The year 2012 witnessed a laggard growth in the economy which however
ended with improvement on a modest note in synchronization with the
global scenario. In a globalized economy, there is no escape for any
country from the consequences, be it positive or negative. Barring no
exception, over the decades, India has also firmly integrated with the
world economy. The very fact remains that policy uncertainty and
slowdown in the global demand has hampered the overall growth of all
economies with major injury bearers being growing economies like India.
It has been generally difficult for the companies that have their major
revenues coming from exports markets as reasons like slowdown in
demand, currency fluctuations and recovery of receivables have a key
role to play.
Sensing the above situation, as some of it was a spillover of the
previous year as well, we as a company had the target of maintaining
and improving operational efficiencies in tandem with trying our best
on the working capital management. We also worked on the product
profile enhancement along-with retaining the market share in different
One of the key issues to be addressed during the year was the
refinancing of the FCCBs that matured in October 2012. This needed
prime attention as the currency fluctuations played a spoilt sport.
Also with the economy jitters being felt globally, refinancing at
exorbitantly high interest rates way beyond the comfort zone of even
the biggies in the industry, was a huge challenge. We had been taking
adequate measures to stop the vicious circle of excess debt leading to
disaster by executing strategic program of structured funding having
combination of low-cost long-term debt and equity. We did manage to tie
up for long term funding proposals to restructure the bonds. Lot of
efforts are underway for negotiating with the bondholders, betting on
the fact that the macro environment was difficult to handle.
Although the emerging and developing markets are not expected to
rebound to the high growth rates of 2010-11, as indicated by the IMF
survey, it is still projected to clock decent growth in 2013. This is
however keeping in mind that weakness in the advanced economies will
reflect on the performance of the developing economies impacted by the
external demand. The increasing level of intense competition,
complexity and mounting uncertainty leads to a challenging environment
and needs to be handled strategically as the level of uncertainty is
expected to remain high and keep increasing in the coming years.
We have been working on strategies that enable us 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. This is based on the realization
that the environment is getting complex and traditional guidelines are
no longer applicable.
In this challenging environment, we at Plethico have still managed to
maintain our performance with regards to product innovation and
capturing newer clients and markets while serving the existing ones. We
have geared-up our core executive team for the possibility that there
could be another downturn or slowdown in the coming years and as such
to improve competitive strengths permanently.
Foreseen the fact, that innovation is the only key to sustain and
rebound, we had been laying emphasis on our R&D activities and
in-process innovations. Keeping in mind that pricing would be the core
pillar of any product profile development; we have optimized our
processes and applied innovation pricing strategies. The company also
developed a very competent management team and an effective information
system suitable to the organization''s needs. Comprehensive reporting
system has also been developed that tracks KPIs in real-time, enabling
to quickly understand the changes happening in the markets globally and
thus modifying strategies to achieve the expected growth levels.
Our focus during the year 2012 was bifurcated on one hand into
financial aspects that would help us cap our liabilities in order to
strengthen our balance sheets and have stable cash flows while on the
other hand business development that focused 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 and pursuing
As a company we are well positioned to capture the demand growth of the
emerging markets; however turnaround in the overall macro environment
is the key. Although there is a gradual improvement being witnessed,
sustainability and growth would still be a challenge.
I maintain my motive and promise to all the shareholders to give better
returns through robust performance appreciating intrinsic value of the
investment of the shareholders. I also express my sincere gratitude to
all my stakeholders 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