World?s Digital Backbone - Relaying inclusion and prosperity to
all
From India to the World
Dear stakeholders,
Maine hamesha kaha hai ki sapne bade dekho. Itne bade ki usme aap ke hi
nahi, aapke apno aur aapke desh ke sapne shamil ho.
When I started STL in 1988, I envisioned India attaining technological
prowess and transitioning from a primarily service-oriented economy to an increasingly
influential force in advanced manufacturing.
In the past few years, India has transitioned to a high-tech, robust
manufacturing hub. It is a feeling of immense pride to see Indian products make a mark
around the world.
India leaving an imprint on the world stage is not a new thing. If you
look at the technology landscape around the world, you will see the pivotal role that
Indian engineers and technology
leaders have played in this area. When we talk about digital public
infrastructure, the India model is being studied and adopted widely for its success in
crossing hard-to-surmount barriers like affordability and accessibility. This famed India
Stack that adds up to ~60% of global digital transactions has created 1.4 billion
digitally included citizens and increased bank penetration from 7% to 80 % in just 7 years
(a feat which typically takes 47 years to achieve). Off the tech field, another heartening
example of " from India to the world" is our very own Yoga, which is widely
hailed as a household name in health and well-being.
These achievements reflect the true essence of India's principle for
its G20 presidency: "Vasudhaiva Kutumbakam"- a Sanskrit phrase from ancient
Indian scriptures that means the whole world is one (my) family.
Vasudhaiva Kutumbakam - Building digital networks for the world
India, digitisation, leadership on the world stage - for STL, these
themes culminate into our endeavour to use the power of optical fibre to connect the
world. In this case too, India is our karmabhoomi - the place where we started the
research, development, and manufacturing of world-class optical solutions. Today, these
optical solutions are bringing a revolution in digital connectivity across the world.
Almost three decades back, we started with one plant in India, and today, we have 10
global production facilities, one of which is in the US. One of the greatest milestones in
this journey has been setting up our own glass preform manufacturing - a rare feat in the
global optical industry.
With our Glass to Gigabit connectivity capabilities, on the one hand,
we have been supporting Indian telecom operators in carving India's digital story from 2G
to 5G. On the other hand, our truly global talent has taken the same technology prowess to
the world's digital stage, with the world's top service providers like British Telecom, Du
Telecom, Vocus, Lumos, and Archtop placing their trust in our solutions.
Product design and innovation to bring novelty to our fibre optic
designs have been a key cornerstone of our journey. I am really proud of some of the
industry-leading innovations by our teams.
These include enabling 4X fibre capacity with multicore Multiverse
fibre, bend insensitivity with Stellar™ fibre, and miniaturisation with 180-micron
fibre and 160-micron fibres. Incorporating Optical Connectivity into our portfolio in
2020, we co-design and co-create Optical Connectivity solutions for some of the top
European customers and are now scaling this product line in the US. The Optical
Connectivity products cut installation time, and aid the de-skilling field labour, further
cost and time. We have also localised our production units in Italy and the US to boost
local supply chains and create value in the regions we operate in.
Innovation with sustainability at its core
Like any other Indian company, we take pride in our roots. We are
strongly driven by our purpose of Transforming Billions of Lives by Connecting the World
in a responsible way. For us, energy, environment, and people aren't merely
resources—they're invaluable sources of opportunity and prosperity. We're committed
to not just minimising our footprint but actively seeking ways to replenish and revitalise
these essential pillars. We've pledged to achieve Net Zero by 2030, and we're taking a
scientific approach to get there. Last year, we committed the Science-Based Targets
Initiative (SBTi) to ensure that our commitment is grounded in rigorous, evidence-based
methods.
While we are innovating at speed, we know that digital networks account
for a sizeable amount of global energy consumption. In addition to our sustainable
manufacturing practices such as Zero Waste to Landfill and Zero Liquid Discharge,
we have recently developed a range of eco-labelled products, further underscoring our
commitment to build a greener internet. Our water conservation efforts have replenished
over 2.69 million m3 of water in local communities. Similarly, our
afforestation drive has resulted in the planting of around 290,000 trees in Aurangabad,
Maharashtra.
As we bid adieu to FY24 and enter FY25, I am privileged to be a
contributor towards Building the World's Digital Backbone. I once again thank you for your
continued support and encouragement in this journey.
Anil Agarwal
Non-Executive Chairman, STL
Letter to the Shareholders
Fibre - The timeless backbone of technology progress
Watershed moments
In 1990, something truly transformative happened in the digital world: the
first web browser
(nexus) was unveiled. This wasn't just software— it was a key that
unlocked the internet for everyone, setting the stage for the boundless, interconnected
world we experience today.
<
p >Each decade brings with it a wave of technological evolution that
transforms our lives. After the internet browsers in the 1990s, the 2000s gave us
smartphones. Then 2010s saw Apple's iPad merge the features of computers and smartphones
into a single device. Microsoft launched Azure, which took cloud computing by storm. The
2010s also gave us most of the apps that run our day-to-day lives today. Think Instagram,
Uber and even Pokemon Go. Cut to the 2020s. First, live streaming captivated our
imagination and free time. Then Zoom connected us with our workplaces and loved ones. Soon
enough, all of these got classified as the new normal and then
ChatGPT was
launched. In no time, artificial intelligence and the semiconductor gold rush that came
with it became a household conversation. Now, before we could blink our eyes, we have
GPT
4o - AI that can interact with audio, video, and text - all three in real-time.
Looking ahead to the 2030s, we can already envision humanoid chatbots like Tesla Bot and
Alter 3, with AI systems communicating in human-like ways.
Fibre at the roots
While we marvel at how technology has transformed our daily lives on
the front end, it's crucial to recognise that this is a two-way looking glass. The backend
networks—the hidden infrastructure— have evolved just as dramatically. One
timeless feature of all these technology waves has been Optical fibre. From 300 million km
in 2000, the optical fibre footprint today stands at ~5 billion km. To put that number in
perspective - it's 33x the distance between Earth and the sun. And looking at the
anticipated pace of technology evolution, this number would be even more staggering in the
future.
Optical fibre has been a constant force in the world of technology.
With every new technology wave, networks have become more fibre-dense. Initially
concentrated at the heart of the core networks, fibre gradually moved to transport
networks, then to access networks, edge networks, and now at a premise level. Even with
such proliferation, the FTTH (fibre-to-the-home) penetration stands at less than 60% in
nearly 25 countries. So, a lot of fibre still needs to be put into the ground or deployed
aerially. For the next few years, a new storm is brewing in the world of fibre. As AI
scales up, data centres would need to be fiberised extensively - nearly 5x of the current
levels. Looking at the future, the next frontiers of fibre to the room and fibre to the
devices are not far off.
From past to the future - building the world?s digital backbone
Like technology evolution, our business and reason for existence are
also deeply rooted in fibre. For the past three decades, we have meticulously and
passionately built capability across the entire optical fibre value chain. We call it Glass
to Gigabit Connectivity-starting from the majestic glass preform to fibre, cable, and
then optical connectivity.
This unique capability helps us create value for our customers in many
new ways, such as increasing network longevity, purpose- engineering products for
specific use cases, and delivering best-in-class quality.
In FY24, as we battled an industry slowdown, we took some bold steps to
bring futuristic optical fibre technology to life, laying the groundwork for future
success.
Highlights of 2024
New technology for new-age fibre -
Our passion for innovation has driven us to create advanced fibre
solutions that will support everything from immersive entertainment to at-scale Gen AI
experiences. Some of these include Multicore fibre with 4x capacity, Stellar™
fibre with superior bend performance, and miniaturised advanced fibres with diameters of
180 and 160-micron.
New horizons
Setting up a world-class production facility in South Carolina, US, has
been one of the greatest milestones for us this year. This facility, which produces advanced
fibre products, is catering to nearly 50 customers in North America, supporting their
journeys to connect the unconnected.
Greener Internet
We are proud to be tech-forward every day, but we take more pride when
we achieve our sustainability goals. This year, we became the first in the world to have
third- party verified eco-labelled methodology.
Automation in deployment
We don't stop at product innovation.
By infusing automation into the fiberisation process, we are unlocking
value for our customers. Most recently, we partnered with our UK-based customer, Connexin,
to enable faster implementation of their aggressive fiberisation plans.
AInovvTM Advanced AI solution
On the other side of the spectrum, our newly incubated IT services arm,
STL Digital, is engineering personalised digital experiences for over 25 global
customers.
In its first full year of operations, STL Digital developed and
launched AInovv™, a solutioning fabric of powerful Generative AI Services,
frameworks, methodologies, and solutions. This industry-leading AI solution will help
enterprises accelerate Generative AI-led innovation and adoption.
While we pushed the boundaries and achieved many firsts during the
year, we also worked really hard and displayed resilience against market headwinds, which
played out for the better part of this year. As the green shoots emerge, we have our task
cut out. As we move into FY25, we will be hyper-focused on our customers, drive product
innovation and sustainability relentlessly, and keep strengthening the
foundation to deliver sustained growth and shareholder value in the decades to come. I am
extremely thankful for your comradeship in this journey and hope to work even more closely
with you in the coming year.
Warm regards,