What is the purpose of the Bharti Airtel restructuring plan?
Answer
Answer
Bharti Airtel has announced a new corporate structure aimed at sharpening its digital focus. Going ahead, Airtel Digital will be subsumed into Bharti Airtel. Airtel Digital currently houses some of the high potential properties of the Bharti group like Wynk Music, Airtel X stream, Airtel Thanks, Mitra Payments, Airtel Ads, Airtel IQ, Airtel Cloud etc.
The bet is that eventually, these digital properties could drive more of valuations even as the core telecom business drives the cash flows. As part of the restructuring process, the telecom business will be housed in Airtel Ltd, a 100% subsidiary of Bharti Airtel. Eventually, the direct-to-home business or DTH will also move into Airtel.