Airtel 2015 Annual Report Download - page 87
Download and view the complete annual report
Please find page 87 of the 2015 Airtel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.85
Management Discussion and Analysis
Bharti Airtel Limited 02-39 | Corporate Overview 126-355 | Financial Statements
Statutory Reports
40-125
Key Snapshot
1) The Union Budget 2016-17 focused on enhancing
farm output and welfare of farmers.
&RQVLVWHQW njVFDO FRQVROLGDWLRQ KDV UHGXFHG
*RYHUQPHQWšVnjVFDOGHnjFLWWRFORVHWRRI*'3RQ
a 12-month rolling basis), down from a peak of 7.6% in
2009.
3) The Government’s Make in India initiative has been
a resounding success. It has encouraged domestic
entrepreneurship and even attracted FDI to the country
VLJQLnjFDQWO\,QWKHSHULRGRIPRQWKV2FWREHU
to February 2016) after the launch of Make in India,
)', LQǍRZV LQFUHDVHG E\ 6RXUFH 0LQLVWU\ RI
Commerce and Industry).
4) Digital India will have a transformational impact on
Indian society. It represents a connected society, where
every citizen will be connected to the internet. This will
KHOS HQKDQFH HGXFDWLRQ HPSOR\PHQW HǎFLHQFLHV
governance and controls.
5) Internet penetration is around 30% in India; and is
SURMHFWHG WR WRXFK DURXQG QH[W \HDU 6RXUFH
IAMAI).
6) The Government’s Smart Cities Mission is a revolutionary
concept in terms of overall infrastructure, sustainable
real estate, communications and market viability. There
are many technological platforms involved, including
but not limited to automated sensor networks and data
centres.
African Economy
Africa’s economy as a whole remained more resilient
to global volatilities, compared to many other emerging
and developing regions. The continent’s growth enablers
comprise: the vastly improved macroeconomic environment,
EHQHnjWLQJEXVLQHVVHVUHGXFWLRQRIH[WHUQDOGHEWDQGVRFLDO
FRQǍLFWV LPSURYHG SROLWLFDO DQG HFRQRPLF JRYHUQDQFH
JURZLQJGRPHVWLFGHPDQGEXR\DQWVHUYLFHVVHFWRUnjQDQFLDO
services growth in line with an upswing in information and
communications technology; and rapid internet penetration.
Poverty in the continent is also seeing a declining trend.
Africa’s young and aspirational population is acting as
an agent of change in largely conservative societies. The
FRQWLQHQWšV\RXWKEXOJHZLOOGULYHWKHQH[WHUDRIJURZWKDQG
transformation.
Key Snapshot
1) A large African middle-class is emerging, over
350 Mn people, driving the culture of innovation and
policymaking.
2) Africa is the world’s second fastest growing FDI
GHVWLQDWLRQMXVWEHKLQG$VLD3DFLnjF
3) Sustainable policies for urbanisation, manufacturing
growth, agricultural output, along with education and
empowerment can act as key catalysts.
/HVV IRFXV RQ RLO H[SRUWV DQG RWKHU FRPPRGLWLHV ZLOO
augur well for the economy, going forward.
South Asian Economies
%DQJODGHVK VKRZV VLJQLnjFDQW SRWHQWLDO LQ 6RXWK $VLD ,W
has a stable democracy with focus on empowerment from
grassroots. The economy’s key growth enablers comprise:
growing manufacturing and construction sector, robust
service sector and higher private consumption bolstered
by remittances. These pivots have resulted in sustainable
economic growth for the nation.
Sri Lanka is also a stable, democratic society with focus on
inclusive growth. The island nation’s economic potential
is considerable. The country has a strong base of human
capital and reliable infrastructure. It also occupies a strategic
position in Asia, the fastest growing region in the world; and
investments over the last decade (especially in ports and
other transport-related facilities) can take advantage of this
opportunity.
Key Snapshot
%DQJODGHVKšV*'3JUHZE\LQYLV¢YLV
in 2014.
*URZWKLVH[SHFWHGWRIXUWKHULQFKXSWRLQ
OHG E\ VWURQJ JDUPHQWV H[SRUWV DQG ULVLQJ SULYDWH
consumption as government employees get wage
increase.
3) Real GDP growth for Sri Lanka was 4.8% in 2015
(broadly unchanged from 2014), driven by robust
growth in services and agriculture, as well as a positive
contribution from manufacturing.
6UL /DQNDšV HFRQRP\ LV H[SHFWHG WR JURZ E\
and 5.8% in 2016 and 2017, respectively on back of
strong domestic demand, and higher private and public
investments.
Megatrends that drive the Company’s business
1. Internet users in India have risen from 50 Mn in 2007 to
100 Mn in 2010; and more than 300 Mn in 2015. Of the
306 Mn internet users as on December 2015, 219 Mn
users are from urban India. The urban user base grew
by 71% year-on-year. On the other hand, the rural user
base went up by 93% from December 2014 to reach
87 Mn at the end of December 2015.
2. India is a lucrative market for global and domestic
smartphone manufacturers. Smartphone shipments
increased by 55% between 2014 and 2015 (Source –
IDC). The country has an established base of 184 Mn
XVHUV (QKDQFHG IRFXV RQ PDQXIDFWXULQJ DNjRUGDEOH
handsets with indigenous technology will further spur
mobile telephony.
:LWK ULVH LQ DNjRUGDEOH VPDUWSKRQHV DQG PRUH XVHUV
preferring 3G / 4G, data usage is likely to grow by 12
WLPHVIURPWR0RELOHGDWDWUDǎFLQFUHDVHG
by 89% between 2014 and 2015; and mobile data
WUDǎFJUHZE\WLPHVIDVWHUWKDQ,QGLDšVnj[HG,3WUDǎF
(Source: Cisco VNI forecasts). Network migration from