MIRA
INFORM REPORT
|
Report Date : |
27.10.2007 |
IDENTIFICATION
DETAILS
|
Name : |
STERLITE OPTICAL
TECHNOLOGIES LIMITED |
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Registered
Office : |
E-1,
Waluj MIDC Industrial Area, Waluj, Aurangabad – 431136, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2007 |
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Date of
Incorporation : |
24.03.2000 |
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Com. Reg. No.: |
11-125225 |
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CIN No.: [Company Identification No.] |
L31300MH2000PLC125225 |
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TAN No.: [Tax Deduction & Collection Account No.] |
MUMS27107D |
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Legal Form : |
It is
a public limited liability company.
The company's shares are listed on the Stock Exchanges. |
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Line of
Business : |
Manufacturing and Marketing of
optical fibre cable products. |
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RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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Maximum Credit Limit : |
USD 16478000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
The
company has demerged from Sterlite Industries (India) Limited as Sterlite
Optical Technologies Limited. Available
information indicates high financial responsibility of the company. Financial position of the company is
good. Payments are usually correct
and as per commitments. The
company can be considered good for normal business dealings at usual trade
terms and conditions. It
can be regarded as a promising business partner in a medium to long-run. |
LOCATIONS
|
Registered
Office : |
E-1,
Waluj MIDC Industrial Area, Waluj, Aurangabad – 431136, Maharashtra,
INDIA |
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Tel. No. |
91-240-2564599/2564597 |
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Fax No. |
91-240-2554184/2564598/2564066 |
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E-Mail |
ofmarketing@sterlite.com
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Website |
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Corporate
Office : |
91-92A,
Maker Chambers III, Nariman Point, Mumbai - 400 021, Maharashtra |
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Tel. No.: |
91-22-22855477
/ 22835261 / 22835316 / 22828381 |
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Fax No.: |
91-22-22850026
/ 22027497 |
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Factory : |
Ø Optical Fibre Division E-2 & E-3,
MIDC Industrial Area, Waluj, District Aurangabad – 431 136, Maharashtra, INDIA Tel No. 91-240-2564597 / 2564598 E Mail ofmarketing@sterlite.com Ø Optical Fibre Cables Division E-1, MIDC Industrial Area, Waluj, District Aurangabad –
431 136, Maharashtra, INDIA Tel No.
91-240-2564065/2564067/ 2564597/2564599 Fax No. 91-240-2564066/2564598 E Mail sillogc@bom4.vsnl.net.in Ø Survey No. 68/1,
Madhuban Dam Road, Rakholi, Silvassa 396 230, Union Territory of Dadra & Nagar
Haveli, India Ø Jelly Filled Cables Division :
Survey No. 209, Piparia Industrial Estate, Phase II,
Silvassa - 396 230, Dadra & Nagar Haveli (Union Territory). Ø B-10/4, MIDC Industrial Area,
Waluj, Dist. Aurangabad – 431 136, Maharashtra, INDIA Tel No.
91-240-2554683 Fax no.
91-240-2554690 E Mail jftc@ndf.vsnl.net.in |
DIRECTORS
|
Name : |
Mr. Navin Agarwal |
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Designation : |
Non-Executive
Director |
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Name : |
Mr. Arun Todarwal |
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Designation : |
Non-Executive and
Independent Director |
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Name : |
Mr. Haigreve
Khaitan |
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Designation : |
Non-Executive and
Independent Director |
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Name : |
Mr. Praveen
Agarwal |
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Designation : |
Non-Executive
Director |
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Name : |
Dr. Anand Agarwal |
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Designation : |
CEO and Executive
Director |
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Name: |
Mr.
L. Ramkumar |
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Designation: |
Chief Executive
Director |
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Name: |
Mr. Sandeep
Deshmukh |
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Designation: |
Company Secretary |
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Name: |
Mr. S L Bajaj |
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Designation: |
Chief Financial
Officers |
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Name: |
Mr.
Anil Agarwal |
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Designation: |
Chairman |
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Name: |
Mr.
Sandeep Junnarkar |
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Designation: |
Director |
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Name; |
Mr.
Agnelo Rodrigues |
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Designation: |
Deputy Company
Secretary |
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Name
|
Mr.
Gautam Doshi |
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Designation
|
Director
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Qualification
|
B.Com |
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Experience
|
Over
20 years |
|
Other
Directorship |
Ambuja
Cement Rajasthan Limited BSES
Limited G. P.
Electronics Limited Marigold
Capital Management Limited Melstar
Information Technologies Limited MIRC
Electronics Limited Piramal
Enterprises Limited Sterlite
Industries [India] Limited Ambit
Corporate Finance Private Limited Hemkoot
Trading Private Limited Interlink
Reinsurance Consultants Private Limited Rifa
Publications Private Limited RSM
Advisory Services Private Limited RSM
Holdings Private Limited Welltal
Holdings Private Limited |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Shareholding
of Promoter and Promoter Group |
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Indian |
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Individuals/
Hindu Undivided Family |
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Central
Government/ State Government(s) |
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|
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Bodies
Corporate |
25330550 |
41.1246 |
|
Public
shareholding |
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|
|
Institutions |
|
|
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Mutual
Funds/ UTI |
5418588 |
8.7972 |
|
Financial
Institutions / Banks |
115656 |
0.1878 |
|
Central
Government / State Government |
170 |
0.0003 |
|
Insurance
Companies |
4527750 |
7.3509 |
|
Foreign
Institutional Investors |
2698922 |
4.3818 |
|
Non-institutions |
|
|
|
Bodies
Corporate |
5838621 |
9.4791 |
|
Individuals |
16939640 |
27.5018 |
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Individuals
-i. Individual shareholders holding nominal share capital up to Rs 0.100
Millions |
15282375 |
24.8112 |
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ii.
Individual shareholders holding nominal share capital in excess of Rs. 0.100
Millions |
1657265 |
2.6906 |
|
Any
Other (NRI) |
724670 |
1.1765 |
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Total
|
61594567 |
100 |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturing and Marketing of
optical fibre cable products. |
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Product |
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Export To : |
USA,
Europe, China and South East Asia. |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Optical
Fibre |
KM |
5,000,000 |
4,000,000 |
2,729,892 |
|
Jelly
Filled Telephone Cables |
CKM |
7,500,000 |
7,500,000 |
-- |
|
Copper
Telecom Cables |
CKM |
7,500,000 |
7,500,000 |
3,794,403 |
|
Fibre Optic
cables |
FKM |
2,400,000 |
2,400,000 |
1,082,510 |
|
Broadband Access
Networks |
Nos. |
1,500,000 |
-- |
-- |
GENERAL
INFORMATION
|
No. of
Employees : |
370 |
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Bankers : |
Ø ABN Amro Bank N V Ø HDFC Bank Limited Ø ICICI Bank Limited Ø Syndicate Bank, Aurangabad,
Maharashtra Ø Punjab National Bank,
Aurangabad, Maharashtra Ø State Bank of India,
Aurangabad, Maharashtra |
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Facilities : |
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Banking Relations : |
Good |
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Auditors : |
Deloitte
Haskins & Sells Chartered
Accountants |
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Associates/Subsidiaries
: |
Associates
:
Subsidiaries:
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
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|
90000000 |
Equity Shares |
Rs.5/- each |
Rs. 450.000 million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
58794567 |
Equity Shares |
Rs.5/- each |
Rs. 293.970 million |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
308.000 |
293.970 |
279.970 |
|
|
2] Share Application Money |
0.000 |
56.000 |
0.000 |
|
|
3] Reserves & Surplus |
3811.500 |
2969.520 |
2329.380 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4119.500 |
3319.490 |
2609.350 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5653.900 |
2233.210 |
1057.470 |
|
|
2] Unsecured Loans |
212.700 |
144.240 |
408.460 |
|
|
TOTAL BORROWING |
5866.600 |
2377.450 |
1465.930 |
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DEFERRED TAX LIABILITIES |
0.000 |
183.640 |
212.630 |
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|
|
|
|
|
|
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TOTAL |
9986.100 |
5880.580 |
4287.910 |
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APPLICATION OF FUNDS |
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|
|
|
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FIXED ASSETS [Net Block] |
4344.600 |
2870.200 |
3114.590 |
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Capital work-in-progress |
527.600 |
19.850 |
18.140 |
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|
|
|
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INVESTMENT |
63.100 |
150.660 |
150.610 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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|
|
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
1199.900
|
864.410
|
779.270
|
|
|
Sundry Debtors |
4332.100
|
1525.260
|
1017.690
|
|
|
Cash & Bank Balances |
789.300
|
954.720
|
137.660
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
1746.300
|
979.920
|
636.010
|
|
Total
Current Assets |
8067.600
|
4324.310
|
2570.630
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
2680.700
|
1215.650
|
1359.70
|
|
|
Provisions |
336.100
|
268.790
|
206.360
|
|
Total
Current Liabilities |
3016.800
|
1484.440
|
1566.060
|
|
|
Net Current Assets |
5050.800
|
28399.870
|
1004.570
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9986.100 |
5880.580 |
4287.910 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
13008.800 |
6239.300 |
3706.700 |
|
|
Other Income |
82.400 |
210.600 |
73.400 |
|
|
Total Income |
13091.200 |
6449.900 |
3780.100 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
530.500 |
381.500 |
102.400 |
|
|
Provision for Taxation |
21.900 |
(26.200) |
0.200 |
|
|
Profit/(Loss) After Tax |
508.600 |
407.700 |
102.200 |
|
|
|
|
|
|
|
|
Export Value |
0.000 |
847.930 |
342.710 |
|
|
|
|
|
|
|
|
Import Value |
0.000 |
2570.350 |
508.520 |
|
|
|
|
|
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|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
0.000 |
0.000 |
0.000 |
|
|
Manufacturing Expenses |
328.500 |
184.600 |
139.700 |
|
|
Administrative Expenses |
705.500 |
401.400 |
269.600 |
|
|
Raw Material Consumed |
8763.400 |
3795.900 |
2265.700 |
|
|
Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
|
|
Consumption of stores and spares parts |
963.100 |
733.200 |
470.900 |
|
|
Increase/(Decrease) in Finished Goods |
382.700 |
123.500 |
(111.400) |
|
|
Salaries, Wages, Bonus, etc. |
283.200 |
142.900 |
109.300 |
|
|
Managerial Remuneration |
0.000 |
0.000 |
0.0000 |
|
|
Payment to Auditors |
0.000 |
0.000 |
0.0000 |
|
|
Interest |
375.500 |
177.400 |
125.700 |
|
|
Insurance Expenses |
0.000 |
0.000 |
0.000 |
|
|
Power & Fuel |
273.800 |
124.400 |
87.000 |
|
|
Depreciation & Amortization |
315.700 |
289.900 |
266.800 |
|
|
Other Expenditure |
0.000 |
0.000 |
0.000 |
|
Total Expenditure |
12391.400 |
5973.200 |
3734.700 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2007 |
|
|
|
|
1st
Qtr |
|
|
|
|
2395.600 |
|
|
|
|
24.900 |
|
|
|
|
2420.500 |
|
|
|
|
2085.400 |
|
|
|
|
335.100 |
|
|
|
|
88.500 |
|
|
|
|
246.600 |
|
|
|
|
83.200 |
|
|
|
|
9.300 |
|
|
|
|
27.4000 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
1.12 |
0.65 |
0.61 |
|
Long Term Debt-Equity Ratio |
0.24 |
0.15 |
0.28 |
|
Current Ratio |
1.10 |
1.06 |
0.96 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.91 |
1.10 |
0.66 |
|
Inventory |
12.60 |
7.59 |
5.02 |
|
Debtors |
4.44 |
4.91 |
6.34 |
|
Interest Cover Ratio |
2.41 |
3.15 |
1.81 |
|
Operating Profit Margin(%) |
9.39 |
13.60 |
13.35 |
|
Profit Before Interest And Tax Margin(%) |
6.96 |
8.96 |
6.15 |
|
Cash Profit Margin(%) |
6.34 |
11.18 |
9.95 |
|
Adjusted Net Profit Margin(%) |
3.91 |
6.53 |
2.76 |
|
Return On Capital Employed(%) |
11.60 |
11.50 |
5.52 |
|
Return On Net Worth(%) |
13.78 |
13.88 |
3.99 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets:
Ø
Land
Ø
Building
Ø
Plant and
Machinery
Ø
Furniture
& Fixture
Ø
Data
Processing Equipments
Ø
Office Equipments
Ø
Electric
Fittings
Ø
Vehicles
History:
The
company was incorporated on 24th March, 2000 as Sterlite Telecom
Systems Limited having Company Registration Number 125225.
Pursuant
to the Scheme of Arrangement which was sanctioned by the Hon'ble High Court on
2nd August, 2000, the telecom business of Sterlite Industries
(India) Limited was transferred to the company as a going concern with effect
from 1st July, 2000.
Sterlite
Telecom Systems Limited changed to Sterlite Optical Technologies Limited
effective 21st August, 2000.
The
company has four facilities in India and it has also planned global expansions
in the future. The global optical fibre
and cable scenario has changed especially in the USA and is far more pronounced
in the long haul segment of the US market.
However, Chinese market continues to show very robust volume growth and
is emerging as one of the key markets for the company, wherein the company has
been increasing its sales in this financial year.
Private
sector participation in telecommunication infrastructure in India has increased
and network roll out has accelerated.
The segment is expected to grow rapidly and will be a focus area for the
company in the domestic market. During
2001-02 the installed capacity for the OFC has been enhanced from 1.8 million
fibre kilometre to 4 million fibre kilometre.
It has
invested 500000 fully paid equity shares of Rs. 10/- each at part of SOVL. SOVL is a SPV jointly promoted by Sterlite
Industries [India] Limited and the company.
SOVL has recently acquired 46% equity stake in Hindustan Zinc Limited
through the disinvestments Programme of GOI [26%] and an open offer to the
public [20%].
The continuing
slow down in the global telecommunication sector by and large marked the year
under review. There was no major improvement in the global market for optical
fibre and optical fibre cables except in China. Reduction in volumes and lower
realisations continue to prevail in the global market.
The
Company continues to be the only integrated manufacturer of optical fibre in
the country with a manufacturing capacity of 4 million kilometer (km) and a
strong focus on improvement of productivity and reduction in cost. This has
provided the Company with a competitive cost advantage compared to other
players in the global market.
The Company produced 1.07 million km of
optical fibre compared to 1.72 millions km of optical fibre in the previous
year. Production of optical fibre cables aggregated to 0.43 million fibre
kilometer (km) compared to 0.25 million fkm in the previous year. The Company
continuities to be the largest manufacturer of optical fibre products in
India.
An Order 0.097 Millions fkm of ribbon fibre cable was received by the Company
from BSNL during 2003-04. This was followed by a repeat order for 0.067
Millions fkm of ribbon fibre cable during 2004-05. Marketing initiatives
continue to lay stress on exploring new markets.
Continuous efforts are being carried out to reduce the cost of production to
counter the pressure on lower realisations which are severely affecting the
margins. The Company has benefited from these initiatives and has been
successful in reducing its cost of production.
The Company has received an Order from the Commissioner of Central Excise for
payment of excise duty and penalty to the tune of Rs. 1982 million for alleged
use of imported machineries of the Export Oriented Unit (EOU) for production
and sale of Optical Fibre in the Domestic Tariff Area (DTA) against which the
Company preferred an appeal with the CESTAT and obtained an unconditional stay
for non deposit of the amount demanded. The Company has paid Rs. 30 million
without prejudice to its claim.
Jelly filled
telephone cables
The
Company has once again begun JFTC production after a gap of nearly 20 months.
During the year under review, the Company has received an order of 1.319
Millions cable KM from BSNL in the month of March 2004 and the plant has commenced
production.
PERFORMANCE
The Company achieved revenue of Rs.
11,982 Million this year which is 119% higher than the revenues for the
previous year. The revenue increase is mainly due to acquisition of Power
Transmission Line Division by The Company. The performance of Telecom Division
was affected adversely due to sluggish business conditions prevailing in
telecom cable business, particularly, in Jelly-Filled Cables. The profits of
The Company after providing for tax increased to Rs. 509 Million as compared to
the profits of Rs. 408 Million, (after tax credit and exceptional income) in
the last year.
Income from exports increased by 250%, from Rs. 848 Million in the last
year to Rs. 2,964 Million in the year under review. The Company has set-up its
sales / representative offices in Dubai, Bangkok & Moscow and plans to
set-up additional offices at strategic international locations in Europe and
other developed markets in support of its growth plans.
The detailed analysis of The Company's operations and segment-wise
performance is covered under 'Management Discussion & Analysis
Report'.
ACQUISITION OF POWER TRANSMISSION LINE DIVISION
During the year, The Company acquired the Power Transmission Line (PTL)
Division from Sterlite Industries (India) Limited (SIIL), as a going concern,
with effect from July 1, 2006, for a consideration of Rs. 1,485 Million. This
Division is engaged in the business of manufacturing of power conductors.
This acquisition marks a significant milestone for SOTL as it brings
together two complementary pan-India market leaders who would be better able to
capitalize on customer relationships to compete for and serve large-business
and government customers in more than 45 countries across the globe. There exist
intrinsic similarities between the power and telecom sectors, as utility
companies are the primary buyers. Additionally, there are operational, sourcing
and selling synergies that can be effectively leveraged.
EXPANSION AND DIVERSIFICATION
Considering growing demand for Optical Fiber, The Company has projects
underway to increase the manufacturing capacity at its integrated Optical Fiber
plant at Aurangabad from 4 Million-KM to 6 Million-KM. This additional capacity
would be operational by the beginning of second half of Financial Year
2007-08.
The Company has also undertaken expansion of its existing Power
Transmission Conductor manufacturing capacity from 75,000 MT per annum to
1,15,000 MT per annum by setting a new facility at Haridwar, Uttarakhand.
As an extension to the Company's Access Business The Company has
commenced manufacturing of ADSL2+ Modems at its facility at Aurangabad.
Sterlite's range of wired and wireless modems were developed in-house and the
manufacturing unit has an annual installed capacity of 0.72 Million Modems.
Sterlite's ADSL 2+ Modems would
cater to single-user and multi-user broadband needs for residential and
commercial usage.
The Company after this expansion
/ diversification would serve as a 'one-stop window' for a comprehensive suite
of Telecom and Energy products that would include Optical Fiber, Fiber Optic
Cables, Copper Telecom Cables, LAN Cables, Power Transmission &
Distribution Conductors, Energy Cables, ADSL Modems, Fiber-to-the-Home (FTTH)
and Multi Protocol Label Switching (MPLS) solutions.
AMALGAMATION OF
SUBSIDIARIES
By the
order passed by the Hon. High Court of judicature at Bombay on April 16, 2007,
both the subsidiaries of the Company viz. Sterlite Telecom Limited and Sterlite
Telelink Limited were merged with the Company. The Hon. Court granted
dispensation of holding the meetings of shareholders of the Company as well as
the subsidiaries
.
The accounts of the Company have been prepared consolidating the accounts
of both the subsidiaries with effective from April 1, 2006 as per the scheme
Management Discussion
And Analysis
India's quest in building
world-class infrastructures
Telecom Sector
India is experiencing
unprecedented growth in telecommunications. This growth is estimated to lead to
an expenditure of over US$ 50 Billion till Year 2010.
Subscriber base projections for
voice telephony surpass all expectations and for data are beginning to follow a
similar trajectory. New technologies and services like 3G rollouts, National
Internet Backbone, e-governance, IPTV, FTTx, continued upgrades and
replacements of existing infrastructure set-ups are anticipated to keep demand
for telecom equipment and Telecom Cables at growth rates higher than those
elsewhere globally.
Broadband is a preferred focus
area with the Central Government hiking its budget for e-governance in India,
and state governments taking the onus on themselves of implementation, favoring
the rising use of online education, telemedicine networks and connectivity for
rural knowledge centers. Greater use of online services in commerce, industry
and transportation will create a boom for broadband. TRAI has suggested a range
of measures for an open-sky policy for DTH, VSAT and up linking using satellites
that should boost broadband.
Additionally, the Indian Finance
Minister's Union Budget 2007-08 recommendations for higher focus on
e-governance is a significant milestone for the telecom equipment sector, as
this would herald the next wave in demand for creation of high bandwidth
communication infrastructures.
Power Sector
'Power for all by the year 2012'
is the vision of the Ministry of Power, Government of India. India's
transmission perspective plan focuses on the creation of a 'National Grid' in a
phased manner by adding over 60,000 KM of Transmission Network by 2012.
Such an integrated grid shall
evacuate additional 100,000 MW by the year 2012 and carry 60% of the power
generated in the country. The existing inter-regional power transfer capacity
is 9,000 MW, which is to be further enhanced to 30,000 MW by year 2012 through
creation of 'Transmission Super Highways'. For creation of such a grid, an
investment of Rs. 710 Billion is envisaged.
In the recent Union Budget, the
Indian Finance Minister's recommendation of addition in power capacity &
support for 'Accelerated Power Development & Reform Program' (APDRP) is an
extension of the Government's vision - 'Power for all by year 2012'. This would
provide a fillip for indigenous power transmission & distribution equipment
manufacturers.
With the tremendous impetus that
the infrastructure sector is providing India's economy and the resultant
positive initiatives taken by government, regulators and industry alike, the
coming years promise to bring India on par with the most developed global
economies.
Industry Status: Telecom and
Energy
Optical Fibers and Fiber Optic
Cables
The year 2006 experienced an
impressive revival in global demand for optical fibers. Developed and emerging
economies had encouraging announcements on infrastructure development projects.
There are new and sustainable demand drivers on the anvil and there is wave of
activity to develop new products to address applications as fiber comes closer
to the subscriber.
CRU International - a research
agency in the United Kingdom, reported that the global demand for Optical Fiber
Products increased to 97.3 Million-km in 2006 compared with 76.0 Million-km in
2005, translating to a Y-o-Y growth of 28%.
This demand is close to that
last seen in Year 2000, during the Telecom Boom.
However, in contrast with Year
2000 where North America led with 44% of annual global demand, in the Year
2006, Asia led the annual global demand with approximately 48 Million-km.
Asia showed the strongest 2006
growth with 35% growth, followed by North America and Europe with 25% and 10%
Y-o-Y growth respectively. In the emerging Markets, which comprise Middle East,
Africa & Latin America, consolidated demand grew by 53%.
The growth of demand for Fiber
Optic Cables was due to stronger FTTx related deployments in North America and
Western Europe, as well as stronger backbone deployments in Eastern Europe,
Middle East and Africa.
There is a significant push to
offer higher-bandwidth services both by wire-line and wireless operators in the
mature markets. Rapidly growing industry segments such as Broadband, Voice over
Internet Protocol (VoIP), Streaming Media, technological innovations in fiber
optics, DWDM and WDM have contributed to the growth in demand in the developed
economies.
The increase in emerging-market backbone deployments has resulted from
deregulation or 'liberalizing' market developments, investment in new
infrastructure to compete with incumbents, and deployments in developing
economies by utilities that have extensive rights-of-way.
Based on industry
information and published sources, the fiber optic industry in India showed an
increase in demand in 2006- 07 to 3.1 Million-km of cabled optical fiber. This
represents a yo-y growth of about 33% in FY 2006-07 over FY 2005-06.
The demand of fiber optic
cables by Indian Private Telecom Incumbents, Cellular Industry, CATV Industry,
MSOs and others have surpassed that of the Government incumbents like BSNL,
MTNL and RailTel, which were traditionally the largest buyers of fiber optic
cables in India.
The Indian Government as a buyer
of Fiber Optic Cables through the Telecom Incumbents & Public Sector
Undertakings such as the Oil and Gas Sector, Power Sector, etc. cumulatively
constituted about 25% of the total purchases of Fiber Optic Cables in India in
FY 2006-07. The Private Telecom Operators constituted about 34%.
There has been a countrywide
renewal in demand from the Cellular Industry, with new and expanded networks being
laid to cater to the booming subscriber base. There is also an increasing
adoption of fiber-based networks by the Cable TV Segment, Multi-Service
Operators (MSOs) and e-Governance State Initiatives. This set of buyers had a
cumulative purchase of about 1.2 Million-km of Optical Fibers, which
constituted about 41% of India's purchases of Fiber Optic Cables in India in FY
2006-07.
Copper Telecom Cables
The global demand growth rate
for Copper Telecom Cables has stabilized at 7%- 9%.
For many telecom service
providers in India betting on the wireline sector, the objective of broadband
and telephone businesses is to have presence in cities with high revenue
potential. For them, the product offering in this segment includes supply and
installation of fixed-line telephones providing local, national and
international long distance voice connectivity and broadband Internet access
through DSL.
Copper cables laid by telecom
companies which were considered obsolete, redundant and expensive in the
wireless world, have got a fresh lease of life with the launch of broadband
services in the country. Broadband services have sparked off a fresh interest
in landline phones with private operators pushing demand for copper telecom
cables.
In 2006-07, there was a noted
decrease in the purchases of Copper Telecom Cables in India mainly on account
of meager purchases by BSNL & MTNL since during 2005-06 most incumbents had
built up significant inventories, which were systematically depleted during FY
2006-07. The industry is anticipated to show a significant revival in FY
2007-08, with tenders for about 85 Lckm being announced at the time of
publishing of this report.
Power Transmission
Conductors
As reported by ABS Research, UK,
the global market for power transmission conductors was valued at about US$12.3
Billion in 2006 and has a CAGR of 7% from 2004 through 2006. ABS Research also
anticipates a stable demand growth in the global market from 2007 through 2010
at a CAGR of about 6-7%.
The global power industry is currently experiencing Y-o-Y demand growth
similar to those experienced by the telecom industry in the late 1990's.
Based on industry information
and published sources, the Power Transmission Conductors industry in India
showed an increase in demand in 2006-07 to approximately 300,000 MT of power
transmission conductors. This represents a Y-o-Y growth of about 20% in FY
2006-07 over FY 2005-06 State owned Power Grid Corporation of India (PGCIL)
continued to be the largest buyer of power transmission conductors in the
country, with demand equivalent of about 40% of total Indian demand.
The demand from State Electricity Boards constituted about 175,000 MT,
55% total demand. There was also a marginal demand of 15,000 MT, 5% of total
demand of power transmission conductors from the Private Energy industry.
Demand Drivers
& Future Outlook:
Telecom Sector
Wireline sector may show
positive signs if India could match the growth figures of broadband penetration
in the US and China, though broadband can run on wireless technologies as well.
The global broadband market is expected to grow more than double, to $80
Billion in the next five years, with an average CAGR of 32.5%.
The year 2007 is the year of
broadband in India. Considering the 2006 figures, according to industry
players, the task of achieving the government's target may take more time. The
number of broadband subscribers (with a download speed of 256 kbps or more) was
2.06 Million subscribers at the quarter ended December 2006 registering a
growth of about 120% over that in quarter ended December 2005.
Broadband can also be offered on cable, however due to the poor state of
infrastructure, not many players have venturedinto this segment. The main
reason for the poor wireline infrastructure quality is on account of about 75%
of the network being old with poor joints and thin cables. These networks may
not be able to handle ADSL to its maximum capability without reconditioning.
The final quality of broadband, which will have a telling impact on the wireline
infrastructure growth, will depend on quality of last-mile infrastructure,
relevant content, etc.
The Indian Government has
already decided to offer the best - in terms of both quality and
volume-broadband connection to masses in India and both private and public
telecos may be relooking at the wireline phones. For wireline business, the
government will continue to become a major customer for wireline infrastructure
providers. Apart from BSNL and MTNL, they also cater to telecom network
infrastructure needs of utilities like railways, oil and gas, power, etc.
Besides, broadband deployment by telcos, IPTV is touted as the next the key
growth driver in the Indian wireline sector. IPTV deployment among service
providers in India may see a spurt in demand for wireline infrastructure.
According to a study by ABI
Research, total subscribers for IPTV may exceed 120 Million by 2010 with Asia
Pacific constituting roughly 47% of the total subscribers worldwide. China and
India are seen as major markets. This technology offers services such as
digital broadcast TV, time-shifted broadcast TV, video-on-demand and radio
services etc. and will fuel the next level of telecom industry revolution.
In India, Metro Ethernet Networks are relatively new. However, a few infrastructure
providers are committed in building on the market leadership in the growing
Metro Ethernet market. Since proliferation of 3G, WiMax, IPTV, IMS will drive
the network expansion in wireline, wireless and cable.
Since it is a relatively new technology to Indian telcos, infrastructure
providers are pushing hard to win critical new space in the market. Their
strategy is based on the increasing reliance on Ethernet as the standard
protocol for both LAN and WAN communications to break the bandwidth bottlenecks
between high-speed fiber optic networks and Metro networks serving customers
and businesses. New technology Provider Backbone Transport (PBT) allows service
providers to deliver the communication and entertainment services of the future
to consumers and companies across cities and countries.
Broadband access is the buzzword for today. The market is for fast Internet
access, distance learning, multimedia downloads, interactive gaming and video
services which can be provided by coexistent wireline and wireless broadband
technologies.
Power Sector
'Research and Markets', a
research agency in Ireland reports that the Indian economy, growing as one of
the fastest economies in the world, naturally has a high demand for energy in
particular electricity of about 8-9% every year. India's electricity
consumption is at the sixth position globally with 606 units of per capita
consumption per annum. Soon it will become 1000 units per annum by 2012.
Such high demand accounts
from large population growth, rapid industrialization and urbanization and
increasing per capita income. Thus there is increasing opportunities for
private investors to woo power generation and distribution.
To further add on, the
Electricity Act 2003 and National Electricity Policy has made 100% FDI that has
encouraged private companies to join CTUs/ STUs (Central Transmission Utility/
State Transmission Utility) apart from breaking state monopolization. Private
companies are also forming joint ventures with as much as 74% of equity share
as compared to Independent Power Transmission Company (IPTC). All these have
entailed rapid privatization of the State Electricity Boards (SEBs) such as in
Haryana, Delhi. Uttar Pradesh, Madhya Pradesh, Orissa, Andhra Pradesh and
Karnataka.
Efforts are being made to
privatize electricity distribution in other states as well.
International ties also propel
growth in Indian power sector as also in talks held with Nepal and Pakistan to
construct, exchange and form co-operatives in electricity generation and
distribution and firm up position in South Asia.
Operational Performance,
Segmental Performance And Financial Analysis
Operational Performance
Operationally year 2006-07 has
continued to be promising year in which the company kept not only momentum maintained
for faster growth but also successfully acquired new business to further
accelerate value enhancerneritto shareholders.
The current year results
include the performance of newly acquired Power Transmission Business for a
period of 9 months from its acquisition on July 1, 2006 to March 31, 2007.
During the year there was
a significant delay and volume drop in Copper cable purchases by Telcos (most
notebly BSNL & MTNL), which adversely affected the Telecom business of the
company.
However during the year the company has been able to increase its
footprints in global market by setting up offices in Moscow, Dubai and Bangkok
to explore new markets in these regions.
A snapshot of salient features of Company's performance during the
year:
Acquisition of the Power
Transmission Business from Sterlite Industries (India) Limited from July
2006
Revenue crossed Rs. 10,000
Million mark to reach Rs. 11,982 Million with the acquisition of Power
Transmission Business
Revenues from exports up by 250% compared to the last fiscal
Sales to over 45 countries ire Europe, Asia, Africa & Middle East
Launch of Sterlite
DOF-LITET1S ITU-T 6.655 D&E range of Optical Fiber Products for access
networks and Sterlite ADSL 2+ Wireless & Wireline Modems for broadband
applications
Total of 5 patents granted for Optical Fiber products & processes in the
European Union, India and China
ISO 14001:2004 Environment Management
System Certification & British Safety Council (BSC) 5 Star Rating for
Optical Fiber Plant
RoHS Compliance for all Optical Fiber Products as per European Union Directive
for Restriction of Hazardous Substances
Underwriters Laboratories (UL) Certification for Cat 3, 4, 5, 5E & 6
Data Cables
Six-Sigma Black Belt certifications by American Society for Quality (ASQ)
Deloitte Technology Fast 500 Asia Pacific Award 2006 (Rank#73) & Fast
50 India Award 2006
ELCINA Award for R&D for invention
of Low Water Peak Optical Fiber
IMC-Ramkrishna Bajaj National Quality Award - Quality Commendation Certificate
for 2006 for Manufacturing (Optical Fiber Plant)
V&D100 Top Telecom Cables Company 2006 Award
Segmental Performance
Optical Fiber
Business
The Company continues to be the
only integrated manufacturer of optical fiber in the country with a manufacturing
capacity of 4 Million kilometer (KM) and has a strong focus on improvement of
productivity and reduction in cost. This has been a significant year for this
business as the company has been able to achieve the rated capacity of Optical
Fiber manufacturing in the second half of the year. The total production of the
Optical Fiber has been 3.91 Million kilometer (KM) against 2.73 Million
kilometer (KM) during the previous year showing an impressive growth of 43%
over previous year.
The Company has continued
to achieve a significant market share in Global market for its uncabled Optical
Fiber. Sales of Optical Fiber (excluding captive consumption) during the year
was 2.72 Million kilometer (KM) compared to 2.18 Million kilometer (KM) in the
previous year.
The increase in volume has
significantly improved the cost advantage The company has always carried and in
turn has improved the profitability of the business significantly.
Production of Optical Fiber
cables aggregated 1.21 Million fiber kilometers (FKM) compared to 1.08 Million
fiber kilometer (FKM) in the previous year showing a moderate growth of 11%.
Sales of optical fiber cables was 1.20 Million fiber kilometer (FKM) compared
to 1.07 Million fiber kilometer (FKM). The Company continues to be the largest
manufacturer of Optical Fiber products in India with the share for Fiber Optic
Products in India of about 43%.
Access Business
During the current year
this business has been adversely affected due to deferment of buying program of
PSU telecom majors such as BSNL and MTNL.
The Company has explored new
export markets and continues to increase its market share in India including
with private telecom majors.
During the year the company has
supplied cables to various new customers in countries such as Vietnam, Qatar,
Nepal etc.
The Access business started in
last year has also been sluggish during the current year as the company
received no new orders in this business.
However the company retains a
positive outlook on this business and look forward to increased business
opportunities in the new markets being developed overseas.
Power Transmission
Business
This business has been recently
acquired by the company from Sterlite Industries (India) Limited and since its acquisition,
it has significantly improved the performance of the company. During 9
months in the current year, the Power Transmission Business has produced 91,426
KM of conductors (58,199 MT).
Financial Analysis
Capital Structure : The total
shareholders' funds as at March 31, 2007 aggregated Rs. 4,166 Million of which
equity capital was Rs. 308 Million comprising of 61,594,567 shares of Rs. 5
each. As approved by shareholders, the Company had made preferential allotment
of 2,800,000 Equity shares and 5,600,000 Warrants convertible into Equity
Shares to the Promoter's Group Company in the previous year. During the year
promoters have exercised the option to convert 2,800,000 warrants and
accordingly similar number of equity shares have been issued to them during the
year, which are included in the above share capital. Rs. 266 Million received
on account of conversion is transferred to share premium account during the
year. As at the end of the year, 2,800,000 warrants are outstanding,
convertible in to equity shares by September 28, 2007.
During the year, The Company has granted 592,900 stock options to its
employees. The vesting is due in the years 2007-08, 2008-09 & 2009-10,
subject to meeting its conditions stipulated by Compensation Committee for the
vesting.
As at the year end the
Reserves and Surplus stood at Rs. 3,812 Million.
Total networth as at year ended
March 31, 2007 was Rs. 4,166 Million as against Rs. 3,319 Million as at the
previous year end.
Dividend : Board of directors
have recommended an equity dividend of 15% i.e. Rs. 0.75 per share of Rs. 5
each. The dividend outflow will aggregate to Rs. 54 Million (including dividend
tax) compared to Rs. 34 Million (including dividend tax) in the previous year.
Loan Profile : During the year,
the company had repaid the opening long term loan of Rs. 200 Million, however
during the year the company has taken new long term loan of Rs. 875 Million
(net of repayment of Rs. 25 Million during the current year) to part finance
the acquisition of Power Transmission Business. In addition to this, the
company has also taken a loan of Rs. 450 Million to part finance the ongoing
expansion project at Hardwar for Power Transmission Business. Thus as at March
31, 2007, the long term borrowing of the company stood at Rs 1,325
Million.
With the acquisition of Power
Transmission Business, the working capital borrowing of the company has also
increased from Rs. 2,033 Million as at the end of previous year to Rs. 4,329
Million. The debt equity ratio of the Company as at March 31, 2007 was 1.41 as
compared to 0.72 in the previous year-end due to high borrowing of newly
acquired Power Transmission Business and long term borrowing for its
acquisition.
Capital Employed : The total capital employed by the company increased by
76% from Rs. 5,697 Million to Rs. 10,014 Million. The Turnover to capital
employed increased from 1.10 times for the previous year to 1.30 times for the
current year.
Gross Block and Capital Work in
Progress : The gross block of the company increased from Rs. 5,702 Million at
the beginning for the year to Rs. 7,925 Million at the end of current year
mainly comprising of acquisition of power transmission line business and
amalgamation of its wholly owned subsidiaries. In addition to this, company also
has capital work in progress of Rs. 528 Million at the end of the year which
includes expansion project of optical fiber capacity at Aurangabad and power
transmission line business at Haridwar. Both these projects are expected to be
commissioned by first half of the year 2007-08.
Revenue and Profits : During the year under review, the Company's net
revenue aggregated Rs. 11,982 Million compared to Rs. 5,474 Million in the
previous year marking an increase of 119%. Gross Revenue from Optical Fiber
business was marginally higher by 6% at Rs. 2,543 Million compared to Rs.
2,399 Million in the previous
year. While, the optical fiber (bare fiber business) has grown by more than
24%, the slow growth in the business revenue is attributed to lack of cable
orders from domestic markets where major telecom companies had deferred their
capital requirements, a major driver for telecom cable business.
During the year Access business was also adversely affected due to
similar reason hence demand for copper cables were low in domestic market
during the year under review. To overcome the sluggish demand from the domestic
cable market, the company has taken various measures to expand its global
market share in both copper cable and optic fiber cable. Company's export of
telecom business (Optic Fiber and Access business) during the year was 150
crores as compared to 85 crores in the previous year.
The Gross Revenue of newly acquired Power Transmission Line business at
Rs.
8,464 Million has contributed
65% to the top line of the company.
Profit before interest,
depreciation, tax and provision for contingencies (EBITDA) excluding other
income aggregated Rs. 1,140 Million compared to Rs. 638 Million in the previous
year, an increase of 79% from previous year.
During the year depreciation has been higher due to acquisition of Power
Transmission Line business and merger of wholly owned subsidiaries.
Interest cost is
also high due to above factors and also due to global increase in interest
rates.
After providing Rs. 345 Million for interest, Rs. 316 Million for
depreciation, and after tax implications, the net profit after tax aggregated
Rs. 509 Million as compared to net profit after tax of Rs. 408 Million in the
previous year.
Cash Flow : The cash flow summary for the year is as follows:
Net Cash provided/(used) for: Rs. in Million
Operating activities 1,309* Investing
activities (2,695)* Financing activities 928
ELCINA Award for R&D 2006
Sterlite Optical Technologies was awarded the ELCINA Award for Research and Development 2006. The Company received this prestigious honor for its invention of Low Water Peak Optical Fiber* (Sterlite OH-LITET) that is specifically designed to increase the transmission capacity of the Optical Fiber.
Electronic Industries Association of India (ELCINA) is committed to the
promotion of electronics manufacturing culture India focused on components-the
building blocks of electronics industry. Since last three decades, ELCINA has
been giving away a series of awards to recognize the achievements of
Electronics / IT Hardware manufacturing companies in India.
The ELCINA Award for R&D was
judged on the improvement in performance of the product, its quality &
reliability, patents and inventions resulting from the R&D effort. The
assessment parameters also included evidence of customer satisfaction &
productivity enhancement, degree of sophistication & the enduse application
of the product.
Low Water Peak Optical Fibers:
Fiber optics installation and deployment is a long-term investment, which forms
the foundation of today's networks.
Fiber installed today must be
extremely versatile and support network needs for 20 25 years from now, and
also provide compatibility with installed standard single mode fiber. In order
to provide a future-proof fiber solution for networks, the ITU-T has set a new
standard (ITU-T G.652D) for Low Water Peak Fibers. These fibers provide an
additional band of low-loss spectrum around the OH- absorption peak near 1380
nm. This additional band can mean an additional 100 nm of 'usable' wavelengths
in the fiber's 'E-band' (1360-1460 nm), or an additional five wavelengths in
the ITU's coarse wavelength-division multiplexing (CWDM) grid of wavelengths,
thus increasing the capacity of optical fiber
New Products 2006 -
07
Sterlite DOF-LITET Single Mode
Optical Fiber
Sterlite DOF-LITET range of
Single Mode Optical Fibers were enhanced to meet and exceed the newly
introduced ITU-T G.655 D & E International Standards.
With the increasing demand
for bandwidth, networks require an optical fiber solution that can deliver both
unprecedented performances and economic values. Single-mode optical fiber
G.655D & G.655E has the absolute value of the chromatic dispersion
coefficient greater than some non-zero value throughout the wavelength range
from 1530 nm to 1565 nm.
This dispersion reduces
the growth of non-linear effects, which are particularly deleterious in dense
wavelength division multiplexing (DWDM) systems. G 655 D & E expand the
wavelength of operation to include S band either with CWDM or DWDM technology,
apart from C & L bands, which previous G 655 supported.
Sterlite BEND-LITET Single Mode Optical Fiber
Sterlite BEND-LITET Single Mode
Optical Fiber is beneficial for use in Fiber-to-the-Home (FTTH) applications
and is an ideal choice for Triple-Play (voice, video and data) service networks
and CATV networks.
Sterlite BEND LITET Fiber supports installation with low cable bending
radii for cable mounting inside buildings. The fiber's enhanced bend radius
capabilities enable tighter routing, higher fiber density for component design
and deployment of fiber in central offices, subscriber equipment, back-plane
solutions, and premise wiring.
Sterlite BEND LITET Fiber
introduces high resistance to additional losses due to macro bending at 1550
and 1625nm wavelength region and exceeds G.657A standard. As a standard single
mode fiber, BEND-LITET is fully compatible with other standard single mode
fibers complying with ITU-T G.652 A, B, C, D Standards, thus ensuring excellent
splicing performance and compatibility with legacy networks.
Sterlite ADSL2+ Modems
Sterlite commenced manufacture
of ADSL2+ Modems at its facility in Aurangabad. Sterlite's range of wired and
wireless modems were developed in-house and the manufacturing unit has an
annual installed capacity of 1.5 Million modems.
Sterlite's ADSL2+ Modems
are available in four models that would cater to single-user and multi-user
broadband needs for residential and commercial usage. All Sterlite modems
comply with ITU-T G.922.1, G.922.3, G.922.5 and IEEE 802.11b/g international
standards.
The technical differentiators of
Sterlite's modems include SMPS adaptor & small size of the Modems.
Additionally Sterlite offers Local (Pre & Post Sales) Technical support and
local After Sales Warranty Service Support.
Sterlite's optical fiber facility has been audited by BVQi and
certified for the ISO 14001:2004 Environmental Management System (EMS). ISO
14001 specifies the actual requirements for an EMS and it applies to those
environmental aspects which the organization has control and over which it can
be expected to have an influence.
In 2006-07, our complete range of Single Mode and Multi Mode Optical Fibers
were tested by the Institute of Testing & Certification (ITC), Inc. Zlin,
Czech Republic and were certified as compliant with the applicable requirements
of the European RoHS (Restriction of Hazardous Substances) Directive.
In July 2006, the European Union issued a RoHS Directive on the restriction
of the use of six hazardous materials such as Lead, Mercury, Cadmium Hexavalent
chromium (Chromium VI or Cr6+), Polybrominated biphenyls (PBB) and
Polybrominated diphenyl ether (PBDE) in the manufacture of various types of
electronic and electrical equipment. RoHS is often referred to as the lead-free
directive.
Sterlite's Optical Fibers were tested in the ITC recognized
testing laboratory SPECTRO ANALYTICAL LABS (P) LTD according to the 'Procedures
for the Determination of Levels of Regulated Substances in Electrotechnical
Products'.
Press Release
Sterlite nominated to ‘India’s Top 100 Tech Companies’ list
Company’s Intellectual Property and R&D Programs have resulted
in 12 patent grants and 17
new products in the last 3 years
Press
Release For Immediate Publication
Pune, INDIA – October 10, 2007: Sterlite Optical Technologies
Ltd., India’s only global provider and
integrated manufacturer of
optical fiber today announced that it has been nominated once again to the ‘Top
100 Tech Companies’ list published annually by EFY Magazine, India.
The EFY 100 Program recognizes the progress made by technology companies
in India, based on their annual revenues and net profits for the last three financial years. Sterlite has moved
up by 16 places to the 35th position in FY 2006-07 from its 51st
position in FY 2005-06.
Sterlite accords a very high
importance to development of its Intellectual Property portfolio, in-house
Research and Product
Development. The Company has been granted 12 patents for Optical Fiber
product and process innovations in US, European Union, China & India.
Sterlite’s Product Development Team has developed 17 products designed
for evolving Telecommunications Standards and network applications.
Sterlite was awarded the ELCINA
Award for Research and Development in 2006. The Company received this
prestigious honor for its invention of Low Water Peak Optical Fiber (Sterlite
OH-LITE™) that is specifically designed to increase the transmission capacity
of the Optical Fiber.
Sterlite’s core strength lies in
its high technology preform manufacture and high-speed fiber drawing
processes. The Company is among
the select integrated manufacturers of optical fibers globally. With robust IGI
systems, Six-Sigma approach and ERP systems, traceability from Raw Material to
Finished Product stage, is intrinsic to Sterlite Optical Fibers. Says Mr Pankaj
Khanna – COO (Telecom), Sterlite Optical Technologies Ltd, “With the
technological edge that Sterlite has by virtue of being a fully integrated
optical fiber manufacturer, Sterlite would continue to develop products &
integrated solutions to meet telecommunication and broadband network
requirements.”
About Sterlite Optical
Technologies Ltd
Sterlite Optical Technologies
Ltd is India’s only and leading global provider of Optical Fibers,
Telecommunication Cables and
Power Transmission Conductors. It is India's only fully integrated Optical
Fiber producer and one of the
largest suppliers of Optical Fibers to overseas markets in China, Europe and
South East Asia.
Deloitte has nominated Sterlite
Optical Technologies as the 6th Fastest Growing Technology Company in
India in 2006. The Company is among the
winners of the 'Deloitte Technology Fast 50 India & Fast 500 Asia Pacific
awards for 2005 & 2006.
Sterlite Optical Technologies is
the only company to receive the V&D100 'Top Telecom Cables Company'
award in India, consistently
since 2004. The Company is a winner of the ‘Amity Award for Corporate
Excellence’ and ‘ELCINA Award
for R&D’ in 2006.
Sterlite Optical Technologies is
listed on the National Stock Exchange and Stock Exchanges at Mumbai and
Kolkatta.
The Company has a world class
Optical Fiber manufacturing plant located at Aurangabad, India and Telecom
Cable & Power Transmission Conductor plants at Silvassa, Haridwar &
Pune, India.
For further information about
the Company, please visit www.sterliteoptical.com
Forward-looking and cautionary
statements
Certain
words and statements in this release concerning Sterlite Optical Technologies
Ltd and its prospects, and other statements relating to Sterlite Optical
Technologies’ expected financial position, business strategy, the future
development of Sterlite Optical Technologies’ operations and the general
economy in India, are forward looking statements. Such statements involve known
and unknown risks, uncertainties and other factors, which may cause actual
results, performance or achievements of Sterlite Optical Technologies Ltd, or
industry results, to differ materially from those expressed or implied by such
forward-looking statements. Such forward-looking statements are based on
numerous assumptions regarding Sterlite Optical Technologies’ present and future
business strategies and the environment in which Sterlite Optical Technologies
Ltd will operate in the future. The important factors that could cause actual
results, performance or achievements to differ materially from such
forward-looking statements include, among others, changes in government
policies or regulations of India and, in particular, changes relating to the
administration of Sterlite Optical Technologies’ industry, and changes in
general economic,
business
and credit conditions in India. Additional factors that could cause actual
results, performance or
achievements
to differ materially from such forward-looking statements, many of which are
not in Sterlite Optical Technologies’ control, include, but are not limited to,
those risk factors discussed in Sterlite Optical Technologies’ various filings
with the National Stock Exchange, India and the Bombay Stock Exchange, India.
These filings are available at www.nseindia.com and www.bseindia.com
Media Contacts
Sterlite Optical Technologies
Ltd
Keith D’Silva
Pune, INDIA
Email: keith.dsilva@sterlite.com
Tel: +91.20.30514000
Pink & White Consulting (PR)
Werner Fernandes
Mumbai, INDIA
Email: wernerf@pinkandwhiteconsulting.com
Tel: +91.22.24708727, 24710667
www.pinkandwhiteconsulting.com
Sterlite
launches its range of Al-59 Alloy Power Transmission Conductors
Product
is capable of 56% higher power evacuation compared with traditional conductors
Company
has executed contracts valued at INR 280 Million for Sweden
Pune, INDIA – September 27, 2007: Sterlite Optical Technologies
Ltd., India’s leading global provider of Power Transmission Conductors, Optical
Fibers and Telecommunication Cables announced the launch of its range of
Al-59 Alloy Power Transmission Conductors compliant with the Swedish
Standard SS241814; suited for high power transfer. The
Company has recentlyexecuted supplies valued at INR 280 Million (US$ 7
Million) of these specialized conductors to Sweden. Reinforced’
(ACSR). ACSR conductors are limited by a maximum current carrying capacity of
838 Amperes. The material of construction of Al-59 Alloy Conductors overcomes
this limitation enabling Al-59 Alloy Conductors to transfer upto 1307
Amperes of current and evacuate upto 1405 MW of power (56% higher than ACSR
Conductors). Additionally, Al-59 Alloy Conductors have 9% better
‘Strength to Weight ratio’ & 8% lower sag compared with ASCR conductors
which enables effective optimization of tower designs and future-proofing of
the grid.
Says Mr Pravin Agarwal – Director, Sterlite Optical Technologies
Ltd, “In view of the National Power Grid being created in India, we believe
Al-59 Alloy Conductors wouldhave a special significance while designing
transmission line networks, as the properties of these conductors enable
superior power evacuation while optimizing the cost of the entire grid. We are
glad to introduce a
superior technology to the
Indian Industry that has been widely proven in Europe.”
Sterlite is a significant
contributor to the global power sector with a complete range of power
transmission conductors at Extra High Voltages (400kV - 800kV), High Voltages
(66kV – 220kV) and power distribution conductors (11kV- 33kV). Sterlite
currently has about 3% global market share for Power Transmission Conductors
and these products have been sold in 38 countries across Africa, Middle
East, Asia & Europe. Sterlite currently supplies about 27% of India’stotal
demand for power transmission & distribution conductors.
Industry Scenario
‘Power for all by the year 2012’
is the vision
of the Ministry of Power, Government of India. The Government of India’s
Transmission Perspective Plan focuses on the creation of a ‘National Grid’ in a
phased manner by adding over 60,000 km of Transmission Network by 2012. Such an
integrated grid is envisaged to evacuate additional 1, 00,000 MW by the year
2012 and carry 60% of the power generated in the country. The existing
inter-regional power transfer capacity is 9,000 MW, which is to be further
enhanced to 30,000 MW by 2012 through creation of “Transmission Super
Highways”.
About Sterlite Optical
Technologies Ltd
Sterlite Optical Technologies Limited
is India’s leading global provider of Power Transmission Conductors, Optical
Fibers and Telecommunication Cables. It is India's only fully integrated
Optical Fiber producer and one of the largest suppliers of Optical
Fibers to overseas markets in China, Europe and South East Asia.
Deloitte has nominated Sterlite
Optical Technologies as the 6th Fastest Growing Technology Company in India in
2006. The Company is among the winners of the 'Deloitte Technology Fast 50
India & Fast 500 Asia PacificAwards’ for 2005 & 2006.
Sterlite Optical Technologies is
the only company to be awarded the 'Top Telecom Cables Company' in India,
consistently since 2004, as per the annual V&D 100 Survey and is a winner
of the ‘Amity Award for Corporate Excellence’ and ‘ELCINA Award for R&D’ in
2006.
Sterlite Optical Technologies is
listed on the National Stock Exchange and Stock Exchanges at Mumbai and
Kolkatta.
The Company has a world class
Optical Fiber manufacturing plant located at Aurangabad, India and Telecom
Cable & Power Transmission Conductor plants at Haridwar, Silvassa &
Pune, India.
For further information about
the Company, please visit www.sterliteoptical.com
Forward-looking and cautionary
statements
Certain
words and statements in this release concerning Sterlite Optical Technologies
Ltd and its prospects, and other statements relating to Sterlite Optical
Technologies’ expected financial position, business strategy, the future
development of Sterlite Optical Technologies’ operations and the general
economy in India, are forward looking statements. Such statements involve known
and unknown risks, uncertainties and other factors, which may cause actual
results, performance or achievements of Sterlite Optical Technologies Ltd, or
industry results, to differ materially from those expressed or implied by such
forward-looking statements. Such forward-looking statements are based on
numerous assumptions regarding Sterlite Optical Technologies’ present and
future business strategies and the environment in which Sterlite Optical
Technologies Ltd will operate in the future. The important factors that could
cause actual results, performance or achievements to differ materially from
such forward-looking statements include, among others, changes in government
policies or regulations of India and, in particular, changes relating to the
administration of Sterlite Optical Technologies’ industry, and changes in
general economic, business and credit conditions in India. Additional factors
that could cause actual results, performance or achievements to differ
material from such forward-looking
statements, many of which are not in Sterlite Optical Technologies’ control,
include, but are not limited to, those risk factors discussed in Sterlite
Optical Technologies’ various filings with the National Stock Exchange, India
and the Bombay Stock Exchange, India. These filings are available at www.nseindia.com
and
Pune, September 12, 2006:
Sterlite Optical Technologies Limited,
India’s only global provider and integrated manufacturer of optical fiber today
announced that it has been awarded 3 patents by the State Intellectual Property
Office of the People’s Republic of China for Optical Fiber inventions.
Product Patent No CN 1262856C, for ‘
Dispersion shifted fiber with low dispersion slope ’ was granted in July 2006
and is valid up to Year 2022. A patent for the same optical fiber product was
also granted in the
US in April 2005.
This dispersion-shifted fiber with low
dispersion slope (Sterlite DOF-LITE - RS) is specially designed for metro
networks, high data rates and multi-wavelength transmission. Its unique profile
design is perfectly suited for long uncompensated, narrow channel operation
over a typical metropolitan ring and it is fully compatible with DWDM and CWDM
systems.
Sterlite Optical Technologies was granted
another patent for ‘ Method for producing twisted optical fiber with
reduced polarization mode dispersion ’. The Patent No CN1262502C was
granted in July 2006 and is valid up to Year 2024.
Deterioration of Polarization mode
dispersion (PMD) of Optical Fibers constricts the system length of a network
and imposes restrictions in the bit rate of high capacity systems.
Additionally, it imposes restrictions of capacity in analog light-wave systems,
where directly modulated semiconductor lasers are used. Sterlite’s range of
‘Low PMD Optical Fibers’ enables network integrators to design high capacity
and analog light-wave systems, especially popular in Long Haul and Metropolitan
Networks The third Product Patent CN 1268952C was granted in China, for
‘ Dispersion optimized fiber having higher spot area ’ was granted in
Aug 2006 and is valid up to Year 2023.
This dispersion-optimized fiber with higher
spot area (Sterlite DOF-LITE - LEA) is specially designed for long haul, high
data rate and multi wavelength transmission. Its unique profile design
optimizes Effective area, Dispersion slope and Chromatic dispersion - the three
critical fiber parameters that affect performance in DWDM system at C and L
bands.
A total of 42 patent applications
have been filed to date, of which 15 patents applications were filed during
FY 2005-06.
Says Mr Pankaj Khanna, COO –
Optical Fiber Business, Sterlite Optical Technologies, “These patent grants
have helped us establish their technology leadership in addition to the market
leadership they already
enjoy. Consumers can look
forward to more innovations from Sterlite’s Technology Development Team,as
optical fiber gets closer to homes.”
About Sterlite Optical
Technologies Limited
Sterlite Optical Technologies
Limited is one of the leading developers and manufacturers of Optical Fibers
and Fiber Optic Cables worldwide. It is India's only fully integrated Optical
Fiber producer and one of the largest suppliers of Optical Fibers to overseas
markets in China, Europe and South East Asia.
The company is among the winners
of the 'Deloitte Technology Fast 50 India and Fast 500 Asia Pacific 2005'
awards for FY 2004-05, according to the survey conducted by Deloitte, Hong Kong
in 2005.
Sterlite Optical Technologies is
the only company to be nominated the 'Top Telecom Cables Company' in India,
four times in the past five years, as per the annual V&D 100 Survey and is
a winner of the ‘Amity Award for Corporate Excellence’ in 2005
Sterlite Optical Technologies is
listed on the National Stock Exchange and Stock Exchanges at Mumbai and
Kolkatta.
The company has a world class
Optical Fiber manufacturing plant located at Aurangabad, India and Telecom
Cable plants at Silvassa, India.
Pune, September 1, 2006: Sterlite Optical Technologies
Limited, India’s only global provider and integrated manufacturer of optical
fiber announced today that it has increased its sales to 32 countries in
FY 2005-06, up from 19 countries in the previous year.
In Q1 2006-07 the Company’s
export revenues were Rs 304 Millions as compared to Rs 89 millions in the
corresponding quarter last year. Export revenues amounted for 31% of net
revenues in the first quarter of the current fiscal. The Company
currently enjoys 4% of global market share for Optical Fiber Products.
The Company has existing
business relationships with customers in 32 countries spread across Central
America, Western Europe, Scandinavia, Eastern and Central Europe, Middle East,
Africa and South East Asia.
As part of its increasing
attention to Middle East and South East Asian markets, Sterlite Optical
Technologies Limited has also recently opened offices in Dubai and Bangkok.
Says Mr Pravin Agarwal, Director - Sterlite Optical
Technologies, “Sterlite Optical’s experience with the varying requirements of
customers in global markets has ensured continuous improvement and customer
orientation of the company. They intend to sustain their momentum and are using
innovative partnerships to increase their global presence. They would continue
with the same relentless focus along their path towards long-term growth; based
on the strength of their culture of continuous improvement in all their
business processes.”
CMT REPORT (Corruption,
Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. |
|
UK Pound |
1 |
Rs. |
|
Euro |
1 |
Rs. |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
|
|
PAID-UP CAPITAL |
1~10 |
|
|
OPERATING SCALE |
1~10 |
|
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
|
|
--PROFITABILIRY |
1~10 |
|
|
--LIQUIDITY |
1~10 |
|
|
--LEVERAGE |
1~10 |
|
|
--RESERVES |
1~10 |
|
|
--CREDIT LINES |
1~10 |
|
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
|
|
--LITIGATION |
YES/NO |
|
|
--OTHER ADVERSE INFORMATION |
YES/NO |
|
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
|
|
--EXPORT ACTIVITIES |
YES/NO |
|
|
--AFFILIATION |
YES/NO |
|
|
--LISTED |
YES/NO |
|
|
--OTHER MERIT FACTORS |
YES/NO |
|
|
TOTAL |
|
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|