Letter to the Shareholders
Indian Business Environment
Change is not only inevitable but also essential today. Continuous improvement and innovation is a key to the success of any organization. India is rapidly getting aligned to the global trends. India is also the center of focus across the globe for its potential opportunities. The present government has set the ball rolling for growth by bringing out very meaningful and sometime even disruptive economic reforms. Every business in the country had to respond by internalizing these reforms and transforming themselves for its sustenance, survival and growth. The mega reforms initiative unleashed over the last two years includes:
1. Jan-Dhan Yojna (J)
2. Aadhaar (A)
3. Mobile Data & Voice (M)
4. Taxation - Goods and Services Tax (T)
5. Digital Transaction and Cash Settlement (D)
6. Compliance & Formalization (F)
The above reforms (JAM-TDF) are giving rise to trends which include:
1. Shift from unorganized to organized sector,
2. Growing momentum for clean business practices where SMEs can be profitable and grow without resorting to any shortcuts
3. Increased speed of doing business 4- Data based decision making
WeP has over the years been working towards a transformational journey both for itself and for its customers. The reforms in India have accelerated the need for this transformation for both WeP and its customers. I would like to provide a snapshot of our transformation journey over the last few years.
WeP’s Transformation Journey
Until FY14-15, WeP was primarily an Impact Printer company with more than 50% of the revenues coming from this traditional business. The trends of the last four years indicate that we have successfully transformed your company from a business of traditional impact products to a digital age products & services company. Digital business contributed Rs.11Mn in revenues in FY17-18.
This journey of Transformation has also resulted in changing our company from a Products centric to Solution and Services centric company. This is visible in the gross value add of the company moving up from 41.8% in 14-15 to 53.9% in 17-18.
As indicated in our last annual report, we have begun our transformation journey from 15-16. This should accelerate from now as traditional business constitute only 29% of our revenue.. Our growth path is built upon a three-pronged strategy, which each of our three business lines represent.
Managed Print Services
MPS business is the core of our growth strategy. With more and more enterprises moving towards print outsourcing, we find ourselves well poised to take up this challenge. Our strength is operational efficiency. We have created a business that can scale up and grow at a much faster pace than earlier. With a strong technical blend we are uniquely positioned to take on competition.
Retail Billing Products
The advent of the GST regime and need for automation at the base of the Retail pyramid has made us more confident about the tremendous potential this segment has. Our current product portfolio coupled with our ability to design and customize to the needs of multiple business segments is best suited for this business to grow by leaps and bounds in the coming years.
Our foray into Digital Services like GST automation and Aadhaar identity verification has opened a new avenue for us to grow and transform ourselves and our customers. Our entry into Document Management Solutions (DMS) in the last couple of years along with the new initiatives have enabled us to provide a bouquet of digital services to enterprises, more particularly focused on MSMEs where we believe digital services are needed the most. Over the coming years we endeavour to be a one-stop-shop for all digital solutions and services encompassing document digitization , automating tax filings, payment solutions etc. We are also India’s only device-based GST solution provider where a retail outlet can transact, make payments and file GST returns at the click of a button. There are more than 20 million SME establishments in the country of which 13 million are already registered for GST. Many of these establishments will move from ‘informal’ sector to formal sector over next 5 years. We will help these MSME establishments in making the transformation happen.
During 17-18, our growth expectations were high but these anticipated growth plans could not be realized due to moving and uncertain milestones in implementing GST and Aadhar. However, we strongly believe that our long term direction is certain. There could be uncertain phases due to rapidly changing JAM-TDF scenario on technology, commercial and regulatory front, but we believe we are capable and equipped to tide over and continue our growth path.
In subsequent pages, we have listed some of the many experiences our customers have shared with us, expressing their appreciation for our help and support in their transformational journey. Our endeavour would be to reach all our potential customers as early as possible and as fast as possible in profitable ways.
Our growth path has begun. We need to accelerate it further.
We will continue to provide “WoW” to our customers by providing innovative and new age solutions coupled with long term return to our shareholders.
I convey my gratitude and place on record my appreciation to the WeP team for their hard work, solidarity, co-operation and dedication during the year. I sincerely convey their appreciation to Customers, Shareholders, Vendors, Bankers, Business Associates, Regulatory and Government authorities for their continued support and co-operation.
With Best Regards,
Ram N Agarwal