CyanConnode wins new Indian order for 350,000 Omnimesh modules


07-09-2020

CyanConnode Holdings plc (AIM: CYAN), a world leader in Narrowband Radio Frequency (RF) Smart Mesh Networks, is pleased to announce a new order for the Indian state-owned utility “Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd” (MPWZ), for 350,000 Omnimesh modules, with the majority of payments secured against a Letter of Credit (LoC).

The order has been placed by M.P. Smart Grid Private Limited, which is the Project Special Purpose Vehicle (SPV) formed by India Power Corporation Ltd (IPCL) and is for smart-metering communications in the towns of Ujjain, Dewas, Ratlam, Mhow and Khargone. 

MPWZ serves more than 3 million consumers. We have previously announced and deployed two orders for this utility, totalling 120,000. This latest order, which is the third order for MPWZ, will increase the total number of its Omnimesh enabled smart-meters to 470,000. Under the order, CyanConnode will supply Omnimesh RF Mesh and Cellular Communications Modules, Gateways, Head End Software (“HES”) and associated services, together with an Annual Maintenance Contract (AMC).  The AMC is for an initial period of five years, after which the AMC can be extended on an annual basis, subject to mutually agreeing terms and conditions. This is the first Indian order where the Omnimesh HES will be deployed to communicate with both RF Mesh and Cellular enabled smart-meters.

Most of the order will be paid for under a CapEx model with the balance of the order being paid for under an OpEx model with Equated Monthly Instalments (“EMI”), over a five year period. The smart meters, which are being supplied by existing partners, will be deployed over thirty months, with initial deliveries commencing in Q3 2020.

The value of orders currently being deployed by CyanConnode in India is approximately INR 1.8 billion and the Omnimesh Modules on order are set out in the table below. The majority of the revenue for these contracts is expected to be recognised over the next two years, with payments secured against LoCs.

               

India - Omnimesh Modules On Order

 

Project

Ordered

Delivered

Balance

JVVNL(1)

281,782

20,000

261,782

JVVNL(2)

149,089

20,000

129,089

Tangedco

142,069

15,000

127,069

MPWZ

350,000

0

350,000

Total

922,940

55,000

867,940

 

Anil Daulani, CyanConnode India CEO and MD, commented: “We are delighted to receive this large order, which will be our first order using a Hybrid, CapEx + OpEx, payment model. This is the third consecutive order from MPWZ, which demonstrates both our technological excellence as well as our ability to deliver projects efficiently. After seeing the benefits of Omnimesh enabled smart-meters at Indore city, MPWZ is now expanding the deployment to five other cities of the state.

“With real time data flow from each smart-meter, we have proved that Omnimesh provides reliable and robust 24-7 communication. From the initial deployment of 120,000 Omnimesh enabled smart meters, MPWZ has benefitted from significant improvements and, based on the success of the Indore city deployment, we are very confident that we will secure further orders for Omnimesh.”

Raghav Kanoria, IPCL MD, commented: “I am pleased to be partnering with CyanConnode on this prestigious project. The CyanConnode Omnimesh technology has already been proven at the MPWZ Utility where they have seen considerable benefits from the meters deployed to date. I look forward to working together with CyanConnode on this project and providing further benefits both to the Utility and consumers of MPWZ.

IPCL, a Kanoria Foundation Company, is committed to increasing its footprint in OpEx based smart-metering projects and this partnership will complement each other for more wins.”


Full announcement: https://www.investegate.co.uk/cyanconnode-holdings--cyan-/rns/new-indian-order-for-350-000-omnimesh-modules/202009070700081516Y/.

 

 

CyanConnode is a global leader in Internet of Things (IoT) communications.

CyanConnode Limited