Bharti Airtel to recast businesses into nine arms

16 Mar 2009 Evaluate

Bharti Airtel, the country’s largest telco by subscribers, will restructure its businesses

into nine verticals under different CEOs, as it looks to expand into areas beyond its mainstay, voice telephony. India’s fourth-most valuable listed firm with a market capitalization of around $22 billion (Rs 106,000 crore) has already identified some of these verticals such as mobile commerce, entertainment, media, internet, enterprise services and small & medium businesses.

The company will also announce a new reporting structure that will give these new business divisions flexibility and independence to innovate, develop and implement new technologies to address changing demands of customers. This reorganization will also see its direct-to-home (DTH) business being spun off into a separate unit.

Airtel has three divisions at present-mobility, telemedia (DTH, broadband and fixed lines) and enterprise, which oversees the company’s undersea cable business, national & international long-distance services and also services large corporates.

According to Mr Kohli, CFO of Bharti Airtel, mobility will have three new business verticals after the reorganization, telemedia will have two and enterprise four. According to him, the new verticals have huge business potential. He also pointed out these organizational changes were proof that the company was proactively looking at the future.

As revenues from traditional voice services decline, these verticals will provide Bharti with alternate streams. The company is expected to end the year with revenues of over Rs 38,000 crore. It has reported sales of over Rs 27,100 crore in the first three quarters of this year.crackcrack

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