De-merger to help focused business operations

Recently, D-Link announced its de-merger that will split the existing
company into two entities with separate businesses. Can you talk about the main
reason for the de-merger and the future plans of the two companies?

In India, besides sales and marketing of active networking products, D-Link
is also engaged in other activities that are quite unique compared to D-Link
operations globally. It was becoming increasingly necessary to focus on the two
as both were quite different businessesone being the D-Link brand business and
the second being the passive products business. Considering the growth potential
in R&D and manufacturing in India, the board took the de-merger decision.

The new D-Link (India) will have the business of sales and marketing of
D-Link branded active networking products. And the renamed company, Smartlink
Network Systems will have the business of manufacturing, R&D, sales and service
of networking products and sales and marketing of entire range of copper and
fiber (passive) structured cabling products.

Do you think D-Links de-merger strategy might open a window to rival
companies?

The de-merger plans to bring sharper focus to the two distinct set of
activities that is active and passive networking business, and to target market
and competition with laser sharp vision. De-merger allow both companies to chart
independent long-term strategies. A strong focus on development of this business
will further accelerate the growth in the healthy market share that both D-Link
and Digi-Link brand products enjoy in India.

Why did your company move out of the motherboard segment and sold the
business to Gigabyte Technology?

We moved out of the motherboard business to lay more focus on our core
business of networking, as we believe there is huge business opportunities in
the networking market,and that will take care of our business goals.

Green IT has become phenomenally significant. Are you taking any major
steps in this direction?

D-Link is the first company worldwide to market the Green Ethernet
technology, which enables intelligent, automated power reduction on specific,
green optimized switches. Today 100% of the D-Link and Digi-Link product range
are RoHS compliant. Our state-of-the-art manufacturing plants at Goa are RoHS
compliant.

Pankaj Maru/CyberMedia News

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