to Shareholders
Building on Legacy of Excellence
Dear Shareholders,
It gives me great pleasure to welcome you to the 30th Annual General Meeting
of your Company.
Global Scenario
As we reflect on the past year, we recognize the dynamic and ever-evolving nature of
the global market. The world economy has faced numerous challenges and uncertainties, but
the IT sector has remained a beacon of resilience and innovation. Technological
advancements continue to drive progress, offering new opportunities and reshaping
industries across the globe.
The global IT services market is estimated to be USD 1.20 trillion in 2024 and is
projected to reach USD 1.81 trillion by 2029, growing at a CAGR of 8.38%. Additionally,
the overall information technology (IT) market size was approximately USD 9.48 billion in
2022 and is expected to touch USD 26.93 billion by 2032, with a CAGR of 11.0%.
India Shining
In this context, India stands out as a shining example of growth and potential.
Our country has cemented its position as a global IT powerhouse, with an expanding
ecosystem of startups, a highly skilled workforce, and a supportive policy environment.
The combination of these factors has enabled India to lead in digital transformation and
innovation, contributing significantly to the global IT landscape. Spending in the Indian
information technology (IT) sector is projected to reach $138.9 billion in 2024, compared
to $122.6 billion last year, with a doubledigit growth rate of 13.2%, according to recent
projections from Gartner.
Digital Transformation Journey of Allied Digital
Allied Digital has consistently navigated the digital business landscape, leading in
Digital Transformation. Your company revised its business plan strategically at regular
intervals in the last 40 years since inception.
In Version 1 (1984-1993), the company was profit-driven, supporting mainframes and PCs,
focusing on networking, and expanding its team. Version 2 (1994-2001) was value-driven,
with standardised values and a C-suite, expanding geographically, and achieving
significant growth. Version 3 (2001-2007) focused on strategy, surviving the dotcom
bubble, increasing manpower, and attracting funding. Version 4 (2007-2013) saw inorganic
growth, an oversubscribed IPO, acquisitions, and establishing a global delivery centre.
Version 5 (2013-2019) anticipated shifts towards Cloud and mobility, adopting new
technologies, securing Smart City projects, and expanding globally. Version 6 (2020 -
2023) adopted disruptive technologies, positioning itself as a global Digital
Transformation Architect. Version 7 (2024 onwards) focuses on accelerated growth through
market expansion, product diversification, strategic partnerships, enhanced R&D, a
customer-centric approach, talent acquisition, and sustainability initiatives. Your
company is working towards accelerated growth (10x) in revenue and is relentlessly working
on execution and fulfilment of the plan within 12-15 years.
Record Financial Performance
Our commitment to excellence and innovation has been unwavering, and it is this
commitment that has enabled us to achieve significant milestones this year. We have
immense pleasure in declaring a 30% dividend to our esteemed shareholders. This dividend
reflects not only our robust financial performance but also our dedication to rewarding
those who believe in our vision and contribute to our growth.
Advancement in Our Services
Our six technology practices are well entrenched with exponential growth in our client
base.
Cloud Services
We are placing significant emphasis on cloud technology, aligning with the rising trend
of cloud adoption. Our future-ready, vendor-agnostic cloud offerings position us well in
this evolving landscape. Companies are increasingly transitioning from on-premise to cloud
platforms and modernising their cloud infrastructure. We have successfully partnered with
multiple providers, obtained certifications to offer cloud solutions, and developed the
expertise to deliver comprehensive digital transformation services with a dedicated DevOps
team. Our teams are actively engaging with customers to unlock new business opportunities.
Cybersecurity
The global rise in cyber threats has created significant opportunities for IT companies
to combat these dangers through consulting audits, cybersecurity implementation, and
Managed Security Services from Security Operations Centers (SOC). Recognizing this early,
we established our SOC in 2007, positioning ourselves ahead of the competition. Our early
mover advantage and readiness poise us for substantial growth in the cybersecurity space.
Digital Engineering Services
Allied Digital is recognized as an Digital Engineering Services provider and a pioneer
in the MSI space in India. Since 2015, we have been a frontrunner in Smart Cities
projects, implemented or working on projects in cities like Pune, Pimpri Chinchwad,
Kalyan-Dombivali, Aurangabad, Bidkin, Rajkot, Solapur, Jaipur, Lucknow, MIDCTaloja (Navi
Mumbai), Amritsar, Sultanpur Lodhi, Jalandhar, and Ayodhya in India. Leveraging our
expertise in smart cities and IP-based projects, we have made a significant breakthrough
by entering the US market as an MSI.
Managed Services
Leveraging our extensive experience in delivering infrastructure management solutions
since 1984, Allied Digital has set new benchmarks in service governance. With a strong
technological foundation, we provide high-margin, long-term recurring revenue (typically
5-year) IT services. Our NOC/SOC and Global Service Delivery Center in Mumbai support
companies worldwide. Exemplary service governance and world-class practices define our
legacy business.
Software Solutions
Your company has always been at the forefront of technology and has adopted emerging
technologies like Al, ML, Data Analytics, Blockchain, and Edge computing. "Digital
Desk" - SaaS model (formerly known as ADiTaaS), a comprehensive Al-driven Enterprise
service management platform certified by PinkVERIFY certifying authority, is driving
significant value for customers by empowering them with integrated services. FinoAllied
(IPR protected) is a path-breaking conversational technology leveraging Al. It gives a
significant leap in the fintech industry with the ability to digitise traditional banking.
We will be integral to Industrial Revolution 4.0, solving complex industry problems.
Workplace Management Services
Your company is headquartered globally in India with a presence across 70 plus
countries and a direct presence in the US, Canada, India, Australia, UK, Singapore,
Brazil, China, Japan, Ireland, Germany, Mexico, Spain, Italy, Belgium, and recently
established in UAE. We have an unmatched presence across the globe and are successfully
supporting clients with our endpoint management services and work-from-anywhere solutions.
Efforts are being pursued to expand our base further.
Worldwide Presence
Our growth strategy has been comprehensive and global in scope. Today, Allied Digital
stands tall as a multinational entity. Our offices enhance our ability to serve our
clients better, offering them local expertise combined with global insights. This
expansion also underscores our ambition to be a global leader in IT services, bringing
innovative solutions to a diverse client base.
ESG Commitment
Allied Digital has been at the forefront in ESG activities and has adopted fair
governance as its core value in its value pyramid of seven layers and plays an active role
in public-facing technology projects such as smart cities. Your company has been listing
these activities but shortly plans to formalise and report these activities under the
global ESG metrics framework. ESG facilitates top-line growth overall, attracts talent,
reduces costs, and forges a sense of trust amongst customers. Organisations with good ESG
practices score higher in terms of reputation and carry less risk as sustainability is
incorporated in their governance and core value. We have also undertaken numerous
initiatives on this front like energy conservation, carpooling, e-waste management,
avoiding the use of plastic bottles, tree plantation, and working towards zero emissions.
InClosing
The success we have achieved is a testament to the hard work and dedication of our
talented team. Their relentless pursuit of excellence and customer satisfaction drives our
progress and sets us apart in a competitive industry.
We are committed to fostering a culture of continuous learning and development,
ensuring that our team remains at the forefront of technological advancements. We are
excited about the opportunities that lie before us as we look ahead. We are confident that
with your continued support, Allied Digital will continue to achieve new heights,
delivering value to our clients, stakeholders, and the broader community. We can proudly
state that your company is a Global Indian MNC.
Thank you for your trust and support.
Nitin Shah
Chairman and Managing Director.