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Spanco Ltd.

BSE: 508976 Sector: IT
NSE: SPANCO ISIN Code: INE360B01026
BSE 00:00 | 02 Mar Spanco Ltd
NSE 05:30 | 01 Jan Spanco Ltd
OPEN 4.02
PREVIOUS CLOSE 3.82
VOLUME 16500
52-Week high 4.02
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 13
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.02
CLOSE 3.82
VOLUME 16500
52-Week high 4.02
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 13
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Spanco Ltd. (SPANCO) - Chairman Speech

Company chairman speech

SPANCO LIMITED ANNUAL REPORT 2011-2012 CHAIRMAN'S REPORT DEAR SHAREHOLDERS, It is my pleasure to present to you the Twenty Ninth Annual Report for the 6 months period ended March 31, 2012. As you all are aware these 6 months follow the 18 months period wherein we had extended our financial year to cope up with the scale, size and diversity of our order book. Put together, these 24 months have demonstrated our power of committed focus on execution of our large order book and the smooth setting up of our Power Distribution business. We restructured and realigned our resources to match the new scale and dimension of growth we had set out to achieve and as we traversed this path which held several operational financial challenges, we pleasantly surprised our critics. Essentially during the past 6 months period we consolidated these gains and continued with our efforts on what we had set out to achieve in the past 24 months. Operationally, we executed several Government contracts, including eGovernance projects, modernization of border check posts and power sector modernization projects across the country. Step-by-step and steadily we delivered projects in excess of Rs. 2000 Crores in the past 24 months - all in time and with flawless precision. Landmark projects We have successfully laid the foundation for our 15-year Power Distribution Franchise (DF) business in Nagpur. Spanco through this project is responsible for providing quality power to consumers in the franchisee area and reduce power distribution losses to the minimum. The strong foundation of our Power DF business in Nagpur supported by a leading US-based fund has further strengthened our strategy to forward integrate into the DF business. We created, Spanco Nagpur Discom Limited (SNDL) as a focused entity for successful execution of Nagpur DF. After stabilizing its operations for quality power in Nagpur, we took several initiatives to meet consumer expectations. Drive against power theft, Amnesty, Setting up a 24X7 helpline, Reduced resolution time for complaints, Timely information to consumers through mobile platform, Providing new service connections at door step, Awareness campaign including Know Your Bill and consumer safety, Bill payment facility on Sundays and non-working days are some services that have evoked overwhelming response and appreciation from the consumers. After being awarded the Restructured Accelerated Power Development & Reforms Programme (R-APDRP) project for the entire state of Punjab, the Company also won the IT modernisation project of the state of Bihar, Maharashtra - 35 towns and Goa. With the execution of these orders, we further consolidated our position as one of the market leaders in the IT modernisation projects within the power distribution companies under the R- APDRP program. Through a JV (MP Border Checkpost Development Company Ltd) we are executing the modernization of integrated border check post at 24 locations in Madhya Pradesh. Through this project, we have successfully made a major breakthrough in this space and expect to participate in similar large projects in the future. We are also a part of the Government's modernization programme wherein we are delivering secured and robust technology infrastructure for several state governments. These projects involve supply, installation, management and maintenance of Infrastructure technology and providing services. Few projects under execution are modernization of 22 Airports, modernization of transport department of state of Punjab, common service centres, etc. The period also saw us successfully foray into the African continent through a tie-up with Bharti Airtel. In a short span of time of less than 24 months, we have emerged as the number One 3rd party BPO in Africa and have been granted pioneer status and a 5 year tax holiday by Government of Nigeria. Lateral and radical thinking In many ways put together these 24 months are historic not only in term of the size, scale and diversity of the operations but also in terms of our strategic approach which combined both unconventional and traditional elements, both the top-down and bottom-up thinking. Our industry foresight even prior to the 24 months provided us a 'top-down' perspective of our industry. Technology and its power to unleash rapid transformation across the country and the globe were humongous and complex yet very real and visible. For us at Spanco, from the business stand-point there were multiple trends that were emerging yet they were converging to a core -the ability to flawlessly deliver and manage gigantic scale of diverse IT-infrastructure projects in the Government, Public and Private sector. However, the competitive dynamics in the industry has increased becoming a ground for dislocation of the best in the business. It meant we also had to take a 'bottom-up' perspective, we sought answers to the explicitly stated requirement of customers and yet it required us to comprehend what were their unstated and latent needs. In many ways, the answers to which path was to be selected from these diverse emerging trends was not easily apparent. Foresight of seeing challenges early As I look back in many ways the catalyst for seeking change and embracing the power sector required a professional organization to think differently and laterally. It demanded radical rethinking and completely challenging the status quo. It required us to embrace an entrepreneurial approach rooted in the adage of 'all-things-possible' perspective while evaluating opportunities. I go back to this one decision at length, as I see the enormous challenges that are hitting the pure Information Technology sector across the country today. While we have a long way to go in reaching the final goal post, our ability to foresee the need to identify and evolve a new business segment has cushioned us partially from the current tight situation faced by the IT industry. Our domain presence in the power sector has a long term opportunity potential in India and overseas. Through our BPO operations we have already set our base in Africa. As we have done in the past in India, after foraying into one State, we ensured that we grow our bouquet of offerings in the other States, we aspire to expand our offerings and base in Africa. A host of multinationals are pushing hard to get a foothold on the continent and it is no longer just the continent's mineral resources that are attracting attention, but also the burgeoning consumer sector. The African continent today is akin to the Indian economy of the early 1990s and will see the entire journey of telecom and IT revolution being replicated. A journey of transformation and modernization that we are confident will provide Spanco ample amount of opportunities to participate in a big way. Through our well-thought business strategy, we have reduced our focus on sectors where growth opportunities appeared diminishing while expanding our footprints in newer sectors which hold the potential for growth. Our innovative approach and solid management practices driven by a stable leadership team, a balanced services portfolio across all our business lines viz. Government, Power, Telecom, Transport that aligns to market needs, coupled with a wide geographic spread and increased efficiencies; we have integrated long term sustainability into our businesses. Challenges in the short-term While I talk of the robust long term potential, the challenges posed by the global economy and the Indian economy, the high interest rate scenario and the slowdown in industry are a cause for abundant concern. Our business too faces the brunt of this adverse situation and while we work on strategies to cushion the blow, by virtue of being present in domain like power and a mix of private, public and geographic diversity we believe we are better placed to counter these short-term phase of external challenges. A word of thanks Our ability to galvanize the organization around our new strategies, goals and actions and go on to execute the large and historic order book has seen us mature as an entity. And we believe the invaluable experience that we have earned will enable us to expand our opportunity horizon in the long term and cross the hurdles posed in the near term. As we look forward to the coming year, I take this opportunity to thank all the members of the Board, the key management team and our employees for their unstinted support which has enabled us cross the hurdles on the way. I also take this opportunity to place on record our gratitude to our banks and financial institutions for their encouragement and support. I also appreciate the continued support and confidence reposed in the Company's management by all stakeholders. We remain committed to Thinking Differently for sustained long term growth and delivering value to all. Kapil Puri Chairman & Managing Director