With enormous honour and privilege once again I am thrilled to present you anothersuccessful year of achievements while reaching new milestones. Despite Global economic andpolitical turmoil your Company has delivered best operating and financial performance inthe history of the Company.
The vision of the present Indian Government is to place India high in digital platformof technology in the world. With all large scale national connectivity plans like BharatNet and Network for Spectrum (NFS) which are presently in the advance stages ofcommissioning the demand for the next phase of last mile OFC connectivity is just aroundthe horizon. With the vision of the Government to provide Good Governance E-Governance isplaying pivotal role in delivering services through a digital platform to increase theirreach and provide citizens with effective governance.
With all the major developments announcements and rigorous work being put by variousagencies India today is truly on its way to become a global superpower with alltechnological advancements being made available to its citizens; be it healthcare servicesbeing delivered by an e-health centre or the facility to withdraw money without having togo to an ATM are true marvels of this global connected age.
Global cues are always a good indicator of internal growth. There was some pleasantnews here too with the industry experiencing solid increase in exports: close to 9%. Thepercentage change in demand for optical fibre in India of 19% and that only begins tonarrate the positive outlook I envision for the industry. China although is setting thepace for market growth India sure is giving them some serious competition. ASEANcountries which though accounts for a small global demand holds strong global prospects
Revenue growth for India's telecom industry in 2016 will depend largely on the abilityto stimulate and monetize demand for data amid a sluggish economic recovery and regulatoryuncertainty. Fixed-mobile convergence will set the tone of competition with varying levelsof promotional activity across the country.
The phrase "internet of things" has arisen to reflect the growing number ofsmart connected products and highlight the new opportunities they can represent. Theinternet whether involving people or things is simply a mechanism for transmittinginformation. What makes smart connected products fundamentally different is not theinternet but the changing nature of the "things." It is the expandedcapabilities of smart connected products and the data they generate that are ushering ina new era of competition. Companies must look beyond the technologies themselves to thecompetitive transformation taking place. This evolution to "Internet of Things (IoT)will multiply the data connectivity many fold.
Another interesting change that is just about to take off is the "Cloud".Change happens in the information technology space whether you want it or not. But evenwith all the talk of the post- PC era and the emergence of the demon that is cloudcomputing that's forcing itself upon organizations. Undoubtedly enterprise cloudcomputing is ballooning. Several enterprise IT players have agreed of late that if youaren't in the cloud you're nowhere. It certainly seems the case given the growth ofcloud-based services over the past few years.
Owing to several of these domestic and global factors connectivity is once again atthe fore front and the focus is solely on one person- THE CONSUMER. The Internet andMobile Association of India recently announced that internet users in India now exceed 350million. This has taken the internet penetration to 27% in India however the rural usersaccounting for barely 17% of India's internet community despite representing 70% of thecountry's population. With barely 10% of the country's fixed-line connections achieving'broadband' status a lot has yet to be achievein terms of digital networking.
The optical fibre market is all set to maintain the upsurge in growth that it hasgenerated lately. Globally the optical fibre demand has increased so much so that therehave been unanimous supply issues. Aksh been proactive in recognizing this demand and hadplanned expansion to meet the same.
In line to diversify your company we are concentrating to provide easier solutions tothe much unorganized ophthalmic lens industry in India. The market potential for thissector is quite encouraging as few Indian manufacturers exist with limited productioncapacity. We have chosen this sector as it suits the Company's vision to be the marketleader in the areas of its operation. I am of the opinion that we would be able tosynergies our existing competencies very efficiently with overall experience of 29 years.
The passing of the GST Bill is a major turning point in India's history and will be agame changing reform for Indian economy. The Government's idea of a single tax regime iscrucial to improve ease of doing business in India and address the ambiguities of thecurrent indirect tax landscape proving beneficial for the economy at large. The industrywelcomes and celebrates this iconic reform.
I would extend my sincere gratitude and honour to relentless and untiring commitment ofthe entire AKSH Family who made the vision of the Company a true reality and have beenable to take the brand and place it high on a global platform.
I would finally like to thank all our stakeholders (Valued Shareholders Board MembersInvestors Bankers Customers and suppliers) for their continued faith and commitmenttowards the AKSH Family growth and prosperity.
We hope to make significant strides in the year to come.
Dr. Kailash S. Choudhari
Chairman & Managing Director
It is with immense pleasure we present you the 29th Annual report of the Company.Growing with sustainability we are geared up for presenting the market with enhancedservice and affordable solutions.
India presents high growth opportunity for optical fibre manufacturers due to risingInternet penetration the development of high-speed transmission networks and governmentinitiatives like the National Optical Fibre Network and the Network for Spectrum.Countries such as India China and Malaysia are witnessing major growth adding a majormark on the global telecom infrastructure landscape. Availability and rise in usage ofinexpensive 3G- and 4G-enabled smartphones along with demand for Internet protocol-basedvoice data and video services are propelling market growth.
Huge demand of Optical fibre cable has led to industry wide shortfall of fibre supplyand surge in fibre prices which surely calls for scaling the overall manufacturingcapacity. Aksh is set to cater to the market demand and has planned phased expansion atall its divisions to meet future requirements.The performance capacity of the fibremanufacturers would be a game changer not only for the domestic operations but forexports as well.
Aksh is committed to leverage the global and domestic industry wide demand in itsfavour. This is evident from the strong financials and results for this year: aspectacular growth in revenue and EBITDA which shows the steep growth trajectory yourcompany is headed on. I am happy to inform that your Company has recorded its highest everturnover and has strong commitment to breach Rs 500 Crore barrier in the coming year.
The e-Governance arm of the Company 1 Stop Aksh is on track to open 10000 kiosks bythe end of 2016. Key services like Micro ATM services Aadhar Card Enrolments LEDdistribution and payment of Government bills remain the top revenue generators for thedivision. 1 Stop Aksh has also forayed into providing digital literacy and promotingemployable skill development in the state of Rajasthanthrough projects like IT GyanKendras(ITGK) "National Digital Literacy Mission (NDLM)" and "Telecom SectorSkill Council (TSSC)"
Exploring new territories to diversify product portfolio we discovered that around 4.5billion people needed vision correction in the world out of which only 45% could get it.In India alone around 450 million people need eye correction and only 25% get propertreatment. This creates a huge potential for selection of our product of 'OphthalmicLens'. The ophthalmic lens market in India is largely unorganised and dependent onimports. Aksh is looking to aggressively tap into this market and the need to have anorganized player providing a world class product at "Make in India" prices. Thisproject is not just an offline product diversification but an organized phased movement toventure into the greater optical engineering space; which the company has extensiveexperience in.
Our efforts towards our community and our collective social responsibility remain asone of the prime focus. Good education and good heath are the two main growth drivers forthe economy. As part of CSR activities we are focussing on these activities through Schooladoptions and tree plantation drives For our little efforts in the field of educationAkshhas been awarded with the prestigious Bhamashah award for the second time in a row by theGovernment of Rajasthan.
Our biggest assets are our employees. During the year Company continued to makesignificant progress on talent acquisition training and development.
I would once again like to take this opportunity to thank all our valued Stakeholdersfor their faith and commitment towards Aksh family. I hope that we are able to delivervalue across the board for all our stake holders; both internal and external.
Deputy Managing Director