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Gunning for global positioning |
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Business Today, Mar 2010 |
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After the failed attempt to acquire MTN last year, Sunil Bharti Mittal, the chairman of Bharti Group, who is called the telecom czar of India, has now set his eyes on the African assets of Zain, a Kuwaiti telecom major.
The move has once again directed the spotlight on him with analysts questioning the feasibility of the deal, which if happens will be one of the largest foreign acquisitions by an Indian firm.
Is he making the right move? Is he stretching himself too much to make a mark on the global telecom scene? There are no dearth of such questions.
But a look at Mittal’s meteoric rise in the rejuvenated India Inc space post-liberalisation makes it clear that he has mastered the art of solving what many had considered a complicated jigsaw puzzle.
A pioneer in the true sense of the term, his journey from being a bicycle component manufacturer to a telecom czar and now also a major retail player in partnership with Walmart is primarily rooted in the fact that he has foreseen the unfolding scenario with more clarity than his peers and number-crunching analysts.
Clarity of vision has been aptly supported by swift moves with unmatched precision. Time and again he has proved his ability to strike at the right place and at the right time and puts him in the league of extraordinary global entrepreneurs. It is not surprising that he is today one of the most celebrated faces of the dynamo that India has become in the global economy, presiding over the affairs of a group which is estimated to have a business base of US$12bn.
Family background The son of former member of Parliament Sat Paul Mittal, Sunil was born on October 23, 1957 in the town of Ludhiana, Punjab.
He graduated in 1979 from Punjab University with a Bachelor of Arts and Science degree. But much before acquiring a university degree, this first generation entrepreneur had begun his tryst with destiny by starting a bicycle component manufacturing unit at the age of 18.
The money which he had pumped into the project was a modest Rs20,000 (approximately US$465) borrowed from his father. Five years later he sold this business and shifted to Mumbai to pursue bigger dreams. Over the course of the next decade, he tried his hand at several businesses before stumbling upon telecom, which brought out the midas touch in him.
Maiden Foray
During the early part of 1980, Mittal concentrated on importing generators from Japan. Going by the versions of some close associates, the venture turned out to be the first major entrepreneurial success which Mittal tasted in his formative years. But before he could scale up this venture in a major way, there came a rude shock which forced him to change track completely.
In a sudden decision, the Indian government banned the import of generators. A chance visit to Taiwan provided Mittal the chance to unearth the immense possibilities in telecom business, initially through the hardware route.
“In 1983 the government imposed a ban on the import of generators. I was out of business overnight. Everything I was doing came to a screeching halt. I was in trouble. The question then was: ‘what should I do next?’ Then, opportunity came calling. While in Taiwan, I noticed the popularity of the push-button phone – something which India hadn’t seen then. We were still using those rotary dials with no speed dials or redials. I sensed my chance and embraced the telecom business. I started marketing telephones, answering machines and fax machines under the brand name Beetel and the company picked up really fast,” Mittal recalled in an interview.
Wireless Story
His most decisive move as an entrepreneur came in 1992 when he successfully bade for one of the four mobile phone network licences auctioned in India in partnership with French telecom group Vivendi. His move had raised many eyebrows then.
Going by the accounts of that period, Mittal had to use all his convincing skills to ensure that Vivendi stayed on board.
But rest, as they say, is history.
Mittal has emerged as the flag bearer of the telecom revolution which India has witnessed in the last decade and a half. His company is the largest mobile service provider in the second most populous nation in the world with over 110mn subscribers.
Nothing has dislodged him and his company from the leadership position even though there has been many churnings within the industry – the switch from licence to revenue sharing formula, the entry of CDMA players and the price war triggered by intense competition with several corporate bigwigs including some foreign telecom majors jumping into the fray.
Mittal has overcome all challenges with an unmatched ease. Competitors have usually responded to his moves and not vice-versa. Having reached a commendable scale, the group has also forayed into other businesses in partnership with the best in the world, most noticeable being the alliance with Walmart for retail business and AXA for insurance business.
As far as his core business – telecom – is concerned, Mittal is clearly gunning for positioning the group in the emerging telecom spheres in the world. His desire to acquire MTN last year and now Zain are cases that clearly point in that direction. The company, meanwhile, has made a successful foray into the fast growing Bangladesh market recently when it acquired a 70 per cent stake in Warid Telecom of Bangladesh for a reported sum of US$300mn.
In recognition of his exemplary entrepreneurial skills, awards and accolades have been showered upon this telecom czar. Some of the prestigious awards which he has bagged include Padma Bhushan by the government of India, Asia Businessman of the Year 2006 Award by Fortune magazine and Entrepreneur of the Year 2004 Award by Ernst & Young. A respectable face of India Inc. in negotiations with the government, Mittal has also headed the Confederation of Indian Industry (CII), the premier industrial chamber in India.
Published in association with Global Business Features Service provided by KRK Associates, New Delhi, India
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