The year 2011 has been very volatile and difficult, yet we have been
driving growth and creating values for our end-customers and the
stakeholders as well. In spite of Plethora of external constraints,
conflicting economic signals and confusing financial interpretations,
we performed extremely well and emerged as a pure-play category
innovators and global challengers totally positioned to take off
globally in the high- growth marketplaces.
I always trust that there is much to learn from what successful
companies have been doing to win in spite of the economic uncertainty.
Despite wide-ranging profile, during 2011, we focused on small number
of significant opportunities, meaningful innovations targeted at
creating value for end- customer and consistent endeavor to encourage a
culture of speed and experimentation.
In order to ease pressure on debt, we during 2011 successfully worked
on different long-term refinancing operations which came forth as a
masterstroke. We took adequate measures to stop vicious circle of too
much debt leading to disaster by executing program of structured
funding having combination of low-cost long-term debt and equity.
Launching of public fixed deposit scheme was our first effort to swap
high cost debt and surprisingly, the response was superb beyond
expectation. That speaks about the trust, people have in our
organization. In the next step we floated fully convertible warrants,
the proceeds of which were utilized for retiring debt burden. We are
also working on many long-term funding proposals to restructure FCCB
maturing during October 2012.
I can well foresee that level of uncertainty will remain high in the
coming years and it would be extremely difficult to achieve sustained
value-creating growth. Increasing complexity, mounting uncertainty,
intense competition, declining R&D productivity, increasingly crowded
markets, reimbursement hurdles shall be major challenges that need to
be addressed more strategically.
In fact, there is no single prescription that can deliver foolproof
success. The environment is more complex and traditional guidelines are
no longer applying. Under the circumstances, it is utmost important to
develop strategy enabling to anticipate competitor''s actions
beforehand, consider innovative pricing options, engage and connect
with stakeholders and collect and analyze real-time data helping to
quickly grasp changes in the market places and to formulate business
plans more aptly.
And at Plethico, we did it successfully as replicated in our
performance of 2011. We have been doing more than simply following the
positive signals and translating the opportunities of the post-crisis
era into competitive advantage. We have geared-up team of our core
executives for the possibility that there could be another downturn in
the coming years and as such to improve competitive strengths
We had realized that without innovating, it wont be possible to
prosper over the next few years. As such in-process innovations were
geared up to optimize process and to reduce non-personnel costs.
Fundamental issues were also broached. Innovative pricing strategies
were applied during product development to make pricing a core pillar
of the product''s profile. Comprehensive reporting system has been
developed that tracks KPIs in real-time enabling to quickly understand
the changes happening in the marketplaces globally and thus modifying
strategies to achieve expected growth levels. The company also
developed a very competent management team and an effective information
system suitable to the organization''s needs.
I personally believe that the future after-all belongs to those who
take their destiny into their own hands. As such during 2011, we
constantly focused on strong Balance Sheet, stable cash flow and lower
break-even points. Major thrust was also on differentiation,
accelerating product development to the optimum level, creating
tangible values for customers, identifying core activities, applying
game-changing strategies, creating new business models, pursuing
opportunistic investments and eliminating positions that are relatively
Today, Plethico is well positioned to capture rapid end- demand growth
of the emerging marketplaces. The company also foretells underlying
opportunities and confident about sparkling performance in the coming
I also promise all the shareholders to give better returns through
robust performance appreciating intrinsic value of the shares. I also
express my sincere gratitude to all my stockholders who have reposed
trust in us and extended their full co-operation. I am also grateful to
the Board of Directors for their steady support and guidance.
Chairman & Managing Director