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Exhibit 3: Timeline for Bharti Tele-Ventures and Warburg Pincus InvestmentsDate Event Value1995 (July) Bharti Televentures Ltd (BTVL) created1999 (13 September) Warburg Pincus makes first investment for less than 15% of BTVL $15 million1999 (17 November) Warburg Pincus makes second investment $44 million2000 (15 January) Warburg Pincus makes third investment $29 million2001 (21 June) Warburg Pincus makes fourth investment $125 million2001 (16 July) Warburg Pincus makes fifth investment $75 million2002 (February) BTVL IPO; Warburg Pincus stake diluted to 18.5% $171.5 million2004 (13 August) Warburg Pincus begins to exit, sells a 3.35% equity share $204 million 182005 (2 February) Warburg Pincus makes second exit via overnight block trade $307 million2005 (March) Warburg Pincus sells 6% stake in public market, Mumbai Stock Exchange $553 million 192005 (28 October) Warburg Pincus sells 5.65% to Vodafone, completes exit from BTVL. $766 million 20Cumulative proceeds exceed $1.83 billion18http://www.vccircle.com/2005/11/3/the-warburg-bharti-saga-an-eventful-and-profitable-one/ accessed 14 December 2007 and company information.19Jay Solomon, Laura Santini and Kate Linebaugh, “Warburg Sells 6% Stake in Bharti,” Wall Street Journal, 15 March 2005, and company information.20http://www.vccircle.com/2005/11/3/the-warburg-bharti-saga-an-eventful-and-profitable-one/ and company information.Source: Warburg Pincus.Exhibit 4A: Bharti cellular footprint in India in November 2001We currently provide cellular services in six of the 22 licence areas in India(referrred to as circles) and intend to expand our cellular services to covernine additional circles by the middle of this year. As of 30 November 2001,approximately 92% of India’s total number of cellular subscriptions residedin our existing and proposed cellular circles. Our cellular coverage in Indiais depicted here:The key demographies of the present and proposed cellular circles and acomparison with leading cellular operators in India is set forth below. Theinformation given is for the total market and is not representative of ourmarket share or network coverage.Existing licence areaExisting and proposed licenced areaBPL - BPL -India Bharti Hutchison BTAL Bharti (1) Hutchison (2) BTAL (3)% to % to % to % to % to % toActual all India all India all India Actual all India all India all IndiaNumber of circles 22 6 27% 18% 32% 15 68% 32% 36%Area of the circles (in squarekilometrers, in thousands) (4) 3,278 525 16% 6% 43% 1,848 56% 20% 43%Population in licencedareas (in millions) (5) 1,027 167 16% 9% 38% 594 58% 22% 40%Market cellular subscribersin the licenced area (in millions) (6) 5.2 2.0 38% 43% 53% 4.8 92% 61% 69%Market DELs in thelicenced area (in millions) (7) 32.4 9.6 30% 25% 51% 26.8 82% 43% 57%Number of vehicles in theHimachalPunjabPradeshUttarHaryana Delhi Pradesh(West)MumbaiMaharashtralicenced areas (in millions) (8) 36,132 9,779 27% 22% 48% 29,025 80% 39% 56%(1) Comprises our six circles where we have exisitng operations, and our nine proposed circles where we recently acquired licences and intend toprovide cellular services by the middle of this year.(2) Consists of the circles of Delhi, Mumbai, Kolkata, Chennal, Gujarat, Andhra Pradesh and Karnataka.(3) Constitutes the proposed merged entity of BPL and Birla Tata AT&T and the circles consist of Melhi, Mumbai, Gujarat, Maharashtra, Andhra Pradesh,Tamil Nadu, Kerala and Madhya Pradesh.(4) Area estimates are from National Census 2001.(5) Population estimates for all the circles other than the metropolitan areas are as per National Census 2001 and are as of March 1 2001. Populationestimates for the Uttar Pradesh (West) circle is 37% of the total populatin of the state of Uttar Pradesh.(6) Based on data released by the COAI on the total number of cellular subscribers in the circles as of November 30 2001.(7) DELs are defined as direct exchange lines representing the number of fixed-line subscribers and are based on data available from BSNL’s annualreport for 2000–2001 on the number of DELs in the circles as of March 31 2001.(8) Vehicles comprise four wheelers and two wheeler non-commercial vehicles and are derived from data released by the Motor Transport Statisticsof India as of March 31 1997 in its most recent report.Source: 7 February 2002. Bharti Prospectus.GujaratKarnatakaKibalaMadhyaPradeshAndhraPradeshChennaiTamilNaduKolkataOur existingcellular circlesOur proposedcellular circles158 Case studies: Warburg Pincus and Bharti Tele‐VenturesThe Global Economic Impact of Private Equity Report 2008
Exhibit 4B: Bharti cellular footprint in 2003PunjabPopulation 1 25 millionmobile market size 2 1,245,254our market share 2 41%Himachal PradeshPopulation 1 6 millionmobile market size 2 94,737our market share 2 48%Delhi & NCR 4Population 1 22 millionmobile market size 2 2,299,372our market share 2 48%Haryana 4Population 1 17 millionmobile market size 2 326,541our market share 2 27%Uttar Pradesh (West) & Uttaranchal 4Population 1 57 millionmobile market size 2 617,615our market share 2 21%GujaratPopulation 1 51 millionmobile market size 2 1,339,905our market share 2 6%Maharashtra & Goa 3Population 1 82 millionmobile market size 2 1,363,014our market share 2 13%MumbaiPopulation 1 16 millionmobile market size 2 2,022,212our market share 2 46%KolkataPopulation 1 15 millionmobile market size 2 628,429our market share 2 39%KarnatakaPopulation 1 53 millionmobile market size 2 1,062,416our market share 2 46%KeralaPopulation 1 32 millionmobile market size 2 762,443our market share 2 10%Tamil Nadu & Pendicherry 3Population 1 57 millionmobile market size 2 828,906our market share 2 9%Our operational Mobile circlesMadhya Pradesh & ChattisgarhPopulation 1 81 millionmobile market size 2 549,667our market share 2 10%Andhra PradeshPopulation 1 76 millionmobile market size 2 1,114,796our market share 2 34%ChennaiPopulation 1 6 millionmobile market size 2 573,974our market share 2 41%(1) Population estimates are as per National Census, 2001 and are as of 1 March 2001. The population for Uttar Pradesh (West) circle is approximately37% of the total population for the state of Uttar Pradesh.(2) Mobile subscriber statistics are as of 31 July 2003 and are based on data released by COAI. Mobile market size comprises the total number ofmobile subscribers of all the service providers in a circle.(3) Demographics of Maharashtra and Tamil Nadu do not include demographics of state capitals (metros) Mumbai and Chennai respectively.(4) Demographics of Haryana do not include Faridabad & Gurgaon as they are included in Delhi & NCR. Similarly, demographics of Uttar Pradesh(West) & Uttaranchal do not include Noida & Ghaziabad as they are included in Delhi NCR.Source: Company documents.The Global Economic Impact of Private Equity Report 2008 Case studies: Warburg Pincus and Bharti Tele‐Ventures 159
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The Globalization of Alternative In
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ContributorsCo-editorsAnuradha Guru
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PrefaceKevin SteinbergChief Operati
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Letter on behalf of the Advisory Bo
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Executive summaryJosh lernerHarvard
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• Private equity-backed companies
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C. Indian casesThe two India cases,
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Part 1Large-sample studiesThe Globa
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The new demography of private equit
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among US publicly traded firms, it
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should be fairly complete. While th
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according to Moody’s (Hamilton et
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draining public markets of firms. I
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FIguresFigure 1A: LBO transactions
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TablesTable 1: Capital IQ 1980s cov
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Table 2: Magnitude and growth of LB
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Table 4: Exits of individual LBO tr
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Table 6: Determinants of exit succe
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Table 7: Ultimate staying power of
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Appendix 1: Imputed enterprise valu
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Private equity and long-run investm
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alternative names associated with t
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4. Finally, we explore whether firm
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When we estimate these regressions,
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cutting back on the number of filin
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Table 1: Summary statisticsPanel D:
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Table 4: Relative citation intensit
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figuresFigure 1: Number of private
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Private equity and employment*steve
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Especially when taken together, our
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centred on the transaction year ide
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and Vartia 1985.) Aggregate employm
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sectors. In Retail Trade, the cumul
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employment-weighted acquisition rat
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FIguresFigure 1: Matches of private
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Figure 6:Figure 6A: Comparison of n
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Figure 8:Figure 8A: Comparison of j
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Figure 11: Variation in impact in e
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Figure 12: Differences in impact on
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Private equity and corporate govern
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et al (2007) track the evolution of
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groups aim to improve firm performa
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distribution of the LBO sponsors, m
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the most difficult cases. This stor
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to see whether these changes of CEO
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Figure 3:This figure represents the
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TablesTable 1: Company size descrip
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Table 5: Changes in the board size,
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Table 7: Board turnoverPanel A: Siz
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Part 2Case studiesThe Global Econom
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European private equity cases: intr
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Exhibit 1: Private equity fund size
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Messer Griesheimann-kristin achleit
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ealized it was not possible to grow
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The deal with Allianz Capital partn
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the deal, the private equity invest
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Exhibit 1: The Messer Griesheim dea
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Exhibit 5: Post buyout structureMes
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New Lookann-kristin achleitnerTechn
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feet. This restricted store space w
Page 125 and 126: institutional investors why this in
Page 127 and 128: Although a public listing did not a
Page 129 and 130: Exhibit 5: Employment development a
Page 131 and 132: Chinese private equity cases: intro
Page 133 and 134: Hony Capital and China Glass Holdin
Page 135 and 136: Hony’s Chinese name means ambitio
Page 137 and 138: Establishing early agreement on pos
Page 139 and 140: Executing the IPOEach of the initia
Page 141 and 142: Exhibit 1A: Summary of Hony Capital
Page 143 and 144: Exhibit 4: Members of the China Gla
Page 145 and 146: Exhibit 6A: China Glass post‐acqu
Page 147 and 148: Exhibit 8: China Glass stock price
Page 149 and 150: 3i Group plc and Little Sheep*Lily
Page 151 and 152: y an aggressive franchise strategy,
Page 153 and 154: soul” of the business. But there
Page 155 and 156: Exhibit 1: Summary information on 3
Page 157 and 158: Exhibit 6: An excerpt from the 180-
Page 159 and 160: Indian private equity cases: introd
Page 161 and 162: ICICI Venture and Subhiksha *Lily F
Page 163 and 164: investment,” recalled Deshpande.
Page 165 and 166: 2005 - 2007: Moderator, protector a
Page 167 and 168: Exhibit 3: Subhiksha’s board comp
Page 169 and 170: Warburg Pincus and Bharti Tele‐Ve
Page 171 and 172: founded two companies at this time
Page 173 and 174: By 2003 this restructuring task was
Page 175: Exhibit 1C: Private equity investme
Page 179 and 180: Exhibit 6: Summary of Bharti’s fi
Page 181 and 182: Exhibit 7: Bharti’s board structu
Page 183 and 184: In the 1993‐94 academic year, he
Page 185 and 186: consumer products. She was also a R
Page 187 and 188: AcknowledgementsJosh LernerHarvard
Page 189: The World Economic Forum is an inde
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