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ANNUAL REPORT 1999-2000
S KUMARS. COM LIMITED
CHAIRMAN'S SPEECH
S Kumars. com Ltd.
FIRST ANNUAL GENERAL MEETING, AUGUST 2, 2000
My dear shareholder friends
A hearty welcome to our first annual general meeting. I am glad to inform
you that by the grace of god our project is progressing well and we are on
our way to establish one of the most exciting and ambitious plans of our
times.
e-defining business: the sustainable advantage of our network
The task of networking a billion people who speak in 280 known dialects,
live in 5500 towns and 6 lakh villages is an enormous one. Add to this the
abysmally low penetration levels of phone lines (2 per hundred and personal
computers (4 per thousand), and this task becomes even more challenging.
Nevertheless, networking India is critical if we as a nation are to attain
our rightful place in the 21st century. Our company has always viewed
these challenges as opportunities that, when overcome, will provide the
company and the nation with a sustainable advantage in the long term. Our
strategy to overcome these challenges is to redefine the way business is
done in India, by integrating cutting edge technologies with the centuries
old traditional Indian business ethos.
We are setting up an 'Information Infrastructure' which will facilitate the
whole gamut of e-commerce, spread education, and aid in removing
information asymmetry across the country. Today, we are on the verge of
becoming a truly national network because of the phenomenal response we
have garnered from all across the country: over 53,000 applications from
prospective franchises from as many as 3287 towns and cities in India. For
instance, we have received 10,157 applications from 307 cities in
Maharashtra; 3769 applications from 288 cities in Andhra Pradesh and 627
applications from the far-flung North Eastern states spread over 23 cities.
Of course, this has been possible due to the intense and aggressive
marketing efforts undertaken by the company. We were the firs, Indian
company to promote our domain name through television (today, many other
companies are following suit).'We used hoardings and billboards in as many
as 285 cities and towns. We were the first to use the flaming orange/deep
blue combination in our hoarding to denote the blend of modern and
traditional perspective (today,.host of companies have adopted the same
colour scheme).
from digital divide to digital unite: IT for the masses
In a country like India where even today the internet reaches about 150
cities,,our network will not only take the convenience and economies of e-
commerce to the will create avenues for gainful employment for thousands of
Indians, and spread the power of information and education to the remotest
areas. It will aid in bringing into the new 'IT' age the vast majority of
Indians who live in semi-urban and rural areas, and truly provide the
benefits of Infotech to the masses. In order to ensure that even those who
are intimidated by technology use this network, we have adopted the
franchisee concept where the local entrepreneur becomes the friendly
intermediary between technology and the common man.
creating value from day one
We have lined up an impressive list of technology providers, who will be
providing state-of-the-art equipment at the most economical prices.
Alliances have been finalised with Hughes Network Systems for V-Sats (Very
Small Aperture Terminals), IBM for the multi-media network-enabled work
stations, Advanced Micro Devices for the micro-processors, Epson for the
ink-jet printers,TVS Electronics for the UPS (Uninterrupted Power Supply),
Logitech for the web-cameras, Umax for the scanners and Birla Yamaha for
the generators. We have not only arranged for the most advanced and
appropriate technology solutions for the network, but managed to acquire
the same at competitive pricing, thus giving our franchisees a great value
gain from day one. Thus, our network starts on a very assertive note from
the beginning, enabling U6 to provide services to the customer at the most
competitive prices.
e-governance
We are working with various authorities and agencies to develop e-
governance packages, which will act as an interface between the Government
authorities and the citizens enabling all segments of society to benefit
from the advent of a truly national IT infrastructure.
the dot on the brick
We have already appointed the Strategic Business Associates; are processing
the appointment of the franchisees; and are in the process of aggregating
content partners. Installation of equipment at the SBA locations will
commence shortly. Training programmes will begin thereafter, and
subsequently in a well-synchronized manner the network will go live.
At the threshold of the launch, l would like to share with you, my
shareholder friends, a thought that crosses my mind. s kumars.com is 'the
dot on the brick'. Our venture encompasses the entire spectrum of the
Network World: the content partners, the connectivity, the franchisees, the
delivery and the payment mechanism, content aggregation, community kiosks,
.. the entire works. The whole 'digital cyber platform" is securely and
strongly fastened on the edifice of a large, "distribution" network: the
franchisees, each one located at a strategic 'brick and mortar' site. With
a 'supply chain' of real manufacturers and service providers, S Kumars. com
Ltd. is not just a 'dot com nor is it just brick distribution but is in
fact the dot on the brick the true integration of the old and the new
economy.
I am confident that as our business takes shape, true shareholder value
will get unlocked and grow tremendously. I will like to assure you that
your management is fully alive to the challenges and opportunities, and is
well equipped and motivated to make a resounding success of this project of
national importance.
I would like to take this opportunity to wish all-our dear shareholders and
their families the very best. Thank YOu for being present at this meeting,
and l look forward to your continued support.
Vikas S. Kasliwal
Chairman
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