This note focuses on a clear example of how the value of network effects and the density of the Indian domestic market can provide globally recognized value. It builds on an earlier series of posts Dynamic India: Getting Smart Through Phones.
India’s Ministry of Electronics and Information Technology has projected a USD$1T information economy in India by 2025. 5G rollouts, increased use of digital payments, and domestic value chains for smartphones are key drivers to realize this projection. Our series – Getting Smarter by Phone – outlines how India’s unique multi-lingual and cultural market enriches tech development efforts. Dynamic India can use these strengths to expand into global markets. Bharti Airtel is a signature Indian telecom enterprise. Recent developments demonstrate just how much value it has produced.
Bharti Airtel has had an equity stake of 33% held by Singapore Telecommunications (SingTel). That stake will be reduced by a transaction with Bharti Telecom that will profit SingTel by ~26.7% of its position in the telecommunications carrier (was USD$1.6B). After the transaction, SingTel will retain 29.7% of Bharti by 10.5% direct ownership and 19.2% indirect thru Bharti Telecom. Airtel has sales in 17 countries and SingTel has presence in 21 countries.
Bharti Airtel benefits from the transaction by establishing an implied valuation of the Airtel enterprise. Global recognition valuing foreign direct investment in Indian enterprises also demonstrates the viability and desirability of multinational Indian enterprises. The effective liquidity event for SingTel (equity based returns of 5,000%) reinforces the message of profitable foreign direct investment and continuing advantages.
Airtel will continue to grow in international markets even as tough competition in the domestic Indian marketplaces’ premiums on innovation, products, and services.
In earlier releases, EkaLore has discussed how Dynamic India can work toward global markets.
Find this and other articles that we’ve written about India’s unique marketplace at
Comentários