Dear Shareholders,
I am privileged to present on behalf of the Board of Kavveri Telecom Products Limited,
the 29th Annual Report of the company for the financial year ended March 31,
2024.
Telecom industry growth continues to be driven by the continued importance of
connectivity, bringing both opportunities and challenges for communications service
providers (CSPs). This year's telecom outlook explores how CSPs are delivering value to
consumer and enterprise customers with bundled services and connectivity options like 5G
fixed wireless access (FWA) and fiber, as well as their role in meeting the growing demand
for edge computing.
The Telecommunications Act, 2023, effective from June 26, emphasizes inclusion,
security, growth, and responsiveness for a developed India, enabling government control
for national interests, research and development funding, and fair infrastructure access
for network expansion.
Roadmap 2024 and beyond - India vision for Telecommunication Sector.
India's vision for its telecommunication sector is ambitious, aiming to transform the
country into a digital powerhouse and bridge the digital divide. Key components of this
vision include:
1. Digital India:
• Broadband Connectivity: Ensuring universal broadband connectivity across the
country, reaching even the remotest areas.
• Digital Literacy: Promoting digital literacy among citizens, especially in rural
and underserved regions.
• E-Governance: Leveraging digital technologies to improve government services and
enhance efficiency.
2. Make in India:
• Domestic Manufacturing: Encouraging the domestic manufacturing of telecom
equipment and infrastructure.
• Technology Innovation: Fostering innovation and research in the telecom sector.
• Job Creation: Creating jobs and promoting economic growth through the telecom
industry.
3. Smart Cities:
• Infrastructure Development: Building smart cities with advanced
telecommunication infrastructure and IoT applications.
• Urban Development: Improving urban services and quality of life through digital
solutions.
4. 5G Deployment:
• Early Adoption: Promoting the early adoption of 5G technology to drive
innovation and economic growth.
• Use Cases: Exploring new use cases for 5G, such as autonomous vehicles, smart
grids, and remote healthcare.
5. Rural Connectivity:
• Bridging the Digital Divide: Closing the digital divide between urban and rural
areas.
• Affordable Internet: Providing affordable internet access to rural populations.
6. Cybersecurity:
• Strengthening Security: Enhancing cybersecurity measures to protect critical
infrastructure and data.
• Awareness: Raising awareness about cybersecurity threats and best practices.
7. Telecom Infrastructure:
• Investment: Attracting investment in telecom infrastructure, including
fiber-optic networks and towers.
• Quality of Service: Improving the quality of service provided by telecom
operators.
8. Unified Licensing Framework:
• Simplifying Regulations: Implementing a unified licensing framework to
streamline the regulatory environment.
• Ease of Doing Business: Making it easier for telecom companies to operate in
India.
By realizing this vision, India aims to become a global leader in the telecommunication
sector, driving economic growth, improving quality of life, and fostering innovation.
Signposts for the future
The telecom industry faces challenges like managing network demands, optimizing
infrastructure, resolving customer issues, and strengthening security. Top trends in the
industry are helping telecom companies address these issues and improve efficiency. With
the growing global connectivity accelerated by the COVID-19 pandemic, telecom companies
have opportunities to expand their customer base and introduce innovative products and
services.
Key trends include the need for reliable and cost-effective solutions in cloud
computing and 5G technology, especially in smart ecosystems like factories, cities, homes,
vehicles, and industrial workplaces, where more connected devices and people require
advanced connectivity solutions.
The telecom industry is undergoing a rapid transformation, driven by technological
advancements and evolving consumer demands. Here are some key trends and signposts that
will shape the future of the industry:
1. 5G and Beyond
• Ubiquitous Connectivity: 5G will provide faster speeds, lower latency, and
greater capacity, enabling new applications and services.
• Network Slicing: Network slicing will allow operators to create customized
network segments for different use cases, such as IoT, gaming, and autonomous vehicles.
• Edge Computing: 5G networks will drive the adoption of edge computing, bringing
processing power closer to the data source for real-time applications.
2. IoT and Connected Devices
• Massive Scale: The number of connected devices will continue to grow
exponentially, creating new opportunities for data collection and analysis.
• Industry 4.0: IoT will play a crucial role in enabling Industry 4.0,
transforming manufacturing processes through automation, data-driven insights, and
predictive maintenance.
• Smart Cities: IoT will be essential for building smart cities, improving
infrastructure, and enhancing quality of life.
3. Cloud-Native Networks
• Flexibility and Scalability: Cloud-native networks will offer greater
flexibility and scalability, allowing operators to adapt to changing market conditions.
• Network Function Virtualization (NFV): NFV will enable operators to decouple
hardware from software, reducing costs and accelerating innovation.
• Software-Defined Networking (SDN): SDN will provide a programmable and automated
approach to network management, improving efficiency and agility.
4. Artificial Intelligence and Machine Learning
• Network Optimization: AI and ML can be used to optimize network performance,
predict failures, and automate network management tasks.
• Customer Experience: AI-powered chatbots and virtual assistants can enhance
customer experience and provide personalized recommendations.
• Fraud Detection: AI can help detect and prevent fraud in telecom networks.
5. Fiber-to-the-Home (FTTH)
• High-Speed Connectivity: FTTH will provide ultra-high-speed internet access,
enabling new services and applications.
• Competitive Advantage: Operators that invest in FTTH will have a competitive
advantage in the market.
6. Sustainability and Energy Efficiency
• Green Networks: Telecom operators will focus on building more sustainable and
energy-efficient networks to reduce their environmental impact.
• Renewable Energy: Increasing reliance on renewable energy sources will help
reduce carbon emissions.
7. Privacy and Security
• Data Protection: Ensuring data privacy and security will be a top priority for
telecom operators.
• Cybersecurity: Protecting networks and customer data from cyber threats will be
critical.
By embracing these trends, telecom operators can position themselves for long-term
success and capitalize on the opportunities presented by the rapidly evolving industry.
Telecom Services Market Size & Forecast
India's telecommunications market is the second largest in the world and is expected to
grow at a compound annual growth rate (CAGR) of 7-9% by the end of 2024. As of August
2024, the market is valued at INR 3,000 billion (US\$35.9 billion). Some forecasts predict
that the market will reach USD 48.61 billion in 2024 and USD 76.16 billion by 2029.
Key Telecom Services Market Driver
The market's growth is attributed to a number of factors, including:
• Mobile service and fixed broadband
Revenue from these areas has been expanding, even as legacy voice and SMS revenues have
declined. In March 2024, broadband connections had increased to 924.07 million, up from 61
million in March 2014. Internet connections also increased from 251.5 million in March
2014 to over 954.4 million in March 2024.
• Government initiatives
The government has been promoting the installation of Base Transreceiver Stations (BTS)
to improve mobile coverage in remote and border areas.
• Remote working
The adoption of remote working during the pandemic led to increased demand for
telecommunication services as companies upgraded their infrastructure and adopted
cloud-based business models.
Financial Performance of the Company:
Your Company's sales on a consolidated basis decreased by 43.85% due to bad market
conditions. The company recorded a total of Rs 158.57/- Lakhs revenue as compared to Rs.
282.42/- Lakhs of previous financial year.
Finally, I would like to convey my sincere gratitude to my esteemed colleagues on the
Board for their valuable advice and guidance which ensures that your company adheres to
its principles, policies and processes and successfully meets the various challenges
arising in these difficult times.
Thank you.
Sd/-
Chennareddy Shivakumarreddy
Chairman
DIN: 01189348