New Delhi: The Bharti group of companies has reorganized the management of its holding company, Bharti Enterprises, and mobile services operator Bharti Airtel as part of a restructuring of the group’s growing businesses.
The new structure has a new hub-and-spokes model with Bharti Enterprises at the centre and seven companies around it. The holding company will control the companies—one each for telecom services, retail, phone sets, insurance, agriculture, real estate and software—through four industry- specific directors, nine group directors and two management and finance councils, besides the chairman and a board.
Bharti Enterprises, which has big plans in sectors unrelated to its core telecom business, has been seeking to devolve more of the decision- making to its individual business units, with the holding company taking an overall supervisory and guiding role.
The new structure “is designed for Bharti Enterprises to focus on overall strategic direction, leadership development and leveraging synergies,” group chairman Sunil Mittal said. Manoj Kohli, a joint MD of Bharti Airtel, will take over as the CEO of the company next week, he said.
Mint first reported on 2 March that Mittal was stepping down from his executive role at Bharti Airtel but would continue as chairman. The seven companies will be controlled by four dedicated directors, reporting to the Bharti Enterprises board and the councils. Mittal’s youngest brother Rajan will be in charge of the retail business, while the current CFO, Akhil Gupta, will oversee telecom, while Badri Agarwal will oversee insurance, software and charitable operations of the group. Rakesh Mittal, the eldest of the three brothers, will look at the devices, media, agriculture and realty businesses. Bharti Enterprises, which will have a pan-organizational human resource department, will continue to manage the top-level talent of the individual companies as well as evaluate prospective alliances and takeovers for them.
With this, it said the responsibility for business strategy, day-to-day operations and financial performance will be with the individual companies and their business heads.