29. D-Link India

Identifying demand and adapting itself to the ever-changing market scenario

form the most characteristic trait of D-link. Sustaining its growth momentum,

the company has once again managed to post an impressive 63 percent growth with

a total turnover of Rs 263 crore. Some important landmarks during the last

fiscal, are coming out with an IPO, forging a distribution alliance with Clarent

for IP telephony solutions, and kickstarting its R&D efforts at Bangalore

being some of them.

While to the credit of D-Link, the units sold number are a source of

inspiration to anybody analyzing India’s purchasing power, it can easily

become a reason for worry. Taking a look at the contrasting figures, one sees

the extent of parity. Fifty thousand units of hubs but only Rs 32 crore; 11,000

of switch units but just Rs 23 crore; 3.8 lakh of NICs but just Rs 39 thousand.

This was due to falling prices. Even in the modem business, where it sold 3.2

lakh units, if it was not for high-value broadband modems, the figures would not

have added up to Rs 94 crore. Despite being a late entrant into the structured

cabling market, D-Link gained a strong foothold by posting a 100 percent growth,

with revenue of Rs 30 crore.

Success for D-Link, in the future, will lie in balancing its mass business

and, on the other hand, its strides into newer segments.