Sunil Bharti Mittal - Entrepreneur Profile

BACKGROUND:

Family support:

Sunil Bharti Mittal, born October 23, 1957 is an Indian businessman. He is the chairman and managing director of the Bharti group. The $4.5 billion turnover company runs India's largest GSM-based mobile phone service.

Sunil's father, Sat Paul Mittal, an MP, was always in public life. It was Sunil who started in business (making cycle parts in Ludhiana, India) in 1976 at the age of 18 with borrowed capital of Rs 20,000.The son of a politician, Sunil Mittal is a Punjabi. He has built the Bharti group, along with two siblings, into India's largest mobile phone operator in just ten years.15 years back, his company, Bharti Telecom, was a manufacturer of telephones of the push-button variety, and made its money by supplying to the Department of Telecommunications (DOT). Detractors allege that it was the family's political connections that helped it land the DOT contract.

Achievements:

IT Man of the Year Award 2002 from Dataquest CEO Of the Year, 2002 Award from World HRD Congress. Today, Sunil Mittal runs a successful empire with a market capitalization of approximately $ 2 billion and employing over 5,000 people. He has been honored with several awards. Sunil Bharti Mittal was chosen as one of the top entrepreneurs in the world for the year 2000 and amongst 'Stars Of Asia', by 'Business Week'.

First generation entrepreneur.

Education: Sunil a former student of Harvard Business School, graduated from Punjab University. He had shown an interest in business even from his teenage days.

Previous trading experience: Started off as an entrepreneur immediately after graduation, trading in various merchandises.

Skills required: Hands on behavior, Risk taking behavior, futuristic, innovative, insightful, internal locus of control, opportunist, persistent.

IDEA GENERATION:

Innovation made by the entrepreneur: Sunil Mittal can be called as originator of cellular phone revolution in India

Discover idea/opportunity: Sunil Mittal got interested in push button phones while on a trip to Taiwan, and in 1982, introduced the phones to India, replacing the old fashioned, bulky rotary phones that were in use in the country then. Bharti Telecom Limited (BTL) was incorporated and entered into a technical tie up with Siemens AG of Germany for manufacture of electronic push button phones. By the early 1990s, Mittal was making fax machines, cordless phones and other telecom gear. The turning point came in 1992 when the Indian government was awarding licenses for mobile phone services for the first time.

Decision of becoming entrepreneur: . He had shown an interest in business even from his teenage days. So after graduation, Sunil got together with his friend and formed a small bicycle business with borrowed capital in the1970s. But by 1979, he realized that this business would remain small. So he moved out of Ludhiana, spent a few years in Mumbai and in 1981, was running an import and distribution operation out of New Delhi and Mumbai. Sunil Mittal was the first mover and revolutionary in cellphone industry. He started with entrepreneurship venture immediately after graduation as always wanted to be a businessman.

Role of Govt.: The turning point came in 1992 when the Indian government was awarding licenses for mobile phone services for the first time. One of the conditions for the Delhi cellular license was that the bidder have some experience as a telecom operator. Mittal clinched a deal with the French telecom group Vivendi. Two years later, Sunil secured rights to serve New Delhi. In 1995, Bharti Cellular Limited (BCL) was formed to offer cellular services under the brand name AirTel. Within a few years Bharti became the first telecom company to cross the 2-million mobile subscriber mark.

START UP:

Leveraging support of the technology: Bharti Telecom Limited (BTL) was incorporated and entered into a technical tie up with Siemens AG of Germany for manufacture of electronic push button phones. . In 2001, the company entered into a joint venture with Singapore Telecom International for a $650-million ubmarine cable project, the countries first ever undersea cable link connecting Chennai in India and Singapore.

Vision for the venture: "In five years Bharti should be a very large corporation. A billion-dollar one! Personally, in another seven years, I'd like to play a larger role in society. No, not politics If I can be of any use to the government then, I'll be available. By then the company should run on its own steam. Empowering people is important. I've had some desires but no time. I used to fly planes. I'd like to do something for my intellectual enrichment."

GROWTH:

Growth Of Bharti telecomm in initial years: Bharti Tele-Ventures was incorporated on July 7, 1995 as a company with limited liability under the Companies Act, for promoting telecommunications services. Bharti Tele-Ventures received certificate for commencement of business on January 18, 1996. The Company was initially formed as a wholly-owned subsidiary of Bharti Telecom Limited. The chronology of events since Bharti Tele-Ventures was incorporated in 1995 is as follows:

Calendar year & Events -

1995 - Bharti Cellular launched cellular services 'AirTel' in Delhi

1996 - STET International Netherlands NV, or STET, a company promoted by Telecom Italia, Italy acquired a 20% equity interest in Bharti Tele-Ventures

- Bharti Telenet launched cellular services in Himachal Pradesh.

1997- British Telecom acquired a 21.05% equity interest in Bharti Cellular

- Bharti Telenet obtained a license for providing fixed-line services in Madhya Pradesh circle

- Bharti Telecom and British Telecom formed a 51% : 49% joint venture, Bharti BT, for providing VSAT services.

1998 - Bharti Telecom and British Telecom formed a 51% : 49% joint venture, Bharti BT Internet for providing Internet services.

- First Indian private fixed-line services launched in Indore in the Madhya Pradesh circle on June 4, 1998 by Bharti Telenet thereby ending fixed-line services monopoly of DoT (now BSNL)

Future plans:

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