Indian networking industry grows to Rs 3,217 Crore

DQW Bureau
New Update


The networking equipment market in India has just emerged from a not so good fiscal, according to the Networking Masters 2001 survey-the only independent networking industry survey conducted in India-conducted by Voice & Data. This annual survey gauges the performance of networking equipment and network integration services market in the country.

The Indian networking industry for the period 2000-2001 grossed Rs 3,217 crore worth of network equipment sales and Rs 1,675 crore worth of network integration services sales. Total network equipment sales can be further broken up as Rs 2,751 crore worth of NICs, hubs, LAN and WAN switches, structured cabling, routers, RAS, dial-up and leased line modems, access multiplexers, VSATs and wireless LAN equipment. And fiber-optic SDH equipment worth Rs 466 crore. From a pure LAN perspective (where only products such as NICs, hubs, LAN switches and structured cabling go) the market size in fiscal 2000-01 was Rs 931


Key findings

  • The market for networking equipment industry was Rs 2,751 crore in fiscal 2000-01.

  • The network integration industry registered a total sales revenue of Rs 1,675


  • Distributors achieved networking sales worth Rs 687


  • Cisco Systems emerged as the largest networking company in India with a sales revenue of Rs 765


  • Cisco, Enterasys, D-Link, 3Com and Fibcom were the top five networking vendors in India during 2000-01.

  • Wipro Infotech raced ahead of the others in the network integration category with a revenue of Rs 269.7


  • Wipro, Datacraft, HCL

    Comnet, CMC and IBM formed the elite top five network integrators club during the last fiscal.

  • The top five networking product distributors were

    Mro-Tek, Tech Pacific, Ingram Micro, i2I Media and Apcom.


The growth patterns were 53.7 percent in the LAN/WAN segment (from Rs 1,790 to Rs 2,751 crore), 28 percent in LAN segment exclusively (from Rs 729 to Rs 931 crore), and 64 percent in network integration services (from Rs 1,020 to Rs 1,675 crore). These growth rates are considerably less than the growth seen in previous year.

According to Ibrahim Ahmad, Executive Editor, Voice & Data, "Such a show is commendable considering the general slowdown that was being felt, and particularly the foot-dragging by telecom/ISP sector." He, however, added "expectations were such that as in the past years, a near 100 percent plus growth would be seen, with major networking purchases."

The two fastest growing segments in networking equipment industry, that fed the growing infrastructure of telecom/ISPs during the previous fiscal, Remote Access Servers (RAS) and leased line modems, grew only 21 and 22 percent respectively as compared to 385 and 406 percent respectively in 1999-00.

However, the banking and financial sector acted as a perfect counterfoil, showing urgency to deploy networks. The IT sector in its own way contributed significantly through deployments from outsourced development centers, call centers and Internet Data Centers


For the fiscal 2001-02, Voice & Data is forecasting a growth of over 60 percent for the networking segment.