Bay Networks, one of the leading provider of inter-networking solutions, will set up a software development centre in India, the first such unit in Asia. This will be the company's third software development centre, the others being in Israel and Ireland.
The centre, being set up by the $2-billion computer networking products major, will be a 100 per cent export oriented unit. The unit will develop sophisticated software that will be exclusively used in the networking products manufactured by the company in the United States.
Initially, the company will invest over $1 million in the new unit. It had recently applied to the Foreign Investment Promotion Board (FIPB) seeking necessary approvals for establishing such a unit "We have already applied to the FIPB to set up an Indian subsidiary for warehousing our range of IT (information technology) products and solutions at an investment of over $1 million," Bay Networks' country manager for India, Prakash Chandra, said.
The company will, however, depend on its authorised distributors for the sale of its networking products since it does not sell its products directly.
Bay Networks set up a liaison office in New Delhi two-and-a-half years ago for business development, sales and service support. The company has now emerged as one of the leading networking firms in India and its products are sold through channel partners like Tata Elxsi and HCL Comnet.
Microland, Unicorp Industries, Ramco Systems and Datacraft ICIM.
Its main business competitors in the country are Cisco Systems and 3Com Corp.
As more and more corporate organisations, service providers and telecom companies feel the need to get the various computing products networked, the business is expected to penetrate to medium and small enterprises in smaller cities.
Since the company is a leading solution provider in local area network (LAN) as well as in wide area network (WAN) products, Bay Networks expects its revenues to grow above the industry average of over 50 per cent.
Bay Networks' revenues from its Indian operations touched Rs 35 crore in the financial year ending June 1996.
Though business in the first half of the current year has not been as per expectations reflecting a general slowdown in industrial growth, the company is likely to end the year by recording nearly 100 per cent growth in volume of business, Chandra said.