

17.25

25.58

26.01

4.30

4.16

Telewings

45.62

13.66

14.19

31.30

31.12

3.47

3.43

Sistema

8.86

2.03

1.95

22.58

22.01

0.52

0.47

Quadrant

2.73

0.06

0.07

2.45

2.51

0.02

0.02

Videocon

7.13

0.00

0.00

0.00

0.00

0.00

0.00

MTNL

3.51

0.00

0.00

0.00

0.00

0.00

0.00

Total

969.89

41.67

42.70

100

100

393.34 414.18

Age Group Graph

As we can see from the above graph, the people who are in the age group of 21-28
years are the ones who are the maximum users of mobile phones. This segment is the
one which gives maximum business to the mobile operators. This segment constitutes
the young executives and other office going people. They are 65% of the total people
who were interviewed. The next age group are the
people who are 28-35 years old. They are 20% of the total. They are those who are at
home or have small business units etc. And the next age group is the

youngest

generation who are 15-21 years old. They are school and college going students and
carry mobile phones to flaunt. They are 15% of the total interviewed people.

Occupation Graph

OCCUPATION

10%

15%

20%

55%
STUDENTS

EXECUTIVES

HOUSEHOLDS OTHERS

As the above graph shows that 55% of the total people interviewed are working. So,
these people are the ones who are the maximum users of mobile phones. They are the
young executives, managers, Tele - callers etc. who require mobile for their official
purposes. The next category is the households, who are either housewife, small units
which operate from their homes etc. They are 20% of the whole. The next segment is
the students. They are 15% of the whole. And 10% of the whole is categories who are
the professionals.

Service Provider Graph

These are the total market share of mobile user or people captured by the mobile
provider company. There two major company in mobile phone service sector Vodafone
and Airtel who respectively hold the market share with other company as 17% and 20%
of total market user segment of mobile customer.

Customer Service At Airtel Graph

CUSTOMER SATISFACTION LEVEL

10%

20%

10%
60%

FULLY

PARTIALLY

DISSATISFIED

FULLY DISSATISFIED

As the above graph clearly shows that customer services at Airtel seems poor. 60% of
the people are dissatisfied with the customer services provided by Airtel. They are the
ones who have the maximum share in the market but they are lagging behind in the
customer services. 10% of the people were fully dissatisfied with the customer services
of Airtel. This could leave an impact on the mind of the consumer. He can even switch
over his brand. 20% of the people seemed partially satisfied with the customer services
and only 10% seem to be fully satisfied with Airtels customer services, which is a very
small amount.

Monthly expense graph

People on an average spend RS 500 per month as their mobile phone expense. 64%
people spend

Monthly Expense

24%

12%

64%

this amount. 24% people spend RS 300 per month as their monthly mobile expense.
And the remaining 12% had an expense more than RS 1000, they could the ones
having sim connections or having cash cards and having a lot of business calls on their
mobiles.

Market Share of Wireless Telecom Providers in India:

Year Airtel Vodafone Idea

Reliance
(ADAG)

BSNL Aircel TATA Telewings Sistema

(Market Share in percentage %)

2004 19.3

15.3

8.1

21.6

16.2

3.1

2005 21

14.9

9.7

20.3

19

3.4

2.1

2006 21.72 17.04

8.18

19.21

19.58 2.9

5.38

2007 22.49 16.01

8.49

16.96

18.77 3.34

9.7

2008 23.74 16.9

9.19

17.54

15.62 4.06

9.32

2009 23.97 17.55

8.96

18.56

13.31 4.73

9.93

2010 21.84 17.26

10.92 17.53

11.89 6.31

11.29

0.73

0.65

2011 19.99 16.58

11.03 16.72

11.32 6.76

10.98 2.81

1.24

2012 19.72 16.37

12.26 16.65

10.72 6.81

8.89

4.62

1.72

2013 21.69 17.56

14.01

14.17

11.66 6.92

7.65

3.65

1.37

2014 22.71 18.41

15.01 12.26

10.46 7.76

6.97

3.94

2015 23.3

16.27 11.29

7.9

6.84

4.7

0.91

18.95

8.39

Source: TRAI Reports, Readers should reverify the above data for accuracyNote:
Above data includes both GSM and CDMA

SWOT ANALYSIS
Strengths

Being one of the largest companies in India the company has achieved a degree of
focus in its core business of its products.

It has a strong brand name, superior quality products and an enviable distribution
network.

It has a clear and well-defined organization structure and limits of financial authority.

Increase in advertisement spends affect the companys margins.

The companys bottom line falls victim to the bloated and highly paid workforce, which
affects its margins.
Weakness:

Little efforts over the Advertising of products.

Distribution channel is not accurately categorized.

Premium priced products, hence cant compete in low price segment.

No separate strategy for rural market.

Opportunities:

The company's financial performance can receive a major boost from its cost reduction
efforts.

There is a lot of scope of product and market diversification.

Exports of products will also have huge chances in the coming years.

Airtels business has ample scope for gaining market share from the unorganized
sector. Rural penetration too holds vast potential to bring about growth.
Threats

The slowdown in the economy has restricted topline growth of most FMCG majors and
for Airtel also it will be difficult to maintain historical growth rates in such a depressed
scenario.

Companys major raw materials are influenced by government policies / controls as well
as vagaries of the monsoons. Fluctuations in the prices of raw materials would have
significant impact on costs and margins of the company.
Moreover, inordinate hike in Broad Band Internet products would also
increases companys production and distribution cost.

LIMITATIOINS OF THE STUDY

The study has following limitations:

The study has lack of contact with company personnel acted as hindrance in the

study.
The study is based on the limited knowledge & information provided by the

websites and software available on internet.

The size of the sample is too small looking to the nature of the study and due to

tome and money constraints relatively smaller sample was chosen.

The basis of selection of sample for the study was vague. Randomly individuals

were picked up to provide their responses .

There are only five parameters taken for study however there are certain other

parameters on the basis of which accurate inference can be drawn.

The ratings given are on the basis of data available on internet however the

future efficiency of the low performing company can be better.

The data taken for the comparison of the sample companies are of last four
years from 2011 to 2015. However the accurate result can be drawn if the data
taken ranges from last ten years.

Conclusion
After analyzing the findings of the research, I can conclude that Airtel lagged behind its
competitors as far as customer service and availability is concerned. The maximum no.
of people who use the mobile is in the age group of 20 to 28. Cash cards are the most
popular type of mobile connections, as they are consumer friendly and recharging the
connection is not a problem.
Maximum no. of people spends RS 500 on their connections. As Airtel is the only
company having the maximum no of mobile connections so it must seriously look into
the loop holes of the existing customer service department.
As we know that now Airtel has already launched its product with logo Aisi azaadi aur
kahan has already became popular in market. So we can say that in spite of so many
competitors in the market Airtel is having a good position just because every time, it
tries its best to understand the need of its important customers.
From the comparison and deep analysis of every aspect of business of both the
companies we can conclude that Bharti Airtel has to more work in every field of
communication business.
It is the time not only to survive but to sustain in the market for a long time.
For this Airtel has to work on its all marketing strategies, marketing, promotion, brand
image.etc.
Airtel has to take Idea. Very seriously and update its own strategies from time to time
and when the need arises.
With aggressive marketing strategies Airtel has to target rural India as 70% of
population of India lives in these areas.
The other segment may be costumers of all age groups.

Biblography