Airtel rings SOS!

Monday, 27 June 2011 00:56 - - {{hitsCtrl.values.hits}}

(Reuters): Mobile carrier Bharti Airtel said it plans to undertake restructuring exercise in its businesses, which is expected to have “minimal impact” on jobs.

Bharti has pioneered the strategic outsourcing model and created efficiency. “Such initiatives wherever and whenever appropriate will find favour,” the firm said in a statement without elaborating on the restructuring plans.

Earlier, the Economic Times said Bharti Airtel will merge three separate businesses, which includes mobile, satellite TV, and fixed-line, broadband telemedia business. The businesses jointly account for about 90 percent of its revenues.

The paper estimated the job losses to be more than 2,000 of the current strength of 11,500 employees.

In May, Bharti, 32.3-percent owned by Southeast Asia’s biggest phone firm SingTel, had reported a fall in net profit of the fourth quarter to March to 14 billion rupees from 20.44 billion rupees in the year ago period. In a separate statement, the company said it has crossed 5 million customer mark in Bangladesh. In January 2010, Bharti had acquired 70 percent stake in Warid Telecom, the fourth-largest mobile company in Bangladesh, and subsequently launched its brand in December.

Shares of Bharti Airtel on the Bombay Stock Exchange closed 2.55 percent higher in a strong Mumbai market on Friday.