The Indian Tiger Prowls in Africa: Bharti Airtel’s Acquisition of Zain Africa Case Solution

This Case is about  EMERGING MARKETS, FINANCIAL MANAGEMENT, GOVERNMENT, MARKETING, NEGOTIATIONS, OPERATIONS MANAGEMENT, ORGANIZATIONAL CULTURE

PUBLICATION DATE: June 08, 2011 PRODUCT #: HKU952-HCB-ENG

On 8th June 2010, India’s leading integrated telecom service provider, Bharti Airtel Ltd (“Airtel”), completed its acquisition of the cellular operations of Kuwaiti firm Zain in 15 nations throughout Africa. At US$10.7 billion, it was Airtel’s most expensive and challenging acquisition yet, and the biggest ever cross border price from one emerging market to another.

Airtel expected that, with this particular deal, the business would be transformed into an international telecom business, executing its vision of creating a world class multinational. Airtel was a leader in the telecom sector in India and was the main business of the Bharti conglomerate of businesses. The Bharti group had been founded by Sunil Bharti Mittal in 1976, and it had grown from really being a small scale producer of bike components into among the biggest business groups in India, with operations in the telecom, financial services, retail and food sectors.
The Indian Tiger Prowls in Africa Bharti Airtel's Acquisition of Zain Africa case solution

By establishing cellular services in Delhi, India, Airtel had commenced its telecom services company in 1995. In a brief period of about 15 years, the firm had become India’s biggest mobile service provider and among the very best five wireless operators on the planet, with sales of US$8.8 billion and net income of about US$2 billion as of 31 March 2010. What strategy should Bharti pursue to make sure its accomplishment in Africa?

The Indian Tiger Prowls in Africa: Bharti Airtel’s Acquisition of Zain Africa Case Solution
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