Year 2016 has been etched in history as the period when the advanced economies - Europeand America - decided to change their model of development and functioning of economy bybecoming more inwand-looking retreating from open markets and globalization. Countrieslike USA following principles of "Buy Domestic and Hire Domestic" and Bnexitreferendum in the United Kingdom signals of the start of a new era of fierceprotectionism for jobs and trade wherein the national interests are evolving shiftingaway from multilateralism and free trade. In view of this the Indian outsourcing industryand exporters to the US have been seen to be especially worried about this assertive callto protectionism.
One of the main reasons that have made China the global manufacturing hub isglobalization. Countries like India and China have been the biggest gainers ofglobalization. As a country we will need to be more proactive in becoming champions ofkeeping world markets more open and Indian Industries will have to reinvent itself.
The longer-term challenge and opportunity for the technology sector is predicted to beautomation as global corporations from plane-makers to consumer firms bet on the use ofmachines to further cut costs and boost efficiency. Though greater automation is expectedto help engineers and developers shed repetitive jobs for more creative roles we mustalso not overlook the fact that increasing automation is changing the nature ofmanufacturing and of services across the world.
The situation looks much more promising for us as this government has taken the focuson manufacturing a step further by starting a Make in India campaign and complementing itwith a Skill India campaign. The hope is that with higher wages impairing China'scompetitiveness India can take China's place as the factory of the world.
Given the rapid changes happening in manufacturing we should be cognizant that Indianmanufacturing Industry has a golden chance to emerge from the shadow of the country'sservices sector and seize more of the global market. The rising demand in India togetherwith the multinationals desire to diversify their production to include low-costplants in countries other than China could together help Indias manufacturingsector to grow multi-fold. In order to capture this opportunity Indiasmanufacturers will require improving their productivity dramatically by bolstering theiroperations to improve the productivity of labor and capital in turn creating more jobsamidst the environment where a constant fear lurks around job losses.
There is a dire need for businesses to decode the complexities of connectivity. Allindividuals communities systems and other business assets are massively interconnectedin an evolving economic ecosystem. In such a connected system we can no longerfocus on theperformance of individual entities and at a large we must manage connected assets.
Realizing the potential of these connected systems ONIDA is making relentless effortsin streamlining business processes reducing enterprise costs and improving workforceeffectiveness through collaborativeness and connectivity. By connecting the dots we aretrying to bring in a transformation in the way we are inclined to create a value for ourend customers. We are keen on rephrasing every existing definition and replace it with anew one to bring ourselves closer to realizing our customers needs and expectations.
This clearly translates in our products and offerings that are thoughtfully designedfor our consumers. In the Air Conditioners category Inverter Technology Air conditionershave been the most talked about technology all residential Air Conditioner brands haveoffered from their stable this year. Onida has been a bit ahead of the curve inidentifying this shift in market demand by launching its Inverter Air Conditioner based onthe IOT- INTERNET OF THINGS technology. Onida Regalio - Smart Wi-Fi AC with InverterTechnology was launched last year to cater to the taste of evolving Indian consumers. Thisyear we took the mantle ahead by launching an extensive and wide range of InverterTechnology Air conditioners and expanding our product portfolio.
Television technology has changed by leaps and bounds over the last ten years. Displayquality has improved with LCD and LED panels and high definition TVs are becoming thenorm. These modem flat screen TVs are sleek can be mounted on walls and actually add tothe lifestyle and decor value of homes. But one place where TVs continue to be woefullyinadequate is the quality of sound that they deliver. In fact given the physicallimitations of flat screen TVs the sound quality sometimes has actually gone down. Hencepeople are forced to "make do" with sub-optimal solutions - from adding externalspeakers to rigging up a whole home theatre with wires getting tangled everywhere.
This year we came up with an elegant solution to this messy problem with the launch ofthe new Onida KY Thunder TV. The KY Thunder delivers 1200 watts of pulsating sound tocreate a rich experience of picture and sound. This product is a result of over 15 yearsof research on the science of sound engineering. For the first time ever in India sounddoesnt play a second fiddle to picture. The room-filling sound of KY Thunder willensure that the best picture has matching sound that brings it alive.
We at Onida are fostering a culture of innovation and developing meaningful offeringsthat attempt empowering users with products that are just perfect for them. It isdelightful in understanding that our efforts have been duly recognized and appreciatedthrough various awards and accreditations that come along the way. We are honored to beadjudged as the 4th most trusted brand in the consumer durables and electronics categoryby The Brand Trust Report 2016 launched by TFtA (formerly Trust Research Advisory).
Taking forward the same approach we will launch more innovative products that willcontinue to add value in consumers' life and provide them with an unparalleled experience.
Finally I would like to take this opportunity to thank you as the shareholders of theCompany for your support and motivation to the Company during the year. I would also liketo thankthe employees suppliers customers partners and investors who have stood by theCompany and I look forward to their continued support in the future.
Gulu. L. Mirchandani
Chairman & Managing Director