ZTE to invest Rs 200-cr on R&D; bullish on 3G

Chinese telecom equipment maker ZTE today said it plans to invest up to Rs 200 crore in its R&D centre in Bangalore this fiscal.

"In the past four-and-a-half years, we have already invested Rs 200 crore. We plan to invest another Rs 200 crore in the Indian R&D centre by 2010-11," ZTE India chairman and managing director DK Ghosh told reporters here today.

The company usually sets aside 10-15 per cent of its global R&D spend for investing in India. Globally, ZTE has 17 R&D centres including the one in Bangalore.

He, however, clarified that investment plans depend on government policies. "If government policies are favourable we will definitely invest heavily in India," Ghosh said.

With the auction of 3G radiowaves underway, the Chinese firm, which is one of the biggest players in the global 3G space, is betting big on the opportunities here. "We plan to capture about 10-15 per cent market share in the 3G space," he said. Moreover, the company expects to capture 15 per cent market share in the Wimax space as well.

"To meet the evolving requirements, we plan to make targeted investments in 2G, 3G, bearer network and fixed line broadband in India," Ghosh added.

With the telcos like Bharti Airtel, Vodafone Essar, RCom, Tata DoCoMo, Idea Celluar and Aircel putting in their bids for the 3G spectrum, companies like ZTE and Huawei are eyeing the domestic market.

Besides, shoring up investments in the R&D, ZTE also plans to hire about 1,000 people here this year. Currently, ZTE India employees 3,500, distributed across 17 sales offices and centres.

Announcing its annual performance data in India, Ghosh said despite the downturn, ZTE has registered a strong growth of 50 per cent in sales.

The company has also seen a considerable increase in headcount in the country. "The data suggest that out of total recruitments made by ZTE in 2009, 50 per cent were made in India," he added.