Bharti Airtel has decided to merge group firm Airtel Digital Ltd with itself as part of a new corporate revamp.
With this, the telco is looking to tap digital opportunities in an attempt to unlock value in line with other major players such as Reliance Jio, which raised over Rs 1.5 lakh crore from several big investors comprising Facebook and Google.
The Bharti Airtel board gave its nod to the scheme, letting the company file for all statutory approvals and carry out restructuring.
The telecom services company expects to boost its digital business revenue to over Rs 1,000 crore from Rs 100 crore now.
The move is likely to help the telco draw financial and strategic investors in addition to scaling up its business.
Bharti Airtel Chairman Sunil Mittal said in a statement that the new revamped structure would enable the "exciting future course" for the group and let it focus on four distinct businesses - India, digital, infrastructure, and international, in a "razor-sharp" way.
"We believe this will provide agility, expertise and operational rigour to serve our customers brilliantly while providing flexibility to unlock value for our shareholders. This structure will serve us well over the coming years and is a win-win for all stakeholders," Mittal said.
Further stating that its digital ambition is interlaced with the spine that enables connectivity across India, Airtel said it aimed to house all telecom businesses in a newly established entity, Airtel Limited, which is a wholly-owned subsidiary of Bharti Airtel Ltd.
Meanwhile, Bharti Telemedia, the fully-owned arm operating DTH (direct to home) TV services, will sit alongside Airtel Ltd for now.
The company intends to ultimately merge its DTH business with Airtel Ltd to forge towards converged services.
With the corporate revamp, Airtel will now house all its digital assets comprising Airtel X stream, Airtel Thanks, Wynk Music, Airtel Ads, Airtel Cloud, Mitra Payments platform, Airtel IQ, Airtel Secure, Airtel Cloud, and all other future digital services and products.
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today