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    Bharti records topline growth of 67 per cent

    Ascribes high growth to strategic focus, management team, marketing initiatives



     

    Services revenue up 61 per cent, subscriber base up 115% 

     

     

    Manufacturing records 107 per cent revenue growth 

     

     

    Subscriber base of services doubles 

     

     

    Total investment brought in of Rs --- crore 

     

     

    Restructuring yields focussed business lines, high growth 

     

     

    Bharti projects 2001-02 growth at 60 per cent 

     


    New Delhi, April 9, 2001: Bharti Enterprises, the country's largest integrated telecommunications company, today announced a topline growth of 64 per cent in fiscal 2000-01 with a total group sales turnover of Rs 13140 million as against Rs 7970 million in the corresponding fiscal. Driven by strong strategic focus on the telecom value chain and optimising on its strengths of consumer marketing, the Group recorded profits across every company. The sterling performance has come in the backdrop of significant issues related to the Telecom industry as a whole.

     

    The company's growth was fuelled by a 107 per cent growth in manufacturing revenues and a 61 per cent growth in services. The service companies more than doubled their subscriber base, recording a growth of 115 per cent.

     

    Strategic focus, management team, marketing initiatives
     

    The company attributed the performance to its decision at the beginning of the year to focus strongly on the telecom value chain, consolidate partnerships and put a strong, clearly focussed management team with a linear vision of the businesses. The company had announced its group restructuring to keep pace with technological advancements in  Telecom and IT. The group restructuring was designed to create functional and operational specialisation with a linear vision of business lines and functional areas. As part of the restructuring exercise, CEO’s were given total operating freedom, Presidents were appointed as heads of the business lines in addition, an apex team of Corporate Directors was constituted with supervisory and strategic responsibilities for functional areas across business lines.


     Further, in keeping with the Pan-Indian transformation of Bharti's services profile due to acquisitions in the South, the company has successfully built strong national brands, a large distribution network and continuously enhanced consumer value. Bharti's national services brands - AirTel, Magic and Mantra - have all performed extremely well with subscriber growth ranging between 70 and 400 per cent.


     The first fiscal of the New Millennium saw Bharti entering into a strategic partnership with SingTel resulting in an inflow of over US $1000 million in investments in group companies.


    The company also launched mobile services in Andhra Pradesh and Karnataka subsequent to the takeover of the licences in the two states.


     By the end of the fiscal, the company had further consolidated its restructuring by merging four companies engaged in the area of broadband services into one new integrated broadband services company, Bharti Broadband Networks Limited.


     Bharti Enterprises will be targeting a turnover in excess of Rs 21000 million in 2001-02. The company said that the primary focus would be to consolidate the mobility businesses and plan operations in all the circles where it will be issued licenses for basic services. Bharti would also be focussing on building the broadband and long distance network, including completion of the Singapore-Chennai undersea cable by the end of the current calendar year.


     In the service companies, mobility continued to show strong growth trends, with the new circles of Andhra Pradesh and Karnataka showing high growth rates. However, in sheer numbers, the Delhi mobility operations added the largest numbers - over 1,30,000 subscribers. Overall, the company continued to hold a majority share in the mobility markets where the company was present, with market shares going up significantly in newly acquired circles. Broadband group (ISP Services) also showed a handsome growth of 363 per cent in subscriber numbers, crossing the 1,00,000 mark.

     

    Highlights 2000-01

     

     

     

    Bharti Telecom, the group company holding stakes in the operating companies through its subsidiaries Bharti Televentures and Bharti Telespatial, was made the lead engine to drive all telecom services. 

     

     

    Bharti announced the demerger of its manufacturing and service operations with separation of Bharti Telecom and Bharti Teletech. Bharti Telecom’s investments in manufacturing operations was transferred to Bharti Teletech. The company worked out a swap ratio of 3 shares of Bharti Teletech for 10 shares of Bharti Telecom to effect the separation of the businesses. Consequent to the demerger, Bharti Teletech consolidated its telecom terminal operations through an operating unit. 

     

     

    The Service operations of the company was restructured under four business lines – Mobility (for Cellular projects), Basic Services (for Fixed & Fixed Wireless Services), NLDO and Networks (for Broadband services, V-Sat Services, ISP and Corporate Solutions). 

     

     

    Bharti merged its four companies Bharti BT Internet Ltd., Bharti-BT V-Sat and Bharti Broadband Services & their holding company Bharti Telespatiale Ltd. into a single company – Bharti Broadband Networks Ltd. Consequently, Bharti bought over the stake from British Telecom in both joint ventures. 

     

     

    Singapore Telecom emerged as the Bharti Group's strategic partner by investing US $400 million in Bharti Televentures. 

     

     

    Bharti, with Singapore Telecom, set up, Network i2i, with a planned investment of US $ 649 million for laying undersea cable between India and Singapore.  (This venture will be the largest infrastructure project ever undertaken between India and Singapore) 

     

     

    The company entered three new Business Lines including broadband services, long distance services and undersea cables in alliance with Singapore Telecom. 

     

     

    As part of the restructuring exercise, Presidents were appointed to lead the business lines and an apex team of Corporate Directors was constituted to have supervisory and strategic responsibilities for functional areas across business lines while providing greater operational freedom to the CEO’s. 

     

     

    Bharti closed the year with a combined subscriber base of over 8,00,000 from all its service operations. 

     

     

    Bharti Teletech, the manufacturing arm of Bharti Enterprises sold 3.6 million phones in FY 2000-01.