If news appearing in a leading Business Daily, Economic Times, is to be believed Bharti Airtel is merging its Africa and India units. If true, this will lead to the marriage of two sick people, one of them without any scope of revival in near future.
Bharti is struggling in both the domestic and Africa market. Its profits have fallen in last 10 consecutive quarters in India due to high competition. In Africa, the company is not able to manage well.
It is not yet clear how the company will be get benefited from the move. The company should have more focused approach in all the African countries and in India.
The biggest problem with the company is its huge debt. Moreover, the Indian government has decided to stop freebees (such as giving spectrum at low price and free spectrum beyond 4.4 Mhz). It is not clear how the merging of two entities will help in tackling these problems.
According to the newspaper, the company is in talks with leading consultants to give practical shape to this whole exercise.
Manoj Kohli, the joint MD of Bharti and CEO of its African operations, could emerge as front runner to head ‘One Airtel’. ET said that Gopal Vittal could find a prominent role in the new structure.