Networking equipment industry remains flat

NEW DELHI: According to Voice&Data Networking Masters 2002, the Indian networking equipment market showed a flat growth of just 4 percent, from Rs 2,751 crore in 2000-01 to Rs 2,852 crore in fiscal 2001-02. Business for Network Integrators (NIs) was slightly better, mainly due to a good show by VSAT service providers. This services market grew by 14 percent, from Rs 1,675 crore in 2000-01 to Rs 1,906 crore during the last fiscal. The network equipment distribution market fell by 14 percent, from Rs 687 crore in 2000-01 to Rs 591 crore in 2001-02.

Company Analysis

Vendors



Cisco Systems emerged as the largest networking vendor in India, registering a sales revenue of Rs 930 crore. It charted a reasonable 21 percent growth. Enterasys Networks did well in switches to occupy the #2 position with a revenue of Rs 315 crore. D-Link, in spite of a slowdown in the low-end and mid-end market segments, did business worth Rs 240 crore to remain in the #3 position.

Top 10 Vendors



1. Cisco Systems


2. Enterasys Networks


3. D-Link


4. Nortel Networks


5. Avaya


6. CommWorks


7. Gilat Satellite Networks


8. Hughes Network Systems


9. Viasat


10. RAD Data Communications (MRO-Tek)

Network Integrators (NIs)



Wipro Infotech retained leadership position, in spite of a negative growth in sales revenues. It was #1 NI with a total business of Rs 244.5 crore. One of the most impressive growths came from #2 NI, HCL Comnet, which grew 44 percent to register sales of Rs 189 crore. Datacraft India managed a satisfactory 18 percent growth to be in the #3 position, with Rs 174 crore.

Top 10 Integrators



1. Wipro Infotech


2. HCL Comnet


3. Datacraft India


4. HECL


5. HCL Infosystems


6. Network Solutions


7. Global Tele-systems Ltd (GTL)


8. Tulip IT Services


9. Comsat Max


10. Ramco

Distributors



In a poor year for distributors, there were negative growths all around. However, i2i Enterprise became the #1 networking products distributor in the country, riding a 42 percent growth. It had sales of Rs 95 crore from networking. Both Tech Pacific (India) and MRO-Tek grew negatively to end up at #2 and #3 positions, with sales of Rs 93 crore and Rs 85 crore, respectively.

Top 5 Distributors



1. i2i Enterprise


2. Tech Pacific (India)


3. MRO-Tek


4. Ingram Micro (India)


5. Apcom Computers

Segment Analysis

LAN switches posted an impressive growth during the fiscal 2001-02, on account of some very large orders from both the enterprise as well as service provider segments. It was LAN switches, which provided the much-needed respite to the industry in an otherwise bad year. Multiplexers, Structured Cabling, Spread Spectrum Radios also saw healthy growth. Most of the other networking segments, including the erstwhile fast-growers such as routers and RAS suffered from flat or negative growth.



Segments Sales in 2001-02 Growth in 2001-02.


NIC Rs 62.97 crore - 24 % (negative)


Hub Rs 38 crore - 22 % (negative)


Routers Rs 423 crore 4 %


RAS Rs 170 crore - 14 % (negative)


Structured Cabling Rs 270 crore 20 %


Leased Line Modems Rs 136 crore 0 %


Dial-up Modems Rs 116 crore - 41 % (negative)


VSAT Rs 252 crore 18 %


LAN Switches Rs 783 crore 28 %


Spread Spectrum Radios Rs 94 crore 28 %


Multiplexers Rs 109 crore 34 %


Network Security Rs 150 crore Not Available