In a major rejig in the top management of Bharti Airtel, the company has issued a notice to the stock exchanges today saying that the board will consider a proposal to appoint Manoj Kohli as the company's new managing director on Friday. . It will also consider re- designating its current chairman and managing director Sunil Mittal as executive chairman.
Gopal Vittal, who was appointed chief executive officer for the Indian operations will now be made into the joint managing director as well as an additional director in the company. Vittal will continue to the same business.
The initial hint of top level changes happened just a few weeks ago when the company announced that Sanjay Kapoor who was the chief executive for India and south Asia was quitting from February 28th.
Kohli, a veteran at Bharti Airtel and is currently heading its international operations which primarily includes the African operations and as the chief executive officer. He is also currently the joint managing director of the company.
However earlier there was speculation that Kohli might oversee the entire operations of Bharti Airtel with Vittal reporting to him. But company executives said that under the new structure both will report to Sunil Mittal. And Kohli will only oversee the African operations with the added responsibility of looking also at the south Asian business (Bangladesh and Sri Lanka). But Vittal will continue be the the boss of the Indian operations.
Prior to his CEO (International) role, Kohli worked at different positions at Bharti AIrtel as CEO & Joint MD, President & CEO, Head of Mobile Services business.
Bharti Airtel veterans say that Kapoor and Kohli were earlier in the same rank and the former controlled a business which constituted over 72 per cent of company's business. With Kohli's imminent rise to being the managing director, Kapoor decided to call it a day. The new structure has also ensured that Vittal like Kapoor will be able to run the Indian business independently.
Observors and analysts say that the two new chiefs complement each other as Kohli is good in operations and dealing with regulatory issues. Vittal who has played a key role in Hindustan Unilever is a marketing experts. "Bharti has lagged behind in advertising and marketing which has been the strength of Vodafone and even Idea is catching up. Vittal will obviously play a key role here. And Kohli can always help with his operations and regulatory experience" said a former senior Bharti Airtel executive.
Bharti Airtel had earlier said that Kapoor will continue in his current role until February 28, 2013, and will be available for assistance on key matters until March 31, 2013, following which he will serve on the Board of Indus Towers Ltd and Bharti Global Ltd.
Vittal has joined Bharti Airtel for the second time. An alumnus of IIM-Calcutta and an ex-Hindustan Unilever hand, Vittal had worked as director of marketing and communications for two years until 2008 and had directly reported to Kohli.
During Kapoor’s stint as the CEO, Bharti Airtel’s subscriber market share dropped from 26.66 per cent in March 2010 to 20.62 per cent at the end of November 2012 due to cut throat competition. However Bharti’s revenue market share in revenue terms in India marginally improved to 28.98 per cent during the quarter ended September 2012, compared to 28.06 per cent in the quarter ended March 2010 (when Kapoor had taken over as CEO).
Bharti Airtel had posted 11 straight quarters of declining profit until September 2012. Its earnings before interest and taxes (Ebit) for India and South Asia business declined four per cent to Rs 8,224 crore in 2011-12 from Rs 8,555 crore the previous year.
Gopal Vittal, who was appointed chief executive officer for the Indian operations will now be made into the joint managing director as well as an additional director in the company. Vittal will continue to the same business.
The initial hint of top level changes happened just a few weeks ago when the company announced that Sanjay Kapoor who was the chief executive for India and south Asia was quitting from February 28th.
Kohli, a veteran at Bharti Airtel and is currently heading its international operations which primarily includes the African operations and as the chief executive officer. He is also currently the joint managing director of the company.
However earlier there was speculation that Kohli might oversee the entire operations of Bharti Airtel with Vittal reporting to him. But company executives said that under the new structure both will report to Sunil Mittal. And Kohli will only oversee the African operations with the added responsibility of looking also at the south Asian business (Bangladesh and Sri Lanka). But Vittal will continue be the the boss of the Indian operations.
Prior to his CEO (International) role, Kohli worked at different positions at Bharti AIrtel as CEO & Joint MD, President & CEO, Head of Mobile Services business.
Bharti Airtel veterans say that Kapoor and Kohli were earlier in the same rank and the former controlled a business which constituted over 72 per cent of company's business. With Kohli's imminent rise to being the managing director, Kapoor decided to call it a day. The new structure has also ensured that Vittal like Kapoor will be able to run the Indian business independently.
Observors and analysts say that the two new chiefs complement each other as Kohli is good in operations and dealing with regulatory issues. Vittal who has played a key role in Hindustan Unilever is a marketing experts. "Bharti has lagged behind in advertising and marketing which has been the strength of Vodafone and even Idea is catching up. Vittal will obviously play a key role here. And Kohli can always help with his operations and regulatory experience" said a former senior Bharti Airtel executive.
Bharti Airtel had earlier said that Kapoor will continue in his current role until February 28, 2013, and will be available for assistance on key matters until March 31, 2013, following which he will serve on the Board of Indus Towers Ltd and Bharti Global Ltd.
Vittal has joined Bharti Airtel for the second time. An alumnus of IIM-Calcutta and an ex-Hindustan Unilever hand, Vittal had worked as director of marketing and communications for two years until 2008 and had directly reported to Kohli.
During Kapoor’s stint as the CEO, Bharti Airtel’s subscriber market share dropped from 26.66 per cent in March 2010 to 20.62 per cent at the end of November 2012 due to cut throat competition. However Bharti’s revenue market share in revenue terms in India marginally improved to 28.98 per cent during the quarter ended September 2012, compared to 28.06 per cent in the quarter ended March 2010 (when Kapoor had taken over as CEO).
Bharti Airtel had posted 11 straight quarters of declining profit until September 2012. Its earnings before interest and taxes (Ebit) for India and South Asia business declined four per cent to Rs 8,224 crore in 2011-12 from Rs 8,555 crore the previous year.