A presentation on* Telecom EquipmentManufacturers By - J.Vamshi krishna Isttm:11/11
*Contents History Current State Of Indian Telecom Equipment Industry Market Players Equipments provided by the companies Revenue, Market share TEM market in India TEM Demand SWOT Analysis Conclusion Bibliography
* The OEM term is used early 1960s & 70s in the U.S to value added resellers. OEM is currently defined by IBM to refer to “a manufacturer equipment that may be marketed by another manufacturer". It may derive from a Dutch phrase, "onder eigen merk", which means "under own brand". OEM may refer to a company that purchases for use in its own products a component made by a second company. OEM labeling.
Indian TE companies operated as a resellers for foreign companies Global players partnered with local companies acted as Indian Subsidiaries Reason- Indian companies offer transmission, access and core n/w equip.-SDH based mux, carrier Ethernet sol.RF & Micro wave antennas, repeaters, switches, testing and measurement equip. Etc.. Many global companies used India as an R&D destination through both captive and/or vendor models. Indian TE companies started their developing their own products e.g. VMC- High end PCB assembly, Magnetics, Power supply, Transmission equip. testing assembly.
S.No Name of the company Provoding services Company revenue(Rs.)1 Aishwarya telecom- HYD. Fiber optic test US$ 10 equipments & cable million(2009-2010) fault locators2 Coral telecom-Noida . IP NGN systems, US$ 100 million (enterprise switch market in India private GSM (2010) & abroad).- 14 countries networks, PBX systems, PD MUX, GSM Gateways, IP MUX, Wireless p-p links, Wireless access links etc..3 Fibcom –part of telecom wing(suri Technology selling & US$ 55 million. group) customized solutions for customers4 HFCL- New Delhi , it has 2 mfg. Carrier Ethernet Access KES(Kenya & Metro transport plants 1. SOLAN(H.P) solution, IP Microwave Shellings) 1162.5 2. optical transmission Backhaul, High Capacity million. system, Goa. Optical Transmission
5 kavveri telecom-Bangalore, Contract mfg., 127% rise in It also serves defence and space acquiring north revenue & 65% industry. america RF Prod. jump in profit for & Antenna mfg. quarter ended companies. june30,2011.6 Ordyn technologies-bangalore . It is one of the first BSNL is one of the client.they Indian comp. to have strong presence in ASEAN & develop STM-1.PDH, middle east regions & in India Wi-Max base station7 Tejas Networks- bangalore Company offering US $ 150 million various core telecom solutions such as according to last SDH/SONET, Carrier year Ethernet, High Capacity Multiplexers (C/DWDMs) and Network Management Systems.8 Teracom The company offers wide range of products including US $ 175 million.() With comprehensive strengths in Optical Fiber Cable, Wired & Wireless (based on CDMA 1X, EVDO, 3G, Wimax and TD LTE) broadband CPEs Microwave based Backhaul solutions, Optical Transmission Equipment
9 Tirumala seven hills – kolkata Electro optics,laser it also market the products of optics, free space ACCELINK, AFL optics, TXn telecommunication, MetroTec. contracts & measuring.10 Tulip telecom- New Delhi Offers IP based US $ 425 million in infrastructural 2010 solutions to customers, Network Integraion11 UTL – New Delhi, UTL is engaged Entire gamut of in Design, Manufacturing, and Switching, Software development in the Transmission, Access areas of telecommunications. and Terminal equipment12 VNL – rajeev mahrotra of shyam Solar power GSM Profit:27.1 billion group systems- on the revenue of 383.58 billion.13 VMC INDIA- HYD. ADSL2+ Modems, Targeting to cross Interface Converters, WiMAX CPE, STM, and 1000 crores as DWDMs, including against 700 crore in specialized Power last year.
TOP 10 Mobile Handsets sale in INDIA Top ten companies has market share of 92% 11.7% of the worlds market share in mobile S.no Company Sale (Rs crore) cellular handsets. 1 Nokia 14,100 With avg. monthly addition of 18 million subs. 2 Samsung 4,700 and taking into the account of replacement 3 LG 1,600 handset OEM has a good domestic opp. As 4 Micromax 1,100 well as potential for exporting to other 5 Spice Mobile 1,047 emerging markets. 6 Karbonn 800 According to recent advisory of KPMG & ICA9 7 ZTE 500 8 Huawei 450 the annual handset demand in india is about 9 Lava 300 140 million units. 10 Lemon 270 expected to touch 240 million by 2015 350 million by 2020 Total 24,867 The handset market is estimated to be 45000 crore by 2014
Year Global total Indian demand %of global demand demand (rs.crore) (rs.crore)2007-08 1,255,500 58,781 6.5%2008-09 1,409,850 60,294 5.8%2009-10 1,300,500 54,765 5.5%2012-13 1,638,255 76,940 6.2%2014-15 1,910,861 96,514 6.6%2016-17 2,228,828 121,067 7.1%2019-20 2,807,682 170,091 7.9%
Large domestic demand for telecom services. Technical man power requirement. India has strong management experience. FDI is flowing into the country. Growing semiconductor chip design capabilities. • 130 chip design firms present in India • This booming semiconductor design industry promises 3.5 million jobs by 2015.
Effective Supply chain has not been setup & most components are sourced from other countries. Lack of innovative telecom research and development of intellectual property rights leads to low value addition to mfg. process in India. Telecom product development & mfg. are capital intensive and low cost funds loans and grants are not available. Indian mfg. also face poor disability due to poor transport, power, water, sewage disposal infrastructure
1. High growth of the network and services is resulting in increasingdemand for the telecom equipment.2. New standards are being formed and new technologies like wirelessbroadband and fiber based systems are maturing to provide newopportunity for innovative research and generation of IPRs.3. There is immense export potential with the global demandexpected to increase from US$272 billion in 2009-10 to aboutUS$600 billion in the year 2020
1. International agreements like ITA-1 of WTO resulting in zero dutyregime on import of goods covered under the agreement.2. Most preferred nation status and preferential treatmentagreements that allow imports at zero or low duty resulting in thefledgling domestic manufacturing sector uncompetitive because ofits low scale of operation.3. Another threat is from the countries that offer subsidies andincentives to their manufacturers to make their products moreprice-competitive. On the other hand Indian manufacturers facedisabilities because of Indian tax and duty structure
With conductive regulatory environment and support from the govt. and efforts of the industry, India can get a substantial boost in the TEM sector, which can lead to the creation of the industry that will compete with the best in the world..Bibliography:-www.wikipedia.comwww.knowledgefaber.comhttp://www.telenet.in/trends-a-development/item/7563/-manufacturing india-emerges- as-a-key-telecom equipment marketCompany websites“Recommendations on TEM policy-TRAI” report on 12th april 2011.