V30 Magazine- Telecom Products(Issue 1)

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INDEXSR.NO. TOPIC PG.NO.1) A MESSAGE FROM BUSINESS HEAD............................................................................12) MARKET GROWTH STRATEGY .....................................................................................23) KEY FINANCIAL HIGHLIGHTS......................................................................................24) OUR TOP GLOBAL BUSINESS HIGHLIGHTS..................................................................35) STL INDIA TOP BUSINESS HIGHLIGHTS.......................................................................36) OUR NEW MAJOR CUSTOMERS..................................................................................47) IGNITING INNOVATIONS & IDEAS..............................................................................48) OUR CUSTOMER ANALYSIS.........................................................................................59) OUR CLIENTELE..........................................................................................................510) LATEST IN NEWS: OUR COMPETITORS........................................................................611) LATEST IN NEWS: GLOBAL MARKET.............................................................................712) CASE STUDY: BHARTI..................................................................................................813) OUR TECHNICAL ACHIEVEMENTS :NEW PRODUCTS 2015-16....................................914) NEW PRODUCT DEVELOPMENT PLAN2015-16..................... .....................................1015) PRODUCTS DEVELOPED IN FY 2014-15..................... ...............................................1016) INTERNAL NEW WITHIN STERLITE.............................. ................................................11

A MESSAGE FROMBUSINESS HEAD…GREETINGS, Rajiv NayyarDare, Dream, Believe, Continuing our vision of growth, we are striving to achieveThis is what we had agreed upon when we first initialized 30 Mfkm production capacity and sales by end of FY'17,the concept of V30. It was in September 2014 , when we namely 'Vision 30'. Overall global demand of Opticaldecided to create this vision of being among the top 4 Fibre is increasing at 15% annually and with new projectscable companies of the world. Currently, Sterlite is placed and markets like Digital India, growth of E-Commerce,as the 8th largest company in terms of manufacturing broader penetration of telecom operators, present greatcapacity for Optical Fibre and 9th largest for Optical Fibre opportunities for us. Such avenues have also increased ourCables in the world. We decided to split the regional addressable market thus helping us move towardsmarket into 3 regional groups- India, China and ROW achieving our goal.(Rest of World). Our 3 Pronged strategy for the next 3 yearswas based on Accessibility, Addressability and Growth with We present you the V30 Magazine discussing how we aremajor focus on regional mix, customer mix and product aligning ourselves towards our goal.mix. RelationshipOur main focus is on our global accounts, key accounts to Managementcreate maximum business and customer intimacy forhigher levels on engagements. Customer Intimacy can be Intelligenceachieved through value creation, sales, intelligence andrelationship management from a customer perspective. As Sales Customera team we all need to create this belief among ourselves Intimacyand our customers that Sterlite can provide the best inmarket from both quality and design perspective. Value CreationCurrently, from a business perspective, we have seen somegaps due to several global market fluctuations. However,we are sure, we have the capability and market access tocover the gap of the first half. We are taking steps towardsmarket creation, value creation for our customers, oneexample being our Nova Fibre which Sterlite has designedfor Bharti Airtel.Starting from an idea conceived in the early 90's to creatinga globally recognized company, Sterlite Technologies hascome a long way. 1

MARKET GROWTH STRATEGY3 PRONGED STRATEGY FOR NEXT 3 YEARS-ACCESSIBILITY,ADDRESSABILITY & GROWTH 105 100 93 85 85 65 60 45 30 33 19 25 17 20 1 3 15 6 12 5 13 3 -15 FY 14-15 FY 15-16 FY 16-17 Projected Volume in Mn FKM With an annual growth rate of 10% in our addressable market, we at Sterlite believe we are capable of growing from 16.5Mn (FY14-15) to 20Mn (FY16-17). We are also targeting at gaining access to an additional 60Mn market with target market share of around 10%. Aiming to expand our footprint across the globe, Sterlite believes at creating opportunities of 3Mn-5Mn using market creation initiatives.FINANCIAL HIGHLIGHTS ORDER BOOK SALES2.4 3.4 2.4 1.2 0.9 1.3 0.3 0.4 0.4 0.4 0.4 2

OUR TOP GLOBALBUSINESS HIGHLIGHTS…Entry into Vodafone Ireland New Customer Acquisition in DenmarkSterlite won the bid for Vodafone Ireland, thus Sterlite recently acquired a new customer,increasing its footprint in EMEA. NIANET, which is the fastest growing fibre dataSterlite would be supplying cable to Vodafone for network in Denmark and jointly owned by 14their FTTB Network expansion across the country- power utility companies in Denmark with plans to50 Towns, 500,000 buildings. Sterlite's Focus will roll out services in the entire country.be on underground cable, fibre counts rangingfrom 1F to 288F.LTSA signed with DU Telecom Leading Supplier to Melbye SkandinaviaSterlite successfully signed a LTSA with DU Sterlite became the principal supplier to MelbyeTelecom- One of the biggest telecom operators Skandinavia, the largest optical cable distributorin UAE. In this LTSA we expertly promoted our in Norway and won an order for 135 kfkm to benew OF product G657A2 and G652D Low loss supplied through this financial year.fibre for their new design 1152 F and 2000Fribbon.STL INDIA TOPBUSINESS HIGHLIGHTS…Introduction of BOW LITE “NOVA” fibre Acquisition of Ortel - large MSO in Odhisha with 8-10% premiumSterlite received a positive response by Bharti Airtel insupplying the BOW LITE ‘Nova Fibre’ despite being a L5 Sterlite successfully won the bid to supply OFC to the largestsupplier. Sterlite pitched the sensitivity of the macro MSO in Odisha region. The team planned and executed abending of fibre. After conducting several joint studies strategy to differentiate themselves and charge a 8-10%with Bharti, Sterlite was able to convince Airtel TAT premium over HFCL who have been their incumbentMacro Bend is the most valuable for their network supplier for 3-4 years. Highest ever production and sales in Silvassa Highest ever production of 14,250 Ckm and Sales of 14,458 Ckm of OFC achieved in July’15 in Silvassa plant. Major contributors for high sales are- Reliance , Vodafone and Bharti. Leading supplier for cables in India for IDEA With the new rate contract closed, we are the leading supplier for cables in India for IDEA.. Idea volumes are expected to increase in coming few months for their 4 G roll- outs. With this, we will be the largest suppliers to the top 4 telcos in India. 3

OUR NEW MAJOR CUSTOMERS…OVERALL STERLITE GENERATED OVER OF 25 INR CRORE REVENUE FROMITS OFC NEW CUSTOMER BASE IN H1- FY’16The largest telecom equipment and A major telecom operator in Indiaservices company in the world. and South East Asia. Sterlite winsSterlite to supply its Optical Fibre contract to provide Optical FibreCables to the telecom equipment Cables for expanding its networkprovider for its Middle East market. with growing data consumption trends in India.A market leader in the region , Hayat Sterlite has become the sole supplierprovides cutting edge technology of Optical Fibre Cables to Vodafoneand diverse spectrum services in Ireland after successfully winning thefixed line and wireless networks. bid.IGNITING INNOVATIONSAND IDEAS … Launching Cimplicity- Online dashboard for online tracking of manufacturing processes. Introduced KPI Portal- To measure sales performance of our business. The KPIs are a subset of the Business Score Card and helps asses the performance/ achievement of the assesed year against individual Business Score Cards. Capitalizing new ideas and to optimize the business/ operation processes through Eureka- A platform to make ideas work. Some successful work done includes: 1) Implementation of GPS tracker to track consignments in India 2) Implementation of an in-house upgradation of ZTPMD- PT Machine Our V30 goals are linked to 3 Pronged strategy- Addressability, Accessibility & Growth i.e Order Booking, Sales Volume & Profitability. So to make sure that these 3 drivers are aligned to our business goals an online dashboard has been created, where live Revenue & Gross margin can be viewed anytime The CRM Dashboard also provides a platform to understand: 1) Accessible Market- RFQ Analysis 2) Live updates on Order book/ Dispatches 3) Real time trend analysis 4) Profitability 4

OUR CUSTOMER ANALYSIS:BHARTI AIRTEL AND VODAFONE AIRTEL“The technical workshop conducted for us was very informative and valuable,showcasing the latest technology in optical fibre and optical fibre cables alongwith the various best practices followed across industry. We truly appreciate thesupport we are getting from Sterlite team in dynamically addressing our opticalfibre cable needs.” Market Cap $ 22 Billion Increase in CAPEX 3 USD Bn Potential Regions Bangladesh, Sri lanka, Central IndiaSterlite has played an important role in expanding Bharti’s footprint bysupplying over 1 Mfkm. (Since Apr’14) VODAFONE“Thanks for all your support for delivering the Material at such short notice. Wereally appreciate your efforts and understanding of our requirement whichhelped us to complete our network requirement on time”. -Sr Manager, Vodafone East Ltd Market Cap $ 86 Billion % increase in CAPEX 14 USD Bn Potential Regions Spain, Italy, Portugal, India, Ghana, TurkeyWith Sterlite holding a major share in Supplying OFC to Vodafone, ouroverall supply has been around 580 Kfkm. (Since Apr’14)OUR CLIENTELE 5

LATEST IN NEWS:OUR COMPETITORSCorning EDGE8 fibre optic cables target configuration matches well with Base-8 Quad Small Formdata centres Factor Pluggable (QSFP) optical transceivers to enable 100% fibre use, 1:1 port mapping, and up to 50% less linkCorning Inc. (NYSE: GLW) has introduced the EDGE8 line attenuation by obviating the need for conversion modules.of fibre optic cables for data centres and storage area It also provides a ready path to data rates up to 400 Gbps,networks (SANs). The Base-8 design provides several Corning adds.benefits, Corning says. For example, the eight-fibreAksh Optifibre quarterly net jumps the profit of the company rose 84.45% to ` 110.96 million84.45% from ` 60.16 million in the same quarter last year. Revenues for the quarter rose 26.72% to ` 932.80 million, comparedAksh Optifibre announced a sharp rise in standalone net with ` 736 million for the prior year period.profit for the quarter ended June 2015. During the quarter,KEC bags order worth Rs 838 Crore company said in a BSE filing. In the transmission and distribution business, the company has secured order in\"KEC International Ltd has secured new order of `838 crore India, Bhutan and America amounting to ` 778 crore.in transmission and distribution and cable business,\" thePrysmian expands optical fibre plant in Brazil says currently sits at 4.5 million km of fibre preforms per year. The second phase, now underway, will upgradeFibre and cable provider Prysmian Group says it has begun manufacturing processes to enable production of moreoperations in a newly expanded optical fibre production advanced fibre for South American requirements, as well asfacility in Sorocaba, Sao Paulo, Brazil. position the facility for additional capacity upgrades as theyThe recent expansion is the first of a two-part effort to become necessary.upgrade the Sorocaba plant. The expansion increased Local FTTX requirements appear to be a significant driver forproduction capacity to meet local needs, which Prysmian the expansion. 6

LATEST IN NEWS:GLOBAL MARKETOrange of French Guiana has provided information about its plans for the South American country,saying it is preparing to offer LTE services in 2016, and subsequently will be working on the company’s first FTTHproject. The plans are to connect 30,000 premises in five years, starting with the first installations in late 2015.Tricom, a subsidiary of Altice Group says it will install 2,700 km of optical cable routes to pass 600,000 premises inDomican Republic, South America by the end of 2017. In Peru, TV Azteca Tendai says it will complete work on a 13,500-km optical long-distance network, tying together cities in almost 200 provinces throughout the country.Indonesia’s Ministry of Communications has opened bidding for the country’s Palapa Ring Phase II project,which will include more than 8,000 km of optical cable routes, at an estimated cost of US$246 million. 7

CASE STUDY- BHARTIOverview life margin/system margin and maintenance margin over the fibre route.Optical fibres are recognized as superior communication A major ignored area of losses in optical fibre links are,medium for delivering high bandwidth signals over long Macro Bending Loss, which can play a significant role indistances. link budgeting.While connecting any site on fibre, the design engineer We will look at the effect of macro bending loss as definedchecks the link budget of the fibre route. Typically, the link with testing results, carried over the fibre route of the thirdbudget includes the fibre attenuation per route kilometre, largest telecom operator in the world- Bharti Airtel.splicing losses, connector loss at terminating ends, end of LARGE OPTICAL LOSS Key Challenges – Bharti Airtel • Higher attentuation post deployment typically OPTICAL SIGNAL 0.25Db/ km against 0.20Db/ km • Overtime shooting upto 0.35/0.40 Db/kmKey Challenges – Sterlite Technologies SMALL RADIUS• Undercapacity for lower loss fibre/ cable DYSFUNCTIONAL SIGNAL• Risk of losing KAM customer EXITS BEND SERVICE DISRUPTEDSOLUTIONS optical link addresses both fibre and cable, span loss measurement taken over a long distance route, fromIn order to check the health of optical fibre link, a route Faridabad – Palwal – Kosi – Mathura – Agra – Bharatpur,testing had been carried out on long distance optical fibre which is approximately 287 Route Km distance.route of one of the leading service operates. Testing of theObjective of the testing was to investigate different losses in cablefibre link, which includes:• Inherent Fibre Loss• Splice Loss• Macrobend Loss• Basic practice of fibre and cable installation and terminationConclusions:• Based on the testing results, macro bends found in majority of routes. Total macro bend loss per span measured is in the range of 0.12 dB to 2.71 dB @ 1550nm fibre link.• In overall 287 Km of fibre route the minimum macro bend loss for overall link is in order of 5 dB, which can play a significant role in link budgeting.• The values of M-Bend loss represent the sensitivity of that particular parameter on bending loss. So, at planning stage a proper weightage should be assigned for attenuation per kilometre as well as bending losses.• G.657A1 fibre shall be used to overcome macro bend losses.Sterlite has made continuous efforts to understand BhartiAirtel pain points in their network. Aftercollaborative approach and Sterlite's core technological capabilities, macro bend has beenproposed for their network as best value proposition. 8

OUR TECHNICAL ACHIEVEMENTS:NEW PRODUCTS 2015-16Next Gen Reduced DESCRIPTIONMicro Cable • Lower diameters as compared to the conventional microcables helps in reduced duct size and increase in blowing distances. • Used for Access/Metro and (air blown) Drop cabling for FTTx networks, like Fibre to the Home (FTTH). • Microcables can utilize existing and new duct systems more effectively by accommodating more fibres in given sub-duct network. Technical Specifications Fibre Count 144F 144F 192F 288F (12Fx12LT) (24Fx6 LT) (24Fx8 LT) (24Fx12LT) Max LT OD 1.35 1.8 1.8 1.8 7.6 9.8 Nominal OD 7.7 6.4 10/14 14/18 Duct Size 10/14 8/12Micromodule Duct DESCRIPTIONupto 432F • The micro-module sub unit is intended for use in a range of cable types, including duct and micro-duct, directly buried cables or for overhead cables. • It can be utilized both indoors and outdoors, making it a very versatile fibre transport system for cables • Due to small size, it is easier for fibre storage and controlled mid-span access Technical Specifications Roll Out Target Customer Description DT/FT, CBE, Micromodule Duct 12 to 144F - May'15 Vodafone upto 432F 288F /432 - Aug'15 9

NEW PRODUCT DEVELOPMENTPLAN 2015-16DESCRIPTION TENTATIVE TARGET CUSTOMERMicromodule Cable ROLL-OUT PLAN DT/FT, CBE, Vodafone, BelgacomMiniature cable – 12F/24F Dec’15 Dutch TelecomNext Gen Micro Cable with 200um Sept’15upto 576F with various fibre/tube designs STC, MEA Feb’16Ribbon Micro Cable KPT TelefonicaSprial Armor Cable Nov’15 RJILUnitube Steel wire Armor Oct’15 Network CentreDual Layer Breakout Cable Oct’15 VolexRetractable/ PullBack Cable Sept’15 Reggefibre Sept’15PRODUCTS DEVELOPEDIN FY 14-15DESCRIPTION TENTATIVE TARGET CUSTOMERUltra High Count Ribbon Cable_1152F ROLL-OUT PLAN Aug’14 DU TelecomFlat Drop Toneable / Dielectric Enhanced_12F Oct’14 EKU / Virgin Media/P&T, Sierra, TigoMinicable upto 12F Aug’14 DES POSTESRibbon ADSS 96F / 288F May’14 RJIL 10

INTERNAL NEWOUR TEWCHITNHICINALSATCEHRILEIVTEEMENTS:NEW PRODUCTS 2015-16 Five Day working week stirring new people practices What’s New!! A Green Environment, Clean Environment PROJECT GREEN ZONE Sterlite Technologies Limited Organized Tree Plantation Program Green Zone, Aurangabad Moved Gurgaon office to an exciting new locationOURATCEKCHNNOICWALLEADCGHEIEMVEEMNETNTS:NEW PRODUCTS 2015-16Editor- Sankalp Mittal and Karishma BhatTheme & Conceptualisation- Swapnil KhapekarSpecial Thanks- Puneet Agarwal, Ritu Manchanda and Santosh Akundi 11

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