chiranthproject-110907024417-phpapp02
TRANSCRIPT
-
8/2/2019 chiranthproject-110907024417-phpapp02
1/79
1
Title Of The Study
ADVERTISING & PROMOTIONAL STRATEGY ON
IDEA CELLULAR
EXECUTIVE SUMMARY
Idea is the flagship that comes from Idea Cellular Limited - a part of the biggest
private integrated telecom conglomerate, Idea Enterprises. Idea Enterprises has been at the
forefront of technology and has revolutionized telecommunications with its world class
products and services. Established in 1976, Idea has been a pioneering force in the telecom
sector with many firsts and innovations to its credit. Idea strives hard to make the quality of
your life better to its esteem customers. For them customers are unique, and so are their
needs. And because of its customers individuality they have a set of services pertinent to its
them!
Each of the department namely, Marketing, Finance, HR, and production are studied
in depth in order to understand the correct working of the department in the context of its
-
8/2/2019 chiranthproject-110907024417-phpapp02
2/79
2
organization structure. The Marketing and HR department of the company was impressive
.The way they handle the issues, the way they market the products, the relationship
maintained by them with their dealers, the excellent distribution network which they have and
the counseling and importance given to the employee, the leave encashment system and their
ability to raise the ale capacity was very striking.
The ability to deliver goods quality product and services has resulted in the growth of
the company. They consistently high quality service every time, which in turn brings
customer back. Idea cellular tries to understand the needs of it customer and upgrade the
qualities of it product for increased customer satisfaction. The companys main aim I to
create a better and safer environment for all. Keep itself abreast of latest internationalstandard and practices in all the fields.
CONTENTS
PAGE NO.
1. INTRODUCTION2. LITERATURE REVIEW3. INDUSTRY PROFILE4. COMPNAY PROFILE 355. SWOT ANALYSIS 42
-
8/2/2019 chiranthproject-110907024417-phpapp02
3/79
3
6. ADVERTISING STRATEGY7. PROMOTIONAL STRATEGY 448. FINDINGS AND SUGGESTIONS 509. CONCLUSION 5410. LEARNING EXPERIENCE
56
11. BIBLIOGRAPHY 57
-
8/2/2019 chiranthproject-110907024417-phpapp02
4/79
4
INTRODUCTION
-
8/2/2019 chiranthproject-110907024417-phpapp02
5/79
5
INTRODUCTION
Advertising is a persuasive communication attempt to change or reinforce ones prior
attitude that is predictable of future behavior. We are not born with the attitudes which we
hold toward various objects in our environment. Rather, we learn our feelings of favorability
or not favorability through information about the attitude object (e.g., advertising), or direct
experience with the attitude object (e.g., tasting a new brand of beer), or some combination of
the two.
Attitudes are not overt behaviors but rather are covert, or unobservable,
internal reactions. Furthermore, once a certain type of attitudes are formed and repeatedly
reinforced, the attitude toward objects is stored in consumers memory as a form of either
explicit or implicit memory. And those episodes of attitudes are retrieved automatically or
strategically at the time of decision making, which generate certain types of reactions.
Given that attitudes have traditionally been viewed as evaluations that are
stored in memory and persist over time, the constructs of memory and attitude are extremely
valuable construct to understand how advertising work. Also, the discussion about the
underlying mechanisms of forming attitude and memory should be addressed. Therefore, I
suggest a framework of "how advertising works" which starts from how consumers perceive
advertising stimuli to the very last step of the impact of advertising on consumers behavior.
-
8/2/2019 chiranthproject-110907024417-phpapp02
6/79
6
NEED OF THE STUDY
The current study intends to measure the impact of idea advertisements on
consumer buying decisions. It is known fact that the recent idea advertisements which are
endorsed by Abhishek Bachan has become very popular. In this context there is a need to
understand how far the awareness created by these advertisements help company to increase
its sales.
OBJECTIVE OF THE STUDY
.
Objective of the study
To make a understanding about the Company IDEA
CELLULAR LTD.
To make a understanding about the product and services
which they providing
To measure the awareness levels of recent IDEA
CELLULAR advertisements
To measure how much influence these advertisements haveon customer buying decision
To design media planning for IDEA CELLULAR
advertisements
To design future advertisement strategies
-
8/2/2019 chiranthproject-110907024417-phpapp02
7/79
7
sCOPE OF THE STUDY
SCOPE oF THE STUDY
To know about the customer base of the IDEACELLULAR.
To know the growth of the company in last years.
To know how to reach the target customer in the most
perfect way.
To create a better understanding about the company andtheir product.
-
8/2/2019 chiranthproject-110907024417-phpapp02
8/79
8
METHODOLOGY
METHODOLOGY
The purpose of methodology is to describe the process
involved in research work. This includes the overall research
design, data collection method, the field survey and the
analysis of data.
For my project I did a small survey on 100 people in the areas
of Tolichowki, Lakdi ka pul, Musheerabad, Begumpet of
Hyderabad-Secunderabad and few more friends and relatives
ranging from age group of 15 to 30 yrs
SAMPLE METHOD
A random sampling method was used for the purpose of this study. Data
were collected from both customers and non customers of idea cellular.
DATA COLLECTION
For the purpose of the study data has been collected through two sources among that
-
8/2/2019 chiranthproject-110907024417-phpapp02
9/79
9
1) Primary source
2) Secondary source
PRIMARY SOURCE:
For the primary source data is collected through structured questionnaire,
SECONDARY SOURCE:
For the secondary source I collected information from the company websites,
company broachers, from journals and articles about the company
TOOLS AND TECHNIQUES
Data has been analyzed using frequency tables, cross tabulations, pie diagrams and
bar charts.
LIMITATIONS
Questionnaires were administered at idea cellular show rooms and at few public
places.
As the data has been collected from the existing customers of idea cellular, their
previous experience with the company may have influenced current opinions.
Non customers of idea cellular may be the users of other cellular service providers, so
the experience with their current service provider may have influenced their opinions.
-
8/2/2019 chiranthproject-110907024417-phpapp02
10/79
10
Timing of questionnaire administration may have influenced the data.
LIMITATION OF THE STUDY
This study is done in the few area like Hyderabad andsecunderabad. Thats why it will not give the clear picture of
the thinking of mobile subscriber about the company and its
products.
Limited database and short time span for the project.
Lack of professional approach since researcher are student.
-
8/2/2019 chiranthproject-110907024417-phpapp02
11/79
11
-
8/2/2019 chiranthproject-110907024417-phpapp02
12/79
12
CHAPTER : 2LITERATURE REVIEW
-
8/2/2019 chiranthproject-110907024417-phpapp02
13/79
13
CHAPTER : 3INDUSTRY PROFILE
-
8/2/2019 chiranthproject-110907024417-phpapp02
14/79
14
INDUSTRY PROFILE:
INDUSTRY OVERVIEW
Background
The Indian Telecommunications network is the third largest in the world and the
second largest among the emerging economies of Asia. Today, it is the fastest growing market
in the world. The telecommunication sector continued to register significant success during
the year and has emerged as one of the key sectors responsible for Indias resurgent Indias
economic growth.
Growth
This rapid growth has been possible due to various proactive and positive decisions of
the Government and contribution of both by the public and the private sector. The rapid
strides in the telecom sector have been facilitated by liberal policies of the Government that
provide easy market access for telecom equipment and a fair regulatory framework for
offering telecom services to the Indian consumers at affordable prices.
Wire line Vs Wireless
-
8/2/2019 chiranthproject-110907024417-phpapp02
15/79
15
It has also undergone a substantial change in terms of mobile versus fixed phones and
public versus private participation. The preference for use of wireless phones has also been
predominant in the sector. Participation of the private entities in the telecom sector is rapidly
increasing rate there by presenting the enormous growth opportunities. There is a clear
distinction between the Global Satellite Mobile Communication (GSM) and Code Division
Multiple Access (CDMA) technologies used and the graph below shows the divide between
the two.
Segment wise Status
Wire line Services
With increasing penetration of the wireless services, the wireline services in the
country is becoming stagnant. On the other hand, Broadband demand has picked up and
promises to stabilise fixed line growth.
GSM Sector
In terms of the Global System for Mobile Communication (GSM) subscriber base this
now places India third after China and Russia.China had 401.7 million GSM subscribers
CDMA Services
CDMA technology was introduced in India as a limited mobility solution. The
introduction of CDMA services has created competition, lowered tariffs and offered many
citizens access to communication services for the first time
Internet Services
Internet services were launched in India on August 15, 1995. In November 1998 the
government opened up the sector to private operators. A liberal licensing regime was put in
-
8/2/2019 chiranthproject-110907024417-phpapp02
16/79
16
place to increase Internet penetration across the country. The growth of IP telephony or grey
market is also a serious concern. Government loses revenue, while unlicensed operation by
certain operators violates the law and depletes licensed operators market share. New services
like IP-TV and IP-Telephony are becoming popular with the demand likely to increase in
coming years. The scopes of services under existing ISP license conditions are unclear.
Manufacture of Telecom Equipment
Rising demand for a wide range of telecom equipment, particularly in the area of
mobile telecommunication, has provided excellent opportunities to domestic and foreign
investors in the manufacturing sector. The last two years saw many renowned telecom
companies setting up their manufacturing base in India. Ericsson has set up GSM Radio Base
Station Manufacturing facility in Jaipur. Elcoteq has set up handset manufacturing facilities
in Mysore. Nokia set up its manufacturing plant in Chennai. LG Electronics set up plant of
manufacturing GSM mobile phones near Pune.
The Government has already set up Telecom Equipment and Services Export
Promotion Forum and Telecom Testing and Security Certification Centre (TETC). A large
number of companies like Alcatel, Cisco have also shown interest in setting up their R&D
centers in India. With above initiatives India is expected to be a manufacturing hub for the
telecom equipment.
POLICY AND INITIATIVES
Regulatory Framework
The Telecom Regulatory Authority of India (TRAI) was set up in March 1997
as a regulator for Telecom sector. The TRAIs functions are recommendatory,
regulatory and tariff setting in telecom sector.
-
8/2/2019 chiranthproject-110907024417-phpapp02
17/79
17
Telecom Disputes Settlement and Appellate Tribunal (TDSAT) came into existence in
May, 2000. TDSAT has been empowered to adjudicate any dispute
Between a licensor and a licensee
Between two or more service providers
Between a service provider and a group of consumers
Hear and dispose of appeal against any direction, decision or order of TRAI
Tariffs for telecommunication services have evolved from a regime where tariffs weredetermined by Telecom Regulatory Authority of India to a regime where tariffs are largely
under forbearance. TRAI intervenes by regulating the tariffs for only those services, the
markets of which are not competitive.
Universal Service Obligation Fund (USOF) exclusively for meeting the Universal
Service Obligation was established in April, 2002. The Universal Service Levy is presently 5
per cent of the Adjusted Gross Revenue (AGR) of all telecom service providers except the
pure value added service providers like Internet, Voice Mail, E-Mail service providers etc.
Indian Telegraph Act has been amended in October2006 to provide support for all telegraph
services including mobile and broadband to bridge the digital divide. With the introduction of
the Unified Access Licensing Regime, operators can offer telecom access services to
consumers in a technology neutral manner, subject to fulfilling certain conditions.
Introduction of this regime has also broken the legal/regulatory impasse between the cellular
and basic service providers. Issuance of Intra-Circle Merger and Acquisition Guidelines
provide investors an opportunity to take stakes in existing telecom operations.
Government Initiatives
The Government has taken the following main initiatives for the growth of the Telecom
Sector:
All telecom services have been opened up for free competition for unprecedented
growth
-
8/2/2019 chiranthproject-110907024417-phpapp02
18/79
18
217 (Information Technology Agreement) ITA-I items are at zero Customs Duty.
Specified capital goods and all inputs required to manufacture ITA-I, items are at zero
Customs Duty
Availability of low cost mobile handsets
The international Long Distance Services (ILDS) opened with effect from April 2002.
Calling Party Pays (CPP) regime was implemented with effect from 1st May
Guidelines for Unified Access Service License regime were issued in November
2003,
27 licenses out of 31 Basic Service Licenses were converted to Unified AccessService Licenses
In April 2004, license fee for Unified Access Service Providers (UAS) was reduced by
2 per cent
License fee for infrastructure Provider-II reduced from 15 per cent to 6 per cent of the
Adjusted Gross Revenue and spectrum charges between 2 to 4 per cent in June 2004
Entry fee for NLD licenses was reduced to Rs. 2.5 Crore from Rs. 100 Crore. Entry
fee for ILD reduced to Rs. 2.5 Crore from Rs. 25 Crore Lease line charges have been reduced to make the bandwidth available at competitive
prices to facilitate growth in IT enabled services
One India plan i.e. single tariff of Re. 1/-per minute to anywhere in India was
introduced from 1st March 2006 by the Public Sector Undertakings. This tariff was
emulated by most of the private service providers also. This scheme has led to death
of distance in telecommunication and is going to be instrumental in promoting
National Integration further
The robust telecom network has also facilitated the expansion of BPO industry that is
having 500,000 employees now and adding 400 employees per day.
Annual license fee for National Long Distance (NLD), International Long Distance
(ILD), Infrastructure Provider-II, VSAT commercial and Internet Service Provider
ISP) with internet telephony (restricted) licenses was reduced to 6 per cent of
Adjusted Gross Revenue (AGR) with effort from Jan 2006.
The Governments policy is neutral on use of technology by telecom service providers
subject to availability of scarce resources such as spectrum etc.
-
8/2/2019 chiranthproject-110907024417-phpapp02
19/79
19
Licence Fees 6-10 per cent of Adjusted Gross Revenue (AGR)
COMPETITION OVERVIEW
Major Players
There are three types of players in telecom services:
State owned companies (BSNL and MTNL)
Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)
Foreign invested companies (Hutchison-Essar, Idea Tele-Ventures, Escotel, Idea
Cellular, BPL Mobile, Spice Communications)
BHARAT SANCHAR NIGAM LIMITED (BSNL)
Name : Bharat Sanchar Nigam Limited (BSNL)
Year of Establishment : 2000
Company Profile
-
8/2/2019 chiranthproject-110907024417-phpapp02
20/79
20
Bharat Sanchar Nigam Ltd. is World's 7th largest Telecommunications Company
providing comprehensive range of telecom services in India: Wireline, CDMA mobile, GSM
Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN
Services etc. Within a span of five years it has become one of the largest public sector unit in
India. It has a network of over 45 million lines
Global Presence/ Marketing
Covering 5000 towns with over 35 million telephone connections.
Acquisitions / Strategic Alliances Future Prospect
BSNL plans to expand its customer base from present 47 millions lines to 125
million lines and infrastructure investment plan to the tune of Rs. 733 crores (US$ 16.67
million) in the next three years.
MAHANAGAR TELEPHONE NIGAM LIMITED (MTNL)
Name : Mahanagar Telephone Nigam Limited (MTNL)
Year of Establishment : 1986
Company Profile
-
8/2/2019 chiranthproject-110907024417-phpapp02
21/79
21
MTNL was set up by the Government of India to upgrade the quality of telecom
services, expand the telecom network, introduce new services and to raise revenue for
telecom development needs of India.s key metros. MTNL with a market share of about 13%
of the National telecom Network has a customer base of 5.92 million. The Govt. of India
currently holds 56.25% stake in the company.
Acquisitions / Strategic
MTNL has formed a Joint Venture company Nepal by the name of United Telecom
Ltd. (UTL) in collaboration with Telecom Consultants India Limited (TCIL) in 2001 forproviding WLL based basic services in Nepal. MTNL has set up its 100% subsidiary
Mahanagar Telephone Mauritius Limited.(MTML) in Mauritius, for providing basic, mobile
and international long distance
.
VIDESH SANCHAR NIGAM LIMITED (VSNL)
Name : Videsh Sanchar Nigam Limited (VSNL)
Year of Establishment : 1986
Company Profile
The Videsh Sanchar Nigam Limited (VSNL)a wholly Government owned corporation. The
company operates a network of earth stations, switches, submarine cable systems, and value
-
8/2/2019 chiranthproject-110907024417-phpapp02
22/79
-
8/2/2019 chiranthproject-110907024417-phpapp02
23/79
23
RELIANCE COMMUNICATION
Name : Reliance Communications
Year of Establishment : 1999
Company Profile
Reliance Telecom's cellular services are available in 340 towns within its eight-circle
footprint. Reliance Infocomm also offered for the first time in India, mobile data services
though its R- World mobile portal. This portal leverages the data capability of the CDMA 1Xnetwork. Reliance Infocomm offers a complete range of telecom services covering mobile
and fixed line telephony including broadband, national and international long distance
services, data services and a wide range of value added services and applications aimed at
enhancing productivity of enterprises and individuals.
Global Presence/ Marketing
Reliance Communications has IP-enabled connectivity infrastructure comprising over
150,000 kilometers of fiber-optic cable systems in India, the US, Europe, Middle East, and
the Asia Pacific region.
Acquisitions / Strategic
International wholesale telecommunications service provider, FLAG Telecom
amalgamates with Reliance Gateway, a wholly owned subsidiary of Reliance Infocom in
2004
-
8/2/2019 chiranthproject-110907024417-phpapp02
24/79
-
8/2/2019 chiranthproject-110907024417-phpapp02
25/79
25
BHARTI AIRTEL
Name : bharti airtel
Year of Establishment : july 7, 1995
Company Profile
Bharti Airtel Limited is a leading integrated telecommunications company with operations in
20 countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks
amongst the top 5 mobile service providers globally in terms of subscribers. In India,
the company's product offerings include 2G, 3G and 4G services, fixed line, high speedbroadband through DSL, IPTV, DTH, enterprise services including national & international
long distance services to carriers. In the rest of the geographies, it offers 2G, 3G mobile
services. Bharti Airtel had over 246 million customers across its operations at the end of
February 2012.
Global Presence/ Marketing
Airtel, Indias leading mobile service, today gave the benefits of its 23 Circle All -Indiafootprint by announcing a significant reduction in roaming rates to Rs 1.99. The reduction in
roaming tariffs is Bhartis contribution towards the vision of One India & lower roaming
tariffs, envisaged by Mr. Dayanidhi Maran, Honble Minster of Communication & IT.
Acquisitions / Strategic
Bharti Airtel Limited (Bharti), Asias leading telecommunications service provider,
today announced that it has entered into a legally binding definitive agreement with Zain
-
8/2/2019 chiranthproject-110907024417-phpapp02
26/79
26
Group (Zain) to acquire Zain Africa BV based on an enterprise valuation of USD 10.7
billion.
Future Prospect
Shares of Bharti Airtel were trading up by 2.86% at 332.50 on BSE in afternoon
trade. The company's shares had fallen over 3% yesterday as soon as the results were
announced, but the markets wiped out these losses to close 2.75% up at Rs 323.25 after
analysts gave a thumbs up to its future prospects due to launch of 3G services in India and
improved performance in Africa.
.
VODAFONE
Name : Vodafone
Year of Establishment
Acquired majority stake in Hutch Essar in India, by buying out complete stake of
Hutch in 2007, Essar is still minority stakeholder in company
-
8/2/2019 chiranthproject-110907024417-phpapp02
27/79
27
Company Profile
Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced
operations in 1994 when its predecessor Hutchison Telecom acquired the cellular licence for
Mumbai. Vodafone Essar now has operations in 16 circles covering 86% of India's mobile
customer base, with over 45.78 million customers. Vodafone Essar, under the Hutch brand,
has been named the 'Most Respected Telecom Company', the 'Best Mobile Service in the
country' and the 'Most Creative and Most Effective Advertiser of the Year'. It has operations
in 25 countries across 5
Global Presence/ Marketing
Continents and 40
Network
Partner networks with over 200 million customers worldwide.
Acquisitions / Strategic Alliances Future Prospect
Vodafone Essar is expecting to touch over 35 million customers across 400,000 shops
andthousand of hutchs own employees along withemployees of its business associates.
Name : aircel
Year of Establishment : 1999
Company Profile
-
8/2/2019 chiranthproject-110907024417-phpapp02
28/79
28
Aircel group is an Indian mobile network operator headquartered in Chennai, Tamil Nadu,
that provides wireless voice, messaging and data services in India. It is a joint venture
between Maxis Communications Berhad of Malaysia and Sindya Securities & Investments
Private Limited, whose current shareholders are the Reddy family of Apollo Hospitals Group
of India, with Maxis Communications holding a majority stake of 74%. Aircel commenced
operations in 1999 and today the leading mobile operator in Tamil Nadu, Assam, North- East
and Chennai.
Global Presence/ Marketing
On 19 May 2010, the 3G spectrum auction in India ended. Aircel paid 6499.46 crores for
spectrum in 13 circles - the least cost per circle compared to other operators. The circles it
will provide 3G in are Andhra Pradesh, Assam, Bihar, Jammu & Kashmir, Karnataka, Kerala,
Kolkata, Madhya Pradesh & Chhattisgarh, North East, Orissa, Punjab, Tamil Nadu, Uttar
Pradesh (East) & Uttarakhand and West Bengal.
On 11 June 2010, the broadband wireless access (BWA) spectrum auction in India ended.
Aircel paid 3438.01 crores for spectrum in 8 circles, the second highest wins overall - after
Reliance Communications. The circles it has won spectrum are Andhra Pradesh, Assam,
Bihar, Jammu & Kashmir, North East, Orissa, Tamil Nadu and West Bengal. It also has 3G
spectrum in all these circles.
Sponsorships
Aircel is one of the sponsors of the Indian Premier League Cricket Team Chennai Super
Kings. It is also the major sponsors for Chennai Open (the only ATP tennis tournament in
India), and Professional Golf Tour of India.
-
8/2/2019 chiranthproject-110907024417-phpapp02
29/79
29
Future Prospect
Telecom service provider Aircel on Wednesday said it plans to invest USD 1.4 billion
(over Rs 6,474 crore) this year on expanding its operations and become a pan -India GSM
operator by June.
"We plan to invest USD 1.4 billion this year for expanding our networks and on
existing operations. By June 2010, we plan to have operations in all 23 telecom circles in thecountry," Aircel Chief Operating Officer Gurdeep Singh
Name : uninor
Year of Establishment :
The company Unitech Wireless was until 2009 a subsidiary of Unitech Group, holding a
wireless services licence for all 22 Indian telecom circles since 2008. In early 2009, Unitech
Group and Telenor agreed to enter a joint venture where Telenor Group would inject fresh
-
8/2/2019 chiranthproject-110907024417-phpapp02
30/79
30
equity investments of INR 61.35 billion into Unitech Wireless to take a majority stake in the
company.
Company Profile
Uninor is an Indian mobile network operator based in Gurgaon, India. Uninor offers mobile
voice and data services based on the GSM technology, currently on a 4.4 MHz spectrum.
Uninor services are commercially available in 13 circles across India. With a value for
money proposition in the market, Uninor targets youth and other communities within the
Indian mass market.
As of December 2011, Uninor has 36 million customers and a total workforce of 17,500
people. The company has more than 22,000 partners in India. Uninor products and servicesare available from a more than 375,000 retail outlets serviced by 1,900 distributors all over
the country.
Global Presence/ Marketing
Uninor services are commercially available in 13 circles across India.
Tagline
Pay Less. Talk More. was introduced in 2011
Acquisitions / Strategic
A late entrant in the Indian telephony market, Uninor is determined to survive, Sigve Brekke,
managing director, Uninor, told Deepali Gupta in an interview. However, the company is not
looking to buy out other operators for at least three years because it needs neither their
customers nor 3G spectrum immediately , he said. The company is a joint venture between
Indian real estate major Unitech and Norway's Telenor.
-
8/2/2019 chiranthproject-110907024417-phpapp02
31/79
31
Future Prospect
Uninor is targeting an 8% pan-India market share, breaking even on EBIDTA within
three years of launch and obtain positive operating cash flow within five years of launch. The
operational operational peak funding requirement is set at INR 155 billion.
Uninors strategy to reach its targets is based on three strategic pillars;
servicing the basics,
excellence in mass market distribution and
cost efficient operations
CHALLENGES AND OPPORTUNITIES
Opportunities
The telecom sector has been one of the fastest growing sectors in the Indian economy
in the past 4 years. This has been witnessed due to strong competition that has brought down
tariffs as well as simplification of policy environment that has promoted healthy competition
among various players..
The mobile sector alone has been growing rapidly and has emerged as the fastest
growing market in the whole worlds. Currently of a size nearing 70 million (GSM and
CDMA), this sector is expected to reach a size of nearly 200 million subscribers by financial
-
8/2/2019 chiranthproject-110907024417-phpapp02
32/79
-
8/2/2019 chiranthproject-110907024417-phpapp02
33/79
33
the country the government is taking proactive steps to develop this sector with the help of
the various players in this segment. For this purpose, the use of broadband technology is
being mooted and this will go a long way in improving the productivity of the Indian
economy as well as turn out to be the next big opportunity for telecom companies after the
mobile communications segment Non-voice services and VAS are the gold mines. The big
takeoff is expected with the rollout of 3G services in early 2007, once the spectrum issues are
sorted out. Internet users base fast reaching near the English speaking population base. Local
language and content required for further growth Infrastructure equipment cost is down to a
fraction of what prevailed just a few years ago.
Operators can plan better expansion plan now increased viability for the operators to
expand to semi-urban and rural markets, hence, Accelerate growth further Its not without
reason that India is tipped to be the worlds third-larges economy by 2050! No wonder if it
happens much earlier Investors can look to capture the gains of the Indian telecom boom and
diversify their operations outside developed economies that are marked by saturated telecom
markets and lower GDP growth rates.
At a time when global telecom majors are struggling to cope with their losses and the
rollout of 3G networks, which has been a non-starter for close to a year now; India, with its
telecom success story, represents an attractive and lucrative destination for investment.
-
8/2/2019 chiranthproject-110907024417-phpapp02
34/79
34
COMPANY PROFILE
In 2000, Idea Cellular was a company providing mobile services in Andhra Pradesh.
When Birla-AT&T brought Maharashtra and Gujarat to the table, the merger of these twoentities was a reality. Thus Birla-Idea-AT&T, popularly known as Idea, was born and was
later branded as !dea.
Then Idea set sights on RPGs operations in Madhya Pradesh which was successfully
acquired, helping BaIdea have a million subscribers, and the licence to be the fourth operator
in Delhi was clinched.
In 2004, Idea (the company had by then been rechristened) bought over the Escorts
groups Escotel gaining Haryana, Uttar Pradesh (West) and Kerala and licences for three
more UP (East), Rajasthan and Himachal Pradesh. By the end of that year, four million
Indians were on the companys network. In 2005, AT&T sold its investment in Idea, and the
year after Ideas also bid good bye to pursue an independent telecom business. And Idea was
left only with one promoter, the AV Birla group. When the companys st ock listed on the
bourses in March 2007, its subscriber base was 13 million with presence in 11 circles. In less
than three years, the subscriber numbers have more than quadrupled. The public issue was
-
8/2/2019 chiranthproject-110907024417-phpapp02
35/79
35
oversubscribed 50 times and raised Rs 2,450 crore. In June 2011, Idea Cellular bought out
BK Modis stake in Spice Communications for Rs 2,700 crore adding Punjab and Karnataka
circles. Modis joint venture partner, Telekom Malaysia, invested Rs 7,000 crore for a
14.99% stake in Idea. Just around then, Ideas subsidiary, Aditya Birla Telecom sold a 20%
stake to US-based Providence Equity Partners for over Rs 2,000 crore.
In 2000, Idea Cellular was a company providing mobile services in Andhra Pradesh.
When Birla-AT&T brought Maharashtra and Gujarat to the table, the merger of these two
entities was a reality. Thus Birla-Idea-AT&T, popularly known as BaIdea, was born and was
later branded as !dea.
Then Idea set sights on RPGs operations in Madhya Pradesh which was successfully
acquired, helping BaIdea have a million subscribers, and the licence to be the fourth operator
in Delhi was clinched.
In 2004, Idea (the company had by then been rechristened) bought over the Escorts
groups Escotel gaining Haryana, Uttar Pradesh (West) and Kerala and licences for three
more UP (East), Rajasthan and Himachal Pradesh. By the end of that year, four millionIndians were on the companys network. In 2005, AT&T sold its investment in Idea, and the
year after Ideas also bid good bye to pursue an independent telecom business. And Idea was
left only with one promoter, the AV Birla group. When the companys stock listed on the
bourses in March 2007, its subscriber base was 13 million with presence in 11 circles. In less
than three years, the subscriber numbers have more than quadrupled. The public issue was
oversubscribed 50 times and raised Rs 2,450 crore. In June 2011, Idea Cellular bought out
BK Modis stake in Spice Communications for Rs 2,700 crore adding Punjab and Karnataka
circles. Modis joint venture partner, Telekom Malaysia, invested Rs 7,000 crore for a
14.99% stake in Idea. Just around then, Ideas subsidiary, Aditya Birla Telecom sold a 20%
stake to US-based Providence Equity Partners for over Rs 2,000 crore.
-
8/2/2019 chiranthproject-110907024417-phpapp02
36/79
36
KEY PEOPLE
BOARD OF DIRECTORS
Mr. Kumar Mangalam Birla (Chairman)
Smt. Rajashree Birla
Mr. M.R. Prasanna
Mr. Saurabh Misra
Mr. Sanjeev Aga (Managing Director)
Mr. Arun Thiagarajan
Ms. Tarjani Vakil
Mr. Mohan Gyani
Mr. Biswajit Anna Subramanian
Mr. Gian Prakash Gupta
MANAGEMENT TEAM CORPORATE LEADERSHIP TEAM
Mr. Sanjeev Aga, Managing Director
Mr. Anil J. Jhala, Chief Financial Officer
Mr. Anil K. Tandan, Chief Technology OfficerMr. Prakash K. Paranjape, Chief Information Officer
Mr. Pradeep Shrivastava, Chief Marketing Officer
Mr. Amar Babu R K, Chief Service Delivery Officer
Mr. Vinay K. Razdan, Chief Human Resource Officer
Mr. Rajat K. Mukarji, Chief Corporate Affairs Officer
Mr. Rajesh K. Srivastava, Chief Materials & Procurement Officer
Mr. Ambrish Jain, Chief Operating Officer, CorporateMr. Himanshu Kapania, Chief Operating Officer, Corporate
CIRCLE HEADS
Mr. Iyer Subbaraman S., Chief Operating Officer, Andhra Pradesh
Mr. Rajendra Chourasia, Chief Operating Officer, Delhi & NCR
Mr. Gururaj D. Kulkarni, Chief Operating Officer, Gujarat
Mr. Cherian Peter, Vice President - Operations, Haryana & Himachal Pradesh
Mr. T. G. B. Ramakrishna, Chief Operating Officer, Kerala
-
8/2/2019 chiranthproject-110907024417-phpapp02
37/79
37
Mr. S. Sashi Shankar, Chief Operating Officer, Madhya Pradesh & Chattisgarh
Mr. P. Lakshminarayana, Chief Operating Officer, Maharashtra & Goa
Mr. Virad Kaul, Chief Operating Officer, Uttar Pradesh (West)
Mr. Subodh K. Srivastav, Vice President - Operations, Uttar Pradesh (East)
Mr. Puneet Krishnan, Vice President - Operations, Rajasthan
CUSTOMER SERVICE
The company has its retail outlets under the "My Idea" banner. The company has also
been the first to offer flexible tariff plans for prepaid customers]. It also offers GPRS services
in urban areas.
Idea Cellular won the GSM Association Award for "Best Billing and Customer Care
Solution" for 2 consecutive years. IDEA Cellular has been recognized as the 'Most Customer
Responsive Company' in the Telecom sector, at the prestigious Avaya Global Connect
Customer Responsiveness Awards.
HOLDING
Initially the Birlas, the Ideas and AT&T Wireless each held one-third equity in the
company. But following AT&T Wireless' merger with Cingular Wireless in 2004, Cingular
decided to sell its 32.9% stake in Idea. This stake was bought by both the Ideas and Birlas at
16.45% each.
Idea's foray into the cellular market with its own subsidiary, Idea Indicom, a CDMA-
based mobile provider, cropped differences between the Ideas and the Birlas. This dual
holding by the Ideas also became a major reason for the delay in Idea being granted a license
to operate in Mumbai. This was because as per Department of Telecommunications (DOT)
license norms, one promoter could not have more than 10% stake in two companies operating
in the same circle and Idea Indicom was already operating in Mumbai when Idea filed for its
license.
http://en.wikipedia.org/wiki/GPRShttp://en.wikipedia.org/wiki/GSM_Associationhttp://en.wikipedia.org/wiki/AT%26T_Wirelesshttp://en.wikipedia.org/wiki/Cingular_Wirelesshttp://en.wikipedia.org/wiki/Tata_Indicomhttp://en.wikipedia.org/wiki/CDMAhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Department_of_Telecommunicationshttp://en.wikipedia.org/wiki/Department_of_Telecommunicationshttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/CDMAhttp://en.wikipedia.org/wiki/Tata_Indicomhttp://en.wikipedia.org/wiki/Cingular_Wirelesshttp://en.wikipedia.org/wiki/AT%26T_Wirelesshttp://en.wikipedia.org/wiki/GSM_Associationhttp://en.wikipedia.org/wiki/GPRS -
8/2/2019 chiranthproject-110907024417-phpapp02
38/79
38
The Birlas thus approached the DOT and sought its intervention, and the Ideas replied
by saying that they would exit Idea but only for a good price. On 10 April 2006, the Aditya
Birla Group announced its acquisition of the 48.18% stake held by the Ideas at Rs. 40.51 a
share amounting to Rs. 44.06 billion. While 15% of the 48.14% stake was acquired by Aditya
Birla Nuvo, a company in-charge of the Birlas' new business initiatives, the remaining stake
was acquired by Birla TMT holdings Private Ltd., an AV Birla family-owned company.
Currently, Aditya Birla Group holds 49.1% of the total shares of the company. Malaysia
based Axiata controls a 14.99% stake in the company.
3G
On 19 May 2010, the 3G spectrum auction in India ended. Idea paid 5768.59 crores
for spectrum in 11 circles. The circles it will provide 3G in are Andhra Pradesh, Gujarat,
Haryana, Himachal Pradesh, Jammu & Kashmir, Kerala, Madhya Pradesh, Maharashtra &
Goa, Punjab, Uttar Pradesh (East) and Uttar Pradesh (West).
On 28 March 2011, Idea launched 3G services in Gujarat, Himachal Pradesh and
Madhya Pradesh.[5]The launch cities were Ahmedabad, Shimla and Indore. This makes Idea
the sixth private operator (eighth overall) to launch its 3G services in the country following
Tata Docomo, Reliance Communications, Idea, Aircel and Vodafone.
Idea currently supports up to 21.1 Mbps over 2G speeds of 256 Kbps. However, different
handsets support different speeds, from 384 Kbps, 3.6 Mbps, 7.2 Mbps or 21.1 Mbps. Speedsalso depend on the 3G plan/recharge that users opt for.[6]
http://en.wikipedia.org/wiki/Aditya_Birla_Grouphttp://en.wikipedia.org/wiki/Aditya_Birla_Grouphttp://en.wikipedia.org/w/index.php?title=Aditya_Birla_Nuvo&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Aditya_Birla_Nuvo&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Birla_TMT_holdings_Private_Ltd.&action=edit&redlink=1http://en.wikipedia.org/wiki/Aditya_Birla_Grouphttp://en.wikipedia.org/wiki/Axiata_Group_Berhadhttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Jammu_%26_Kashmirhttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Punjab,_Indiahttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Western_Uttar_Pradeshhttp://en.wikipedia.org/wiki/Western_Uttar_Pradeshhttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Idea_Cellular#cite_note-4http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-4http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-4http://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Shimlahttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Tata_Docomohttp://en.wikipedia.org/wiki/Reliance_Communicationshttp://en.wikipedia.org/wiki/Airtel_(India)http://en.wikipedia.org/wiki/Aircelhttp://en.wikipedia.org/wiki/Vodafone_Essarhttp://en.wikipedia.org/wiki/Idea_Cellular#cite_note-5http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-5http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-5http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-5http://en.wikipedia.org/wiki/Vodafone_Essarhttp://en.wikipedia.org/wiki/Aircelhttp://en.wikipedia.org/wiki/Airtel_(India)http://en.wikipedia.org/wiki/Reliance_Communicationshttp://en.wikipedia.org/wiki/Tata_Docomohttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Shimlahttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Idea_Cellular#cite_note-4http://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Western_Uttar_Pradeshhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Punjab,_Indiahttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Jammu_%26_Kashmirhttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Axiata_Group_Berhadhttp://en.wikipedia.org/wiki/Aditya_Birla_Grouphttp://en.wikipedia.org/w/index.php?title=Birla_TMT_holdings_Private_Ltd.&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Aditya_Birla_Nuvo&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Aditya_Birla_Nuvo&action=edit&redlink=1http://en.wikipedia.org/wiki/Aditya_Birla_Grouphttp://en.wikipedia.org/wiki/Aditya_Birla_Group -
8/2/2019 chiranthproject-110907024417-phpapp02
39/79
39
The operator announced that IDEA 3G services will be available in 200 towns of 11
3G circles by mid-April 2011, progressively growing at the rate of ten towns per day to cover
750 towns by mid-2011 and 4000 towns by the end of 2012.
3G Coverage
Ideas 3G service is currently available in the following cities in 11 telecom circles:
Source
Telecom Circle State/Region No. of
Towns
Cities/Towns
Andhra Pradesh Andhra Pradesh 0
Gujarat Gujarat 2 Ahmedabad, Daman
Haryana Haryana 8 Ambala, Bhiwani, Hansi, Hisar, Jhajjar,
Panipat, Rewari, Rohtak
Himachal Pradesh Himachal Pradesh 5 Shimla, Baddi, Mandi, Sundernagar,
Dharamshala
Jammu & Kashmir Jammu & Kashmir 0
Madhya Pradesh Madhya Pradesh 3 Indore, Bhopal, Gwalior
Chhattisgarh 0
Maharashtra and
Goa
Maharashtra 3 Nagpur, Nashik, Pune
Goa 3 Ponda, Panaji, Margao
Punjab Punjab 0
Delhi Delhi 1 Delhi
Kolkata Kolkata 1 Kolkata
Uttar Pradesh (East) Eastern Uttar
Pradesh
6 Allahabad, Azamgarh, Jhansi, Kanpur,
Lucknow, Sitapur
Excluding Mumbai
http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-5http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-5http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-5http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-5http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-5http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-5http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-5http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-5http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-5http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-5http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-5http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-5http://en.wikipedia.org/wiki/Idea_Cellular#cite_note-5http://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Damanhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Ambalahttp://en.wikipedia.org/wiki/Bhiwanihttp://en.wikipedia.org/wiki/Hansihttp://en.wikipedia.org/wiki/Hisar,_Haryanahttp://en.wikipedia.org/wiki/Jhajjarhttp://en.wikipedia.org/wiki/Panipathttp://en.wikipedia.org/wiki/Rewarihttp://en.wikipedia.org/wiki/Rohtakhttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Shimlahttp://en.wikipedia.org/wiki/Baddihttp://en.wikipedia.org/wiki/Mandihttp://en.wikipedia.org/wiki/Sundernagarhttp://en.wikipedia.org/wiki/Dharamshalahttp://en.wikipedia.org/wiki/Jammu_%26_Kashmirhttp://en.wikipedia.org/wiki/Jammu_%26_Kashmirhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Bhopalhttp://en.wikipedia.org/wiki/Gwaliorhttp://en.wikipedia.org/wiki/Chhattisgarhhttp://en.wikipedia.org/wiki/Chhattisgarhhttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Nagpurhttp://en.wikipedia.org/wiki/Nashikhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Pondahttp://en.wikipedia.org/wiki/Panajihttp://en.wikipedia.org/wiki/Margaohttp://en.wikipedia.org/wiki/Punjab,_Indiahttp://en.wikipedia.org/wiki/Punjab,_Indiahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Allahabadhttp://en.wikipedia.org/wiki/Azamgarhhttp://en.wikipedia.org/wiki/Jhansihttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Lucknowhttp://en.wikipedia.org/wiki/Sitapurhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Sitapurhttp://en.wikipedia.org/wiki/Lucknowhttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Jhansihttp://en.wikipedia.org/wiki/Azamgarhhttp://en.wikipedia.org/wiki/Allahabadhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Punjab,_Indiahttp://en.wikipedia.org/wiki/Margaohttp://en.wikipedia.org/wiki/Panajihttp://en.wikipedia.org/wiki/Pondahttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Nashikhttp://en.wikipedia.org/wiki/Nagpurhttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Chhattisgarhhttp://en.wikipedia.org/wiki/Gwaliorhttp://en.wikipedia.org/wiki/Bhopalhttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Jammu_%26_Kashmirhttp://en.wikipedia.org/wiki/Dharamshalahttp://en.wikipedia.org/wiki/Sundernagarhttp://en.wikipedia.org/wiki/Mandihttp://en.wikipedia.org/wiki/Baddihttp://en.wikipedia.org/wiki/Shimlahttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Rohtakhttp://en.wikipedia.org/wiki/Rewarihttp://en.wikipedia.org/wiki/Panipathttp://en.wikipedia.org/wiki/Jhajjarhttp://en.wikipedia.org/wiki/Hisar,_Haryanahttp://en.wikipedia.org/wiki/Hansihttp://en.wikipedia.org/wiki/Bhiwanihttp://en.wikipedia.org/wiki/Ambalahttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Damanhttp://en.wikipedia.org/wiki/Ahmedabadhttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Andhra_Pradesh -
8/2/2019 chiranthproject-110907024417-phpapp02
40/79
40
SUBSCRIBER BASE
Idea's subscriber base as at the end of January 2011 according to the is as follows
Maharashtra and Goa - 12,075,220
Madhya Pradesh and Chhattisgarh - 8,401,422
Andhra Pradesh - 7,831,260
Kerala - 6,398,170
Kolkata -10,001,804
Gujarat - 6,632,034
Uttar Pradesh (West) & Uttarakhand - 7,361,534
Delhi - 3,609,746
Haryana - 2,847,079
Uttar Pradesh (East) - 4,935,224
Rajasthan - 2,823,910
Himachal Pradesh - 479,882
Mumbai - 1,822,280
Bihar & Jharkhand - 4,280,626
Tamil Nadu & Chennai - 1,202,343
Orissa - 985,737
Punjab (Spice) - 4,160,189
Karnataka (Spice) - 3,775,443
West Bengal - 1,728,308
Assam - 206,140
Jammu & Kashmir - 93,072
North East India except Assam - 128,807
Totaling to 84,289,641 or 10.93% (Approx.) of the total mobile connections in India.
http://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Chhattisgarhhttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Uttarakhandhttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Biharhttp://en.wikipedia.org/wiki/Jharkhandhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Orissahttp://en.wikipedia.org/wiki/Punjab_(India)http://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/Jammu_%26_Kashmirhttp://en.wikipedia.org/wiki/North_East_Indiahttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/North_East_Indiahttp://en.wikipedia.org/wiki/Jammu_%26_Kashmirhttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Punjab_(India)http://en.wikipedia.org/wiki/Orissahttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Jharkhandhttp://en.wikipedia.org/wiki/Biharhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Uttarakhandhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Chhattisgarhhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Maharashtra -
8/2/2019 chiranthproject-110907024417-phpapp02
41/79
41
COMPETITORS
Idea competes with 14 other mobile operators throughout India. They are Aircel, Idea
Cheers Mobile, BSNL, Loop Mobile, MTNL, MTS, Ping Mobile, Reliance Communications,
S Tel, Tata DoCoMo, Tata Indicom, Uninor, Videocon, Virgin Mobile and Vodafone.
HISTORY - IDEA CELLULAR
We were incorporated as Birla Communications Limited on March 14, 1995 and
granted a certificate of commencement of business on August 11, 1995. Our registered office
was in Mumbai, Maharashtra.
Our name was changed to Birla AT&T Communications Limited on May 30,
1996 following the execution of a joint venture agreement dated December 5,1995
between AT&T Corporation and Grasim Industrie S Limited pursuant to which the ditya
Birla Group held 51% of our Equity Share capital and AWS Group held 49% of our
Equity Share capital. Our registered office was transferred from Industry House, 1st
Floor, 159 Church Gate Reclamation, Mumbai 400 020, Maharashtra to SumanTower,
Plot No. 18,
Sector 11, Gandhinagar 382011 Gujarat on October 22, 1996. With effect from January
1, 2001 following our merger with Tata Cellular Limited the joint venture agreement
between AT&T Corporation and Grasim Industries Limited dated December 5, 1995 was
replaced by a shareholders agreement dated December 15, 2000 entered into between
Grasim Industries Limited on behalf of the Aditya Birla Group, Tata Industries Limited
on behalf of the Tata Group and AT&T Wireless Services Inc.on behalf of the AWS
Group following which our name was changed to Birla Tata AT&T Limited on
November 6, 2001. Consequent to the introduction of the Idea brand, our name was
changed to Idea Cellular Limited on May 1, 2002.
The AWS Group exited from the Company on September 28, 2005 by selling
371,780,740 Equity Shares of the Company, which constituted 50% of the holding of
AT&T Cellular Private Limited in our equity share capital, to ABNL and by transferring
the remaining 371,780,750 Equity Shares to Tata Industries Limited.
http://en.wikipedia.org/wiki/Aircelhttp://en.wikipedia.org/wiki/Airtel_(India)http://en.wikipedia.org/w/index.php?title=Cheers_Mobile&action=edit&redlink=1http://en.wikipedia.org/wiki/BSNLhttp://en.wikipedia.org/wiki/Loop_Mobile_Indiahttp://en.wikipedia.org/wiki/MTNLhttp://en.wikipedia.org/wiki/MTS_Indiahttp://en.wikipedia.org/w/index.php?title=Ping_Mobile&action=edit&redlink=1http://en.wikipedia.org/wiki/Reliance_Communicationshttp://en.wikipedia.org/wiki/S_Telhttp://en.wikipedia.org/wiki/Tata_DoCoMohttp://en.wikipedia.org/wiki/Tata_Indicomhttp://en.wikipedia.org/wiki/Uninorhttp://en.wikipedia.org/wiki/Videocon_Telecommunications_Limitedhttp://en.wikipedia.org/wiki/Virgin_Mobile_Indiahttp://en.wikipedia.org/wiki/Vodafone_Essarhttp://en.wikipedia.org/wiki/Vodafone_Essarhttp://en.wikipedia.org/wiki/Virgin_Mobile_Indiahttp://en.wikipedia.org/wiki/Videocon_Telecommunications_Limitedhttp://en.wikipedia.org/wiki/Uninorhttp://en.wikipedia.org/wiki/Tata_Indicomhttp://en.wikipedia.org/wiki/Tata_DoCoMohttp://en.wikipedia.org/wiki/S_Telhttp://en.wikipedia.org/wiki/Reliance_Communicationshttp://en.wikipedia.org/w/index.php?title=Ping_Mobile&action=edit&redlink=1http://en.wikipedia.org/wiki/MTS_Indiahttp://en.wikipedia.org/wiki/MTNLhttp://en.wikipedia.org/wiki/Loop_Mobile_Indiahttp://en.wikipedia.org/wiki/BSNLhttp://en.wikipedia.org/w/index.php?title=Cheers_Mobile&action=edit&redlink=1http://en.wikipedia.org/wiki/Airtel_(India)http://en.wikipedia.org/wiki/Aircel -
8/2/2019 chiranthproject-110907024417-phpapp02
42/79
42
The Tata Group ceased to be a shareholder of the Company on June 20,2006
when Tata Industries Limited and Apex Investments (Mauritius) Holding Private imited
(formerly known as AT&T Cellular Private Limited) sold all their shares in the
Company to the Aditya Birla Group. On October 26, 2006, P5 Asia Investments
(Mauritius) Limited (P5Asia) acquired 14.60% of our Equity Share capital. Under a
Governance and Exit Rights Agreement dated October 23, 2006 between P5 Asia,
ABNL and Birla TMT, so long as an initial public offering has notoccurred and P5 Asia
holds no less than 10% of our Equity Shares,ABNL and Birla TMT are required to
procure that
(a) our Company and its Subsidiaries shall not take or pursue any of the following
actions without P5 Asias prior consent(such consent to be obtained in a board
and/or shareholders resolution) including in respect of:
(i) Any merger with, acquisition of, or amalgamation or consolidation with
another company or business;
(ii) Assuming or permitting to exist any borrowings or indebtedness in the nature
of borrowings if the amount of all such borrowings of our Company and its
Subsidiaries would exceed Rs. 6,800 million
(iii) Entering into a new line of business.
(iv) Increasing our authorized or issued share capital; or
(v) Entering into a joint venture and
(b) our Company makes available to P5 Asia certain financial information relating to our
Company and its Subsidiaries such as monthly management accounts, quarterly
unconsolidated balance sheet and profit and loss account and the annual audited
consolidated balance sheets and profit and loss accounts. P5 Asia also has a right to
appoint one director to our Board so long as it holds at least 10% of our total issued
and outstanding Equity Shares. Mr. Biswajit Subramanian has been appointed to our
Board by P5 Asia pursuant to the exercise of the above right. In addition, any IPO of
our Equity Shares requires P5 Asias written consent, and, further, in any such IPO,
P5 Asia hasthe right to offer for sale such number of Equity Shares representing up to
10% of the total Equity Shares which are held by it. By its letters dated December 2,
2006 to ABNL and Birla TMT, P5 Asia has given its written consent for the Issue and
has confirmed that it does not intend to offer for sale any of the Equity Shares heldby it in such Issue.
-
8/2/2019 chiranthproject-110907024417-phpapp02
43/79
43
We, either directly or through our Subsidiaries, provide mobile services in the
Andhra Pradesh, Delhi, Gujarat, Haryana, Kerala, Madhya Pradesh, Maharashtra and
Uttar Pradesh (West) Circles, and have recently launched services and as such are in the
process of fully rolling-out our network in the Uttar Pradesh (East), Rajasthan and
Himachal Pradesh Circles pursuant to licenses issued by the DoT.
MAJOR EVENTS
The chronology of key events of the Company from incorporation is set out below:
1995: Incorporated as Birla Communications Limited Obtained licenses for providing
GSM-based services in the Gujarat and Maharashtra Circles following the original GSM
license bidding process
1996: Changed name to Birla AT&T Communications Limited following joint venture
between Grasim Industries and AT&T Corporation
1997: Commenced operations in the Gujarat and Maharashtra Circles
1999: Migrated to revenues share license fee regime under New Telecommunications
Policy (NTP)
2000: Merged with Tata Cellular Limited, thereby acquiring original license for the Andhra
Pradesh Circle.
2001: Acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh
(including Chattisgarh) Circle Changed name to Birla Tata AT&T Limited
2001: Obtained license for providing GSM-based services in the Delhi Circle following the
fourth operator GSM license bidding process
-
8/2/2019 chiranthproject-110907024417-phpapp02
44/79
44
2002: Changed name to Idea Cellular Limited and launched Idea brand name.
Commenced commercial operations in Delhi Circle . Reached the one million subscriber
mark.
2003: Reached the two million subscriber mark
2004: Completed debt restructuring for the then existing debt facilities and additional
funding for the Delhi Circle. Acquired Escotel Mobile Communications Limited
(subsequently renamedas Idea Mobile Communications Limited) Reached the four million
subscriber mark. First operator in India to commercially launch EDGE services.
2005: - Reached the five million subscriber mark
-Turned profit positive
- Won an award for the Bill Flash service at the GSM Association Awards in
Barcelona, Spain Sponsored the International Indian Film Academy Awards
- Sponsored the International Indian Film Academy Awards
2006:- Became part of the Aditya Birla Group subsequent to the TATA Group transferring its
entire shareholding in the Company to the Aditya Birla Group
- Acquired Escorts Telecommunications Limited (subsequently renamed as Idea
Telecommunications Limited)
- Restructuring of debt
- Launch of the New Circles
- Reached the 10 million subscriber mark
- Received Letter of Intent from the DoT for a new UAS License for the Mumbai Circle.
- Received Letter of Intent from the DoT for a new UAS License for the Bihar
- Circle through Aditya Birla Telecom Limited. ABNL, the parent of Aditya
- Birla Telecom Limited, pursuant to a letter dated November 22, 2006, agreed to transfer
its entire shareholding in Aditya Birla Telecom Limited to the Company for the
consideration of Rs. 100 million.
-
8/2/2019 chiranthproject-110907024417-phpapp02
45/79
45
2007
- Won an award for the CARE service in the Best Billing or CustomerCare Solution at
the GSM Association Awards in Barcelona, Spain
- Initial Public Offering aggregating to Rs. 28,187 million and Listing of Equity Shares
on the Bombay Stock Exchange and theNational Stock Exchange
- Merger of seven subsidiaries with Idea Cellular Limited
- Reached the twenty million subscriber mark
2011
- Idea Cellular Ltd has informed that the Board of Directors of theCompany at itsmeeting held on October 20, 2011, inter alia, has appointed the following persons as
Directors on the Board of the Company:
1. Mr. R C Bhargava - Independent Director (Additional Director)
2. Mr. P Murari - Independent Director - (Additional Director)
3. Dr. Hans Wijayasuriya - Non Executive Director
(Nominee of TM International Bhd).
- Idea acquired 9 licences for Punjab, Karnataka, Tamil Nadu & Chennai, West Bengal,Orissa, Kolkata, Assam, North East and Jammu &Kashmir
- Acquired Spice Communications with the operating circles of Punjab and Karnataka
- Launched services in Mumbai metro in the largest single metro city launch, ever
- Launched services in Bihar 2009
- Subscriber base as on December 31, 2009: 57,611,872
- Idea becomes a pan-India operator
- Emerging Company of the Year - fastest growing mobile operator in the worlds fastest
growing telecom market
-
8/2/2019 chiranthproject-110907024417-phpapp02
46/79
46
AWARD AND ACHIEVEMENT
The company has its retail outlets under the "My Idea" banner. The company has also
been the first to offer flexible tariff plans for prepaid customer. It also offers GPRS services
in urban areas Idea Cellular won the GSM Association Award for "Best Billing and Customer
Care Solution" for 2 consecutive years.
IDEA Cellular has been recognized as the 'Most Customer Responsive Company' in
the Telecom sector, at the prestigious Avaya Global Connect Customer Responsiveness
Awards 2011.
Vision:
One of the most common Vision statements Ive come across is to be the most
profitable company or to be the #1 in the category.
Mission
The Indian telecommunications market for mobile services is divided into 23
Circles. There are four metropolitan Circles, covering the cities of Mumbai, Delhi,
Kolkata and Chennai, and 19 Circles classified by the Government as category A, category
B or category C, which cover the rest of India. These classifications are based principally
on a Circles revenue generating potential, with metropolitan and category A Circles having
the highest revenue potential.
http://en.wikipedia.org/wiki/GPRShttp://en.wikipedia.org/wiki/GPRS -
8/2/2019 chiranthproject-110907024417-phpapp02
47/79
47
Companys Vision: To be the most customer-
focused mobile service brand, continuouslyinnovating to help liberate our customers fromthe shackles of time & space.
Companys Mission : We will delight our
customers while meeting their individualcommunication needs time anywhere. Wesurvive because of our customers.
Established Circles
We operate in the metropolitan Circle of Delhi, the category A Circles of Andhra
Pradesh, Gujarat and Maharashtra, and the category B Circles of Haryana,
Kerala, Madhya Pradesh and Uttar Pradesh (West).
Licenses for the Maharashtra and Gujarat Circles were awarded to us in
December 1995, with network rollout and commercial launch achieved in 1997.
Subsequently, in January 2000, we merged with Tata Cellular Limited, the mobile operator in
-
8/2/2019 chiranthproject-110907024417-phpapp02
48/79
48
the Andhra Pradesh Circle, and integrated its operations into ours byJanuary 2001. In
February 2001, we acquired RPG Cellcom Limited, the mobile operator in the Madhya
Pradesh Circle, with full integration of this Circle with
ours achieved by June 2001. We acquired the license for the Delhi Circle during the fourth
mobile license auction in October 2001, with network rollout and
commercial launch by November 2002. Escotel Mobile Communications Private Limited
(Escotel), which we acquired in January 2004, was awarded the originallicenses in the
Circles of Haryana, Uttar Pradesh (West) and Kerala. We re-branded these Circles and
integrated them with ours by June 2004
TIER1- Metropolitan Circle
Customer Segmentation Description
Products pre-paid and post-paid mobile servicesServices GPRS, voice and SMS based entertainment services, call-
forwarding, call conferencing, regional, on-net, national and
international roaming, GSM gateways, vehicle tracking; and
Automatic Meter ReadingChannels Direct OutletsComplementors Ericsson, Nokia, SiemensUnique Competencies 6 SIGMA, Net Setter Data Cards & Blackberry Solution,
largest customer base, NLD License, market leader in the
Maharashtra, Strong distribution channels
.
-
8/2/2019 chiranthproject-110907024417-phpapp02
49/79
49
TIER2- Urban Circle
Customer Segmentation Description
Products pre-paid and post-paid mobile servicesServices GPRS enabled information services like
internet browsing, data cards and mobile
email, call-forwarding, Ring Back Tones,
backgroundMusic, voice and SMS chat,
ringtones, horoscopes, expert advise and
subscription services;Channels Both Direct & IndirectComplementors Ericsson, Nokia, SiemensUnique Competencies 6 SIGMA, High quality network structure,
Centralization of several applications.
-
8/2/2019 chiranthproject-110907024417-phpapp02
50/79
50
TIER3 Rural Circle
Customer Segmentation DescriptionProducts pre-paid and post-paid mobile servicesServices Krishi Voucher, NOKIA Life Tools,
Providing health care servicesChannels IndirectComplementors Ericsson, Nokia, SiemensUnique Competencies usage of solar power for Base
Transceiver Station (BTS), frequencyoptimization techniques
New Circles
In connection with the acquisition of Escotel, we also acquired Escorts
Telecommunications Limited (Escorts), which was awarded licenses for the
New Circles. Due to certain existing license conditions we were unable to complete the
transfer of shares of Escorts until June 2006. However, we ensured
that Escorts met the first phase of network requirements for these New Circles in June 2005
in accordance with the relevant licenses (as amended following the
payment of a penalty by us on behalf of Escorts).
Following significant investment by us in the roll-out of the network in the New
Circles, amounting to approximately Rs. 4,678 million upto September 30,
2006, we were able to achieve full commercial launch of mobile services in the New Circles
-
8/2/2019 chiranthproject-110907024417-phpapp02
51/79
51
between September and November 2006 in a manner which also met the network roll-out
requirements of the licenses which were to be completed by
June 2007.
-
8/2/2019 chiranthproject-110907024417-phpapp02
52/79
52
Area of operation
Idea's subscriber base as at the end of January 2011 according to the is as follows
Maharashtra and Goa - 12,075,220
Madhya Pradesh and Chhattisgarh - 8,401,422
Andhra Pradesh - 7,831,260
Kerala - 6,398,170
Kolkata -10,001,804
Gujarat - 6,632,034
Uttar Pradesh (West) & Uttarakhand - 7,361,534
Delhi - 3,609,746
Haryana - 2,847,079
Uttar Pradesh (East) - 4,935,224
Rajasthan - 2,823,910
Himachal Pradesh - 479,882
Mumbai - 1,822,280
Bihar & Jharkhand - 4,280,626
Tamil Nadu & Chennai - 1,202,343
Orissa - 985,737
Punjab (Spice) - 4,160,189
Karnataka (Spice) - 3,775,443
West Bengal - 1,728,308
Assam - 206,140
Jammu & Kashmir - 93,072 North East India except Assam - 128,807
http://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Chhattisgarhhttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Uttarakhandhttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Biharhttp://en.wikipedia.org/wiki/Jharkhandhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Orissahttp://en.wikipedia.org/wiki/Punjab_(India)http://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/Jammu_%26_Kashmirhttp://en.wikipedia.org/wiki/North_East_Indiahttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/North_East_Indiahttp://en.wikipedia.org/wiki/Jammu_%26_Kashmirhttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/West_Bengalhttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Punjab_(India)http://en.wikipedia.org/wiki/Orissahttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Jharkhandhttp://en.wikipedia.org/wiki/Biharhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Himachal_Pradeshhttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Uttarakhandhttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Chhattisgarhhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Maharashtra -
8/2/2019 chiranthproject-110907024417-phpapp02
53/79
-
8/2/2019 chiranthproject-110907024417-phpapp02
54/79
54
Listing Mumbai,NSE
Financial Year End 3
Book Closure Month Sep
AGM Month Sep
Registrar's Name & Address Bigshare Services Pvt Ltd, E-2/3 Ansa Indl Est, Saki
Vihar Road, Sakinaka Andheri(E),
Mumbai - 400072. 91-22-28470652/53
91-22-28475207
DIRECTORS
Idea Cellular Ltd
Industry :Telecommunications - Service Provider
Designation Name Remunerations
Chairman Kumar Mangalam Birla 80,000.00
Director Rajashree Birla 80,000.00
Director Sanjeev Aga 79,430,000.00
Director Arun Thiagarajan 130,000.00
Director Tarjani Vakil 140,000.00
Director Mohan Gyani -
Director Biswajit Anna Subramanian 80,000.00
Director Gian Prakash Gupta 110,000.00
Company Secretary Pankaj Kapdeo -
Director R C Bhargava 20,000.00
Director P Murari 40,000.00
Director Rakesh Jain 80,000.00
Nominee Juan Villalonga Navarro -
Alternate Director Shridhir Sariputta Hansa Wijayasuriya 90,000.00
-
8/2/2019 chiranthproject-110907024417-phpapp02
55/79
55
IDEA CELLULAR LTD
Industry :Telecommunications - Service Provider
(Rs in Crs)
Subsidiary Name Carlos Tower Ltd
Year Mar 10
No Of Shares 50000
Face Value (Unit Curr.) 10
Investment Cost 0.05
Holding (%) 100.00
Subsidiary's Year end 201003
NP in Holding Co a/cs (PY) 0.00
NP not in Holding Co a/cs (PY) 0.00
NP in Holding Co a/cs (CY) 0.00
NP not in Holding Co a/cs (CY) -0.01
Equity Subscribed 0.05
Subsidiary 's Reserves -0.01
Fixed Assets 0.00
Net Current Assets 0.00
Sales Turnover 0.00
Profit After Tax -0.01
Product1 -
Product2 -
-
8/2/2019 chiranthproject-110907024417-phpapp02
56/79
56
MCKINSEYS 7S MODEL
Need For The Study
The need to undergo this training for a MBA student of Osmania University is to
fulfill the requirement of MBA Degree Course of Osmania University. This training is
undertaken during march 2012 and the main purpose of the training is to know the practical
implication and policies of the company.
Objectives of the Study
The objective of undergoing this training is to get the practical exposure of the
functional departments of the organization. During training, we study how the theoretical
knowledge is practically applied in different departments in the organization. During my
training I was also offered a research study titled , A Org Study On Idea Call service. The
prime objective of the study was to know about the advertising and promotion strategy
IDEA CELLULAR.
There are many management approaches, which talk about managing the things and
operations in an organization one of the famous model to analyze the pattern of the
management is the 7 S model better known as Mckensys 7 S this is because the two persons
who developed this model . Tom pet us and Robert waterman have been consultant at
Mckensys company at that time.
They described that as an organization is not just structure but consist of 7 features
which can be distinguished into so hard 55 and soft S. They published their 7 S model in the
article of "Structure is not organization" (1980) and their books The Art of Japanese
Management" and In search of Excellence: (1982).
-
8/2/2019 chiranthproject-110907024417-phpapp02
57/79
57
The model is very much helpful in viewing the interrelationship of Strategy
formulation and interpretation. It focuses managers attention to a variety of activities that
many affect of the implementation of any Strategy. as the model originally developed as a
way of thinking more broadly about the problems of organizing effectively. It is or judge tool
for the implementation of strategies. While thinking comprehensively about a new Strategy
and the problem that arise in canopying it out. A manager must think about the ability of The
Company to get anything really accomplished as matter of moving a whole culture. Manager
need not to consider all factors of model for the successful implementation of any strategy.
The 7 S is mainly distinguished into Hard and Softs
The Hard elements are feasible and is to identity as they can be found in a strategy
statements corporate plans again: rational C banjoes and other documentation of the
company. They includes
Strategy
System
Structure
The soft Elements are basically feasible because of difficulty involved in describing them
as capabilities, values and element of corporate culture and frequently developing and
changing they include.
Style
Staff
Skills
Shared values
-
8/2/2019 chiranthproject-110907024417-phpapp02
58/79
58
STRUCTRE : How is the company/team divided?
What is the hierarchy?
How do the various departments coordinate activities?
How do the team members organize and align themselves?
Is decision making and controlling centralized or decentralized? Is this as it should be,
given what were doing?
Where are the lines of communication? Explicit and implicit?
Organizational strucutre means it offers more organizanal management and relationship.
It gives the perfect picture about the person who is to take what decision and to what extent,
which is aouthorised perform what all duties and who is greatere than whom.
It corrects and provides with clear data of all relationship and provides frame work
within which all duties and activities takes place and grow
-
8/2/2019 chiranthproject-110907024417-phpapp02
59/79
59
ORGANIZATION CHARTOF IDEA
CMD IDEA
DIRECTOR DIRECTOR DIRECTOR
PLANNING&NS
DIRECTOR CS&GM
(legal)
SR.DDG
(Vigilance)
CGMs
T.circle
Sr.DDG (CS)
Sr.DDG (MS)
Sr.DDG (NW&WS)
Sr.DDG (PG)
Sr.DDG (IT)
Sr.DDG (NM)
Sr.DDG (MIS)
Sr DDG (TS)
Sr. DDG (WS&I)
CGM(MTCE Reg)
-ETR
-NTR
- STR
- WTR
CGM (NCES)
CGM (T&D)
Sr.DDG (BBD)
Sr.DDG (CMTSOM)
DDG (CMTS)
DDG (COMML)
DDG (MKTG)
DDG (REGULN)
Sr.DDG (ARC)
Sr.DDG (BW)
SR.DDG (ELEC)
Sr.DDG (SP)
Sr.DDG (SW)
Sr.DDG (TX)
Sr.DDG (NS)
DDG (Broadband)
DDG (MM)
DDG (RN)
DDG (TF)
DDG (LTP)
Sr.DDG (EST)
Sr.DDG (PERS)
DDG (IR)
DDG (RESTR)
DDG (SR)
DDG (TRG)
CGM, ALTIC
CGM,BRBRAITT
Andman & Nicobar
Andhra Pradesh
Assam
Bihar
Chattisgarh
Gujrat
Haryana
Himachal Pradesh
Jhrakhand
Jammu & Kashmir
Karnataka
Kerala
Madhaya Pradesh
Marashtra
North East-I
North East-II
Orrisa
Punjab
Sr.DDG (EFC)
Sr.DDG (PF)
Sr.DDG (FP)
Sr.DDG (BBF)
Sr. DDG (CA)
Sr. DDG (IA)
Sr. DDG (TRF)
Sr. DDG (SPF)
DIRECTOR
-
8/2/2019 chiranthproject-110907024417-phpapp02
60/79
60
SKILLS:
What are the strongest skills represented within the company/team?
Are there any skills gaps?
What is the company/team known for doing well?
Do the current employees/team members have the ability to do the job?
How are skills monitored and assessed?
Skill is the distinctive capabilities or competences of personal or of the organization as
whole. In other words it is what the company does the best in way of selecting capable
personas and well trained person. In IDEA all employees are skilled and well educated, insome area there is a need of training.
STYLE:
How participative is the management/leadership style?
How effective is that leadership?
Do employees/team members tend to be competitive or cooperative?
Are there real teams functioning within the organization or are they just nominal
groups?
Style basically means management behavior towards employees, customers, share
holders, suppliers, and every other person dealing with the company. A particular style
adopted by the company will have various implications over various people dealing with the
organization and thus it will have an impact over the relationship between the organization
and the other party.
With the shift with style in management IDEA is organization is able to improve
relationship with its internal and external customers over a period of time. It try to solve any
kind of disputes arising in the management activities to a peaceful dealings.
-
8/2/2019 chiranthproject-110907024417-phpapp02
61/79
61
Authority flow from the top to bottom, thus the organization structure helps to grant the
authority to the people to carry out the duties of their jobs and determinations the
performance evaluation, management directs, coordinate and the control the activities.
STRATEGIES :
What is our strategy?
How do we intend to achieve our objectives?
How do we deal with competitive pressure?
How are changes in customer demands dealt with?
How is strategy adjusted for environmental issues?
Strategy is the choice of direction and action of the company adopt to achieve its
objectives in various situations. It explains the objectives of the organization and how the
company achieves them.
The company aims at customer satisfaction through high quality of service
The improvement in the performance is driven by a focus on cost reduction materials
and operating expenses as well as by increasing in sales volume.
SYSTEM :
What are the main systems that run the organization? Consider financial and HR
systems as well as communications and document storage.
Where are the controls and how are they monitored and evaluated?
What internal rules and processes does the team use to keep on track?
System in the 7S frame work refers to all the rules regulations and procedure both formal
and informal that compliment the organization structure. System is an assembly of things
connected or interrelated So as to form a complex unity, or whole composed of parts in
orderly arrangement according to Some scheme or, plan. This has been defined as an
organized or complex whole an assemblage combination of things or parts farming or
complex unitary whole.
-
8/2/2019 chiranthproject-110907024417-phpapp02
62/79
62
A system basically a combination of parts, subsystems, each part may have various
Subparts. When a sub. System is considered as a system without reference to the system.
Which it is or Points it has the same features of a system.
STAFF:
What positions or specializations are represented within the team?
What positions need to be filled?
Are there gaps in required competencies?
Staffing is the process of acquiring human resources for the organization and
assuming that they have the Potential to contribute to the achievement of the organizational
good. In the Mckensys 7 s team work the term staff has a specific connotation. The term
staff refers to way organizations introduce young recruits into the mainstream of their
activities. Company's people resources and how they are trained, developed and motivated.
Presently the IDEA has around 1951 employees and group A 13 employees group B 274
group C 1572 and group D 78 employees.
SHARED VALUES
What are the core values?
What is the corporate/team culture?
How strong are the values?
What are the fundamental values that the company/team was built on?
Shared values means that the employees share the same guiding values are things that
you would strive for even they were demonstrably not profitable. Values act as an
organizations conscience, providing in times of crisis. Identifying corporate value is also the
first essential step in defining the organizations role in the larger community in which it
functions. In IDEA all the workers are well informed and educated about their work and also
The organization goal and principles which helps in achievement of the goals.
-
8/2/2019 chiranthproject-110907024417-phpapp02
63/79
-
8/2/2019 chiranthproject-110907024417-phpapp02
64/79
64
Indian market has become mature.
Opportunities
The company possesses a customized version of the Google search engine which will
enhance broadband services to customers. The tie-up with Google can only enhance the
Idea brand, and also provides advertising opportunities in Indian for Google.
Global telecommunications and new technology brands see Idea as a key strategic player
in the Indian market. The new iPhone will be launched in India via an Idea distributorship.
Another strategic partnership is held with BlackBerry Wireless Solutions.
Despite being forced to outsource much of its technical operations in the early days, this
allowed Idea to work from its own blank sheet of paper, and to question industryapproaches and practices - for example replacing the Revenue-Per-Customer model with a
Revenue-Per-Minute model which is better suited to India, as the company moved into
small and remote villages and towns.
The company is investing in its operation in 120,000 to 160,000 small villages every year.
It sees that less well-off consumers may only be able to afford a few tens of Rupees per
call, and also so that the business benefits are scalable - using its 'Matchbox' strategy.
Idea cellular is embarking on another joint venture with Vodafone Essar and Idea Cellularto create a new independent tower company called Indus Towers. This new business will
control more than 60% of India's network towers. IPTV is another potential new service
that could underpin the company's long-term strategy.
Threats
Idea and Vodafone seem to be having an on/off relationship. Vodafone which owned a
5.6% stake in the Idea business sold it back to Idea, and instead invested in its rival
Hutchison Essar. Knowledge and technology previously available to Idea now moves into
the hands of one of its competitors.
The quickly changing pace of the global