Sunil Bharati Mittal serves as both the Chairman and Managing Director of Bharti Group, the largest telecommunications company in India. Bharti Group operates in over 17 Circles of India.
Airtel, a well-known Indian telecommunications company, has established an extensive network across multiple sectors. It occupies a significant position in the telecommunication industry of India and possesses a market capitalization exceeding Rs. 60,000 Crores. The major ownership of Airtel belongs to Sunil Mittal and his brothers, who own approximately 32% of the company, making their value around Rs. 20,000 or more.
Sunil Mittal, an Indian businessman, was born on October 23, 1957. According to Forbes 2008 Data, he has a net worth of US $11 billion and is one of India’s Top 10 Richest persons. Mittal originates from Rajasthan, India and has three children. His monthly salary is Rs.
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...nil Mittal, a resident of Delhi, India, is renowned for his involvement in establishing the Bharti AirTel Group. He comes from a politically influential family with his father Satpaul Mittal being a respected politician from Ludhiana, India. Satpaul Mittal has three sons, including Sunil Mittal, all of whom have pursued entrepreneurial ventures and remain partners in AirTel.
Sunil began his entrepreneurial journey at a young age with a small vision. His initial venture involved importing scrap and converting it into bicycle parts when he was just 19 years old. Subsequently, he started manufacturing stainless steel sheets, which led him to relocate from Ludhiana to Mumbai. During this time, Sunil Mittal would occupy modest cubicles in Pydhonie and Abdul Rehman Street, sitting on low stools as he endeavored to convince traders to purchase his sheets.
While living in Bombay, Sunil had two
important realizations. Firstly, he discovered his natural talent for sales. Secondly, he became aware of the fact that he needed to leave Ludhiana and relocate to a larger city like Mumbai to pursue bigger opportunities and make significant changes in his life. Consequently, in 1979, Sunil moved into his father's allocated flat in Delhi, which was relatively smaller compared to his previous residence.
Instead of following the trend of becoming an exporter, Sunil chose to delve into imports. He found success and made significant profits by importing steel and zip fasteners. However, his path took an unexpected turn when he encountered a stressed Japanese salesman in Bengali Market, located in the country's capital. This salesman represented Suzuki and had come to India with the specific task of finding a dealer for the company's generators. Suzuki had assumed that the Indian market would resemble others worldwide, where generators were commonly used to power fairs, outdoor exhibitions, and even food stands like hot-dog stands.
Knowing that the country was constantly experiencing power shortages, Sunil Mittal recognized an opportunity to sell generators to households as an alternative during electricity cuts. This became his third venture, leading him to become a dealer of Suzuki in its generator business.
Sunil rapidly established himself in the Consumer genset market, becoming the largest importer of Suzuki generators worldwide. This significant achievement marked a pivotal moment in his life, teaching him the art of conducting Business with Foreigners and leading him into the branded product sector. Sunil's success continued to soar throughout the early 1980s, resulting in his millionaire status. With a talent for trading and considerable profits from property development, he had built a fortune.
However, the entrance of industry giants Birlas & Shrirams ultimately led to the closure of his Business.
How? Well, in the early 1983, The Birlas & the Shrirams obtained licenses to produce gensets in India. However, in order to safeguard this emerging industry, the government swiftly prohibited all generator products. As a result, Sunil's business came to a halt. Consequently, Sunil began seeking an alternative source of income.
Suzuki, the Japanese company, showed empathy towards Sunil Mittal and suggested him as a dealer for the new Maruti Suzuki Car. Mittal asserts that all other dealers were chosen through political influence. Suzuki's sole requirement was for Mittal to receive a dealership, but his application was declined and assigned to another person. However, this is not the conclusion of the narrative. Sunil Mittal's fourth endeavor materialized as the "Push Button Phone" from Taiwan instead of Bharti Airtel as initially anticipated.
He made the decision that this would be the future and started importing the components for the phone in an entirely illegal manner. Sunil Mittal's fourth venture was completely illegal. He introduced this phone to the Indian market under the brand name "Mitbrau," giving it a German appearance. However, it actually translates to "Mittal Brothers." He selected this name in order to appeal to Indian customers. Essentially, he aimed to make it appear like a foreign brand name since Indian consumers were not fond of domestic brands at that time.
- Thankfully, the telecom market was deregulated by the government, and the Mittals were one of the five prominent companies selected for handset manufacturing. Operating under the brand name "Beetel," their business achieved a significant sales figure of Rs. 25 Crores,
which was quite substantial at that time. However, Sunil remained unsatisfied.
Sunil had a breakthrough in 1992 when the Government announced bids for mobile telephony. He read about the bids in The Economic Times newspaper while on a New Year holiday in Goa and made up his mind to become one of the bidders. However, his father passed away shortly after.
Despite his hard work and a 6-month break from his business to develop his master plan for mobile telephony, numerous global telecom players rushed to enter the Indian market when the Government of India opened up the telecom sector. Among them, the Mittals appeared insignificant due to their limited financial resources and lack of reputation. However, after just one meeting, he managed to convince Vivendi to partner with him. Once the deal was finalized, the Company sent a team to India to investigate the Mittals.
The team informed that they were considered as small-timers and expected to continue being so. Vivendi terminated the project just days before the bid was supposed to be submitted. Subsequently, Sunil contacted Vivendi via phone and expressed, "When you decided to collaborate with me, you must have felt or noticed something special. You saw potential in me."
Remember that something and go with your instincts, but forget what your team has told you. Against all odds, Vivendi remained loyal to him. When the bid was opened, Airtel emerged as the winner in all four circles. The Government promptly announced a new rule: 1 Company, 1 Circle.
Sunil was left with one of the 2 Delhi Licenses. However, the Delhi market was too big for Sunil and sufficient for a first-time participant. AirTel
performed well in the Delhi Circle, but when the second round of licenses were awarded, the company only won Himachal Pradesh, with multinational companies still in the game and players like HFCL (Himachal Futuristics) on the rise. Rumors circulated in the market regarding whether the single family-run company (Bharti Group) would survive. Additionally, in 1999, the mobile telephone industry faced difficulties as players were unable to pay the substantial license fees. In response, the government introduced new policies, requiring operators to clear all existing dues.
According to the given text, Sunil managed to communicate with bakers and successfully settled all outstanding payments. This allowed Sunil to take advantage of the situation and purchase licenses from operators who were unable to pay off their debts. Consequently, he obtained licenses in Andhra Pradesh, Karnataka, Chennai, Punjab, and later on in Kolkata. Additionally, during the fourth round of license acquisition, Airtel was victorious in securing licenses for eight new circles, namely Gujarat, MP, Tamil Nadu, Kerala, Maharashtra, Western UP, and Mumbai.
However, a new challenge arose as the Big Boys (Ambanis/Reliance Group) aimed to venture into the Mobile Telephony market. The prevailing perception in the market was that Airtel would face difficulties due to the sheer size and influence of the Ambanis.
The Ambanis were intelligent and successful individuals who were able to influence the Government of India, regardless of which political party was in power. Furthermore, government policies favored Reliance, particularly the CDMA operators. The government allowed Reliance/CDMA Players to enter the market at a significantly low cost, resulting in CDMA being perceived as a more affordable technology. However, a new challenge arose when BSNL announced their plans to establish
their own low-priced network.
The mobile telephony market was expected to go through a significant transformation, which Sunil Mittal refers to as one of the most challenging periods in his life. In order to boost morale, Mittal began meeting with employees and watching movies that showcased underdogs overcoming adversity. He reassured his team that success was not guaranteed but if they managed to defy the odds, they would make history.
"And ultimately, The Reliance Venture cannot be deemed a failure in any way. It boasts approximately 10-12 Million subscribers in comparison to Airtel's 14 Million, effectively establishing two separate markets. AirTel holds dominance in one market while Reliance dominates the other. It is important to note that there is no political agenda involved - Sunil Mittal had plans to enter politics at the age of fifty, specifically in 2007."
However, he subsequently altered his plans as he lost interest in politics. Having observed other businessmen enter Parliament, he does not believe they have made a significant impact. He cites Christopher Bland, the Chairman of British Telecom.
Once upon a time, Christopher advised Sunil to take a shower whenever he felt like entering politics. Today, Sunil believes that his accomplishments are a result of both God and some form of Divine Intervention.
