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.