India today is one of the fastest growing economies with a compounded annual growth rate of 8.6% in the last three years. Indian economy, Asia’s fourth largest, grew at a rapid pace of 9.3 per cent during April-June of 2007 after a 9.4 per cent expansion in the entire 2006-07.
The economic acceleration has put significant pressure on the existing infrastructure, such as power, roads, ports, airports and railways. According to certain estimates, India being the fifth largest generator of power, positioned behind USA, China, Japan and Russia is expected to surpass Russia and Japan by 2030.
However, power generation has not been able to catch up with demand growth in recent years. The demand-supply mismatch has been an area of great concern and the Government of India is committed to bridging this gap.
In order to achieve the 11 th five-year plan targets, the Government has introduced new accelerated process for awarding ultra mega power projects (UMPPs) to the private sector. The Government has already planned 8 UMPPs of 4,000 MW each and this initiative is expected to help the Government achieve the target of adding 76,000 MW by 2021.
India has witnessed remarkable growth in the telecom sector in past five years. But this growth has been limited to the urban sectors. It is only now that the telecom operators have begun focusing growth opportunities in the semi-urban and rural areas, where the telecom penetration stands at an abysmal 2% of population. This growth in coverage area coupled with growth in subscribers will drive the demand for towers and cell sites.
Apart from India, big growth opportunities have come up in the regions such as Africa, Central Asia, Middle East and North America. Industry experts believe that Africa and Middle East, together, are expected to spend more than US$ 20 billion on transmission and distribution.
Moreover, according to international Energy Agency, private investors and Governments will need to invest more than US$ 10,000 billion in the world’s power sector in the next 25 years to prevent shortage of electricity supply.
In future, in a constantly changing world, the winners will be those who can identify which of today’s developments will be important over the long term. In the next 10 to 15 years, we may witness unprecedented developments and opportunities for the towers sector.
Fast track development in the power and telecommunication sectors leads to higher demand for supply of power transmission and telecom towers and associated services within the country as well as in the neighboring countries. This makes the Company to plan to set up another manufacturing facility at coast based location in order to cater to the domestic and export market. The Company also plans to set up / acquire subsidiaries in the Middle East/South East Asia in the area of power transmission and telecom infrastructure services
Sujana Towers is ideally positioned to seize the emerging opportunities and acquire the scale of a global company. Sujana has capabilities to quickly adapt to the changing market conditions and sustain the projected growth in sales and profits.