Bharti Airtel on Wednesday announced a new corporate structure to strengthen the company’s focus on driving rapidly evolving digital opportunities while enabling it to unlock value.
The new structure involves the consolidation of Airtel Digital Limited into the publicly 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 , the company said in a statement.
The telecommunications business will be housed in a newly created entity – Airtel Limited – a wholly owned subsidiary of Bharti Airtel Limited.
“It is therefore intended to house all telecommunications activities in a newly created entity, Airtel Limited – a wholly owned subsidiary of Bharti Airtel Limited,” he said.
Bharti Telemedia, the wholly owned subsidiary operating DTH services, will sit alongside Airtel Limited for now.
Read more: Airtel adds 6.9 million active users in January and extends its gain
“There are plans to eventually integrate the DTH business into Airtel Limited to evolve into the NDCP vision of converged services for customers,” he added.
The company contacted the government for clarification on licensing policy, given that telecommunications and DTH transport are currently regulated and managed by two separate ministries of communications and 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 that payments and financial services provide.”
All of the company’s infrastructure businesses, such as Nxtra and Indus Towers, will remain separate entities as they currently are. The same would apply to international subsidiaries and affiliates.
“The Board of Directors, at its meeting held today, approved the plan allowing the company to file all statutory approvals to give effect to the proposed redevelopment,” the statement read.
Bharti Airtel Chairman Sunil Mittal said: “The new structure defines the exciting future of Bharti Airtel and emphasizes the four distinct businesses – Digital, India, International and Infrastructure, each, in a very clean”.
“We believe this will bring agility, expertise and operational rigor to serve our customers with flying colors while providing flexibility to unlock value for our shareholders. This structure will serve us well over the coming years and is a win-win solution for all stakeholders,” added Mittal. .