Strategic Management

Chanakyans
Abhinav Gupta
Alok Kumar
Ankush Sharma
Gaurav Shankar
John Arthur Jason
Sweta Singh
G.Trinadh
Vikash Solanki
 Firm’s strategic direction
A coherent technological innovation strategy
• Leverages the firm’s existing competitive position
• To take advantage of environmental opportunities and
• Provides direction for future development of the firm.

Strategic business unit of Reliance Communication

• Wireless business
• Globalcom business
• Enterprise Broadband business
• Infratel business

 Reliance communication has widespread passive and transmission network for

their roll-out requirements as well as their future requirements, which spans 2G,
3G, and WiMAX.

 Expected is the 3G and WiMax technology rollout and expansion of ISP

operators .
 Reach deep into rural India by signing a JV with KRIBHCO, providing convenient
access to world-class telecom connectivity across the country .

 Most of the new stores being opened across the length and breadth of the country
happen to be on the franchisee-owned, franchisee-operated, which is FOFO, model.

 Already serving over 80 million customers.

 Focused on delivering new products in their enterprise segment. Leveraging their

global network during first quarter, they launched Enterprise Global Ethernet, which is
also known as EGE, in 36 countries.

 Includes passive infrastructure and active infrastructure .

 Reliance was the first company to set up a state–of-the-art contact center at Mumbai
with capability to handle calls in 14 different languages.
 Difficult For Competitors To Imitate

As In addition to strong position in the wireless space, R com operate’s the largest
network in the country with over 90% population coverage,

 Rcom has largest carrier of wireless data in the country

 Holds a significant market share in the enterprise data services market connecting
90% of India’s top companies.

 Rcom; significant players in the international voice market and the only Indian
company with over two million retail customers.

 Operator of the largest IP enabled optic fiber cable network globally.

 Rcom are committed to provide the highest standards of customer service on twin
technology platforms to their mobility, fixed wireless phones, and data card customers.
Which will increasingly become a differentiator in the ever-evolving Indian wireless
market.

Overall Reliance Mobile had been independently rated as India’s most trusted service
brand by India’s leading financial daily, The Economics Times, in its annual Brand Equity
survey. This is the strongest testimony of trust, that consumers have bestowed .

Competitive intensity in the wireless industry has been growing and it is expected to
double to 11-12 players per circle with the issue of over 120 licenses to new operators
last years.

 Have an unbeatable competitive advantage to fulfill demand based on over 190,000

route kilometers of ducted fiber optic cables.
 The Value Chain

More than 50000 Experienced Managers CDMA , Visual

towers,190000 Kms for Human Resource communication, Broadband
Optic Fiber Network Development Portal, 3G WiMax

FIRM INFRASTRUCTURE
HUMAN RESOURCE MANAGEMENT
TECHNOLOGY DEVELOPMENT

INBOUND OPERATIONS OUTBOUND MARKETING SERVICE

LOGISTICS LOGISTICS & SALES

Tech support by web &

phone. Online records
Strong Logistic Integrated Org Distribution Aggressive for each customer.
And Supply performing Channel Of Marketing Brand
Chain good in Finished Ambassador Hritik
understanding Products And Roshan.
customer and Services
services
Reliance Infratel as an integrated service provider with industry leading capabilities
across the entire value chain

 A nationwide portfolio of over 50,000 towers, and even more importantly over 200,000
slots, is poised to capture this opportunity.

 Signed a long-term strategic telecom infrastructure sharing agreement with Etisalat

DB. It is valued at over Rs. 10,000 crore over a period of 10 years.

Reliance Infratel now has over 190,000 kms of national optic fiber network allowing us
to provide the most economical, high-quality connectivity to our customers as compared
to microwave links provided by the competition.
 EBIDTA MARGIN AND TRENDS

RCOM announced the financial results year ended March 31, 2009.

•EBITDA higher by 13.3% at Rs. 9,288 crore (US$ 1,831 million); EBITDA margin stable at
40.5%, among the highest in India;

•Only company to have nationwide GSM & CDMA services in india; Second largest mobile
operator in india with 73 million subscribers

•Net Profit up by 9.4% to Rs. 5,908 crore (US$ 1,165 million);

•Revenues higher by 20.3% at Rs. 22,941 crore (US$ 4,523 Millions

•EBIDTA- Last Three Year Data

MAR’07 MAR’08 MAR’09

5, 744.90 6, 693.82 7, 898.18
 Enterprise Value

A measure of a company's value, often used as an alternative to straightforward market

capitalization. Enterprise value is calculated as market cap plus debt, minority interest and
preferred shares, minus total cash and cash equivalents.

BSE: 532712 | NSE: RCOM | ISIN: INE330H01018 
Market Cap: Rs.[Cr.] 36,946  
Face Value: Rs.5
Industry: Telecommunications - Service Provider

ROCE(%)- BSE- 7.00

-NSE-7.00
 Future outlook
1. Wireless
- Joint venture with Krishak Bharati Cooperative Ltd. (KRIBHCO) for marketing in rural
areas
2. Infratel
- Rcom to demerge its telecom tower business Relinfra
- the tower business will be made into a SPV
- SPV to be independent, not a subsidiary to RCom
- Rcom not to have majority control
- Rcom to possess some stock

3. Globalcom
- Signed multi year tenancy agreement in Paris
- Financial Connect! Flagship global ethernet solutions