You are here » Home » Companies » Company Overview » Kavveri Telecom Products Ltd

Kavveri Telecom Products Ltd.

BSE: 590041 Sector: Telecom
NSE: KAVVERITEL ISIN Code: INE641C01019
BSE LIVE 15:40 | 22 Aug 9.48 -0.51
(-5.11%)
OPEN

9.01

HIGH

10.93

LOW

9.00

NSE 15:29 | 22 Aug 9.80 0.65
(7.10%)
OPEN

9.00

HIGH

9.85

LOW

9.00

OPEN 9.01
PREVIOUS CLOSE 9.99
VOLUME 5936
52-Week high 17.44
52-Week low 8.41
P/E
Mkt Cap.(Rs cr) 19
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.01
CLOSE 9.99
VOLUME 5936
52-Week high 17.44
52-Week low 8.41
P/E
Mkt Cap.(Rs cr) 19
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Kavveri Telecom Products Ltd. (KAVVERITEL) - Chairman Speech

Company chairman speech

My dear fellow Shareowners

In the recent past the outlook for the Indian economy has greatly improved on the backof various policy initiatives taken by the new Government to reinvigorate theinfrastructure and manufacturing sectors including inter alia the Prime Minister’s‘Make in India’ and ‘Skill India’ Initiatives. Business confidence hasrevived and a moderately paced recovery is already underway.

Investment flows have also improved significantly with higher foreign capital flows inequity and debt markets.

After the fall in mobile subscriber base in FY13 due to the cancellation of spectrumlicenses of some of the operators in February 2012 the sector continues to bounce back interms of subscriber additions. The Department of Telecommunications (DoT) concluded theauction process for 800 MHz 900 MHz 1800 MHz and 2100 MHz spectrum. Of the 470.75 MHzthat was put up for auction in 22 circles 418.05 MHz was sold for a consideration of Rs1098749 million. The licences are valid for a period of 20 years from the date ofallotment.

As per the reports of India Brand Equity Foundation India is currently theworld’s second-largest telecommunications market and has registered strong growth inthe past decade and half. The Indian mobile economy is growing rapidly and is expected tocontribute substantially to India’s Gross Domestic Product (GDP).

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.

Company’s Performance:

Your company has registered a consolidated total income of Rs. 4444.46 lakhs for2015-16 as compared to Rs. 5696.41 lakhs for 2014-15 and the company posted a net loss ofRs. 3526.21 lakhs for 2015-16 as compared to Rs. 3781.17 lakhs for 2014-15.

Market Size

The Indian telecommunication services market will likely grow by 10.3 per centyear-on-year. Driven by strong adoption of data consumption on handheld devicesSmartphone subscription in India is expected to increase four-fold to 810 million users by2021 while the total smartphone traffic is expected to grow 15-fold by 202.

India' has the second largest mobile subscriber base in the world. According to TelecomRegulatory Authority of India (TRAI) the total telecom subscriber base in December 2015stood at 1.04 billion out of which 1.01 billion were mobile subscribers and 25.52 millionwere wireline subscribers.

The broadband services user-base in India is expected to grow to 250 millionconnections by 2017 according to GSMA.

India added the highest number of net mobile phone subscriptions of 21 million duringthe fourth quarter of 2015.

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.

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 effortsto increase penetration in rural areas and the rapid increase in smartphone sales andrising internet usage.

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. Withthe government’s favourable regulation policies and 4G services hitting the marketthe Indian telecommunication sector is expected to witness fast growth in the next fewyears.

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 DigitalIndia mission and development of 100 smart cities will give a fillip to the telecomsector aided by high speed wireless broadband and LTE deployments in the coming years.The Company’s fundamentals remain strong and the opportunities at hand point to astrong growth 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.