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CyanConnode (LSE:CYAN), a company specializing in radio frequency networks, announced on Wednesday that it has secured a significant contract from a global partner to supply 6.5 million Omnimesh modules for various smart metering projects across India. This new contract marks a major milestone for the AIM-listed company, as it significantly expands its presence in India’s ambitious nationwide smart metering initiative.
The supply of Omnimesh modules is set to begin in the second half of 2025, with installations for each project expected to be completed within a 27-month timeframe. Following the installation phase, the contract includes a 93-month support and maintenance period, ensuring long-term service and reliability for the smart metering systems.
Financially, the contract is structured to provide approximately 70% of the total payment during the installation phase, with the remaining 30% distributed in equal monthly installments throughout the support and maintenance contract period. This arrangement provides CyanConnode with a steady revenue stream over an extended period, reflecting the company’s strategic focus on long-term partnerships and service agreements.
Executive Chairman John Cronin expressed his satisfaction with the contract, highlighting it as the company’s largest order to date from a global partner with whom they have successfully collaborated on numerous projects over the years. This contract nearly doubles CyanConnode’s order book for India, increasing it from 6.6 million units to 13.1 million units. Cronin emphasized that this substantial order further solidifies the company’s position in India’s smart metering rollout, a key component of the country’s drive to modernize its energy infrastructure.
This development is a testament to CyanConnode’s growing influence in the smart metering sector, particularly in emerging markets like India where large-scale infrastructure projects are critical for economic development. The company’s technology, known for its reliability and efficiency, plays a crucial role in enabling the seamless deployment of smart metering systems that can significantly improve energy management and distribution.
As of 0945 BST, CyanConnode's shares had risen by 2.51%, reflecting positive market sentiment following the announcement. The company’s ongoing success in securing major contracts positions it well for continued growth and expansion in the rapidly evolving smart metering market, both in India and globally. CyanConnode's strategic focus on delivering high-quality products and maintaining strong, long-term partnerships appears to be paying off, as evidenced by this latest achievement.
