Dax ties-up with Maipu to launch co-branded routers in India

Chennai-based Dax Networks Limited, a leading networking company promoted by
Apcom, has entered into a joint venture with China-based Maipu Communication
Technology Co Ltd, to launch co-branded routers in the country. The three-year
exclusive agreement would allow Dax to import Maipu range of access and
aggregation routers and co-brand it, before taking it to the market.

Elaborated C Sujit Singh, Country Manager, Dax, "The win-win deal will
help Dax to move up in the service by providing enterprise solution (mid-range
routers), while Maipu will have a jump start in the Indian market through our
relationship. Maipu is responsible for R&D, product development and
technical solutions, Dax will complement it with marketing, service and support
initiatives in the country. This will help both Dax and Maipu to grow in the
Indian sub-continent in router space."

The company has targeted a revenue of Rs 80 crore in the next three years,
with 30-35 percent market share in access and aggregation routers. "We are
confident of surpassing industry growth here and for Dax, 40 percent of turnover
will come from routers over the next three years," he added.

Dax had a test-marketing of Maipu routers six months ago, when it launched
its DX 1600, procured from the principal. "It was a good start and Dax
notched up two percent market share within six months, by selling more than
1,000 units. We bagged significant orders from ISPs, government and telecom
services. Our solutions are known for cost-effective and low-cost of
operation," Singh pointed out.

Maipu is said to be the number two router manufacturer in APAC region and
known for its R&D strengths. The company exports products to over 10
countries including South America, Australia, Canada, Saudi Arabia, Thailand,
Czech and South Africa.

Commenting on the joint venture, Rao Wei, GM (International Business
Department), Maipu, said, "We understand Dax is a well networked and
established company in India with good customer relationship. This will help us
to have a better reach and capture significant market share within a short span
of time. Although, we are a late entrant to the country, India will be a crucial
market for us and we target 5 percent of our turnover from this sub-continent
over the next three years." He was very bullish about the Indian market
considering the economic growth here, per capita income and growing business
opportunities.

"Our solutions are very cost-effective (offering 20-30 percent cheaper
solution) compared to the competitors and there is no hidden or recurring
expenditure for the customers," quipped Singh. On its part, Dax is
investing Rs 4 crore in the project, to be spent in various stages including
branding and support.

S Gopikrishna

Chennai