Bharti eyes $10bn revenue by FY11

New Delhi: Bharti group on Tuesday announced a whopping $13 billion investment for the next five years of which at least 70 per cent would go into expansion of domestic telecom operations and rest in new businesses like agriculture, insurance, retail and international acquisitions.

Projecting a turnover of $10 billion by 2010-11, Sunil Mittal, Chairman and Managing Director of Bharti Group, said, "From the $10 billion turnover, at least $7 billion will come from our telecom business.”

Bharti Group offers mobile telecom services under Airtel brand and is the largest private telecom operator in the country with a market share of nearly 25 per cent.

On the international acquisition plans, Mittal said the Bharti group is looking for opportunities in the neighbouring countries, Africa and SAARC nations.

"Our idea is that we can do acquisition of up to $3 billion, whether it is new build out or in the existing companies," he added.

However, he pointed out that the market was in correction mode.

"Last week itself there was a correction of 15 to 20 per cent. We are in a bit of bind. We are saying step back and our time for international acquisition will come when the world market corrects. As it corrects and comes to a sensible level, we shall make a move there," he said.

On the domestic front, he said the telecom business was growing at a huge pace.

"Proposed investments in telecom are already announced. We shall be investing 1.5 to 2 billion dollars (up to Rs 10,000 crore) each year in India more or less on a continuous basis for the next next 5 years.”

On the sources for funding, Mittal said the money for telecom businesses has been fully tied up.

Last year Bharti earned profit of Rs 1,205 crore and a large part of annual investment would be met of internal cash generations.

According to available estimates, the company has a debt of Rs 4,147 crore. The company operates in 23 circles with a pan India footprint.

While the average revenue per user (ARPU) for Bharti had dipped from Rs 505 in March 2005 to Rs 442 in March 2006, the total minutes of usage has increased steeply from 11,575 million minutes to 23,187 million minutes.