Bharti Airtel

Dear Shareholders,
 
 The history of your Company is marked with some memorable years.
 However, the past year was, without a doubt, transformational in many
 respects. Our focus on spreading the benefi ts of telecommunications in
 rural India has yielded particularly gratifying results. With our
 country-wide network and targeted initiatives, such as the joint
 venture with IFFCO, we are touching and transforming the lives of
 people and making a positive impact across rural India, in
 unprecedented ways.
 
 Even as major economies around the world grappled with a severe
 recession, India experienced a relative slowdown but remained a rare
 oasis of growth. Our 6.5% GDP growth in 2008-09 is the slowest since
 2003, but still robust and remarkable in comparison. The telecom sector
 continues to play an important part in the Indian growth story. Your
 Company, with 100 million customers, is eminently placed to leverage
 the benefits of the strong customer trust that we have been able to
 build. The addition of new services such as DTH and IPTV will ensure
 Airtel retains and further strengthens its brand leadership.
 
 As a fi rst step towards pursuing our international aspirations, we
 commenced operations in Sri Lanka. The runaway success of the launch
 has justifi ed our conviction that the Airtel business model can be
 effectively and profi tably replicated in other countries.  We are
 determined to pursue our international strategy going forward.
 
 In the near future India is likely to witness plenty of action as new
 players and new technologies, including 3G, enter and significantly
 influence market dynamics. 3G technology has data capability and will
 play an important role in bridging the digital divide by taking
 wireless broadband to even the remotest corners of the country. The
 government has already formulated guidelines for the auction of 3G
 spectrum and your Company will be bidding for allocation of additional
 spectrum when the process is finalized.
 
 Employees have always been at the centre of our endeavour. I would like
 to express my appreciation for their continuous commitment to our
 success. During the course of the year, we have undertaken key
 apex-level organisational changes in order to manage future growth
 opportunities, leverage scale and build the cost synergies of ‘One
 Airtel’. I believe our management team has the leadership capability to
 take Bharti Airtel to the next level.
 
 In the course of running its business, Bharti Airtel touches millions
 of lives in positive ways. We remain eager to keep changing lives, even
 beyond the domain of our business.  The Bharti group has established
 Bharti Foundation, which is focused on providing quality education to
 under- privileged children in rural India. The Foundation is well on
 its way toward realising its goal of schooling 100,000 children. I am
 happy to note that an increasing number of our employees are
 participating in this programme, both through financial contributions
 and volunteering
 
 Francis Heng and Kurt Hellstrom have retired from Bharti Airtel’s
 Board. I thank them for their valuable counsel and guidance during
 their tenure. At the same time I welcome our new members Craig Ehrlich,
 Nikesh Arora and Quah Kung Yang who have joined as non-executive
 directors. I am also delighted to inform you that Manoj Kohli has
 joined the Board as executive director.
 
                                                      Sunil Bharti Mitta
                                          Chairman and Managing Director