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Kavveri Telecom Products Ltd.

BSE: 590041 Sector: Telecom
NSE: KAVVERITEL ISIN Code: INE641C01019
BSE LIVE 13:38 | 17 Nov 11.87 0.09
(0.76%)
OPEN

11.50

HIGH

11.99

LOW

11.25

NSE 15:31 | 17 Nov 11.05 0.15
(1.38%)
OPEN

10.85

HIGH

11.40

LOW

10.60

OPEN 11.50
PREVIOUS CLOSE 11.78
VOLUME 2117
52-Week high 15.84
52-Week low 8.10
P/E
Mkt Cap.(Rs cr) 24
Buy Price 0.00
Buy Qty 0.00
Sell Price 11.87
Sell Qty 90.00
OPEN 11.50
CLOSE 11.78
VOLUME 2117
52-Week high 15.84
52-Week low 8.10
P/E
Mkt Cap.(Rs cr) 24
Buy Price 0.00
Buy Qty 0.00
Sell Price 11.87
Sell Qty 90.00

Kavveri Telecom Products Ltd. (KAVVERITEL) - Chairman Speech

Company chairman speech

My dear fellow Shareowners

India is currently the world's second-largest telecommunications market with asubscriber base of 1.05 billion and has registered strong growth in the past decade andhalf. The Indian mobile economy is growing rapidly and will contribute substantially toIndia's Gross Domestic Product (GDP) according to report prepared by GSM Association(GSMA) in collaboration with the Boston Consulting Group (BCG). The country is the fourthlargest app economy in the world.

The liberal and reformist policies of the Government of India have been instrumentalalong with strong consumer demand in the rapid growth in the Indian telecom sector. Thegovernment has enabled easy market access to telecom equipment and a fair and proactiveregulatory framework that has ensured availability of telecom services to consumer ataffordable prices. The deregulation of Foreign Direct Investment (FDI) norms has made thesector one of the fastest growing and a top five employment opportunity generator in thecountry.

The Indian telecom sector is expected to generate four million direct and indirect jobsover the next five years according to estimates by Randstad India. The employmentopportunities are expected to be created due to combination of government's efforts toincrease penetration in rural areas and the rapid increase in smartphone sales and risinginternet usage.

International Data Corporation (IDC) predicts India to overtake US as thesecond-largest smartphone market globally by 2017 and to maintain high growth rate overthe next few years as people switch to smartphones and gradually upgrade to 4G.

Market Size

The mobile industry is expected to create a total economic value of Rs 14 trillion (US$217.37 billion) by the year 2020. It would generate around 3 million direct jobopportunities and 2 million indirect jobs during this period.

The total number of telephone subscribers in the country rose by 11.13 per centyear-on-year to 1151.78 million in the September-December quarter of 2016. According to areport by leading research firm Market Research Store the Indian telecommunicationservices market will likely grow by 10.3 per cent year-on-year to reach US$ 103.9 billionby 2020.

The revenue of mobile handset industry rose 22 per cent to Rs 1.36 trillion (US$ 21.12billion) in 2016. In 2017 around 200 million mobile handsets will be made out of Indiaout of the 270 million mobile handsets to be shipped.

According to the Ericsson Mobility Report India smartphone subscriptions in India isexpected to increase four-fold to 810 million users by 2021 while the total smartphonetraffic is expected to grow seventeen-fold to 4.2 Exabytes (EB) per month by 2021.According to a study by GSMA smartphones are expected to account for two out of everythree mobile connections globally by 2020 making India the fourth largest smartphonemarket. India is expected to lead in the growth of smartphone adoption globally with anestimated net addition of 350 million by year 2020. Total number of smartphone shipmentsin India stood at 25.8 million units in the quarter ending December 2016 and smartphoneshipments during 2016 stood at 109.1 million units up by 5.2 per cent year-on-year.Broadband services user-base in India is expected to grow to 250 million connections by2017.

Government Initiatives

The government has fast-tracked reforms in the telecom sector and continues to beproactive in providing room for growth for telecom companies. Some of the other majorinitiatives taken by the government are as follows:

• The Telecom Regulatory Authority of India (TRAI) focuses on identifying issuesthat make it difficult to do telecom business in India like licence acquisition andspectrum allotment among others and review them in order to simply these processes to themaximum possible extent.

• The Government of India plans to auction the 5G spectrum in bands like 3300 MHzand 3400 MHz to promote initiatives like Internet of Things (IoT) machine-to-machinecommunications instant high definition video transfer as well as its Smart Citiesinitiative.

• The Government of India has launched a phased manufacturing programme (PMP)aimed at adding more smartphone components under the Make in India initiative therebygiving a push to the domestic manufacturing of mobile handsets.

• The Government of India has allocated Rs 10000 crore (US$ 1.5 billion) forrolling out optical fibre-based broadband network across 150000 cumulative grampanchayats (GP) and Rs 3000 crore (US$ 450 million) for laying optical fibre cable (OFC)and procuring equipment for the Network For Spectrum (NFS) project in 2017-18.

Road Ahead

India will emerge as a leading player in the virtual world by having 700 millioninternet users of the 4.7 billion global users by 2025 as per a Microsoft report.Internet economy expected to touch Rs 10 trillion (US$ 155 billion) by 2018 contributingaround 5 per cent to the country's GDP. With the government's favourable regulationpolicies and 4G services hitting the market the Indian telecommunication sector isexpected to witness fast growth in the next few years. The Government of India also plansto auction the 5G spectrum in bands like 3300 MHz and 3400 MHz to promote initiativeslike Internet of Things (IoT) machine-to-machine communications instant high definitionvideo transfer as well as its Smart Cities initiative.

Company's Performance:

Your company has registered a consolidated total income of Rs. 2804.04 lakhs for2016-17 as compared to Rs. 4444.46 lakhs for 2015-16 and the company posted a net loss ofRs. 3151.73 lakhs for 2016-17 as compared to Rs. 3526.21 lakhs for 2015-16.

Our Commitment

We are confident that the telecom sector in India will witness continued strong growthand contribute to economic development of the country. The Prime Minister's Digital Indiamission and development of 100 smart cities will give a fillip to the telecom sectoraided by high speed wireless broadband and LTE deployments in the coming years. TheCompany's fundamentals remain strong and the opportunities at hand point to a stronggrowth path supporting the positive outlook.

Our emphasis on innovation will help us to achieve faster growth in years to come byoffering a unique value proposition to our customers in terms of our product and serviceportfolio network experience and customer service. We remain committed to upholding thatvision and creating ever greater value for all our stakeholders.

At the outset i would like to acknowledge my sincere thanks to the members customersfinancial institutions bankers employees auditors and all others for their kind supportand cooperation being extended from the beginning.

THANK YOU.