The search continues .... The prospect we discuss today is Bangalore based Tejas Networks. Since 2000, when Tejas Networks was established, the vendor has generated accumulated business worth $54 million till the end of year 2006. By the end of 2007, that figure is expected to reach around $100 million. Tejas provides next generation SDH as well as switched SDH solutions and has been witnessing YoY growth in the range of 70-90%.
Tejas has so far raised about $59 million in venture funding.
The solution set spans all three areas of optical networking – core, metro and access. However, the primary focus of the company remains the transmission side. Optical networking equipment market in India has two main contenders: ECI and Tejas. Together these two command around 50% of the market. There are some 7 or 8 other vendors which share the other half of this equipment market. Tejas boasts of nearly all the leading Tier 1 operator customers in India, which include MTNL, BSNL and Bharti Airtel.
Besides India, Tejas has footprint in some of the emerging markets like South East Asian countries of Vietnam, Malaysia, Thailand, etc.
So where is the Cisco of India hiding? According to Tejas, we do not have the guy. Below are the reasons put forth by Tejas:
• India has over the years become services oriented economy (which is actually not bad). Manufacturing is entirely different and needs different environment to develop.
• Lack of venture capital in the country. Since independence, India has been able to manage around $1 billion of venture capital!!!!!!!! Share of telecom within that would be miniscule.
• Lack of requisite talent. India, according to Tejas, has fair amount of lower and middle level talent available in abundance. But probably lack in the quality managers that would lead the manufacturing initiatives. The entry level talent which India gets from leading institutions is not usually tapped within the country.
• On the R&D side, India still does not have enough research organizations that would work on fundamental research. While on the commercial development side, India is doing well and companies are bagging some patents, but there is not enough activity going on the fundamental research side.