Nivedita Mookerji
NEW DELHI: Bharti group chairman Sunil Mittal addressed the media after several months on Monday to announce the new corporate brand identity. He took questions on varied issues including the economic slowdown, job cuts, and the company’s telecom and non-telecom businesses, among others. Mittal was part of the industry delegation that met Prime Minister Manmohan Singh in New Delhi on Monday to discuss the global economic slowdown and its impact on India. Excerpts from the media interaction:
On Bharti’s projected sales by the year 2010, and vision 2020:
We are targeting to touch $10 billion worth of sales by 2010 and we are almost round the corner. By 2020, we would go much beyond telecom, into newer areas.
On the mix of telecom and non-telecom revenues at Bharti:
Currently, 80% of the revenue is coming from telecom. A good mix would be 50% of the revenue from telecom and 50% from non-telecom business. We are breaking free from telecom now, and there’s a lot of momentum in other sectors.
On the fastest growth expected besides telecom:
After telecom, I expect retail topline to see the fastest growth. I’m sure the fastest retail sale will be from our group in the times to come. Among the retail companies, the fastest billion dollar revenue will come from Bharti. We have opened a dozen odd stores (front-end retail stores) already and the early signs are very good.
On getting into other sectors like infrastructure in aviation:
We are always keen on transformational projects. We had earlier tied up with Singapore’s Changi for development of airports in India, but could not proceed because the partner pulled out. But, if there’s any opportunity in the future, we would be interested in infrastructure, whether it’s aviation or any other sector.
On the takeaway from the industry meeting with the PM on the economic slowdown:
The main takeaway is that the government is alive to the issues related to the economic slowdown. Also, that the government is firmly behind the industry, assessing the situation 24X7.
On the PM urging the industry to go slow on lay-offs and job-cuts:
The industry’s role is job creation, and not job cut. I fully back the Prime Minister on this issue. In fact, there’s hardly any talk of lay-off in the Indian industry. There have been some incidents of lay-offs in segments like aviation, IT and BPO. If things get worse (in terms of economic slowdown), the industry can put the question on the table again.
On the issue of compensation to company executives:
That’s an area which should be left to the shareholders of the company (rather than the government having a say in it).
On the telecom sector and how it can remain a shining example:
The government should support the telecom sector, rather than one more real estate and aviation story coming up. The levies and charges should be revisited for this sector.
On entering the mobile TV area:
Yes, this is our area of attention.
On the two recent telecom deals (Swan and Unitech selling stakes to foreign companies at huge valuation):
India is a large market and it offers opportunity to telcos across the world. In these cases also, companies (Etilasat and Telenor) have found opportunity in India. But will it work?
On the timing of 3G (third generation) telecom services coming to India:
India should not even wait one minute longer for 3G. I’m happy that communications minister A Raja has said that 3G is on course.
On the debate between FDI and FII coming to India:
FDI must open up across sectors - retail, insurance, defence -(with strong security conditions). It’s time for more FDI.
On Bharti’s football initiative:
If not in the year 2014, India should be able to participate in the World Cup in 2018. Our football academy will be working towards that. We are in talks with Chelsea and Barcelona clubs for partnership.
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