ET 500 2011: Organised retail is the future, says Akhil Gupta, Deputy CEO and MD, Bharti Enterprises

Bharti Airtel is among the major success stories scripted by India’s economic reforms. Driven by a strong management and its ability to venture into uncharted territory, Bharti today stands taller than its peers. With a new telecom policy on the anvil, ET spoke to Akhil Gupta, deputy CEO and MD of Bharti Enterprises, about the company’s preparedness and plans. Edited excerpts:

In the past decade Bharti took many bold steps be it the decision to outsource network management or to venture into overseas markets. What should we expect in the next 10 years?

Everything that we have done so far has been driven by the need for efficiency and faster rollouts. It is our constant effort to find ways to improve productivity. Of late, we have separated the passive infrastructure in a bid to be more efficient. It is difficult to say what next, but we keep on evaluating scenarios.

Our African operations are one year old. We would like to give it some time rather than think in terms of the next continent immediately. These things need to be stabilised. For the time being, we have a big project with us. We ensure that wherever we go we introduce the right business model. We strive to be the most loved brand, thereby enriching the lives of our customers.

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What are the key challenges ahead?

Telecom by its very nature is a competitive industry which requires more and more capital deployment. The challenges, therefore, are on three fronts: capex, competition and regulatory aspects.

How do you plan to address these challenges?

We are in a strong position to take on these challenges given our leadership position, healthy balance sheet and strong cash flows. Our decisions are driven by business needs; in that respect, taking innovative measures and thinking out of the box is in our DNA.

How will the competitive scenario evolve?

There are a few peculiar things about competition. It is bound to be intense when private sector players are involved.

Also, when multiple players are in the fray, the top two players will have a major share of the market in the long run. And the third point is the agility of the biggest player.

If you are not agile, then competition will overtake you. You need to be flexible to run profitable and efficient operations. You have to think fresh to take the right initiatives at the right time to maintain your leadership. I think we will continue to see a similar competitive scenario in the future.

Can retail be the next tipping point for the organisation?

Retail is a well-established sector worldwide. I think in India there will be a big need for organised retail. We need some clarity on regulatory issues such as FDI (foreign direct investment), but organised retail is the future.

How do you address long-term corporate sustainability?

Long-term sustainability has two aspects: CSR (corporate social responsibility) and financial stability. As part of our CSR initiative, we have the Bharti Foundation, which is committed to providing education to the girl child in rural areas in India and Africa.

We are well aware that all this will be possible only when we have financial sustainability through higher profitability over time. The measures that we take to improve productivity from time to time will ensure profitable operations.