Id like to take this opportunity to refl ect on our key initiatives andachievements over the past year and share my vision for the future.
It was a successful year for the company in a number of areas: we rebranded ourselvesreorganized our business to better align to our strategic initiatives strengthened theboard and our leadership team and re-defi ned our short and long-term strategy roadmap andconcluded three key acquisitions.
Looking back on the successes of the fi nancial year 14-15 I take immense pride in ourachievements. Through the rebrand initiative we articulated our new brand promise of"Designing Tomorrow Together". We have also formed an international brand teamto ensure that the new brand resonates with every function geography and stakeholder.
During the fi nancial year we also reorganized our business from a vertical businessunit reporting structure to a function-based reporting structure. The key driver for thiswas to decentralize decision-making and create a more empowered organization.
During the year the board of directors were unanimous in appointing Mr. KrishnaBodanapu as CEO and Managing Director of Cyient. Krishna has been associated with Cyientsince 2001 and has a strong track record in handling challenging roles andresponsibilities within the company. He has worked in multiple geographies including theUSA and Europe in addition to India and has an excellent understanding of the Cyientbusiness and future aspirations. We also have regrouped our operating council with a viewto strengthen and accelerate decision-making.
We reconstituted our board during 2014. We appointed two new independent directors tofurther strengthen our diverse board strengthen corporate governance and refl ect theglobal spirit and ambitions of the company. The new directors are Andrea Bierce ManagingDirector of Gupton Marrs International and John Paterson the recently retired Presidentof Marine and Industrial Power Systems at Rolls-Royce Plc. Now the board has 11 membersof whom four are foreign directors and seven are Indian directors. The board has sixindependent directors. This composition includes a judicious mix of business leadersindustry veterans thought leaders and investors. As a refl ection of this new alignmentwe won the National Award for Excellence in Corporate Governance for 2014 bythe Institute of Company Secretaries of India (ICSI).
Our growth aspiration over the next fi ve years is defi ned and articulated by our S3StrategyServices Systems Solutionswhich builds on our strong heritage arounddesign engineering networks operations and data. By leveraging our domain knowledgecore competencies and global execution skills our value proposition is fulfi lling clientneeds across the S3 continuum.
Design-Build-Maintain and Plan-Build-Operate are examples of executing our S3 strategyacross our focus industries. At Cyient we have the ability to design systems enableproduct realization and provide aftermarket support. We can also plan and design networksbuild operational support systems and manage network operations.
A number of actions from our strategic plan are being executed and our recentacquisitions are part of the plan. We concluded three acquisitions in the last year:Softential for service management and assurance solutions Invati Insights for datascience and analytics and Rangsons Electronics for electronics system design andmanufacturing and precision machining. We are already in the process of integrating theseacquisitions to leverage the newly added capabilities.
Let me now share some thoughts on the future. Cyient has been an acknowledged globalleader in design engineering networks and data. With newly added capabilities in productrealization and data analytics your company is well-positioned to provide leading-edgetransformative and innovative solutions to the business challenges of its clients.
For the engineering business the increasingly global nature of business is resultingin rising competition market expansion and a shorter technology adoption cycle. Thistrend is forcing OEMs to capitalize on opportunities and overcome challenges by adoptingrobust product engineering for new product development localization and enhancement.
Similarly our Data Networks & Operations (DNO) business has been witnessing newtechnology trends that are reshaping this industry and will create numerous opportunities.The convergence of voice video and data networks the rise of the digital consumer andgrowing shifts towards smart grids are some of the factors reshaping the network serviceprovider landscape.
While we are very passionately pursuing our growth we are also watching the industrytrends to identify any opportunities or challenges for our business. During last fewyears there have been a number of disruptive technologies identifi ed in our industry: 3Dprinting Big Data Internet of Things Machine to Machine communications Industry 4.0etc. These technologies have high potential to change the future and will create enormousopportunities for technology fi rms to play a bigger role in transforming the industry.
We have been closely watching these technologies and have started investing in newareas that will drive innovation and growth in the coming years. As part of this weinaugurated a state-of-the-art Experience Centre in Hyderbad India whichgives our engineers clients and prospects the ability to see touch and learn aboutproducts and components that we design. The Experience Centre focuses on Innovation@ Cyient which helps us explore experiment and improve designs by prototyping.Prototyping of parts with advanced Computer Numerical Control (CNC) machines 3D printersand table-top machines capable of producing plastic and metal components ensures aseamless transition from Computer Aided Design (CAD) to the physical outcome.
A number of industrial products and electronics devices across multiple industries havebeen installed at this experience center that also includes a PW4090 aircraft engineprovided by Pratt & Whitney.
During the year there were several changes that happened in Indian central and stategovernment. The new central government in Delhi has better engagement with industry. Thereare multiple initiatives that have been launched by the government and we have identified several opportunities for Cyient including: Make in India Defence Procurement PolicyDigital India and Smart Cities. We are at a very interesting juncture where we haveemerging opportunities created by new technologies governments willingness toleverage the latest technology in implementing these initiatives and our preparedness forboth. All these I believe will help accelerate our growth in the coming years.
We continue to give back to the society through our CSR activity. At Cyient we havebeen actively working on various social challenges for many years. Our key focus areasaresupport to education through our "Support a School" initiative at 13government schools; social innovation aligned to business needs at LV Prasad Eye Institutewhere we are supporting innovation related to a ordable eye care; skill development bymaking 3000+ fresh engineers more employable at 19 tier two engineering colleges and thedigital empowerment of neighborhoods through the National Digital Literacy Missioncentres.
There are many more activities and achievements during the fi nancial year which arecovered in next few sections of this report.
I would like to thank you for your trust and support in FY15 and I look forward to thesame for many more years to come.
B.V.R. Mohan Reddy
Founder & Executive Chairman