Post on 05-Apr-2018
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7/31/2019 Aditya Birla Final
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Diversification of ADITYA BIRLAGROUP
Into Telecom industry (Idea Cellular)
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ADITYA BIRLA GROUPGlobal Vision, Indian Values
A $24 billion conglomerate
In the League of Fortune 500
Anchored by an extraordinary force of 100,000employees belonging to over 25 different nationalities
Over 50 per cent of its revenues flow from itsoperations across the world
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Has 85 state-of-the-art manufacturing units andsectoral services spanning over 20 countries
Best employer in India and among the top 20 in Asiaby the Hewitt-Economic Times and Wall StreetJournal Study 2007
Includes companies like Grasim, Hindalco, Nuvo, etc
ADITYA BIRLA GROUP
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Hindalco is the largest aluminium rolling company andone of the three biggest producers of primaryaluminium in Asia
Number One producer of viscose staple fibre
Third largest producer of insulators in the world and thefourth largest producer of carbon black
Eleventh largest cement producer and the secondlargest in India
ADITYA BIRLA GROUP
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In India, the Group holds a frontrunnerposition as:
Indias leading copper producer
A premier branded garments player
Second largest player in viscose filament yarn
Second largest in the chlorine alkali sector
A leading player in life insurance and asset management
ADITYA BIRLA GROUP
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WHY TELECOM SECTOR?
Year endingMarch 31
Direct Exchange Lines(DELs) (in millions)
Waiting List(in millions)
Demand(in millions)
1981 2.15 0.45 2.6
1983 2.47 0.66 3.13
1985 2.90 0.84 3.74
1987 3.49 1.12 4.61
1989 4.17 1.42 5.59
1991 5.07 1.96 7.03
1993 6.80 2.85 9.65
1995 9.80 2.15 11.95
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WHY TELECOM SECTOR?
No.of Telephones in India
2030
120
0
20
40
60
80
100
120
140
1980 1985 1995
Year
Telephones(inlakhs
)
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Teledensity in 1995
10.5
62.57
9.8
2.66.2
16.113.2
9.6
0.8
0
10
20
30
40
50
60
70
World U.S Mexico Africa Asia Argent ina Chile Malaysia India
Country/Continent
Teledensity
WHY TELECOM SECTOR?
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8 million fixed telephone lines with 2.5 millionlines in waiting
Out of 6,00,000 villages, only 1,40,000 hadphone connections
Only 1,00,000 STD PCOs in the country
INDIAN TELECOM SECTOR-1995
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WHY TELECOM SECTOR?
Liberalization in India post 1991
National Telecom policy formulated in 1994
which accorded highest priority to developingtelecom services in India
Private Companies in telecom were chosen on
the basis of their previous 10 years trackrecord
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Decision to allow Private Sectorcompanies to set up base in India to
manufacture mobile equipments toenble India become a majormanufacturing base and exporter ofmobile equipment
Mobile cellular service started in fourmetros in 1995
WHY TELECOM SECTOR?
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India's Gross National Income Per Capita
430640
960
1370
1820
0
500
1000
1500
2000
1975 1980 1985 1990 1995
Year
GrossNationalIncome
PerCapita($)
WHY TELECOM SECTOR?
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IDEA CELLULAR LTD
Indias leading GSM mobile service operator
Has licences to operate in 11 circles
Pioneered music messaging concept
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MILESTONES
1995- Incorporated as Birla Communications Ltd
1996- Changed name to Birla AT&Tcommunication Ltd
2000- Merged with Tata Cellular Ltd
2001- Acquired RPG cellular Ltd 2002- Changed name to Idea Cellular Ltd
2004- Acquired Escotel Mobile Communication
2006- Reached 10 million subscribers.
Became part of Aditya Birla Group after
buying out Tatas stake
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FINANCIAL DATA
2002 2003 2004 2005 2006
SALES(Rs. cr)
671.22 851.48 1165.52 1632.04 2007.07
PBIDT
(Rs. Cr)
166.62 301.22 252.06 523.83 729
Rate of growth -Sales(%) 108.94 26.86 36.88 40.03 22.98
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FINANCIAL DATA
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REFERENCES
www.mckinsey.com
www.pib.nic.in www.indiateleconnews.com
www.indiaonestop.com
http://www.mckinsey.com/http://www.pib.nic.in/http://www.indiateleconnews.com/http://www.indiaonestop.com/http://www.indiaonestop.com/http://www.indiateleconnews.com/http://www.pib.nic.in/http://www.mckinsey.com/7/31/2019 Aditya Birla Final
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THANK YOU