2002 was a challenging year for the business. The past year witnessed a
sluggish trend in the economy, reduced customer purchases across
segments and hence intense competition from established foreign brands
and rejuvenated Indian Brands. Even against this backdrop, the Company
was able to increase its turnover by 5% over the last year, though the
margins came under immense pressure.
The Year 2003 promises to be much better both in terms of revenue
growth and margins and there are number of reasons for this optimism.
The Banking Industry & State Bank of India in particular, which has
remained our mainstay in the last several years, has projected
increased purchases of IT equipment which augurs positively for our
system and solutions as well as service divisions. The Company, in
addition to its present offerings, is also evaluating other major
thrust areas for future growth where it has the potential to emerge as
the industry leader. Spice Net has initiated the first step towards
building a service organization for Third Party Service & Maintenance
of IT Systems, both Hardware & Software and other durables. The Company
is aggressively looking to develop the retail Hardware segment with the
support of international players like Olivetti and Wincor Nixdorf who
have been in this business for the past several years.
Your Company in the year 2002 decided to buy out the 48.22% equity
stake held by General Binding Corporation, USA in Spice Systems Ltd.
(previously GBC ModiCorp Limited), a leading distributor of
presentation and preservation systems that add value to document
finishing. This acquisition will further spearhead the Company's foray
in Office Automation and I.T. products.
The Company is proposing to come out with a Rights Issue of equity
shares to meet its enhanced working capital requirements. SpiceCorp
Pvt. Ltd., Promoter of the Company has undertaken to subscribe the
unsubscribed portion of the Rights Issue, thus also establishing the
commitment of the promoters.
While concluding, I wish to thank all the shareholders of the Company
for their support and all my colleagues on the Board for their
contribution and also wish to appreciate the sincere and dedicated
services rendered by employees at all levels and I am sure that with
their continued support the Company will reach greater heights.