In a can­did in­ter­ac­tion with the DQ Chan­nels, Tushar Sighat, ex­ec­u­tive direc­tor and CEO of D-Link In­dia talks about new busi­ness op­por­tu­ni­ties com­ing up with emerg­ing tech­nolo­gies like IoT and In­ter­net Se­cu­rity and com­pany’s roadmap to cap­i­tal­ize on th­ese

DQ Channels - - Cover Story - PRIYANKA PUGAOKAR/( priyankapu@cy­berme­dia.co.in)

ex­ec­u­tive direc­tor and CEO of D-Link In­dia talks about new busi­ness op­por­tu­ni­ties com­ing...

How is the growth of D-Link In­dia in terms of growth and rev­enue?

Tushar Sighat: We are grow­ing con­sis­tently since last four years. The growth is con­sis­tent in terms of rev­enue and prof­itabil­ity. We are mon­i­tor­ing the growth quar­ter of quar­ter. The last two quar­ters were good in terms of busi­ness. We recorded net sales 487 Cr. in FY 2013-14. The prof­itabil­ity of the com­pany rose to 135.83 Cr. in FY 2013-14 from 123.25 Cr. in FY 2012-13. Over­all D-Link (In­dia) Ltd. has recorded 37.8% growth in rev­enues with 10.2% growth in Net Prof­its for FY 2013-14. We are get­ting good re­sults across the lines of busi­ness in­clud­ing Con­sumer, SMB, SME and En­ter­prise seg­ment. We have wit­nessed over­all growth in most of the prod­uct seg­ments.

What are the key prod­uct lines that at­tract more busi­ness for the com­pany?

Tushar Sighat: We are fo­cus­ing on all the busi­ness seg­ments. So, I will not do par­tially with any of the busi­ness seg­ment. All the seg­ments are con­tribut­ing to the growth of the com­pany and grow­ing in their own as­pects. We are vis­i­ble in the mar­ket for Wi-Fi routers, at the same time ca­bling busi­ness is also do­ing well.

Cur­rently IoT is a big buzz in the mar­ket. What are the po­ten­tials of this much talked about seg­ment in the In­dian Mar­ket?

Tushar Sighat: With Wi-Fi pen­e­tra­tion, the IoT reach­ing to cus­tomers is pos­si­ble in very faster way. In the era of smart de­vices, peo­ple want to use smart Wi-Fi and it is a big mar­ket. We are present in the most home de­vices, so we will be tak­ing ad­van­tage of it to reach to the cus­tomers faster.

What is your busi­ness strat­egy to cap­i­tal­ize on the smart tech­nolo­gies like Cloud and IoT?

Tushar Sighat: In­no­va­tion is al­ways in our base of growth. So we al­ways en­ter into new mar­ket with new prod­ucts. When­ever such new mar­kets come up, we are al­ways there to cap­i­tal­ize on it. We have big plans for In­ter­net Se­cu­rity and In­ter­net of Things (IoT) in com­ing days. We will be rolling out lot many prod­ucts IoT very soon. Our cloud is quite op­er­a­tional and we have my­dlink Cloud Ser­vice which is in all of our prod­ucts.

On Mo­bil­ity side, we are closely mon­i­tor­ing that how 4G shapes up in In­dia and we will plan our strat­egy ac­cord­ingly. With chang­ing mar­ket sce­nar­ios, we have also changed our­selves with ma­jor changes in our of­fer­ings. We have come out with handy routers which of­fer mo­bil­ity to users. Busi­ness sur­veil­lance is big op­por­tu­nity for us and we are do­ing lot of ac­tiv­i­ties to build up this mar­ket.

While ex­plor­ing new av­enues with the smart tech­nolo­gies, how will you en­sure that part­ners profit mar­gins are taken care of?

Tushar Sighat: We will keep all the money on the ta­ble from the mar­gins. Now, whether take the mar­gins or not is in the hands of part­ners. They have to take mar­gins from the cus­tomers. We al­ways try to get new busi­ness for the part­ners to help them grow their rev­enues and prof­itabil­ity. Our part­ners have grown with us in past years they are all well to do to­day with much more turnover. When­ever we launch prod­ucts, we en­sure that over­all chan­nel ecosys­tem grows with us. For part­ners there is lot of op­por­tu­ni­ties com­ing in two to three years in terms of more rev­enues and prof­its.

Be­ing pri­mar­ily a net­work so­lu­tions com­pany, how do you align your­self with gov­ern­ment’s ini­tia­tives like dig­i­tal In­dia and Smart Cities project?

Tushar Sighat: We work with the gov­ern­ment on pol­icy mak­ing and wher­ever pos­si­ble we are try­ing to be a part of th­ese projects. With gov­ern­ment’s dig­i­tal In­dia ini­tia­tive, in­ter­net will reach to the in­te­rior and re­mote ar­eas and there will be need for Wi-Fi and ul­ti­mately our mar­ket will grow.

E-Com­merce gi­ants in­dulged in price cut­ting is a mat­ter of con­cern for off­line chan­nel. How do you ad­dress part­ners con­cerns about preda­tory pric­ing?

Tushar Sighat: We are very chan­nel cen­tric com­pany and al­ways routed our sales through the chan­nel. We don’t sell or sup­ply our prod­ucts di­rectly on on­line mar­ket place. It is the chan­nel part­ners who are sell­ing on on­line plat­forms and in­dulged in price cut­ting. On­line is a world­wide plat­form of sell­ing and it is go­ing to grow in In­dia. Our part­ners have to de­cide which plat­form to choose. We don’t sup­port preda­tory pric­ing and al­ways re­quest our part­ners not to be preda­tory by them­selves.

What is your chan­nel pol­icy to nur­ture the part­ner ecosys­tem to fa­cil­i­tate their growth?

Tushar Sighat: We value the chan­nel as they have nur­tured the brand. We do lot of things at var­i­ous lev­els for our part­ners. We run var­i­ous in­cen­tive schemes for them and or­ga­nize in house and me­dia events. We also en­gage in dif­fer­ent ac­tiv­i­ties for our SI part­ners and

guide them on new tech­nolo­gies.

Since net­work­ing is a highly con­tested seg­ment in In­dia, what sets D-Link unique than other prom­i­nent play­ers in the mar­ket?

Tushar Sighat: It is very in­ter­est­ing ques­tion. At the same time it is very dy­namic be­cause what we do that change ev­ery time depend­ing on our com­pe­ti­tion strat­egy. We do var­i­ous com­bi­na­tions to dif­fer­en­ti­ate our brand from oth­ers. Cus­tomers trust our brand and we cap­i­tal­ize on that. Pric­ing is an­other fac­tor which gives us pref­er­ence over oth­ers. We of­fer high qual­ity prod­ucts at rea­son­able prices.

What will be your go to mar­ket strat­egy in 2015 in terms of ex­pand­ing pres­ence across the re­gions and ver­ti­cals?

Tushar Sighat: In 2015, we will be more fo­cus­ing on IoT, In­ter­net Se­cu­rity and sur­veil­lance. We will be re­leas­ing new prod­ucts, at the same time we will be en­hanc­ing our ex­ist­ing prod­uct port­fo­lio. IP cam­eras will be our ma­jor fo­cused area apart from strength­en­ing our po­si­tion in other ar­eas which will help us build on our busi­ness. We re­cently tied up with the com­pany called MOXA which is world’s lead­ing industrial net­work­ing com­pany. We will keep on forg­ing such kind of part­ner­ship with such peo­ple. We are also work­ing on lines to de­velop prod­ucts in In­dia.

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