Bharti Airtel has announced a new corporate structure. This should allow the company to focus more on the rapidly growing digital opportunity in India while enabling it to unlock value.
The new structure envisages the consolidation of Airtel Digital Limited into the listed entity, Bharti Airtel. This will now host all digital assets covering Wynk Music, Airtel X stream, Airtel Thanks, Mitra Payments platform used by a million retailers, Airtel Ads, Airtel IQ, Airtel Secure, Airtel Cloud and all future digital products and services .
Bharti Airtel Limited’s digital ambition is intertwined with the backbone that connectivity provides across the country. It is therefore intended to house all telecommunications activities in a newly created entity, Airtel Limited – a wholly owned subsidiary of Bharti Airtel Limited. Bharti Telemedia, the arm operating 100% DTH services, will for the time being be alongside Airtel Limited. There are plans to eventually integrate the DTH business into Airtel Limited to evolve towards the NDCP vision of converged customer services. The company has pushed the government for clarification on licensing policy given that transport, i.e. telecommunications and DTH, is currently regulated and managed by two separate ministries of communications and the I&B respectively.
Airtel Payments Bank will remain a separate entity under Bharti Airtel and will work closely with the growing customer base to play a pivotal role in realizing the digital opportunity offered by payments and financial services.
All of the company’s infrastructure businesses such as Nxtra and Indus Towers will continue to remain in separate entities as they currently are. The same will apply to international subsidiaries and affiliates.
The Board of Directors, at its meeting held today, approved the scheme allowing the company to file all statutory approvals to give effect to the proposed redevelopment.
Sunil Bharti Mittal, Chairman of Bharti Airtel, said: “The new structure defines the exciting future of Bharti Airtel and emphasizes the four distinct businesses – Digital, India, International and Infrastructure, each, in an extremely precise. We believe this will bring agility, expertise and operational rigor to serve our customers brilliantly while providing the flexibility needed to create value for our shareholders. This structure will serve us well over the next few years and is a win-win solution for all stakeholders. »
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