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Vakrangee Ltd.

BSE: 511431 | NSE: VAKRANGEE |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE051B01021 | SECTOR: Computers - Software Medium & Small

BSE Live

Apr 09, 16:00
20.65 0.95 (4.82%)
Volume
AVERAGE VOLUME
5-Day
300,944
10-Day
385,991
30-Day
456,120
6,200
  • Prev. Close

    19.70

  • Open Price

    20.65

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Apr 09, 15:57
20.80 0.95 (4.79%)
Volume
AVERAGE VOLUME
5-Day
887,500
10-Day
1,525,573
30-Day
1,721,603
213,474
  • Prev. Close

    19.85

  • Open Price

    20.80

  • Bid Price (Qty.)

    20.80 (1141339)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2018 2017 2014 2013 2012 2011 2010 2009 2008

Chairman's Speech

Dear Shareholders, Most CMDs in my place would have looked back at our record numbers of 2007-08 revenue growth of 92.08 percent and PAT growth of 104.88 percent - with considerable satisfaction. In my position, I am more inclined to look ahead as these numbers are only indicative of our true capabilities and only partly reflect our competitive position. Inflection point The last decade represented an inflection point in the history of the document management business. Until this point, all storage solutions were basically extensions of the print medium, comprising carbon copies, stencils, microfilm and photocopy. Each of these extensions was essentially perishable; each merely extended document mortality for a limited period before requiring the need to be recaptured with the objective of extending the mortality by another few years. From this perspective, the introduction of electronic document management graduated the solution into an entirely different generation with three outcomes: timelessness, consistency and economy. At Vakrangee Softwares, we graduated our business model with proactive speed to capitalize on this industry inflection point, reinforcing our first movers advantage with core competence and a competitive advantage. So even as the industry is nascent, we possess the largest market share of the segment and have made significant investments to retain this position going ahead. Sectoral needs At Vakrangee Softwares, we are optimistic of generating robust year-on-year growth for an important reason. Some sectors of our presence need to graduate from the legacy to the electronic environment either mandatorily or in line with an irreversibly progressive way of doing things. Besides, the performance of some of the other sectors of our presence, like power and telecom can be safely interpreted as economy drivers. In either case, our prospects appear to be protected, irrespective of economic buoyancy or otherwise. There is also a unique feature about some of the sectors of our presence like telecom, BFSI and utilities. These sectors represent some of the fastest growing in India today and concurrently also the most regulated. This drives our business at two levels: while our customers growth necessitates a significant increase in document management volumes on the one hand, each regulation necessitates extensive one-time and periodic documentation requirements on the other. Consider the reality: India enjoys a monthly growth of about 8 million cellular subscribers, perhaps the highest cellular customer accretion across any country in the world; a growth of 18 percent in new credit card accounts in India, the number of such users are likely to grow from 26 million in 2007-08 to an estimated 55 million by 2010-11 (Source: RBI). Competitive position At Vakrangee Softwares, we are attractively placed to address the enhanced scale of document management and print management services following successful, large- volume, time-bound assignments for the Election Commission across the last decade. As a result, we have emerged as the predominant solution provider to the Government for its document management solutions and have not lost a single client over the same period. Synergistic presence: Interestingly, while the document management sector in India is largely unorganized and local, most large customers are organized and national. This mismatch represents an invisible entry barrier for intending competitors; Vakrangee Softwares is the only vendor that can effectively service these large and growing clients with integrated document management solutions through its complement of more than 32 site offices across the country. Our success has been derived through the competent address of a dispersed customer presence with a single- point integrated document management solution. Operational efficiency: The document management requirements of these fast growing sectors comprise a complement of speed, scale and timeliness. For instance, the need for credit card statements or telecom subscriber bills to be punctually printed and dispatched periodically does not just entail manual or clerical implications, but influences the cash flow for customer companies. As a result, our customers see our role as business-critical, influencing their decision to work with the most efficient and equipped. Government opportunities At Vakrangee Softwares, we are at the right place at the right time for another reason: the government of India is accelerating the transition of its legacy paper environment into an electronic equivalent to enhance transparency and citizen convenience. Opportunity: The Right to Information Act, along with the National e-Governance Plan (NeGP), has made it imperative for all government departments to digitize official information. Consequently, the NeGP identified 26 mission-mode projects NeGP - existing matrix Central Services to citizens (G2C) Income tax, passport and immigration national ID Services to business (G2B) Excise, company affairs Services within Government Pensions, banking, (G2G) insurance, National GIS for planning e-posts State Integrated Land records, property Common service centres, registration, road transport, India portal agriculture, municipalities, panchayats, police Commercial taxes EDI, e-Biz Treasuries, employment National e-governance gateway, exchange, education, e-procurement, e-Courts, e-office, civil supplies e-districts Rashtriya Swastha Bima Yojana: This health insurance scheme will generate a large photo-identification opportunity as the government will need to issue health cards to those below Indias poverty line. This scheme is expected to be rolled out in all Indian states over the next five years. Election Commission: The next general election of 2009 will create a vast opportunity as multiple printed copies of the electoral rolls will be required for all constituencies. Also, the growing number of first-time voters is expected to create additional demand for new EPIC printing. Concurrently, the delimitation exercise undertaken in various state constituencies is resulting in an attractive opportunity for the Company. Our initiatives At Vakrangee Softwares, we have drawn up a blueprint to make us business-ready for these opportunities. Reach: We possess a pan-India complement of 32 offices; we expect to expand our network through the addition of about 100 small and big offices around a hub-and-spoke architecture by 2009-10. Scale and technology: We invested continuously in our DMS and PMS segments until the close of 2007-08; we propose to grow our assets over the next three years through assets, alliances and technologies. New hub: We are setting up our second North Indian hub at OSurgaon, which will enhance our presence in the region and empower us to address the growing digitization opportunities provided by the Central Government. This hub, supported by other small regional offices, will be operational by September 2008. Adding assignment value: We will enhance our profile to target marketing opportunities through data mining and bill printing services. E-Doc: We formed a wholly-owned subsidiary to provide consultancy services in document output management and business process services, generating revenues through our intellectual capital, and act as a supplier-neutral sen/ice provider. ERP support: Our captively developed human resource management package, primarily for the government sector, is expected to generate returns by 2011. Long-term growth blueprint At Vakrangee Softwares, we expect to accelerate our growth through the following initiatives: Domestic: With digitization emerging as the way forward for document management, we foresee increased business volumes from every region. To address this opportunity, we will set up hubs in East (Kolkata) and South India (Chennai), the benefits of which will accrue over the medium-term. Global: We will leverage the rich experience that we have derived in India to extend into similar developing nations, inundated with legacy storage formats, requiring digitization and print-management services. In view of this, we are creating a central hub on the outskirts of Mumbai with state- of-the-art technology to cater to global document management and print management outsourcing requirements. As an extension of our resolve, we are aligning our systems to match exacting BS 27001 international standards. Outlook Keeping in mind these opportunities, we see our Company at the bottom of a long J-curve where every rupee invested will deliver superior returns. Dinesh Nandwana Chairman and Managing Director