T &M has been emerging a focused technology industry. The
trend can be identified with major developments last fiscal like the formation
of Agilent Technologies and Tektronix hiving off its other businesses and
sticking to T&M as focus.
In fact this can be treated as the second phenomenon of
internal restructuring of big T&M companies, where focus is the underlying
factor, the first being acquisitions. And the next phase could witness mergers
among the smaller companies to form a larger entity that provides total
solution. Also, the bigger companies–Agilent, Tektronix, Wavetek Wandel
Goltermann, and Anritsu Wiltron–especially the first three, are likely to
embark on acquisition sprees.
As a result of digitalization and globalization and product
cycles coming down, along with it being more software driven, the T&M
industry is getting more focused.
The role of a T&M vendor or distributor is changing from
a product seller to that of a service provider. As quality of service becomes
more important, both bigger and smaller companies will increasingly go in for
T&M. And this puts T&M company in the same role as a network integrator
today. It will have to sell its competitor’s products, if the situation so
demands. And increasingly, T&M companies are look at using Internet beyond
marketing and information dissemination, for online support.
Major T&M vendors who see a business opportunity in India
will like to come to India directly. For example, Wavetek had an indirect
presence in India, but after its merger with W&G, it is in India directly.
Further, as T&M is becoming software driven, it can utilize India as a base
to accommodate new lines.
Trends
The trends for local T&M companies in India, excluding
the manufacturers like Aplab and Meco, are expected as follows. Firstly there
will be some that will continue to do some kind of business with government
users and survive for some more time. Then there will be some that will change
by adding more value to themselves and continue with some selected principals.
And there will be a new breed that will specialize in testing and maintenance,
and largely provide services.
The total T&M industry across services and products is about Rs 250 crore,
an increase of 18 percent in comparison to 1998-99. However, opening up of new
circles for private operators, coming of utilities to communications, and the
opening up of long distance will push up demands. But except for a few of them,
most will look for T&M services rather than T&M products.
Click Here for 1998-99 Performance of T&M
Recent M&As in T&M
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