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D-Link sees India as global manufacturing hub

February 03, 2006 06:24 IST
By Rajesh S Kurup in Mumbai
The $1.2 billion Taiwan-based networking products major D-Link Corporation is planning to make India one of its manufacturing hubs, from where it intends to market its products across the globe.

The company will continue manufacturing at D-Link India's Goa facility. D-Link Corp holds 36 per cent stake in D-Link India.

"We have manufacturing facilities in three locations around the world - Taiwan, China and the US - apart from India. At present, the Indian facility manufactures cabling products, switches, modems and IP-phones, among others," said An-ping Chen, global director and CFO, D-Link Corp.

Chen, who was in India for the company's board meeting, said the manufacturing operations of D-Link are conducted through its Taiwanese subsidiary Alpha, which was spun off as a separate unit earlier.

"We are in the process of identifying the products that could be manufactured in India and marketed across the world.
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However, this would not be in the immediate future and could take two years," he said.

India has a "commendable" research and development talent, apart from a highly educated and English-speaking workforce, which makes the country an ideal location for manufacturing.

However, the supply chain in the country - especially when it comes to sourcing of raw material - is a major concern. Logistics, which is also an area of concern, has to be developed for selling finished goods around the world.

D-Link India is a vendor to the global networking major that outsources a lot of products, including VoIP products such as IP-PBX, which are designed, developed and manufactured in India.

Broadband, wireless and digital convergence products constitute major sales for D-Link Corp worldwide, and the company expects that the emergence of broadband in the country will boost sales of D-Link India's products in a major way.
Rajesh S Kurup in Mumbai
Source:

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