Mr. Monohar Bidaye
This year has been the most challenging year for the Company. During last one year we have worked relentlessly to preserve the value which we have built in brand Zicom and its various businesses. We have undergone several evolutionary changes to pro-actively take on the challenges we are facing. We are confident that these changes will ensure sustainable growth for Zicom Group in the years to come.
As you all are aware since inception Zicom has successfully developed import dependent model to procure electronic security products under its brand with indigenous design input born with strict technical supervision at OEM. Make in India Initiative of Government of India has directed all players to work on local manufacturing model with tariff incentives. During the year we have successfully migrated to this new model and started assembly of our components and products and have achieved same quality parameters for which Zicom is known for. I’m sure this will help us to bring back our temporary loss of market share.
Zicom SaaS continues to successfully build its service offerings by covering individual to community to enterprises. Ziwatch ATM solutions is well accepted by banking fraternity while service offering to housing societies under MYCS is growing well with Hyderabad city as new entrant. You will notice that Zicom SaaS has registered good growth and will continue to remain main profitability driver for India business.
The technology and associated business models is undergoing rapid change. Zicom SaaS Business is Completely revolving around new invention in technology in IOT space and is flexible enough to offer various other services to the community.
Our fire safety solution businesses in the Middle East have been under pressure during the year due to the continued slump in crude prices. To address this challenge, your company has shifted its focus to the service and maintenance business to ensure steady cash flows going forward. We have also set up our assembly facility for Unisafe branded products which will be marketed and distributed in the Middle East region. With the 40 year legacy Unisafe Dubai has in the fire safety sector, we are confident of good growth in this vertical.
Due to financial stress since last 2 years, the bankers of the Company have converted part of its loan into equity under SDR Scheme. This has resulted in conversion of debt of ` 90.51 Crores into equity for consortium bankers. The bankers have shown total faith in current management and we are all working together to put revival plan in place for entire group.
Zicom has undergone lot of ups and down in its journey of 22 years. Due to continuous pressure of Middle East economy the revival may take sometime but we all are putting sincere efforts to restore value back for all stakeholders.
On behalf of the entire Zicom team, I’m sincerely thankful to all stakeholders and well-wishers for sticking with us through a challenging year. With your support, we are confident of scaling new heights in the coming years.