We all continue to be excited with the huge opportunity for the cable &
broadband business. With a strong and empowered leadership team, DEN is
right there in exploiting this opportunity to maximize shareholder
value and we welcome the coming year with Digitization as the focus.
The Indian Economy growth picked up in FY''14-15, inflation markedly
declined, and the external position was comfortable, helped by positive
policies and lower global oil prices. With a stable government and
pro-growth policy reforms, India is expected to drive itself home
through more and consistent GDP growth in the subsequent years.
The year 2014 has been a turning point for the media and entertainment
industry in India many ways. One of the major highlights in 2014 was
the announcement of '' Digital India: A programme to transform India
into a digitally empowered society and knowledge economy'' by the
government. Another trending phenomenon is Internet-Of-Things (IOT)
which aims to inter- connect household devices like TV ACs, Microwaves,
Fridge, Cameras etc. to provide remote access and control. All these
are signs of a technical revolution and development in India which can
be achieved only through Digitization.
The rollout of digital cable STBs in Phases I and II cities is now
complete and the stage is set for introduction of new age facilities
like channel packaging, online bill payment, HD channels, Broadband
With successful completion of Phases I and II, the roadmap is clear for
Phases III and IV Government support for Digital India provides a
conducive environment for timely completion of Phases III and IV We are
adequately prepared and well capitalized for the opportunity and are
consolidating operations, setting up business processes and systems,
working on STB procurement and putting logistics in place to handle the
huge scale STB roll out.
Broadband is another huge opportunity area. Wired broadband connections
in the country are expected to grow up from 20 million in 2014 to 32
million in 2019. Globally DOCSIS (Data Over Cable Service Interface
Specification) is the predominant technology used for cable broadband
and has higher speed and lower investment advantage over the DSL
(Digital Subscriber Line) technologies used by telecom operators which
require significantly less investment, but had speed limitations. We
have soft launched our high speed broadband services and have crossed
3.3L Homes Passed with ~23,000 broadband subscribers.
We also forayed into TV Shopping and Soccer this fiscal year. TV
shopping in India is almost a 4,000-5,000 crore market. Our TV shopping
JV between DEN and Snapdeal brings tremendous synergies because we are
able to leverage our reach in distribution and our capabilities on the
video side to drive the front end activities and Snapdeals brand
merchandising and strong back-end allows state of the art
infrastructure. The JV has a reach of more than 25m Homes and has
started clocking annualised GMV of more than ~120 Crores.
On the soccer side, DEN, through its wholly owned subsidiary acquired
Delhi Dynamos FC, one of the most popular teams of the ISL with a fan
base of over 425,000 (based on Facebook likes) and over 29,000 Twitter
followers. The inaugural season of the Indian Super League (ISL)
generated huge audience interest with overall season viewership
reaching 429 million. The ISL also became Asia''s No.1 League and the
worlds No. 4 League by stadium attendance attracting an average of
26,000 spectators every match.
I would like to place on record my sincere appreciation to the Board of
Directors for their guidance. I would also like to express my gratitude
to all our stakeholders for their continuing faith in DEN.
With best wishes,
Chairman Managing Director