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Follow UsChange was the only constant factor in the structured cabling sector. During
FY 2005-06, the market expanded immensely and the competition got tougher. The
industry registered a significant growth of 38% to reach a market value of Rs
574 crore-quite a leap from the Rs 416 crore of the last fiscal. Looking at
this buoyancy, it's not surprising that the players lapped up the potential
scope of the market with great zeal and innovation.
Mature standards like Cat 6 and Cat 5E account for the majority of
installations. This left the field open for all to take on the next challenge of
the communication boom across all industry verticals, namely denser patching
solutions for increasingly intelligent customers.
Cat 6 took the cakewalk notching approximately 65% of the market share while
Cat 5E, still in demand, accounted for at least 32%. Even as the CatÂ
6A standard was being ratified, deployment of 10G-over-UTP was on the
rise. This contributed 3% to the overall coffers of the industry.
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Tyco Intelligent Banks CAT6 |
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Products: Need for Speed
The demand for bandwidth has grown dramatically during the year, resulting
in an increased need for higher-speed switches and routers. Projections over the
next three years show an increase in the market share for both the Gigabit
Ethernet and 10 Gigabit Ethernet switches. Undoubtedly then, the Indian
enterprises are buckling up to ride the wave of communication boom.
This explains why despite wireless being the talk of the town, wiring India
Inc continued to remain a profitable venture for the Systimaxes, Krones and
Tycos. The impressive performance of FY 2005-06 was a testament of an impressive
gamut of verticals. These have contributed significantly to the growth of the
structured cabling industry.
New Market: Manufacturing
IT/BPO, BFSI, telecom, education and health verticals were the usual key
growth drivers. While the major chunk of business still came from BPOs, it was
the manufacturing industry that promised new excitement to the structured
cabling players. Further, new areas of business were widening with the opening
up of FDI in retail and real-estate.
The upsurge in the demand can also be assessed from the fact that the ratio
of demand to supply has been very high. On one hand, the industry has been
overwhelmed by the heavy demand of cabling from the customers. On the other, the
supply of copper was falling short. Thus, the price of copper, which has been
increasing worldwide, doubled in the first quarter of 2006. Despite this, the
competition has remained healthy and the industry is optimistic in maintaining
high grounds.
Hot: Intelligent Cabling, Data Centers
The AMP Netconnect from Tyco Electronics topped the honors list registering
a growth of 41%. In FY 2005-06, it clocked a revenue of Rs 164 crore with nearly
30% market share. The upswing could be attributed to sizeable business deals for
intelligent cabling systems and a high density of data center projects. Last
year's numero uno, Systimax, slipped to #2 as it grew only by 30% to touch Rs
156 crore. D-Link completes the trio at the top as it sustained its previous
fiscal growth of 35.6% to close at Rs 80 crore.
Two players worth watching are ADC Krone and Molex at positions 4 and 5
respectively. ADC Krone registered a revenue of Rs 35 crore at a healthy growth
rate of 45.8%, compared to 20% of the last fiscal. Molex was close on heel with
revenue of Rs 34 crore, and recorded the highest growth rate among the top ten
players at almost 59.5%. It attributed this growth to some prestigious wins in
the telecom and IT sectors. Both Molex and ADC Krone enjoyed equal market share
of 6% and have aggressive plans in the current fiscal.
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Cabling: |
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Rank |
Vendor |
2004-05 |
2005-06 |
|||
|
Revenue |
Market Share (%) |
Revenue |
Market share (%) |
Growth |
||
|
1 |
Tyco Electronics |
116 |
27.9 |
164 |
28.5 |
41.0 |
|
2 |
Systimax |
120 |
28.9 |
156 |
27.2 |
30.0 |
|
3 |
D-Link |
59 |
14.2 |
80 |
13.9 |
35.6 |
|
4 |
ADC Krone |
24 |
5.8 |
35 |
6.1 |
45.8 |
|
5 |
Molex |
22 |
5.2 |
34 |
6.0 |
59.5 |
|
6 |
Panduit |
16 |
3.8 |
20 |
t3.5 |
26.6 |
|
7 |
Belden |
12 |
2.9 |
19 |
3.3 |
58.3 |
|
8 |
TVSICS |
12 |
2.8 |
16 |
2.8 |
39.1 |
|
9 |
Dax |
9 |
2.2 |
10 |
1.8 |
13.0 |
|
 |
Others* |
27 |
6.5 |
40 |
7.0 |
48.1 |
|
 |
Total |
416 |
100 |
574 |
100 |
38.1 |
|
* Includes : |
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| Source: DQ estimates                                                      CyberMedia Research |
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| Tyco jumped to the #1 position relegating last year's leader, Systimax, to the second slot. Molex, Belden, Krone were the biggest gainers and could threaten the leaders next year. TVSICS, in counjunction with swiss-based R&M, gained significant ground |
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Panduit, Belden, TVSICS, Dax and Finolex make up the rest of the Top 10 list.
TVSICS significantly improved its y-o-y growth and was inching ever closer to
Belden. The latter currently enjoys a 3.3% market share compared to 2.8% of
TVSICS. Others like Siemon, BNA Technology, Legrand and R&M also peddled
their wares during the year.
High-Volume Business
The buoyancy in the market was evident from the volume of business handled
by the players. Tyco received high-order deals from BPOs and BFSI companies. It
notched the biggest deal from GE Capital for wiring four of its data centers.
Other significant orders came from Infosys, HSBC, and Cognizant. It has more
than 30 projects on intelligent cabling system alone.
Systimax did close to 10 lakh connects last year.Â
Its top installations were for BPO service providers and multinational
companies. It implemented its first 10GBase-T solution at Vimta Labs, Hyderabad,
also its first installation in the APAC region.
D-Link did most of its installation on Cat 6. It had a diverseÂ
client portfolio including education and manufacturing verticals. Key
projects included wiring up NIT Suratkal, Manipal Academy of Higher Education,
Hinduja TMT, Eastern Naval Command and Vizag Steel plant. D-Link used both
copper and fiber.
ADC Krone was the first to launch 10G UTP cabling solution in India two years
ago. It found a fast market acceptance with eight installations in the first
year itself. Its key projects included installation for i2 Technologies and TCS,
mainly for their data centres. Key accounts included networking for Vikas Soudha,
Bangalore, IDBI, Mumbai, Ventura, Pune, and IGSL Mumbai.
Molex has emerged as the dark horse with some prestigious orders, top being
the Rs 10-crore order from Reliance Infocomm. Molex also has ongoing projects
with Reliance industries including connectivity in its Jamnagar facility. But
its biggest bite came from the order to network HCL's five offices. At Rs 4.5
crore, Molex also wired up the 750 branches of the income tax department.
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Profiling |
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COMPANY |
USP |
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Systimax |
Over 1.1 mn connects |
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AMP NetConnect (Tyco) |
Leading innovator in |
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D-Link |
Positioning itself |
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ADC Krone |
Strong focus on IT/ITES |
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Molex |
Leading the market |