I am glad to write to you after what has been an eventful and successful journey forTulip Telecom over the last few years enabling us to emerge as the leading player in theEnterprise Data service market. From a new player in the Enterprise Data Connectivity in2005-06 i.e. offering only last mile wireless connectivity, your Company has emerged asthe leader in the Enterprise Data Service (EDS) market with a range of product and serviceofferings.
Key differentiator for your company has been our endeavor to continually implementinitiatives to capitalize on emerging opportunities and fully engage our client by servingtheir data requirements. One such emerging opportunity was the growing need forprofessionally governed data center. To meet this untapped and lucrative need, our companylaunched Asia's largest and world's third largest data center- an impetus towardsstrengthening our foothold in the Enterprise Data Services market place as it widens ouraddressable market from 7,500 crore to 15,000 crore. As per Frost & Sullivan report,your company has a 31%market share in Enterprise Data Service market and targets a 30%share of India's data center market share. According to a recent projections by CyberMedia India Ltd., the total data center market in India is expected to be worth $2.6billion (INR 133 billion) by 2012, of which 20 percent or $600 million (INR 30 billion) --is expected to come from the third party data center sector in which Tulip competes. So,now your company is not just a leading Enterprise Data Service provider but also ownsAsia's largest and world's third largest Data Center. Tulips new data center hasturned out to be a significant repositioning exercise that has allowed us to move frombeing a pure-play connectivity company to become an integrated ICT (Information,Communication & Technology) company.
Your company has been able to provide seamless data solutions to customers whilstincreasing usage of existing infrastructure. This has enabled bringing in efficiencieswhich in turn has translated into a stable financial and operational performance.Testimony to this is increase in the number of products being offered along with capturinglarger share of customer's wallet for not just their connectivity solutions but dataservices like Video Conferencing, IP Surveillance and others.
With execution being the key, your Company is now focusing on reinforcing servicestandard and customer satisfaction levels. In that regards, your Company is in the processof establishing a team of young, experienced and dynamic senior level professionals tocontinuously strengthen the level of professionalism, governance and best corporatepractices throughout the organization. My role would be to focus on strategy, new businessopportunities in our segment of service offerings, business direction, and guiding theCompany for growth.
I am pleased to share that your company in FY 2011-2012 launched Tulip Data City -Asia's largest data center in turn strengthening its position as leader's in databusiness. Grey Gambit community for CIOs established by Tulip, bagged the best socialmedia initiative at Asia Communication Award 2012. Your company also bagged incontectivty, the prestigious Tamil Nadu SWAN project reinforcing its hold in theconnectivity market. Another feather that was added in our cap was the UIDAI projectbagged by Tulip Data City. The project is not just a testimony to our success but also theonset of a bright future of the data center business. Asian Leadership Awards 2011honoured Tulip Telecom with Business Innovation and Best Talent Managed Company Award. Wealso partnered iOmega and Mindtree for Digital VS on Cloud. Along, with Ploycom for HDManaged VC solutions.
Overall, we are at the beginning of a new phase at Tulip and the future looks even morepromising. We will continue to map opportunities as they emerge and prudently takeinvestment decisions to maintain a leadership position and deliver sustainable growthwhilst keeping the debt level under check. The combination of growing demand forconnectively, high bandwidth on fibre and our prime focus on data center and managedservices along with improving competencies by streamlining our business model willstrengthen Tulips position as one of the strongest players in the EDS market.
The year 2011-2012 has been a fairly robust journey for the company irrespective of thechallenging times faced by the telecom industry across the globe. Tulip is committed tooffer the highest levels of service to its customers and has always strived forexcellence. The data center is a testimony to the commitment that we hold for ourcustomer, to serve them with the finest and the best in class technology. Today'sorganizations are persistently looking for robust and secure infrastructure yet scalableenough to meet their growing demands- Tulip services are just the perfect blend to meetingtheir increasing demands. Tulip, continues to be the market leader in the enterprise dataservices space and over the years has built the valuable patronage of India's finestenterprises as its customers. As we now progress and build the next wave of growth, Ibelieve it is important to relook at some structural modifications within our company,which will only help us be stronger and win better in the market place.
At Tulip, we expect to see substantial momentum across all our business segments,deliveries, and new business development.
I take this opportunity, to thank all the shareholders for their continued trust in theBoard of Directors and the Management. I would also like to express my gratitude to ourcustomers and other business associates for their support and co-operation. The Companyhas been fortunate to have had focused leaders and committed and competent employees. Ilook forward to your continued faith in the Companys exciting journey into thefuture.
Lt. H.S. Bedi
Chairman and Managing Director, Tulip Telecom Limited