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Structured Cabling: Miles of Success
Despite copper prices hitting the roof, the cabling industry continues to soar with a total market size of Rs 817 crore. Reorganization and customer specific solutions are the differentiators in this closely contested market
Saturday, August 04, 2007

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The look East policy seems to be the underlying theme for all major players in structured cabling. India is clearly the flavor of the season for global leaders in structured cabling, with the Indian economy on a roll.

The structured cabling industry has grown by 38% during FY 07 and the market is led by major world leaders like Tyco with a market share of 29%, closely followed by Systimax Solutions with a market share of 23%, and D-Link with nearly 18% market share.

But, the excitement lies in the middle order with notable changes in the market positioning. Molex, with an impressive growth of over 80%, grabs the fourth position. Delivering on its promise of doing above average business, TVSICS has also improved its ranking coming sixth in the list with over 50% growth rate. We also find new entrant, Clipsal Datacomm, a brand of Schneider Electric SAS, entering the list with Rs 15 crore revenue.

Top 3 vendors command 69% of the market

Intelligent cabling and Cat6A grow marginally

Sharp focus on R&D for localized products

Channel partnership program strengthened in tier-2 and tier-3 cities

10GE still in infancy, likely to take off in three years

The overall industry size is estimated to be worth Rs 817 crore in FY 07 compared to previous fiscals Rs 594 crore. The impressive growth can be attributed to the fact that apart from IT/ITeS vertical, verticals like government, educational institutes, retail, and manufacturing are showing excellent growth.

All the technology standards were well used in the year gone by. The break up for the standards Cat6: 60%, Cat5E:30%, and Cat6A: 10%. Fiber has gained marginal acceptance while copper continues to command 85% of the total deployment.

With the SME segment gaining momentum, one saw a lot of Cat5E installations coming up. Ratification of the 10G standard, increased demand for niche products in data center applications, and greater customer interest in intelligent cabling systems seems to be the way forward.

Industry Stalwarts
Tyco Electronics AMP NetConnect referred here as Tyco, continues to lead the market growing by 43% with its revenue estimated to be Rs 234 crore. Tyco claims to have added 130,000 nodes of Intelligent Infrastructure Management Solutions (IIMS) in last one year. Among the key orders, Tyco wired up 45,000 nodes for a leading BPO firms multi-location using IIMS; 300 telephone exchanges were connected on Tyco enabled structured cabling network; 30,000 drops for a leading BPO company based in Bangalore; and Cat6A installation was done for an ITeS customer in West India for over 15,000 nodes.

Systimax Solutions from CommScope commands the second largest market share with an estimated revenue of Rs 187 crore, showing a modest growth of 20% y-o-y. Last year it opened its executive briefing center (EBC) in Bangalore. The center is the companys fourth such international facility to cater to customers from the SAARC region.

With rapid network expansion in ITS/BPO and areas such as government and retail, structured cabling has grown at 38-40% annually for the past two years

D-Link scaled up its operations in FY 07 with an impressive growth of 33% with structured cabling revenue at Rs 146 crore. It concentrated on the tier-1 and tier-2 cities. It offered a wider choice for specific customer needs. The company is confident of offering a range of installation-ready pre-terminated fiber solutions.

Molex has unseated ADC Krone to notch up the fourth ranking in the market with a market share of around 8%. This dark horse, registered an impressive revenue of Rs 70 crore, with one of the highest growth rates of over 80%. Molex claims to have implemented over 750,000 nodes. Of these around 10% constitute intelligent cabling. It has implemented three projects using intelligent cabling, mostly for manufacturing companies.

ADC Krone grew by over 38% registering revenues of Rs 36 crore in FY 07. It made a significant number of installations on Cat6 and Cat6A. Some key orders include installation of CopperTen (Cat6A solution) for leading IT companies including TCS in Gurgaon and i2 Technologies. Among Cat6 installations key orders came from Shell in Bangalore and IDBI Bank in Mumbai. Neyveli Lignite Corporation based in Tamil Nadu opted for end-to end fiber solutions from ADC Krone.

Improving its ranking by two places, TVSICS has notched up 50% growth rate to clock revenue of Rs 24 crore. It scored a big leap with an order worth Rs 5 crore from ABN Amro bank to wire up offices in Delhi, Chennai, and Kolkata catering to over 25,000 nodes. The company is providing cabling solution in the international airport infrastructure projects in Hyderabad, Bangalore, Kolkata, and Chennai airports.

Panduit is in the midst of a makeover with its top management undergoing a major reshuffle early this year. The company has redefined its strategy in India with a major focus on channel partners. Its revenue is estimated to have grown by 15% to Rs 23 crore. Fiscal 2006-07 brought key orders from leading companies like Google and Computer Associates (CA).

CDT Belden grew by 44% with revenue of Rs 22 crore. It installed over 160,000 nodes as of March 2007. Major clients in the fiscal include Cisco (cat5e), Yahoo, 3G, CGI, HTMT, SPI, Sutherland, etc. It also carried out intelligent cabling for Yahoo and Reuters. It introduced wireless solution, racks, and cable management, enclosures, etc.

Structured Cabling:
Analyzing the Top Players (FY 06-07)

Rank

Vendor

Revenue (Rs crore)

Growth
(%)

FY 05-06

FY 06-07

1

AMP NetConnect (Tyco Electronics)

164

234

43

2

Systimax Commscope

156

187

20

3

D-Link

110

146

33

4

Molex

38

70

84

5

ADC Krone

26

36

39

6

TVSICS

16

24

50

7

Panduit

20

23

15

8

CDT Belden

15

22

47

9

Clipsal Datacomms

3

15

400

10

Dax Networks

9

10

11

Others*

37

50

35

Total

594

817

38

*Includes: Siemon, Finolex, BNA Technology, Legrand, R&M

Tyco reinforced its position as the market leader, widening the gap with the #2 vendor Systimax

New entrant, Clipsal Datacomms that started its operations in April 2005 in India, has grown by 400% to register impressive revenue of Rs 15 crore. It deployed over 10,000 nodes of Cat6 for Satyam Computers along with fiber backbone. Among education sector, some of the notable clients include VVIET College for campus networking of 1000 nodes; Madras Institute of Technology where it deployed 3.5 km of fiber and 350 nodes; and NIMHANS where it deployed 4,500 meter of single mode fiber. Some of its other clients include BBC, Wipro Technologies, Bangalore International airport, and Neilsoft to name a few.

Dax Networks grew by 11% clocking revenue of over Rs 10 crore. It bagged a key order from Tamil Nadu State Wide Area Network (TNSWAN) worth Rs 95 lakh, for over 18,000 nodes. The other major order was also from an e-Governance project, Jharkhand State Wide Area Network (SWAN), worth Rs 20 lakh for 2,500 nodes.

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