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Dear Stakeholders,
It has been a great year so far, having reached our identified
milestones, we are all set to tread new paths and seek new
destinations.
Year 2007-08 was path breaking in many ways; our business strategy was to consolidate
our existing businesses and offerings, while diversifying into domains that complement
our core business. SPML diversified into new business interests; acquisition of Coal mines
in Indonesia to fuel our energy initiatives and exploration of new markets, was a step in
that direction. |
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In the Engineering, Procurement and Construction business, SPML has reiterated it's established position as
a reliable and preferred partner. We have delivered on promises and commitments; reinstating trust and
repeat business from satisfied clients. Further, our continuous focus on project and delivery excellence is
evident in our application of innovative technologies, processes and systems.
We have allied with the best technology –domain partners to ensure cutting edge and break through
methodologies and practices. Partnerships with Insituform, USA – the pioneers in ‘trenchless pipe
rehabilitation technology’, Peat Technologies, USA – pioneers in ‘waste to useful products’, for instance
reflect our initiatives and the strides that we have taken in the Environment vertical.
SPML is developing mini-hydel projects with aggregate capacity of over 200 MW across various states of
India, in the Energy vertical. Further, SPML has developed an integrated energy management system for
Utility to ensure service optimization and enhanced consumer experience.
Latur Water Supply - India’s first integrated management contract from source to tap & Integrated Bulk
Water supply and water management for Bhiwandi Nizampur City Municipal Corporation, have been our
flagship projects in integrated water supply management initiatives on a Public Private Partnership basis.
SPML has allied with Hydro-Comp Enterprises, Cyprus, to provide a myriad of water management solutions
and services.
The Group has made tremendous strides in the infrastructure development domain; Pondicherry Special
Economic Zone and the Deep Sea Port at Pondicherry are progressing briskly as per schedule.
I would like to credit the success of our ventures to the team work and dedication of our core assets – our
employees. People policies have been at the forefront of our thrust areas over the years; going ahead we will
look at all aspects of people development and welfare policies, with renewed vigour. People retention and
attraction, are at the forefront of our growth strategy.
Our Joint venture partners have stood by us in our pursuit of excellence; our strong relationships have
resulted in collaboration, co-innovation and creation of infrastructure and engineering marvels. My special
thanks to our joint venture partners and business associates.
I would like to take this opportunity to thank the board of directors for their continued support. I would also
like to thank all the stakeholders – our esteemed clients, employees, support agencies, suppliers, vendors,
media and the general public at large, for their support and good wishes. |
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Dear Stakeholders,
Last year had been a testing time for the industry and SPML; but we as a team have taken this period as a time to retrospect and evolve long term strategies for the organization.
The financial year gone-by can be branded as the year of positive transformation for us at SPML; resource, effort and considerable time has been spent to restructure the various functions of the organization to align with the growth of the company - the sole objective of the initiative was to stay ahead of the curve.
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As a preferred growth partner in the domains of Water, Power and Infrastructure; we have been relentlessly bringing value to every project that we have embraced. The industry growth has been as envisioned and the future is a promise of unlimited opportunity for a company like ours.
We have seen a transition in the size and value of the projects that are being won by the company; from stand-alone package contracts for various infrastructure works to being single point solution providers to large high value comprehensive packages covering towns and cities - making a significant difference in human lives - SPML has definitely evolved in its journey of over two and half decades.
Project wins such as the Comprehensive Integrated Underground Sewerage System for Mira Bhayandar Municipal Corporation or the Sewer rehabilitation works for Delhi Jal Board or the prestigious Pranahitha Chevella Lift Irrigation Scheme from the Irrigation and CAD Department, Government of Andhra Pradesh, are testimony of the high value projects that are being built and managed by SPML.
In the Power domain, from contract projects in the generation, transmission and distribution side, to public private partnerships in Hydel plants across the country, to energy management solutions to utilities and systems integrators, we have seamlessly grown to be an Integrated Solutions Provider.
Further, we are pleased at the progress of our joint venture signature projects in the Infrastructure domain such as the Deep Sea Port and the Special Economic Zone at Pondicherry.
Our key assets - our resource pool of engineers and domain experts continue to ensure that we meet these growth aspirations and realities. As always, we have strived hard to sustain our environment for attracting and retaining the best talent - which is reflected in the way we have been delivering our promises.
The success of all our projects has been thanks to the collaborated efforts of our team. The consistent support that we have received from our stakeholders - esteemed clients, banks, investors, vendors, supply chain, partners, shareholders, media and general public at large, has been phenomenal and an inspiration.
As we tread into the next phase of our growth and destined position in the infrastructure development landscape, we would like to reiterate that though our eyes are always set on the next benchmark, milestone and innovation, our feet are firmly held to the ground, based on core fundamentals, values and ethics. Arthur C. Clarke said that “The only way of finding the limits of the possible is by going beyond them into the impossible”.
We at SPML stand inspired and committed to making human lives better with world class infrastructure and a future which ensures sustainable development in the years to come. We believe, together, we can.
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Dear Stakeholders,
As I speak to you today, I’m reminded of Charles Dickens opening lines of a novel. He said, “It was the best of times.” How apt, because today we’re living in that spirit Dickens spoke of.
I’m proud to tell you that 2006-2007 has been a very satisfactory year for us. Sample this: We posted a turnover of Rs.808 crores as against Rs.368 crores in 2005-2006. So, here’s the proof of the pudding: the Board has declared a dividend of 50% as against 40% the previous year. |
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We owe it to the spirit of the nation
As we raise the bar every minute in the spirit of nation building, I’m again reminded of another great leader who said, “The spirit of the nation lies in its people.” Our nation today is making giant strides with an annual GDP growth of 9.2%. And we as a company, are inspired and progressing along with her in our growth. The investments in Infrastructure have set the chord for our stellar performance. This has set a distinctly upbeat outlook for our industry. Consider the growth powered by infrastructure programmes across hospitals, urban infrastructure (including water supply, sewerage, and drainage), highways, roads, ports, railways, airports, power systems, irrigation and agriculture systems and telecommunications. What’s more, with the FDIs are expected to touch US$150
billion in the next 10 years, the Infrastructure industry is sitting on a virtual goldmine.
Nation building – Our sole commitment
Nelson Mandela had once remarked, “See what you can do for the nation, rather than what the nation can do for you.” We follow this adage thoroughly. Because our job, unlike many other industries, is not based on intangible targets. But on something tougher, yet noble: partnering in the progress of our nation. For 25 years we have been performing this with a lot of passion and we continue to put in the same energy into newer segments like water utilities in our JV with Hydro Comp – Cyprus, a global giant in water management.
Excellence is our middle name
Pearl S. Buck said, “The secret of joy in work is contained in one word – excellence!” At SPML, this is just what we believe in. We have excelled in every project we undertake because of the quality we maintain and delivery of projects on time. Every time.
Nothing else inspires us than success
I’m a firm believer in what Henry David Thoreau said: “We were born to succeed, not to fail”. Which is why, we give a lot of impetus to the 5 cornerstones of our success: Experience. Quality. Adaptability. Commitment. Vision. The way we succeed is also simple: Our project management systems are state-of-the-art. Materials are routinely tested at our field labs for quality and consistency. Projects are monitored and resources are optimally allocated to ensure that the complex process of constructing a mammoth infrastructure project proceeds smoothly.
Our Asset – Our People
People are definitely a company’s greatest asset. That’s the reason why I’ve laid a lot of emphasis on talent grooming by equipping them with the latest information and technology tools and helping them create a mindset that is open for innovation. It’s not for nothing that Bill Gates said, “Bringing together the right information with the right people will dramatically improve a company's ability to develop and act on strategic business opportunities.”
A note of thanks to every one of you
None of this would have been possible without all of you. The success that we have come upon is a result of great teamwork. Michael Jordan once commented, “Talent wins games, but teamwork and intelligence wins championships.” Apart from all my employees I would specially like to thank our Board of Directors for their support. My gratitude also goes out to our customers, clients, suppliers, bankers and all our shareholders for their confidence, support, loyalty and trust. While we can enjoy the fruits of our labour now, let us pledge ourselves to exceed our performances next year and make a mark on the international stage. |
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Dear Stakeholders,
As we look back over the years, our sustained growth has enabled us to emerge as a complete infrastructure solution provider for the nation.
The past few years have been a great learning experience at SPML. Driven by the spirit of success, we always had an eye on growth. This is amply reflected in the fact that we have posted a turnover of Rs. 368 crores in 2005-06 as against Rs. 229 crores in 2004-05, a growth of around 61%. Net income scaled new heights, confirming the profitability of operating activities. Profit recorded is Rs. 21 crores as against Rs. 3.75 crores during the previous year. Taking into account the satisfactory performance of the company, the Board of Directors has declared a dividend of 40% as against 20% in the previous year. |
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Our strengths
A time proven reputation for timely and quality execution of projects. Single minded focus on Infrastructure. A wealth of experience across verticals, companies and geographies. Presence across major
infrastructure verticals. A large pool of engineers, technical personnel and professionals. World class asset base.Powered with 25 years of corporate experience, our vision for the future is to create an organization that would enjoy strong accolades at the local, national and international level.
The National scenario
The Indian Economy has continued to register a high growth rate in the current year. There is every reason to believe that 8 - 8.5% GDP growth rate is sustainable so long as the present level of investments in infrastructure continues.I believe that, today India is standing on the verge of an infrastructure
revolution. The Indian Infrastructure industry is riding on a growth wave powered by the large spends on the ongoing Infrastructure programs. The evidence of this growth is visible all over the country. It includes hospitals,urban infrastructure, highways, roads, ports, railways, airports, power systems, telecom, irrigation and agriculture systems.Construction is the second largest economic activity in the country afteragriculture. It employs a total of 32.5million workers. The size of the construction industry in India is over
$25 billion and it accounts for more than 6% of the GDP. Construction accounts for 40% – 50% of the total investment in the country. This requires an investment of Rs. 4,000 billion every year. The Government’s decision to allow 100% FDI in construction has put the spotlight on a sector has beengrowing rapidly in recent times.
The Budgetary proposal for 2006 – 07 for ‘Bharat Nirman’ has been fixed at Rs. 18,696 crores, an increase of 54% over previous year, which would be used for face lifting the rural India in terms of development of irrigation, power and roads. On the irrigation and Water Management front, the outlay for2006 – 07 has been fixed at Rs. 7,121crores. As per CMIE, India Inc. and theGovernment of India have announced Projects worth Rs. 70,98,450 million in the next 5 – 7 years and your Companyis well poised to take advantage of this opportunity. I would like to share the features that evolve around your Company to grow upward. Strategic and robust business plans in newer domains and capitalizing on new value creation opportunities were some of the hallmarks of the year gone by.
Future ahead
With the ongoing implementation of ERP systems, we have added yet another tool and the latest technology in our portfolio. We look to the future with optimism because the centre of economic growth
is shifting to Asia. India’s economy, continue to grow at almost 8% is a major factor in realizing our vision. The robustness of the Indian economy is reflected through its vibrant capital markets and its increasing FDI inflows. Our exploration programme on the Infrastructure development side is going full throttle and the signs are very encouraging. We believe that we will emerge as a significant player in the Infrastructure and Power sectors.
Our people
As our journey continues, it is crucial that your company invests in physical and intellectual capital by creating ‘tomorrow’s talent – professionals’ equipped to perform at the highest standards in a global setting. To develop world class professionals, the company continues to invest in the learning and
development of its young employee base. Not only is it, arming them with the latest information and technology tools, but is creating new mind-sets that pay increasing attention to cross-disciplinary skills, develop a problem-solving attitude and above all build a successful teamwork, where
every roadblock inspires them to discover a new idea.
Note of thanks
I have continued to enjoy overwhelming support from the Board of Directors of SPML. I would like to take this opportunity to express my gratitude to the Board, customers, suppliers, bankers, employees and all our shareholders for their unceasing confidence and support. |
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Dear Stakeholders,
The year 2004-2005 has been a good one for the economy. Industrial growth of 7.6% and capital goods production growth of 13% has been the highest in the last ten years.
A GDP growth of 6.9 % which, widely believed, will be in the region of 7.2 % when the final national income estimates are released. Such a buoyant investment and industrial scene promises a bigger economic surge in the future. |
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| An Infrastructure Revolution
India is keen to emulate the chinese model of development & growth through massive and rapid infrastructure build –up over time. The 10th five year plan (2002-2007) has allocated 63% more funds to infrastructure compared to the 9th. This includes huge outlays on power, urban infrastructure, telecom, road, airports and ports totalling Rs. 4,76,100 crore. The corresponding total for the 9th Five year plan was Rs. 2, 91,150 crore.
A budgetary proposal in the current financial year has the earmarked Rs. 10,000 crore from India’s forex reserves to fund infrastructure projects through the creation of Special Purpose Vehicle (SPV). Another budgetary proposal for the year 2005-06 ‘ Bharat Nirman’ envisage large investment in the rural infrastructure like irrigation facilities, housing , roads electrification etc. to give an economic facelift to the countryside. The policy of inviting the private sector to partner the government in infrastructure development is expected to generate momentum over the years. All this focus on the infrastructure tells me that, SPML, one of the India’s leading infrastructure engineering organization is now transiting to the higher trajectory of growth.
Commited to nation building
Ever since its inception, we at SPML are committed to nation building. We see ourselves as an integral part of India’s growth and development. The projects undertaken by SPML range across a wide spectrum. It is this invaluable experience that has earned the trust of our customers, shareholders, joint venture partners and financial institutions alike, and is providing the impetus for our future growth.
Fundamentals of Success
There are five principals’ reasons for our success. Experience, quality, adaptability, commitment, vision. Many of the attributes expected of a company with a global presence have always been the inspiring source at SPML. The foremost among these is the concern for quality, which is nurtured at every level. The commitment to excellence has been further strengthened by being at the technologies forefront of our business.
Our workforce is the cement that binds our decades of experience and technologies know –how to create a powerhouse that SPML is today. Our people are not only highly qualified but they are also highly adaptable. This ability has enabled us to successfully execute projects that have been new to our experience.
Today, we have built upon these strong foundations by integration featured that enable us to offer our clients the complete range of engineering, procurement and construction (EPC) services.
This technological strength has enabled us to reach a stage today where we have been able to consistently beat the clock by completing projects ahead of schedule while being uncompromising on quality.
Our project management systems are equally state- of- the-art. Materials are routinely tested at our field labs for quality and consistently. Projects are continuously monitored and resources are optimally allocated to ensure that the complex process of constructing a mammoth infrastructure projects proceeds smoothly.
Major Projects:
SPML has emerged as a major player in electrical distribution projects with unmatched delivery standards and a definite national perspective. In sync with national agenda, rural electrification is a priority sector for us. No wonder today reputed power utilities like Power Grid Corporation of India, Uttar Pradesh Power Corporation, West Bengal State Electricity Board, West Bengal Power Development Corporation Limited, Tamil Nadu Electricity Board and Bangalore Electric Supply Company Limited bank on us.
In electrical distribution, few of our major ongoing projects are:
- Twin order for sub-stations as well as transmission and distribution (T & D) network for the Gaya circle of Bihar State Electricity Boards
- Sub- Stations and T & D revamp jobs for Jalpaiguri circle under West Bengal State Electricity Board
- Rural electrification projects in East Medinipur district of West Bengal for Damodar Valley Corporation
- T & D improvement project in the Jameshedpur circle of Jharkhand State Electricity Board
- Clutch of electrical distribution contracts in purnea and Patna circles.
- Rural electrification work in Rohtas and Kaimur district of Bihar.
- Rural electrification projects in Firozabad and Manipuri district of Uttar Pradesh.
In Water Management, our major on going projects are:
- Design, construction, testing and commissioning of the make- up water system for Santaldi
thermal power station in Purulia district on a turnkey basis.
- Supplying make-up water from Sripadasagar dam to STPP (NTPC), Ramagundam in
Karimnagar district of Andhra Pradesh.
- Integrated Ramganjmandi –Pachpahar Water Supply Project to bring safe drinking water to
216villages and 3 towns in Rajasthan and Madhya Pradesh through an elaborate water
resourcing, transmission and distribution system.
- Drawing water from Bhim Sagar dam and bringing it to 11 villages and one town in Rajasthan.
In hydro power generation, our on going projects are:
i) Rupin hydro Electric Projects (Stage III, IV & V) in Uttaranchal with a combined generating
capacity of 35 MW.
ii) Five mini hydel plants at Binwa, Iqu , Neogal, Awa and Luni districts of Himachal Pradesh with a combined generating capacity of 20 MW.
Note of Thanks
Were it not for the willingness of all SPML employees to continuously improve, adopt and demonstrate great initiative and enthusiasm, such performance would not have been possible. I would like to congratulate them wholeheartedly for their contribution to these excellent results and for commitment to the long term success of SPML. I would like to thank all SPML clients and shareholders for their loyalty and trust. We are firmly committed to fulfill their expectations and continuously improve the quality of our services around nation, wherever we are needed. I would also like to thank all our bankers, financial institutions, who have shown tremendous faith on us.
Thank you all once again, for your continued support. |
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Over the years, we’ve continued to turn our commitments into actions at all levels of the company with the continuous support of our employees, investors and our communities.
We have made pivotal achievements in the domain of infrastructure, power, water and environmental engineering by way of distinctive innovations and by having entered into strategic tie-ups with world renowned specialists endeavoring to master the core tenets of sustainable development.
We believe that growth of such magnitude is viable and sustainable only by addressing the primary needs of its majority population and this is reason for our continued endeavours in fortifying the India’s backbone through developing its energy resources, water, roads and sanitation. Optimistic attitude combined with business astuteness has enabled SPML to be one of the forerunners in tapping the infrastructure boom in India. |
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Let’s look at a sector wise performance:
Water management: Our core strength in water management accounted for 50% of our revenues. We estimate that the Indian water and wastewater market is experiencing 15-20 percent annual growth. We have huge opportunity here; currently there are only 2-3 players have the required combination of experience and expertise combined with a pan India presence, water being a specialised business. SPML is one of the few companies that is equipped to cater to the future market i.e. an end to end solution for its clients. We believe we can make 24 * 7 water supply happen.
SPML has collaborated with technically driven global experts in water management like Hydrocomp Enterprises Limited, Cyprus (EDAMS Technology) for providing superlative water utility services, water management, technical studies, rehabilitation, 24x7 water distribution, concessional and public private partnership contracts in water utilities.
Power:We entered into the transmission and distribution business in 2001 and have been one of the first few players to participate in the rural electrification programmes in India. Today the power sector contributes to around 25% of our order book. We are also aggressive about diversifying into non-conventional energy sources like wind and hydro power.
Environmental engineering: Our foray into engineering solutions is in recognition of the need for environmental sustainability and constantly capitalizing on untapped areas and opportunities to drive to the next level of growth. Our growth strategy is to focus on building on our core competencies in water and power and expanding our portfolio of services in environmental engineering. We have tied - up with Insituform Inc, USA, to bring world class sewer rehabilitation solutions
Infrastructure: We are also addressing and growing our portfolio of services in the infrastructure sector with ventures in SEZ’s through the Pondicherry port and development of the integrated SEZ. Plans are in the pipeline for urban transport projects including metro rail, bus terminals, car parking and dedicated freight. After its foray into ports, SPML is also set to foray into airport construction. These new segments are a part of SPML’s vision to become a complete infrastructure solutions provider.
Our strengths
At the micro level the innovation has been in terms of engineering solutions. SPML has ridden the success wave through its innovative thinking. From laying pipeline in difficult hilly terrain and forest areas which required an out of the box thinking approach to constructing the highest single stage pumping station in the world at 12,000 feet above seal level, we have seen opportunity through innovation where many peers have even declined to venture. At the macro level, SPML has introduced services that are unique and first of its kind. Be it the waste management in Delhi - a novel PPP initiative, or the sewer rehabilitation services or the country’s waste three stage sewage treatment plant, SPML has stayed ahead through offering innovative services to India’s infrastructure needs.
Quality and timely execution behind every project we undertake is a motto that all of us at SPML strictly follow. What sets us apart from the rest is our single minded focus on infrastructure, a wealth of experience across verticals, expanding pan India presence, innovative in – house design and engineering solutions, enduring banking relationships, highly skilled team of apporx., 2000 engineers & domain experts and dedication to cutting edge technology.
The Group has an impeccable record of accomplishment in delivering highest levels of quality construction, almost nil cost overruns and on-time delivery. When all of this is fuelled by 27 years of corporate excellence, I’m sure we’re at the pedestal to receive and enjoy accolades at the national and international level.
Our Future – Our people
As we continue on our journey, it is crucial to invest in creating tomorrow’s talent pool of professional qualified to perform at the highest order. Hence, we are developing a talent base of professionals by not just equipping them with the latest information and technology tools, but also create cross-disciplinary skills and a mindset that is open to innovation. All our employees continuously improve, adopt and demonstrate great initiative and enthusiasm. This is the core reason for our company’s fabulous performance. I would like to congratulate each one of you for partnering us in this success and urge you to keep up this performance in the future.
To the people who own this company, its shareholders, I would also want to express my gratitude for the unstinting support. Also, I would like to thank our clients, suppliers, bankers, employees and all our stakeholders for their confidence, support, loyalty and trust.
Lastly, I would like to close by saying that all of us at SPML are firmly committed to the creation of a company that embodies the ‘Spirit of success”.
Thanking you. |
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Dear All,
In the 27 years of its existence, SPML has gone from strength to strength in every aspect of its operations.
Our remarkable journey to the forefront of the EPC business is achieved out of a vision to be the world’s best. As the SPML saga surges forward, we expand our vision to even further horizons. |
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All of us at SPML strive to be distinct in our efforts to provide the services that are most innovative and absolute best. We will be staying true to our values and mission – a company focused on business markets, driven by the legacy of our quality of services and the strength of our great people. Our culture begins with our values that drive everything we do: Integrity, Intensity, Innovation, and Involvement. For almost three decades operating with the cutting edge technology in project and marketing have provided SPML with the experience and expertise which today enables the company to deal with projects of all types and virtually any size or scale.
We are very excited about SPML’s role in providing the citizens of the country with safe waste disposal, waste to energy and clean energy solutions for generations to come. We are committed to run our businesses in an environment friendly manner with the use of renewable energy and maximum utilisation of natural resources.
In short, over the past few years, we have successfully restructured
our company by adding new businesses, eliminating costs and creating a strong foundation going forward. Success was achieved across many of our businesses. However, our job is not complete. We must continue our transformation into a company that successfully grows and innovates—and does so profitably.
I would like to convey my thanks to all our shareholders for their continued support. I would also like to thank our customers, suppliers, bankers, auditors, legal advisors, consultants, business associates and various government authorities for their support. I also would like to appreciate the hard work put in by our employees at all level, without which would not have been possible to achieve the results. |
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