Bharti Hexacom Limited: history, ownership, mission, how it works & makes money

A Brief History of Bharti Hexacom Limited

Bharti Hexacom Limited, a key player in the Indian telecommunications sector, was established in 1995 as a joint venture between Bharti Enterprises and the UK-based telecom firm, BT Group. Initially focused on providing mobile services in Rajasthan, the company laid the groundwork for extensive network operations in northern India.

By 2001, Bharti Hexacom expanded its services to include GPRS and introduced pre-paid offerings, which significantly boosted its subscriber base. The company was one of the earliest adopters of mobile number portability in India, enhancing customer retention.

In 2006, Bharti Hexacom became part of Bharti Airtel Limited, which is India's largest telecom operator by subscriber base. This merger allowed Bharti Hexacom to leverage Airtel's extensive infrastructure and technology capabilities. As of Q2 2023, Bharti Airtel had over 490 million subscribers globally, solidifying its market position.

The company reported a total revenue of approximately INR 1,022 billion for the fiscal year ending March 2023. Bharti Hexacom’s contribution to this figure is significant, primarily driven by its mobile services. The ARPU (Average Revenue Per User) for the mobile segment was around INR 222 for the same period.

In terms of market performance, the shares of Bharti Airtel, under which Bharti Hexacom operates, have shown resilience. As of October 2023, the stock price was around INR 918, staying consistent with the growing demand for mobile and internet services amid the increasing digital transformation in India.

Bharti Hexacom’s focus on expanding its 4G network has contributed to its growth trajectory. As of early 2023, the coverage area for 4G services reached over 1,200 cities. The company is also investing heavily in 5G technology, with trials successfully conducted in select regions.

Bharti Hexacom has also been active in addressing customer service and operational efficiencies. The company's customer complaints resolution rate has improved to about 92% in 2023, showcasing its commitment towards enhanced user experience.

Furthermore, the company has strategically partnered with various technology firms to innovate in mobile applications and digital services, reflecting an adaptive strategy to a rapidly evolving market. This adaptability is evident as Bharti Hexacom is continuously enhancing its offerings beyond voice and data services, venturing into digital content and e-commerce sectors.

A Who Owns Bharti Hexacom Limited

Bharti Hexacom Limited, a major player in the Indian telecommunications sector, operates under the umbrella of the Bharti Enterprises group. The ownership structure of the company is predominantly influenced by its parent company, Bharti Airtel. As of the latest available data, Bharti Airtel holds approximately 100% equity stake in Bharti Hexacom, making it a wholly-owned subsidiary.

Founded in 1995, Bharti Hexacom primarily operates in the Rajasthan telecom circle. It provides various telecommunication services, including mobile voice and data services, in a highly competitive market.

Major Shareholders

Bharti Airtel Limited, listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), is a dominant force in the Indian telecommunications market. With a market capitalization of around ₹4,50,000 crores (approximately $54 billion), it ranks among the top telecom companies in India.

As of December 2022, Bharti Airtel reported a consolidated revenue of ₹1,43,000 crores (approximately $17.2 billion), with operating EBITDA margins reported at 50%. The company’s impressive financials provide substantial backing for its subsidiary, Bharti Hexacom.

Operational Insights and Market Position

In Rajasthan, Bharti Hexacom has established a considerable market presence, competing against other major operators such as Reliance Jio, Vodafone Idea, and BSNL. As of July 2023, Bharti Hexacom claimed around 30% market share in the state's telecom sector.

According to the Telecom Regulatory Authority of India (TRAI), as of Q2 2023, Bharti Hexacom’s subscriber base stood at approximately 10 million users, contributing to the extensive reach of Bharti Airtel throughout the region.

Future Considerations

Recent investments by Bharti Airtel in expanding its 4G and future 5G networks indicate a strategic focus on enhancing Bharti Hexacom's service capabilities. The parent company's capital expenditure for FY 2024 has been estimated at around ₹26,000 crores (approximately $3.1 billion), which is expected to further support the subsidiary's growth trajectory.

Overall, Bharti Hexacom Limited remains a critical component of Bharti Airtel's strategic portfolio, leveraging the parent company's resources and market position to navigate the competitive landscape in India's telecommunications sector.

Bharti Hexacom Limited Mission Statement

Bharti Hexacom Limited, a subsidiary of Bharti Airtel, aims to provide innovative telecommunication solutions that enhance connectivity and enrich customers' lives. The company's mission is anchored by a commitment to excellence in service delivery, customer satisfaction, and technological advancement.

The mission statement emphasizes the following core tenets:

• Deliver unparalleled customer experience through superior service.
• Pioneer innovative technologies to ensure seamless communication.
• Expand network reach to foster digital inclusion.
• Contribute to the socio-economic development of communities.

In terms of financial performance, Bharti Hexacom has been focusing on growth in both user base and revenue generation. As of the latest financial reports:

The company's emphasis on enhancing customer experience is reflected in its investment in network infrastructure and expansion. Bharti Hexacom has significantly invested in improving connectivity, focusing on 4G and 5G capabilities. Recent investments amount to approximately INR 700 Crores in the last fiscal year to upgrade network facilities.

Bharti Hexacom is also dedicated to corporate responsibility, aiming to reduce the digital divide through initiatives that promote digital literacy. The company has engaged over 2 million people through its digital education programs and plans to extend these efforts across rural areas.

Through its mission statement, Bharti Hexacom Limited articulates a vision that encompasses both business success and societal progress, ensuring that its services foster a connected and inclusive environment for all stakeholders. The commitment to innovation and service excellence positions the company for sustained growth in the competitive telecommunications landscape.

How Bharti Hexacom Limited Works

Bharti Hexacom Limited operates primarily in the telecommunications sector, providing mobile services across various states in India, particularly in the northeastern region. It is a subsidiary of Bharti Airtel, one of India's largest telecommunications companies. The company offers a range of services, from prepaid and postpaid mobile telephony to broadband and digital TV.

As of the financial year ending March 2023, Bharti Hexacom reported a revenue of INR 7,086 crores, which reflected a year-on-year growth of approximately 18%. The operational metrics indicated that the subscriber base rose to around 28 million, bolstered by increased data usage and the expansion of 4G services.

Bharti Hexacom’s mobile service portfolio includes various plans catering to different customer needs. The company has focused on improving customer experience by investing heavily in network infrastructure. As of 2023, the company had approximately 40,000 cell towers across its operational areas, enabling better coverage and service quality.

Financial Overview

The financial performance of Bharti Hexacom is closely related to its parent company, Bharti Airtel, which provides extensive operational and managerial support. Here's a breakdown of key financial figures:

Market Position

In terms of market share, Bharti Hexacom holds a significant position in the northeastern and Rajasthan circles. As of March 2023, the company commanded approximately 12% of the overall market share in these regions. This strategic focus has allowed the company to leverage its strong regional presence.

The company has been investing in high-speed 4G networks, which accounted for about 75% of its total data revenue in 2023. Moreover, Bharti Hexacom has been active in promoting its services through various customer engagement initiatives, including loyalty programs and bundled offers aimed at enhancing customer retention.

Technological Investments

Bharti Hexacom continues to enhance its technological capabilities with investments in mobile technology and infrastructure. In 2023, the company allocated approximately INR 1,500 crores towards network expansion and improvement, focusing on upgrading its existing 3G network to 4G and 5G capabilities in select areas.

Customer Growth Strategies

The company employs various customer growth strategies, including competitive pricing, enhanced customer service, and localized marketing tactics. The mobile data usage per subscriber has increased significantly, reaching an average of 15 GB per month as of March 2023, driven by the rising consumption of mobile internet services.

Additionally, Bharti Hexacom is leveraging digital tools to offer enhanced customer support and engagement, further solidifying its market position in an increasingly competitive environment.

How Bharti Hexacom Limited Makes Money

Bharti Hexacom Limited, a subsidiary of Bharti Airtel, operates primarily in the telecommunications sector in India. The company generates revenue through various channels, including mobile services, data services, and enterprise solutions.

The core revenue stream for Bharti Hexacom is derived from the mobile communication segment. As of the latest financial reports, the company reported a total revenue of approximately ₹28,000 crore for the financial year ending March 2023. This figure reflects a growth of 12% year-over-year, attributable to the increase in both subscriber base and average revenue per user (ARPU).

Bharti Hexacom's ARPU was reported at around ₹210 in Q2 2023, up from ₹190 in Q2 2022. The increase in ARPU is primarily due to higher data consumption and the upgrade of users to 4G services.

The breakdown of revenue sources is as follows:

The data services segment has shown significant growth, with mobile data traffic increasing by 40% year-over-year. This surge in data consumption is largely driven by the increasing penetration of smartphones and the affordability of data plans.

Additionally, Bharti Hexacom has been diversifying its revenue through enterprise solutions, which include services like cloud computing and managed services for businesses. This segment is expected to grow with the demand for digital transformation among SMEs, contributing to about 13% of total revenues.

The company also monetizes its infrastructure assets, including towers through leasing agreements. As of March 2023, Bharti Hexacom operated over 80,000 towers, generating an additional revenue of approximately ₹5,000 crore annually from these leases.

In summary, Bharti Hexacom Limited's revenue model is multifaceted, combining traditional mobile services with enterprise solutions and infrastructure leasing, positioning it well to capture growth in the rapidly evolving telecom landscape in India.