Siemon Aiming at Critical Mass in India

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Siemon Aiming at Critical Mass in India

Siemon Aiming at Critical Mass in India

Expanding operations in India

The US-based network cabling solutions provider company Siemon Cabling solutions are expanding its operations in India. It has shifted its back-end office to Hyderabad from New Delhi. It wants to focus on the data centre market in India. This Hyderabad office will also look after marketing and sales operations of Siemon in India. Siemon also wants to use the Hyderabad Centre of Competency for its global operations. The Hyderabad centre will be handling back-end operations including warranty processing and IT programming for the company’s international operations. In other words, Siemon wants to make Hyderabad office as a global hub for all its important activities.

Looking to attain critical mass in India

Siemon Cabling Solutions is a family-owned and operated company. Such companies are rare in the professionally managed corporate world in America. Siemon has established its presence in over three dozen countries in the world. Siemon wants to increase its staff strength to 30 professionals in the next three years. Siemon has captured around seven per cent market share in India. The company is looking for attaining some critical mass in its India operations before thinking of setting up a production base there. Till that time, the company will be sourcing its requirements from the nearby Chinese plant.

Huge data centre market in India

Indian data centre market is by and large a hugely untapped one. Therefore Siemon is eyeing a huge business opportunity in India. Indian data centre market is expected to reach Rs.14000 crore in the year 2014. Indian data centre market for networking and cabling is expected to more than double in 2014 from the present figure of Rs.6500 crore. Siemon will have an early mover advantage in this huge market. Sriram Adiraju is the Country Manager of Siemon in India.

Shifting to South India makes sense

Data centre hardware spending worldwide is expected to cross $100 billion n 2011 and $125 billion in 2015. Indian data centres have been mostly located in the Southern part of the country because of seismic reasons. Therefore it makes sense for Siemon to shift its New Delhi office to Hyderabad to be closer to the data centres. Luckily for the company, its competitors have not entered into this niche market of data centres. Even Siemon’s cream of the business is not data centres. It derives only around 40% of its revenues from data centres. Its topmost business is LAN (Local Area Networking) which contributes 60% of its business worldwide.

Following China route in India

Siemon commenced its Chinese operations seventeen years back. Once its operations in China reached a critical mass, it set up its own production base in China ten years back. It is following the same route in India also and is aiming to achieve that critical mass that will enable it to set up its production centre in India.

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