2012

Entrepreneurship and Management of Small and Medium Enterprises

Successful Entrepreneur -Sunil Mittal

Ayman Chandiwala TYBMS-A Roll no-12

Bharti Enterprises

Sunil Bharti Mittal Chairman and managing director of Bharti Enterprises

Who?
Sunil Bharti Mittal, born October 23, 1957 is an Indian businessman. He is the chairman and managing director of the Bharti group. The $4.5 billion turnover ... indian personalities, Industrialists, Sunil Bharti Mittal, Director of Bharti Group. Here is a brief profile and biography of Sunil Mittal. Read about information on Sunil Mittal of AirTel. Sunil Mittal, whose Bharti group has struck a deal with Wal-Mart, says retail will change the face of India, reports Alam Srinivas. An article on Sunil Bharti Mittal CMD Bharti Group. Sunil Mittal ranked 6 among Indias 40 Richest In 2005. Chairman and Managing Director of Bharti Group, India's largest GSM-based mobile phone service provider; IT Man of the Year Award 2002 from Dataquest and CEO Of the Year, 2002 Award from World HRD Congress. Sunil Mittal can be called as originator of cellular phone revolution in India. He is the founder, Chairman and Managing Director of Bharti Group and runs India's largest GSMbased mobile phone service. Sunil Bharti Mittal's father was an M.P. Sunil did not followed his father's footsteps. After graduating from Punjab University in 1970s, he set up a small bicycle business in Ludhiana in partnership with his friend. By 1979, Sunil Mittal realized that his ambitions could not be fulfilled in Ludhiana, so he moved out to Mumbai from Ludhiana. He spent a few years in Mumbai and in 1982, Sunil Mittal started a full-fledged business selling portable generators imported from Japan. This gave him a chance to acquaint himself with the nitty-gritty's of marketing and advertising. His business was running smoothly but later on the government banned the import of generators as two Indian companies were awarded licenses to manufacture generators locally. In 1986, Sunil Bharti Mittal incorporated Bharti Telecom Limited (BTL) and entered into a technical tie up with Siemens AG of Germany for manufacture of electronic push button phones. Gradually he expanded his business and by early 1990s, Sunil Mittal was making fax machines, cordless phones and other telecom gear. In 1992, when the Indian government was awarding licenses for mobile phone services for the first time, Sunil Mittal clinched Delhi cellular license in collaboration with French telecom group Vivendi. In 1995, Sunil Mittal founded Bharti Cellular Limited (BCL) to offer cellular services under the brand name AirTel. Soon, Bharti became the first telecom company to cross the 2-million mobile subscriber mark. Bharti Cellular Limited also rolled out India's first private national as well as international long-distance service under the brand name IndiaOne. In 2001, BCL entered into a joint venture with Singapore Telecom International for a $650-million submarine cable project, India's first ever undersea cable link connecting Chennai in India and Singapore. Today, Sunil Mittal runs a successful empire with a market capitalization of approximately $ 2 billion and employing over 5,000 people. He has been honored with several awards. Sunil Bharti Mittal was chosen as one of the top entrepreneurs in the world for the year 2000 and

amongst 'Stars Of Asia', by 'Business Week'. He also received IT Man of the Year Award 2002 from Dataquest and CEO Of the Year, 2002 Award (World HRD Congress). Sunil Bharti Mittal, founder, Chairman and Managing Director of Bharti Group can be labelled as the most ambitious telecom entrepreneur in India. Sunil a former student of Harvard Business School graduated from Punjab University. The son of a parliamentarian, Sunil did not want to follow his fathers footsteps. He had shown an interest in business even from his teenage days. So after graduation, Sunil got together with his friend and formed a small bicycle business with borrowed capital in the1970s. But by 1979, he realized that this business would remain small. So he moved out of Ludhiana, spent a few years in Mumbai and in 1981, was running an import and distribution operation out of New Delhi and Mumbai. By 1982, Mittal had started a full-fledged business selling portable generators imported from Japan and that gave him the chance to involve himself in activities like marketing and advertising. Things went smoothly until the government banned the import of generators as two Indian companies were awarded licenses to manufacture generators locally. Sunil Mittal got interested in push button phones while on a trip to Taiwan, and in 1982, introduced the phones to India, replacing the old fashioned, bulky rotary phones that were in use in the country then. Bharti Telecom Limited (BTL) was incorporated and entered into a technical tie up with Siemens AG of Germany for manufacture of electronic push button phones. By the early 1990s, Mittal was making fax machines, cordless phones and other telecom gear. The turning point came in 1992 when the Indian government was awarding licenses for mobile phone services for the first time. One of the conditions for the Delhi cellular license was that the bidder have some experience as a telecom operator. Mittal clinched a deal with the French telecom group Vivendi. Two years later, Sunil secured rights to serve New Delhi. In 1995, Bharti Cellular Limited (BCL) was formed to offer cellular services under the brand name AirTel. Within a few years Bharti became the first telecom company to cross the 2-million mobile subscriber mark. The company is also instrumental in bringing down the high STD/ISD, cellular rates in the country by rolling the countries first private national as well as international long-distance service under the brand name India One. In 2001, the company entered into a joint venture with Singapore Telecom International for a $650million ubmarine cable project, the countries first ever undersea cable link connecting Chennai in India and Singapore.

Personal life
Sunil Mittal was born in Punjab. His father, Sat Paul Mittal had been the Member of Parliament (M.P) from Ludhiana. He attended scindia school at Gwalior and He graduated in 1979 from Punjab University, Chandigarh, with a Bachelor of Arts and Science. His father died of cardiac arrest in 1992. Mittal resides in Delhi. He is married and has three children. He is superstitious about the number 23, as he was born on the 23 and also got married on the 23. He also stops eating meat before any big venture.

Bharti group
Mittal built the Bharti group along with his brothers Rakesh and Rajan becoming India's largest mobile phone operator in just ten years. The UK-based telecommunications company, Vodafone and Singapore's SingTel both own stakes in the recently renamed flagship company Bharti Airtel. The group also has partnerships with Axe for insurance and with the Rothschild family. Airtel now serves over 110 million Indian customers becoming the largest telecom operator in India.

Entrepreneurial ventures
A first generation entrepreneur, Mittal started his first business in April 1976 at the age of 18, with a capital investment of Rs 20,000 (U$500) borrowed from his father. His first business was to make crankshafts for local bicycle manufacturers. In 1980 he sold his bicycle parts and yarn factories and moved to Mumbai. In 1981, he purchased importing licenses from exporting companies in Punjab. He then imported thousands of Suzuki Motors's portable electric-power generators from Japan. The importing of generators was suddenly banned by the then Indian Government and just two licenses to manufacture generators in India were issued to two companies. In 1984, he started assembling push-button phones in India replacing the old fashioned, bulky rotary phones that were in use in the country then. Bharti Telecom Limited (BTL) was incorporated and entered into a technical tie up with Siemens AG of Germany for manufacture of electronic push button phones. By the early 1990s, Mittal was making fax machines, cordless phones and other telecom gear. Mittal says, "In 1983, the government imposed a ban on the import of gensets. I was out of business overnight. Everything I was doing came to a screeching halt. I was in trouble. The question then was: what should I do next? Then, opportunity came calling. While in Taiwan, I noticed the popularity of the pushbutton phone -- something which India hadn't seen then. We were still using those rotary dials with no speed dials or redials. I sensed my chance and embraced the telecom business. I started marketing telephones, answering/fax machines under the brand name Beetel and the company picked up really fast." In 1992, he successfully bid for one of the four mobile phone network licences auctioned in India One of the conditions for the Delhi cellular license was that the bidder have some experience as a telecom operator. So, Mittal clinched a deal with the French telecom group Vivendi.

He was one of the first Indian entrepreneurs to identify the mobile telecom business as a major growth area. His plans were finally approved by the Government in 1994 and he launched services in Delhi in 1995, when Bharti Cellular Limited (BCL) was formed to offer cellular services under the brand name Airtel. Within a few years Bharti became the first telecom company to cross the 2-million mobile subscriber mark. Bharti also brought down the STD/ISD cellular rates in India under brand name 'Indiaone'.IndiaOne was Indias first private national as well as the international long-distance service provider, and, thus, became a major factor in Bharti's success by providing services cheaply. In November 2006, he struck a joint venture deal with Wal-Mart, the US retail giant, to start a number of retail stores across India. In May 2008, it emerged that Sunil Bharti Mittal was exploring the possibility of buying the MTN Group, a South Africa-based telecommunications company with coverage in 21 countries in Africa and the Middle East. The Financial Times reported that Bharti was considering offering US$45 billion for a 100% stake in MTN, which would be the largest overseas acquisition ever by an Indian firm. However, both sides emphasize the tentative nature of the talks, while The Economist magazine noted, "If anything, Bharti would be marrying up," as MTN has more subscribers, higher revenues and broader geographic coverage.[8] However, the talks fell apart as MTN group tried to reverse the negotiations by making Bharti almost a subsidiary of the new company

Philanthropy
He is opening a football academy in Haryana or Goa to help India send a team to the 2018 FIFA World Cup. Mittal has also been working towards educating India through the Bharti Foundation. The foundation has established over 200 schools and libraries in India, as well as providing scholarships for college students. For his work with the foundation Barron's named Mittal number 16 on its 2009 list of the world's top 25 philanthropist. Bharti Foundation is the philanthropic arm of Bharti Enterprises.It conducts free of cost programs in both primary and higher education for the underprivileged children with a special focus on the girl child. The Satya Bharti School Program, started in 2006, is the flagship program of Bharti Foundation. The foundation, based in Gurgaon, India, is controlled by 16 Governing Board members including Sunil Mittal as its Chairman and Rakesh Mittal as its Co-Chairman.The foundation has been recognized by many societies and award committees. Some of them include Global CSR Award, Asian CSR Award, The Indian Education Award 2011 and World Education Award 2011

Bharti zain deal

The board of Kuwaits Zain Telecom has accepted a $10.7-billion (Rs 49,700 crore) offer from Bharti Airtel for the bulk of its African assets, breathing new life into the Indian companys cherished ambition of transforming itself into an emerging-market multinational. Sources said that Bharti would acquire 100% of Zains African operations. Sudan and Morocco would be out of the deal. The deal would be an all-cash deal where Bharti would

pay $700 mn to Zain by year end. Telecom Minister A Raja said that the Bharti-Zain deal was good for the Indian industry

Achievement
Chairman and Managing Director of Bharti Group, India's largest GSM-based mobile phone service provider; IT Man of the Year Award 2002 from Dataquest and CEO Of the Year, 2002 Award from World HRD Congress. Sunil Mittal can be called as originator of cellular phone revolution in India. He is the founder, Chairman and Managing Director of Bharti Group and runs India's largest GSMbased mobile phone service. Sunil Bharti Mittal's father was an M.P. Sunil did not follow his father's footsteps. After graduating from Punjab University in 1970s, he set up a small bicycle business in Ludhiana in partnership with his friend. By 1979, Sunil Mittal realized that his ambitions could not be fulfilled in Ludhiana, so he moved out to Mumbai from Ludhiana. He spent a few years in Mumbai and in 1982; Sunil Mittal started a full-fledged business selling portable generators imported from Japan. This gave him a chance to acquaint himself with the nitty-gritty's of marketing and advertising. His business was running smoothly but later on the government banned the import of generators as two Indian companies were awarded licenses to manufacture generators locally. In 1986, Sunil Bharti Mittal incorporated Bharti Telecom Limited (BTL) and entered into a technical tie up with Siemens AG of Germany for manufacture of electronic push button phones. Gradually he expanded his business and by early 1990s, Sunil Mittal was making fax machines, cordless phones and other telecom gear. In 1992, when the Indian government was awarding licenses for mobile phone services for the first time, Sunil Mittal clinched Delhi cellular license in collaboration with French telecom group Vivendi. In 1995, Sunil Mittal founded Bharti Cellular Limited (BCL) to offer cellular services under the brand name AirTel. Soon, Bharti became the first telecom company to cross the 2-million mobile subscriber mark. Bharti Cellular Limited also rolled out India's first private national as well as international long-distance service under the brand name India One. In 2001, BCL entered into a joint venture with Singapore Telecom International for a $650-million submarine cable project, India's first ever undersea cable link connecting Chennai in India and Singapore. Today, Sunil Mittal runs a successful empire with a market capitalization of approximately $ 2 billion and employing over 5,000 people. He has been honored with several awards. Sunil Bharti Mittal was chosen as one of the top entrepreneurs in the world for the year 2000 and

amongst 'Stars Of Asia', by 'Business Week'. He also received IT Man of the Year Award 2002 from Dataquest and CEO Of the Year, 2002 Award (World HRD Congress). Sunil Bharti Mittal, founder, Chairman and Managing Director of Bharti Group can be labelled as the most ambitious telecom entrepreneur in India. Sunil a former student of Harvard Business School graduated from Punjab University. The son of a parliamentarian, Sunil did not want to follow his fathers footsteps. He had shown an interest in business even from his teenage days. So after graduation, Sunil got together with his friend and formed a small bicycle business with borrowed capital in the1970s. But by 1979, he realized that this business would remain small. So he moved out of Ludhiana, spent a few years in Mumbai and in 1981, was running an import and distribution operation out of New Delhi and Mumbai. By 1982, Mittal had started a full-fledged business selling portable generators imported from Japan and that gave him the chance to involve himself in activities like marketing and advertising. Things went smoothly until the government banned the import of generators as two Indian companies were awarded licenses to manufacture generators locally. Sunil Mittal got interested in push button phones while on a trip to Taiwan, and in 1982, introduced the phones to India, replacing the old fashioned, bulky rotary phones that were in use in the country then. Bharti Telecom Limited (BTL) was incorporated and entered into a technical tie up with Siemens AG of Germany for manufacture of electronic push button phones. By the early 1990s, Mittal was making fax machines, cordless phones and other telecom gear. The turning point came in 1992 when the Indian government was awarding licenses for mobile phone services for the first time. One of the conditions for the Delhi cellular license was that the bidder have some experience as a telecom operator. Mittal clinched a deal with the French telecom group Vivendi. Two years later, Sunil secured rights to serve New Delhi. In 1995, Bharti Cellular Limited (BCL) was formed to offer cellular services under the brand name AirTel. Within a few years Bharti became the first telecom company to cross the 2-million mobile subscriber mark. The company is also instrumental in bringing down the high STD/ISD, cellular rates in the country by rolling the countries first private national as well as international long-distance service under the brand name India Ones. In 2001, the company entered into a joint venture with Singapore Telecom International for a $650-

million submarine cable project, the countries first ever undersea cable link connecting Chennai in India and Singapore. Always on the move and making an impact and excelling in whatever he did, this clear thinking risk taker has changed the face of the Indian ICT space. For his contributions he has been honored with several awards. He was chosen as one of the top entrepreneurs in the world for the year 2000 and amongst Stars Of Asia, by Business Week, he received IT Man of the Year Award 2002 from Dataquest and CEO Of the Year, 2002 Award (World HRD Congress). He is the member of National Council of Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce & Industry (FICCI), Chairman, Indo-US Joint Business Council, Member, Advisory Committee constituted by Ministry of IT. Mittal has to his credit the breaking up of the 100 year old monopoly of state run companies to operate telecom services in India. Now he heads a successful empire focused on different areas of business through independent Joint Venture companies with a market capitalization of approximately $ 2 billion, employing over 5,000 people and still growing. Bharti Foundation has funded over 50 schools in Madhya Pradesh and also donated Rs 200 million to IIT Delhi for building a Bharti School of Technology and Management. In spite of his deep involvement in work, Mittal the man is calm, seldom ruffled and very down to earth. He says he achieves a sense of detachment and peace with regular practice of yoga. He is thankful for a supportive family including a daughter and twin sons, with whom understandably he doesnt get much time to spend. His brothers Rakesh and Rajan are with him in the business. He is a pioneer, a dreamer, an achiever. Ranked 125th in the Forbes list, Sunil Bharti Mittal is not a man to rest on his laurels. Whenever the next big revolution is happening, he is there busy being a part of it. What inspires and drives this trailblazer? We hear it in his own words. Practice is the real thing, rest is all theory. I didnt go to a B-school, instead learnt lessons on the streets and at every opportunity, tried to assimilate, gather and absorb some of the practices that were required to create an enterprise. I dream BIG. Everything beings with a small step, but you have to dream big to take a leap. I graduated from Punjab University. After graduation, I along with my friend formed a small bicycle business with borrowed capital in the 1970s. But by 1979, I realized that this

business would remain small. I moved out of Ludhiana, and tried other things so that I would be noticed. Trust your reflexes. In 1982, I had a full-fledged business selling portable generators imported from Japan. This gave me a chance to be involved in activities like marketing and advertising. Things were smoothly until the government banned the import of generators as two other Indian companies were awarded licenses to manufacture generators locally. Then I made it a point that whenever the opportunity knocks on the door next time, I will be ready for it. The turning point came in 1992 when the government was awarding licenses for mobile phone services for the first time. I took that up immediately. Recognition is momentary. You have to move on to achieve more, take more risks and be mentally alert. Being featured in the Forbes, or receiving the IT Man of the Year Award did make me feel great. It was a momentary high. Right now I just have competition here in India, but I have to work hard to that I am the competition from India for the world. Everything comes at a price, even a smile. A boy of 8 or 9 years selling roses at the signals can make anybody feel worthless. How could I sit back in my chair and just run my business when the next generation of this country still hasnt made its foundation? You can dream of a
beautiful India, but you have to wake up from your dream to make it beautiful.

Skills & Qualities:

1) Flexible & Adaptable: Sunil Mittals first business was to make crankshafts for local bicycle manufacturers. He then imported thousands of Suzuki Motors's portable electricpower generators from Japan. He then moved in to Mumbai, to start one of the first cellular companies of India, namely Bharti Cellular, which is now known as Airtel. So, he has been flexible and adaptable to all kinds of businesses and market environment. He adapted to all economic changes he faced and came out as a winner in whatever businesses he performed. 2) Creative & Inventor: He started assembling push-button phones in India, which he earlier used to import from a Taiwan company, Kingtel, replacing the old fashioned, bulky rotary phones that were in use in the country then. He started marketing telephones, answering/fax machines under the brand name Beetel and the company picked up really fast.. He named his first push-button phones as 'Mitbro'. 3) Pioneer: He successfully bid for one of the four mobile phone network licenses auctioned in India. One of the conditions for the Delhi cellular license was that the bidder have some experience as a telecom operator. So, Mittal clinched a deal with the French telecom group Vivendi. He was one of the first Indian entrepreneurs to identify the mobile telecom business as a major growth area. His plans were finally approved by the Government in 1994 and he launched services in Delhi in 1995, when Bharti Cellular Limited (BCL) was formed to offer cellular services under the brand name AirTel. Within a few years Bharti became the first telecom company to cross the 2-million mobile subscriber mark. 4) Analyst: Sunil Mittal understood the Indian market very well and brought down the STD/ISD cellular rates in India under brand name 'Indiaone'. IndiaOne was Indias first private national as well as the international long-distance service provider, and, thus, became a major factor in Bharti's success by providing services cheaply. 5) Crisis Management: During the telecom crisis that hit India due to the 2G Spectrum scam, Sunil Mittal had to handle the falling confidence of investors in the telecom sector. Due to his managerial skills, he maintained the confidence of investors in Bharti Enterprises & Airtel and managed to sail through without any damage to its profits and reputation. 6) Competent Negotiator: In November 2006, he struck a joint venture deal with Wal-Mart, the US retail giant, to start a number of retail stores across India. He also tied up with Del Monte and started Bharti Del Monte and with AXA started Bharti AXA Insurance. In July 2006, he attracted many key executives from Reliance ADAG, NIS Sparta and created Bharti Comtel. In May 2008, it emerged that Sunil Bharti Mittal was exploring the possibility of buying the MTN Group, a South Africa-based telecommunications

company with coverage in 21 countries in Africa and the Middle East. However, the talks fell apart as MTN group tried to reverse the negotiations by making Bharti almost a subsidiary of the new company. So, Sunil Mittal always tries to put in his money where Bharti Enterprises gets the commanding position and do not remain just a subsidiary. 7) Innovative: Sunil Mittal always believes in providing high quality services by incorporating high-end technological advancements. He tied up with IBM to provide the best mainframe services and with Nokia & Ericcson to provide the best handsets to the customers. He also undertook laying of high-speed undersea cables connecting India with Singapore. This has enabled Airtel to provide one of the best internet speeds in the country. Sunil Mittals innovative skills can also be seen through Airtel ads that has captured the attention of the nation through its emotional content. He has always managed to think up something new or improve the current trend by advancing its technological content. 8) Philanthropy: Mittal has also been working towards educating India through the Bharti Foundation. The foundation has established over 200 schools on its 2009 list of the world's top 25 philanthropists. He is also setting up a football academy in Ludhiana.

Position of Airtel in world

About Airtel

Airtel is the 5th largest mobile operator in the world in terms of subscriber base and has a commercial presence in 19 countries. Its area of operations includes:

3 countries in the Indian Subcontinent:

Bangladesh, India and Sri Lanka

16 countries in Africa:

Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Seychelles, Sierra Leone, Tanzania, Uganda and Zambia. Airtel owns 70 % of Warid Telecom in Bangladesh through a joint venture. Bharti Airtel Limited will take management control of the company and its board, and will relaunch the company's services under its own Airtel brand. The Bangladesh Telecommunication Regulatory Commission approved the deal on January 4, 2010. Bharti subsidiary company
o o o o o o o o o o o o o o

Bharti Airtel Ltd. Bharti Infratel Bharti Retails Ltd. Bharti TeleTech Ltd. Telecom Seychelles Ltd. Comviva Technologies Limited FieldFresh Foods Pvt. Ltd. Bharti AXA General Insurance Company Bharti AXA Life Insurance Company Bharti AXA Investment Managers Pvt. Ltd. Centum Learning Limited Jersey Airtel Ltd. Bharti Foundation Bharti Realty

CALCULATED EXPANSION: In 1983, Mittal became the first person to introduce the push-button handset phone in India. Even affluent Indians had to wait years to have a phone connection installed by staterun providers and Mittal spotted a huge potential market for the private supplier. In the mid-1990s, Bharti Airtel, the company he set up, had fewer than 120,000 subscribers, but the next few years saw a period of enormous growth. His strategy was to offer consumers the best technology with the lowest prices. "Organized retail will change the face of this contry." - Sunil Mittal Mittal gained a reputaion as a man who could attract funding and alliances; both SingTel and Vodafone have been his partners. Mittal believes the next big chance to hit India will be in the retail sector, as shopping habits move away from markets and corner shops into modern air-conditioned supermarkets. The potential worth of the retail sector in India is estimated to be around $200 billion a a year. To this end, in 2006 Mittal signed a deal with Wal-Mart to open a chain of stores under the name of BestPrice Modern Wholesale.

LEADERSHIP STYLE:
Passionate and ambitious, Mittal is a great delegator, believing the fastest route to a successful company is allowing staff to show initiative and take decisions. BUSINESS LESSONS: GROWING THROUGH PARTNERSHIPS Mittal build his empire through partnerships with a range of overseas companies. While rivals diversified into steel, hotels and aviation, Bharti Airtel linked up with Vivendi to capture the mobile telecoms market. When growth slowed, he applied the same partnership approach to a new area with great potential - the retail sector. From partnerships with other suppliers; encourage growth through mutually profitable joint ventures. When a partnership has worked well in one market, exploit your people's skills in another. Include your managers in partnerships and rely on them to deliver in their own particular way. KEY STRENGTH: Understanding the needs of the enormous but complex Indian telecommunications market and tailoring products accordingly.

BEST DECISION: Attracting millions of new customers by introducing a range of pre-paid mobile phone cards available through India's millions of independent, non-chain, local "mom and pop" stores.

Awards
Sunil has received several awards including: Transforming India Leader, NDTV Business Leader Awards 2008. GSMA Chairman's Award 2008 Padma Bhushan in 2007, from the President of India Asia Businessman of the Year, Fortune Magazine 2006 Telecom Person of the Year, Voice & Data, 2006 CEO of the year 2005, at the Frost and Sullivan Asia Pacific ICT awards 2006 Best Asian Telecom CEO, Telecom Asia Awards 2005 Best CEO, India, Institutional Investor, 2005 Business Leader Of The Year, Economic Times, 2005. Ernst & Young Entrepreneur of the Year 2004, Ernst & Young