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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