From The Chairman's Desk
Dear Shareholders,
With an outset of new era and renewed enthusiasm, India has emerged as the fastest
growing major economy in the world and is expected to be one of the top three economic
powers of the world over the next 10-15 years, which is predominantly backed by its strong
democracy and partnerships. As India continues to ascend in the rankings of the world's
largest economies, its contribution to global GDP growth momentum will also increase.
India attracted massive Foreign Direct Investment (FDI) equity inflows, with major
contribution coming from sectors such as services, computer software and hardware,
telecommunications, construction, trading and automobiles.
Numerous offshore business organizations are setting up their facilities in India on
account of various government initiatives like Make in India and Digital India. After
launching the Make in India initiative, The Honorable Prime Minister of India has
significantly uplifted the manufacturing sector of Indian economy, alongside has also
increased the purchasing power of an average Indian consumer, which has further boosted
the domestic demand, and hence spurred the overall development in the economy. The
Government of India, under the Make in India initiative, has done significant contribution
towards the domestic manufacturing sector and aims to take it up to 25 per cent of the GDP
from the current 17 per cent. Besides, the Government of India's Digital India initiative,
which focused on three core components: creation of digital infrastructure, delivering
services digitally and to increase the digital literacy augured well for the overall
economy and demography. Under Bharat Net Intitiative of the Government, till July 2019,
3,50,504 Kms of Optical Fibre Cable is already layed in 131,913 Gram Panchayats. The
Government of India has also approved the National Policy on Software Products in 2019, to
develop the country as a software hub, therefore a lot of impetus can be witnessed towards
digital platform development during the second term of the current Government.
FY 2019 was a roller coaster year for Aksh. We grew our sales and profitability
phenomenally during the first half of the year . During the second half of the year
company faced certain industry headwinds concerning optical fibre prices tumbling down
globally, alongside significant delays in receivables from a major customer BSNL.
Although, we have been investing for growth through a combination of capacity expansions,
strategic acquisitions, and innovations in our product lines. In early part of FY2019, we
improved our financial performance and extended our leadership in all our businesses
segments. Our execution was strong, and we expected our momentum to continue, but
unfortunately industry headwinds entailed us to push breaks to our torrid growth during
the second half of the year.
As we have expanded our capacities significantly, and are geared up to ride the next
wave of buoyant optic fibre market, we remain committed to deliver our goals. We seek all
our stakeholders confidence, and I believe we shall deliver our best, as we remain
committed in continuing to deliver with our relentless focus, passion, and our drive
towards success. I firmly believe that Aksh's future has never been brighter. We have
multiple businesses segments which will propel our growth. We have unique capabilities
that have become progressively more vital. We share warm relationships with industry
leading customers that continue to entrust us with new opportunities. We look forward to
delivering our goals, also unleashing new potential and capabilities in the years ahead,
and sharing milestones along the way. Thank you for entrusting and accompanying us on this
journey.
Yours Truly,
Dr. Kailash S. Choudhari