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Kavveri Telecom Products Ltd.

BSE: 590041 Sector: Telecom
NSE: KAVVERITEL ISIN Code: INE641C01019
BSE 00:00 | 08 Aug 8.79 0.39
(4.64%)
OPEN

9.24

HIGH

9.24

LOW

8.17

NSE 00:00 | 08 Aug 8.70
(%)
OPEN

8.50

HIGH

8.85

LOW

8.10

OPEN 9.24
PREVIOUS CLOSE 8.40
VOLUME 3489
52-Week high 19.28
52-Week low 3.48
P/E
Mkt Cap.(Rs cr) 18
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.24
CLOSE 8.40
VOLUME 3489
52-Week high 19.28
52-Week low 3.48
P/E
Mkt Cap.(Rs cr) 18
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

Dear Shareholders

I am privileged to present on behalf of the Board of Kavveri Telecom Products Limited.the 26th Annual Report of the company for the financial year ended March 312021. Since spring 2020 the COVID-19 pandemic has been accelerating structural challengesand trends that have long faced the telecommunications industry. The year saw a verychallenging economic environment starting from beginning of the financial year. This isthe first full-year contraction in the Indian economy in the last four decades since1979-80 when GDP had shrunk by 5.2 per cent. This was followed by the lockdowns startingfrom 25th March 2020 due to the global COVID-19 pandemic and your Company'sfirst two quarter (April - September 2020) was very seriously affected in terms of boththe sales revenue and its profit before tax.

The COVID-19 pandemic has changed the way people think and live today and your companyand its management has also had to face and live with the ‘new normal' since the lastweek of March 2020. Infact over and above the guidelines from the concerned authoritiesyour company has taken many steps to educate the employees on how to ‘take care andstay safe' both in the Company's premises and outside.

International economic situation:

In 2020 the world economy shrank by 4.3 per cent over two and half times more thanduring the global financial crisis of 2009. The modest recovery of 4.7 per cent expectedin 2021 would barely offset the losses of 2020 says the latest World Economic Situationand Prospects. The report underscores that sustained recovery from the pandemic willdepend not only on the size of the stimulus measures and the quick rollout of vaccinesbut also on the quality and efficacy of these measures to build resilience against futureshocks.

Developed economies projected to see a 4 per cent output growth in 2021 shrank themost in 2020 by 5.6 per cent due to economic shutdowns and subsequent waves of thepandemic increasing the risk of premature austerity measures that would only derailrecovery efforts globally. Developing countries saw a less severe contraction at 2.5 percent with an expected rebound of 5.7 per cent in 2021 according to the estimatespresented in the report.

Indian manufacturing sector – an overview:

India is an attractive hub for foreign investments in the manufacturing sector. Severalmobile phone luxury and automobile brands among others have set up or are looking toestablish their manufacturing bases in the country.

The manufacturing sector of India has the potential to reach US$ 1 trillion by 2025.The implementation of the Goods and Services Tax (GST) will make India a common marketwith a GDP of US$ 2.5 trillion along with a population of 1.32 billion people which willbe a big draw for investors. The Indian Cellular and Electronics Association (ICEA)predicts that India has the potential to scale up its cumulative laptop and tabletmanufacturing capacity to US$ 100 billion by 2025 through policy interventions.

With impetus on developing industrial corridors and smart cities the Government aimsto ensure holistic development of the nation. The corridors would further assist inintegrating monitoring and developing a conducive environment for the industrialdevelopment and will promote advance practices in manufacturing.

The Government of India has been supportive towards industry's growth. It has set upElectronic Hardware Technology Parks (EHTPs) Special Economic Zones (SEZs) and hasbrought about a favourable climate for Foreign Direct Investment (FDI). The Government hasalso increased liberalisation and has relaxed tariffs to promote growth in the sector. Inaddition it has given the nod to Modified Special Incentive Package Scheme (MSIPS) underwhich the Central Government will be offering up to Rs 11881 crore (US$ 1.7 billion) inbenefits to the electronics sector in the next five years. Under the scheme a subsidy forinvestment in capital expenditure is provided to the extent of 20% of investment in SEZsand 25% of investment in non-SEZs.

The growing customer base and the increased penetration in consumer durables segmenthave provided enough scope for the growth of the Indian electronics sector. Alsodigitization of cable could lead to increased broadband penetration in the country andopen new avenues for companies in the electronics industry.

Financial performance:

For the reasons above stated your Company's sales on a consolidated basis declined by3.01% year on year recording a total of 517.63/- Lakhs revenue in FY21 as compare to FY 20Rs. 533.71/- Lakhs.

Finally I would like to convey my sincere gratitude to my esteemed colleagues on theBoard for their valuable advice and guidance which ensures that your company adheres toits principles policies and processes and successfully meets the various challengesarising in these difficult times.

Thank you.
Sd/-
CHENNAREDDY SHIVAKUMARREDDY
Chairman
DIN: 01189348

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