JULY 2005 / Issue - 15 In-house magazine of LANCO Group ABAN GOES OPERATIONAL < LAPPL SIGNS EPC CONTRACT < LGPPL BAGS 360 MW PROJECT IN SIKKIM < LITL WINS IT PARKS BID IN AP A REWARDING TIME AHEAD Exactly a year ago, we went in for a revamp of LINKS, giving it a new look. Thereafter with every successive issue, we have tried to improve on its look and contents. We could do it because you have been there as our support. EDITORIAL On this occasion we re-commit ourselves to keeping you well informed of all happenings across LANCO spectrum every quarter. Towards that end, together let us make LINKS not only very informative and enjoyable but also a vibrant link in LANCO Family. V SREENIVAS Director - Corporate Affairs [email protected] CONTENTS 3 CHAIRMAN'S MESSAGE 4 LGSL AND LGSI TO MERGE 11 5 FOCUS ON BUILDING RIGHT TEAM 7 FACE TO FACE This is for internal circulation only. The views expressed in this magazine are not necessarily those of the management. 15 9 LITL TO DEVELOP IT PARKS Edited by V Sreenivas and published by JULY 2005 the Corporate Communications Department for and on behalf of LANCO Group. 11 ABAN IN PERSPECTIVE Printed at Kalajyothi Process Pvt Ltd, Hyderabad. LINKS 15 LAPPL INKS EPC PACT CONTACT: LINKS The Corporate Communications Department 18 18 LGPPL BAGS TEESTA VI LANCO House, 141, Road No 2, Banjara Hills, Hyderabad-500 034 Andhra Pradesh, India Tel : +91-40-2354 0701/ 703, 19 LGPPL SIGNS PPA Fax:+91-40-2354 1367 email: [email protected] 2 Editorial Team 20 HUMAN FACE George Karimalil (Executive Editor) K Raja Gopal, Thota Rajendra Prasad, Janakiram Rao Design 20 21 IN PERSON C Pradeep Reddy, Ch Surendar A CONVERGENCE IN SYNC WITH TARGETS In line with the theme of 2005, the second quarter has been marked by a series of major happenings. This is not only encouraging but also reconfirming our belief that we are on the right track to achieving the goals set for the year. As part of the ongoing exercise of restructuring the Information Technology sector, Arjun Valluri is now with LANCO family. As CHAIRMAN’S MESSAGE former Chairman, President and Chief Executive Officer of Intelligroup Inc, Arjun Valluri was responsible for its growth from US$ 1 million to US$125 million in a short time. We welcome him as a Partner and Chief Executive Officer of LANCO Global Systems. I am now confident that our IT initiatives will have a new direction soon to establish ourselves on the global front. Equally encouraging is LANCO Infratech's successful bid for the development of IT Park-cum-Residential-cum-Commercial Complexes in Hyderabad and Visakhapatnam of Andhra Pradesh, covering 13 million square feet. This would certainly brighten LANCO's prospects in the Infrastructure sector. As expected, ABAN has gone into commercial operation as per schedule. The successful synchronisation of ABAN with the Tamil Nadu Electricity Board Grid in February last had raised hopes in a state continuously struggling to balance between the rising demands for power and the falling levels in supply. This has also opened the door to launching new projects in the state. The signals emerging from LANCO Amarkantak are also The ultimate success lies in encouraging. The signing of EPC Contract with Zelan Power Pvt “ Ltd would certainly accelerate the process of implementing the re-orienting every happening first unit of the 4 x 300 MW power project. Similarly LANCO to meet the targets Green’s 70 MW Budhil Project, along with four small hydro collectively, drawing on the projects aggregating to a capacity of 20 MW, is also heading for synergies we have come to financial closure towards the end of the third quarter. The successful bidding of the 360 MW Teesta VI Hydropower Project JULY 2005 possess over the years . ” in Sikkim has strengthened our foray into the hydro sector. All these happenings are indeed heartening for LANCO. And the ultimate success lies in re-orienting every happening to meet the LINKS targets collectively, drawing on the synergies we have come to possess over the years. 3 L Madhusudhan Rao HAPPENINGS LGSL CEO Arjun Valluri addressing the media in Hyderabad. Others on the dais are Suresh Chukkapalli, L Madhusudhan Rao, G Bhaskara Rao and Y Harish Chandra Prasad. ARJUN VALLURI IS NEW CEO LANCO Group has brought in Arjun Valluri as Director and Chief Executive Officer of LANCO Global Systems Limited(LGSL) as part of restructuring its Information Technology sector. Addressing media persons in Hyderabad on 27 June 2005, Chairman L Madhusudhan Rao said the move was aimed at accelerating the growth of the company. He also announced the decision of the LGSL Board of Directors in principle to acquire LANCO Global Systems Inc (LGSI) by way of merger. He said the Company had already started to initiate the process of merger. On merger, LGSL, a listed company, would emerge as a prominent IT company in Hyderabad, he added. Arjun, who has acquired substantial shareholding in LGSI, said the company had already hired seasoned IT professionals and created a global management team, including Qaiser Paul (President and Chief Sales Officer - US Operations), Manjunath Dattatreya (Senior Vice-President - Global Resource Management and Recruiting), MVR Kumar (Vice-President - SAP Practice), Nagaprasad Kandimalla (Vice-President - Client Services), Gaurav JULY 2005 Sharma (Chief Operating Officer) and P Rakesh Kumar (Vice-President - Technology Services and Delivery). In addition, LGSI had already bagged three Fortune 50 customers. LINKS He said the new entity would focus on specific industry verticals such as energy, financial services and process and discrete manufacturing. In addition to 4 aggressive organic growth, LGSL would be active in inorganic growth, i.e. Merger and Acquisition. He said the company had set for itself a target of US$ 50 million revenue in the next one year and thereafter sequential growth at the rate of 40-50 per cent year on year basis. FOCUS ON Arjun Valluri has taken over as Chief Executive Officer of LANCO Global Systems (LGS). He brings with him more than 14 years of experience in Information Technology. He has received various awards, including NJ Fast 50 Awards, NJ Entrepreneur of the Year Finalist, NJ Ernst and Young Entrepreneur of the Year HAPPENINGS Winner, Var Business 500 Awards and Ronald Reagan Technology Award from the World Business Forum. In a chat with LINKS, he opens up, outlining his vision and strategy for LGS. What is your immediate plan of action for LANCO Global? Our immediate plan is to build the Global management team by the end of June. We are on schedule to get this completed. Which are the segments you plan to focus on? We will have IT services and Knowledge Process Outsourcing (KPO) as key focus areas. You are one among the few who have made it big in IT. What is the secret of your success? Success is predominantly based on building the right 'team' to focus on execution of the business strategy. Arjun Valluri graduate from Mysore Operating Officer. He University, he brings with holds a Masters in him more than 14 years of Instrumentation from BITS, experience in managing Pilani. He has more than staffing, resource and HR functions. 15 years of experience in Pre-sales, Delivery, Process and People management. Qaiser Paul is President for Nagaprasad Kandimalla US operations and Chief is Vice-President - Client Sales Officer. He has more Services. He is responsible than 13 years of experience for Strategic Customer in Sales, Marketing and Engagements, Business Delivery. Strategy and Delivery. He holds a Bachelor's degree in Mechanical Engineering and Masters with MVR Kumar is Vice- specialisation in Energy and President - SAP Practice. Systems. P Rakesh Kumar is Vice- With a Masters from IIT, President - Technology JULY 2005 Chennai, he has more than Services and Delivery. With 18 years of experience in more than 22 years of IT GLOBAL TEAM Pre-sales, Delivery and experience, especially in Process. He also has 10 handling global clients LINKS years of functional from varied industries, he is Manjunath Dattatreya is experience in projects, an enterprising leader with Senior Vice-President - operations and an ability to train and 5 Global Resource maintenance activities in motivate cross-cultural Management and the steel manufacturing teams in optimising their Recruiting. An engineering industry. Gaurav Sharma is Chief performance levels. HAPPENINGS HAPPENINGS LANCO Group Vice-Chairman and LKPPL Director G Bhaskara Rao has been nominated to Southern Regional Council(2005-2006) of the Confederation of Indian Industry (CII) as one of the two AP State Representatives. Other LANCO officials nominated to AP Panel as well as Southern Region of CII are Arjun Valluri (IT and Communications), V Sreenivas (Public Policy, Social Development and Corporate Social Responsibility), K Raja Gopal (Energy and Environment), B Dharma Teja (Industry Institute Interaction and Infrastructure), R Parthasarathy (Corporate Governance), TS Babu (Human Resources and Industrial Relations), D Krishna Rao (Economic Affairs) and T Ramakrishna (Exports). CALL TO CULTIVATE ART OF STRESS ON HEALTHY COMMUNICATION RELATIONSHIP Y Harish Chandra Prasad, Managing Director of It is relationships that make an organisation grow. LANCO Kondapalli Power, has underscored the need of Efforts should therefore be made to keep the cultivating the art of communication. “Most of us are relationships between the management and the very poor in communicating properly. In this age of employees healthy and strong, according to K advanced science and technology, the right way of Narendranath, Associate Professor, Department of communication is very important,” he said. Business Management, Osmania University. Speaking at a function organised by LANCO Club on Speaking on “Building Healthy Relationships” at a 20 May 2005, Harish said he had learned the function organised by LANCO Club, Hyderabad on importance of communication the hard way.