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Excerpt from quote by Manoj Kohli (Chief Executive and joint MD, Bharti Airtel) in answer to the question of synergies between their businesses Our strategy is one of wallet share. Get the maximum wallet We are also planning that we should do similar bundling with retail and insurance, which are two big businesses with Bharti. This becomes One Bharti, where, if customers buy something from Easyday (Bharti Retails convenience stores..then they should get some benefit of telecom
Telecom Market
Relatively large youth population - Telecom penetration c.73.3%(
Telecom Market
Vittal as the new head of its India operations and will be applicable from March 1,2013
Instead of the current 3 regional hubs, the organization will now be
divided into 8 hub operations reporting to a newly created position of Director - Market Operations
Circle CEOs will report to a Hub CEO Ajai Puri, Operations Director North & East, has been appointed
as the Director - Market Operations for India and will report to Gopal Vittal, Jt MD and CEO Designate for India
Raghunath Mandava, currently Operations Director for West &
Distribution has been appointed Director - Customer Experience, reporting to Gopal Vittal
Najib Khan, CMO - Airtel Business, has been appointed as CEO
Homes and Office. In this role, Najib will be responsible for the Companys Telemedia business, the SMB vertical, LTE and Wi-Fi
Star Question Mark SBU Enterprise Services (Carriers and Corporates) Major contributor to revenue in just 4 years of coming SBU Passive Infra Good collaborations like Indus tower/ Untapped market)
Dog Cash Cow SBU Mobile services: Legacy of Bharti SBU Telemedia Services Significant fall in ARPU/ Other big players existing in the market
infra.)
Airtel money for m commerce to bring about new channels for earnings Focus to increase rural penetration Partnership with strong global partners
2015 $635 bn
2020 $850 bn
% values
Bharti Retail Pvt. Ltd. (Subsidiary) Easy Day Store (Neighborhood stores)
Why JVs?
Entered retail in 2008 (recession period), therefore JV allows lesser investment and risk sharing No prior experience in retailing Walmart provides exceptional experience and capabilities in back end logistic Bharti Retail Pvt. Ltd. has stores working on EDLP model, which Walmart has mastered JV with Del Monte (Phillipines) provides access in processed food industry, in terms of operations and association with one of the top 10 brands in this product segment
this alliance will help Wal-Mart to enter fast growing retail sector.
Bharti served as a market leader in the telecom sector of India and also had an
realise the need of a local partner in order to understand the peoples choices.
Bharti had a huge market capitalization of worth more than US $ 25 billion. Indian agricultural sourcing is highly disintegrated which requires understanding
of local market. WalMart could leverage on Bhartis experience in penetrating far flung areas for their telecom markets.
Competitors
% Sales
Pantaloons Retail Vishal Stores
Trent
Shoppers Stop Bharti Retail
Others
Expansion Plans
Reliance Investment of $6.7 bn with expected sales of $20bn by 2010 Bharti Group Investment of $7bn to create hundereds of stores and hyper malls Pantaloon Retail had an investment portfolio of $240 mn
Trent planned to grow from 7 star baars to 40 in 3 years in 2010 with investment of Rs 275 crore
Huge investment by each of the big player indicates that there is huge potential in the organized retail sector
Future Opportunities