Bharti Airtel Services, a subsidiary of Bharti Airtel Limited, has finalised an agreement to acquire a 97.1 percent stake in Beetel Teletech Limited, a fellow Bharti Group company. The acquisition, valued at Rs 669 crore, is part of a broader group restructuring initiative.
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Group Restructuring
"We wish to inform you that as a part of group restructuring, Bharti Airtel Services Limited, a wholly-owned subsidiary company of Bharti Airtel Limited has entered into an agreement for acquisition of 49,45,239 equity shares representing 97.1 percent stake in another Bharti Group company, Beetel Teletech Limited, which also has 49 percent stake in Joint Venture having two manufacturing facilities which produce telecom and networking products including those qualifying for Production Linked Incentive (PLI) Scheme," Airtel said in an exchange filing on Monday.
Diverse Portfolio
Beetel Teletech operates in the distribution of IT peripherals, network and enterprise solutions, fixed landlines, mobile accessories, etc. along with providing design and delivery of related technical services. The company also holds a substantial 49 percent stake in a joint venture that manufactures landlines, telecom, and networking products, including those eligible for the Production Linked Incentive (PLI) Scheme.
Bharti Group companies namely Bharti Enterprises (Holding) Private Limited, Bharti (RM) Holdings Private Limited, Bharti (RBM) Holdings Private Limited and Bharti (LM) Enterprises Private Limited hold 97.1 percent stake in Beetel.
Airtel in its exchange filing said that the acquisition aligns with the company's strategy to enable indigenization initiatives within its own ecosystem of telecom products in line with the Government's policy of 'Make In India'; and add distribution and service capabilities (including system integration) largely for the Company's enterprise business.
Beetel Teletech Technical Expertise
Beetel Teletech, established in 1999, boasts in-house technical expertise, global OEM relationships, and an extensive network of channel partners. The company is engaged in designing and delivering technical solutions and services and distributing a wide range of products from IT peripherals, network and enterprise solutions to fixed landlines and mobile accessories. Beetel distributes a host of leading brands including Avaya, HP/Poly, Samsung, Siemens, QSC, RADWIN, Ruckus, RAD, ADVA, and Actelis.
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Manufacturing Facilities
Beetel also holds 49 percent stake in a Joint Venture which has two facilities for manufacturing of landlines, telecom and networking products including products that are manufactured in compliance with the 'Production Linked Incentive (PLI) Scheme to Promote Telecom and Networking Products Manufacturing in India' notified by the Ministry of Communications.
With this acquisition, Bharti Airtel aims to strengthen its position in the market and further its commitment to supporting domestic manufacturing in the telecom and networking sectors.
