1. INDUSTRY STRUCTURE & DEVELOPMENTS:
Business Snapshot
We are offering support services to the high end telecom segments such as network
planning & optimization, network rollout, managed services and manpower solutions
through sub-contracting basis. We provide all services related to planning, installation
& commissioning, operation, modification and maintenance of telecom networks and
provide manpower solutions to our customers. We are offering a wide variety of services
and solutions i.e. technical site surveys, radio surveys, network planning, radio and core
equipment (BBS, RBS 2G, 3G and LTE) installation, installation supervision and commission/
integration services to a wide variety of equipments and vendors.
We undertake this activity through engineers and technical staff deputed on client
sites/ offices. We believe that we have the strength and expertise to undertake multi-site
projects pan India. We cater most of the telecom operators and telecom equipment
manufacturers operating in India. We believe that we have fully equipped maintenance team
which is responsible for regular maintenance of telecom networks.
TelecomTower Maintenance Industry - Indian and Global:
Telecom towers form the backbone of wireless networks and provide last mile
connectivity to subscribers. The telecom tower industry has rapidly grown in a short span
of time. Accord Synergy Limited has played a pioneering role in shaping the industry, and
is among the few telecom tower company in India to get listed on Indian Stock Exchange.
The Telecom industry in India is the second largest in the world with a subscriber base
of 1.17 bn as of September 2022 (wireless + wireline subscribers). India has an overall
tele-density of 84.86 %, of which, the tele-density of the rural market, which is largely
untapped, stands at 58.01 % while the tele-density of the urban market is 134.62 %.
By the end of January, 2023, the total number of internet subscribers increased to
839.18 mn (narrowband + broadband subscribers), out of which 44.25% of the internet
subscribers belonged to the rural areas. The average monthly data consumption per wireless
data subscriber has also increased by 22,605% to 16.40 GB in June 2022 from 61.66 MB in
March 2014.
The industrys exponential growth over the last few years is primarily driven by
affordable tariffs, wider availability, roll-out of Mobile Number Portability (MNP),
expanding 3G and 4G coverage, evolving consumption patterns of subscribers,
Governments initiatives towards bolstering Indias domestic telecom manufacturing
capacity, and a conducive regulatory environment.
To further expedite digital connectivity, the Government has approved the auction of
IMT/5G spectrum for deployment of 5G services within the country. This auction was
successfully held by the end of July, 2022 and grossed $18.77 bn.
The Telecom sector is the 3rd largest sector in terms of FDI inflows, contributing
6.43% of total FDI inflow, and contributes directly to 2.2 mn employment and indirectly to
1.8 mn jobs. Between 2014 and 2021, the FDI inflows in the Telecom sector rose by 150% to
$20.72 bn from $8.32 bn during 2002-2014. 100% Foreign Direct Investment (FDI) has now
been allowed in the Telecom Industies.
Tele-density, which denotes the number of telephones per 100 population, is an
important indicator of telecom penetration.
The Telecommunications industry is divided into following subsectors: Infrastructure,
Equipment, Mobile Virtual Network Operators (MNVO), White Space Spectrum, 5G, Telephone
service providers and Broadband.
As per GSMA, India is on its way to becoming the second-largest smartphone market
globally by 2025 with around 1 Bn installed devices and is expected to have 920 Mn unique
mobile subscribers by 2025 which will include 88 Mn 5G connections. It is also estimated
that 5G technology will contribute approximately $450 Bn to the Indian Economy in the
period of 2023-2040.
India added over 500 Mn new smartphone users over the last decade. We are expected to
have 850 Mn smartphone users by 2026, representing ~55% of the total population.
Under the Union Budget 2023, The Government of India plans to set up one hundred labs
for developing applications using 5G services in engineering institutions to realize a new
range of opportunities, business models, and employment potential.
The DoT is targeting a combination of 100% broadband connectivity in the villages, 55%
fiberisation of mobile towers, average broadband speeds of 25 mbps and 30 lakh kms of
optic fibre rollouts by December 2022. Broadband connections rise to 816 Mn in September
2022 from 61 Mn in March 2014, growing by 1238%. By December 2024, DoT is looking at 70%
fiberisation of towers, average broadband speeds of 50 Mbps and 50 lakh kms of optic fibre
rollouts at a pan-India level.
• India climbs up six slots and now placed at 61st rank as per Network Readiness
Index 2022.
• India secures 2nd rank in "Mobile broadband internet traffic within the
country” and "International Internet bandwidth”.
• Internet connections jumped from 25.15 crore in March 2014 to 83.69 crore in
June 2022, registering a growth of 232%.
• Broadband connections rose from 6.1 crore in March 2014 to 81.62 crores in
September, 2022 growing by 1238%.
• Average revenue realization per subscriber per GB wireless data reduced to Rs.
10.29 in June, 2022 from Rs. 268.97 in December 2014, a reduction of more than 96.17%.
• Average monthly data consumption per wireless data subscriber increased by 266
times to 16.40 GB in June, 2022 from 61.66 MB in March 2014.
• India secures 3rd rank in "Annual investment in telecommunication
services” and "Domestic market size”.
• 5G services have been started in 238 cities distributed across all license
service areas as of 31st January 2023.
• India jumps 10 spots in median mobile speeds globally from 79th position in
December to 69th place in January 2023.
• Total telephone connections rose to 117.02 crore in October 2022 from 93.30
crore in March 2014, with a growth of 25.42 % in the said period. The number of mobile
connections reached to 114.4 crore in October 2022.
• Urban telephone connections rose to 64.99 crores in October 2022 from 55.52
crore in March 2014, a growth of 17.06% while the growth in rural telephone connections
was 37.69%, which is double of urban increase, rising from 37.78 crore in March 2014 to
52.02 crores in October 2022. The rural tele-density jumped from 44% in March 2014 to
57.91% in October 2022.
The Indian telecom sector is expected to generate four million direct and indirect jobs
over the next five years according to estimates by Randstad India. The employment
opportunities are expected to be created due to combination of governments efforts to
increase penetration in rural areas and the rapid increase in smartphone sales and rising
internet usage.
2. SWOT Analysis |
|
Strength |
Weakness |
Qualified and experienced |
Working capital intensive |
management team and |
business |
employee base |
Dependent on few clients |
Ability to offer end to end |
|
telecom solutions |
|
Pan India reach |
|
Established relationship with our |
|
clients |
|
Technology driven |
|
Timely completion of awarded |
|
work |
|
Opportunities |
Threats |
High growth potential |
Increased competition from local |
Wide market |
& big players |
|
Change in Government Policy |
3. Risks and concerns:
In todays dynamic business environment ‘Risk Management is an essential function
to have sustainable and effective business model in place in India. Risk Management
encompasses practices related to identification, analysis, evaluation, treatment
mitigation and monitoring of the strategic, external and operational controls risks to
achieving our key business objectives. Risk management seeks to minimise the adverse
impact of these risks, thus enabling the Company to leverage market opportunities
effectively and enhance its long term competitive advantage.
Global Recession due to COVID 19 pandemic :The novel coronavirus disease (COVID-19)
pandemic and ensuing lockdowns in several parts of the world have led to a recession
unmatched in eight decades. Combined with structural bottlenecks, this will amplify the
long-term damage of deep recession associated with the pandemic. This would severely
impact the demand side of the equilibrium and affect supply chains across the country and
world. Our Company may be affected to that extent by the global recession.
The management of the Company is cautious about the proper risk management across the
Company. The focus of risk management is to access risks, monitor, evaluate and deploy
mitigation measures to manage these risks within our risk appetite.
Also to add that the revenues from our existing business lines are all dependent on the
sustainability of telecom sector, we believe that macro-economic factors including the
growth of the Indian economy, interest rates, as well as the political and economic
environment, have a significant direct impact on our business, results of operations and
financial position.
4. Environment Health & Safety:
The Company is committed to health and safety of its employees, associates and
contractors; and instills it as a value. And the Company has also formed H&S team to
manage health and safety in its operations and to build safe culture across the Company.
Also the Company has zero tolerance policy for any OHS/EHS violation.
Further, it has set in place documented procedures which ensure the Health, Safety and
Wellbeing of its employees, Contractors, Assets and Customers property. The Company has
set the HSE policy, objectives and shared the responsibility to continually improve the
HSE performance. Further the Company is a OHSAS 14001: 2015 certified company for EHS and
18001:2007 for OHSMRS.
5. Internal control system:
The Company has sound and adequate internal control systems commensurate with its size
and nature of business. We constantly upgrade our systems for incremental improvements.
The Audit Committee of the Board periodically reviews these systems. These systems ensure
protection of assets and proper recording of transactions and timely reporting. Internal
auditor will be conducted out by an independent professional firm on regular basis. The
Audit Committee also regularly reviews the periodic reports of the Statutory Auditors and
Accounts departments.
The Company has trained the staff in order to upgrade with the recent changes in the
taxation like GST. Audit Committee constantly tries to add value by evaluating existing
systems.
6. Financial & operational performance:
The Company has performed very well instead of sluggish trend in the telecom sector in
the year 2022-23.
7. Material developments in Human resources / Industrial Relations front, including
number of people Employed:
Human capital has always been the most important and valuable asset to the Company. Our
Company continued its activities during the year in a cordial atmosphere with utmost
co-operation amongst employees and the management. The management is committed to promote
safety, occupational health and proper environment in designing, planning, training and
completion of all tasks. Trainings are imparted to workmen in various new techniques and
systems.
|
For and on behalf of the Board |
Place: Vadodara |
|
Date: 28th August, 2023 |
Sd/- |
|
Chairman |
|
AsdullakhanPathan |
|
DIN - 01952438 |
+91-9892691696
