Project Report On Business opportunity of Beetel Set Top Boxes

INTRODUCTION: Established in 1975, Bharti has been a pioneering force in the telecom sector and has many firsts to its credit. Notable among them being the first company to launch mobile services in Delhi, the first private basic telephone service provider in the country, the first Indian company to provide comprehensive telecom services outside India in Seychelles, the leading telephone instrument manufacturing company in India, and the first private sector service provider to launch national long distance telephony. Today, Bharti is India’s leading private sector provider of telecommunications with about 3,071,463 mobile and 371,937 fixed line customers. It is the largest mobile operator in India with a market-share of 24.2 per cent (March 31, 2003). Bharti also provides reliable end-to-end data and enterprise services to its customers by leveraging its nationwide optic fiber backbone, last mile connectivity in fixed line and mobile circles, VSATs, ISP and international bandwidth access through its gateways and landing statio n

Bharti TeleTech, the manufacturing arm of the group, is country’s leading telephone instrument manufacturing company and the largest in the world outside of China. It commands a market-share of over 30 per cent in the country. The manufacturing facilities are spread across three ISO-9000 certified plants, which have a combined installed capacity of five million telephones annually. The company manufactures a wide range of telephone models under the brand name Beetel, which is India’s favourite telephone brand and every third phone used in India is a Beetel phone

Bharti Teletech produces a comprehensive basket of telephone instruments covering the entire segment of the market. Our portfolio comprises of over 35 models spanning the basic, feature-rich and cordless telephone categories, under the Beetel brand. It commands a market share of over 40% in the retail market, 95% in the private TELCO’s and over 60% share in the incumbent (BSNL & MTNL) . The company has been in the forefront of growing the open retail market by providing feature-rich and world-class telephone products at affordable prices.

In 1985, Bharti Teletech entered into a technical collaboration with Siemens AG, the German technological giant and set up a plant in Ludhiana to manufacture telephones

Come 2005, and Beetel has journeyed across twenty years of creating history. In 1991, Beetel manufactured phones for ‘Sprint’, the American telecom mammoth. Shortly after, in 1993-94, came ISO 9001-2000 accreditations for the manufacturing units – by this time two in numbers, at Gurgaon and Ludhiana. And in a short span of time, Beetel was already the market leader. Cornering half of the Indian market, Beetel became ‘India’s Favorite Phone’.
In between these years, while acclaim and achievements were flowing fast and steady, Beetel was initiating and implementing steps that would take them beyond the borders of India. The immediate necessity was to establish an in-house research and development base. This was necessary on two counts – Firstly, to indigenize technologies for the local market, and secondly, to pioneer new technologies.

Success came on both fronts and fast. The first telephone instrument to get ISO accreditations, India’s first EPBT phone, the first to cross the 20 million unit mark and thereafter 30 million mark, the only Indian telephone company to be present in 30 countries mapping 5 continents. One of the largest telephone manufacturers in the globe. A brand present in every second Indian home. The story of Beetel is one of milestones, inspirational efforts, teamwork and of an ambition that knew no bounds.

“The story continues. The canvas has broadened immeasurably, so have the challenges. And it is not long before India’s Favourite Phone makes it’s presence felt across the globe.”

In Mumbai, May 31, 2007 Bharti Teletech, manufacturers and distributors of telecom and allied products in India, has been awarded the Excellence in Manufacturing Award at the National Telecom Awards for 2007, organized by Telecom Equipment Manufacturers’ Association (TEMA). It is said that the company offers over 45 different Beetel phone models with prices ranging from Rs.295 to Rs.3995 across basic, feature, and cordless phones catering to customers across various segments.

During the year 2006-07, the company enhanced its retail market share to 45% besides exporting over a million telephones. The company is said to have an installed capacity of 6 million phones at its factories located in Ludhiana and Goa, and is the largest phone manufacturer globally, outside China

Bharti Teletech achieved a turnover of Rs 143.42 crore during the fiscal 2000-01. This included Rs 48 crore from Bharti Systel, its 100 per cent subsidiary until its merger in mid 2000. Bharti Teletech had a turnover of Rs 63.42 crore in 1999-2000. The net profit during the last financial year was Rs 3.2 crore

The company manufactured 3.5 million telephone sets during the year, of which 70 per cent were supplied to two state-owned companies—BSNL and MTNL. About 20 percent of the phones were procured by private service providers and retail markets, and the rest were exported. Exports were to the tune of about three lakh equipment worth Rs 10 crore and were mainly to the US, Colombia, Africa and the Middle East

Bharti has three manufacturing facilities located at Ludhiana, Gurgaon and Goa. The company operates another subsidiary, Goa Telecommunications & Systems, which had an estimated turnover of Rs 33 crore.
It plans to increase the retail outlets selling its phones from the present 3,500 to 5,000 by March 2002. Among other things, the company is in the process of setting up three call centers. These call centers would be located in Gurgaon and Delhi, besides the third city, which is yet to be finalized. For this, Bharti Teletech has set up Bharti Infotrac, a 100 percent subsidiary of Bharti Teletech for call center operations in the country.

STRENGTH

Strong brand, leadership in the market

WEAKNESS

No experience in services

OPPORTUNITY

Export market

THREAT

Low priced Chinese imports could hit the retail market and even the priced service provider market.

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