| Tejas Networks, a provider of next-generation optical networking products, is planning to expand its international business and productlines armed with the fourth round of equity fundings from venture capitalists led by Sandstone Capital, an India-focused fund based out of Boston.
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| The company is eyeing to harness the untapped market in the Southeast Asia, Africa and Russia and increase its export business to contribute 35 percent to its total revenue in the fiscal 2007.
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| In the previous fiscal (FY06), exports constituted 15 per cent of its total revenue of Rs 128 crore. Besides, the company is also aiming an exponential growth in its turnover and close the current fiscal with Rs 250 crore.
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| "We are planning to establish our direct presence in 3-4 countries in Southeast Asia and a couple of countries in Africa and Russia, where the tele-density is low at present and growing substantially. We will be partnering with system integrators and local players, who have strong footprints in these countries," said Sanjay Nayak, co-founder and CEO of Tejas Network.
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| At present, Tejas' products are available in about 50 countries through original equipment manufacturers.
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| Citing the reasons for the strong revenue guidelines for the ongoing fiscal, Nayak said the growth was coming from many directions.
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| "While our customers are doing their business well, we are also getting market share at the expense of our competitors. Besides, we also hope that by expanding our reach to newer geographies, we will increase the export base quite significantly in the next one year," he added.
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| Tejas has secured equity financing of $20 million from Sandstone Capital and the existing investors including Gururaj 'Desh' Deshpande, Battery Ventures and Intel Capital.
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| The company is also planning to expand its productlines with optical network products bundled with Ethernet technologies.
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| According to Nayak, in the fiscal 2006, Tejas spent around 40 per cent of its revenue towards R&D. This year, the R&D spend is expected to be around 25 per cent of the revenue, since the revenue base is much larger now, he added.
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| Besides, the company has strengthened its upper management team with the inclusion of N Shekar as vice-president, HR, who was running an HR firm called Carnegie Consulting, and R Murali as group financial adviser, who was working with Sundaram-Clayton as senior vice-president.
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| Nayak said in the next few quarters, the company was planning to hire 100 people to further strengthen its R&D, customer support and sales team. It currently has 300 employees. |
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