This year has been a year of consolidation and development for your company. Manyinitiatives taken this year will surely blossom into strong performance in the comingyears and I am very optimistic about the future course of the company and the developmentof our main areas of business.
Digital cinema is production delivery and projection of motion pictures in theatresusing digital technology. In terms of viewing experience digital format is better as itgives better picture quality sound and clarity. It is more cost effective as theexhibitor and producers needn't invest in projectors or in prints as per our businessmodel. Our Cinema advertising revenues has increased by 100% and number of screensincreased by 50% during the year.
According to the latest PWC report the global media and entertainment market isestimated to grow at 5.6% CAGR over the next five years generating US$ 2.2 trillionrevenues.
We have focus on Cinema advertising on screen & off screen plus increasing numberof screens in coming future.
Inter world has developed in association with a partner abroad a cost effective 3Dsystem for Cinemas. We have already installed in more than 20 screens of Multiplexes. Itis big thing that our equipment is approved by DCI to play Hollywood movies. Interworld isIndia's first company to launch such 3D system under its own brand "INTERWORLD. Wehave another feather in cap that we had installed our 3D system in India's largest screenat New Excelsior Mumbai.
After the induction of New Government and Shri Narendra Modi ji as PM our whole teamis full of new motivation and enthusiasm and working on reducing expenses new projectsand finding new ways of productivity. I am sure that in coming years these thoughts andprocesses will give bigger valuations to the company.
Interworld is among pioneers in eCommerce business and discontinued due to poor bottomline during early years in 2000-2004 as there were very few internet users in India. NowIndia has an internet user base of about 250.2 million. The penetration of e-commerce islow compared to markets like the United States and the United Kingdom but is growing at amuch faster rate with a large number of new entrants.
Since we have good knowledge of business operations and logistics I recommendstarting eCommerce business again with new thoughts and system and I am much moreconfident that this time we will get larger spectrum of product and services and willestablish ourselves in India market among top players.
We will add some niche segments which have bigger potential and acceptance withmargins. India has close to 10 million online shoppers and is growing at an estimated 30%CAGR vis-a-vis a global growth rate of 8-10%. Electronics and Apparel are the biggestcategories in terms of sales.
I am confident that INTERWORLD has miles to go thanks to our vision of creating aglobal family of viewing fraternity; a family which is widening every single day. Our Teamhas the commitment and the caliber to compete with the best in the global entertainmentuniverse and together we will take brand INTERWORLD to new heights of excellence.
I thank all our stakeholders whose unstinted support and guidance has contributed toour stellar performance in FY 2014. We will continue to live our values and turnopportunities into business achievements in the years to come.
Man Mohan Gupta
(Chairman & Managing Director)