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Huawei Opens Enterprise Unit in India – WSJ

Posted on: November 11, 2011


  • Huawei Technologies Co., the Chinese maker of telecommunication equipment, Wednesday launched in India its business unit that sells networking products to non-telecom customers.

 

  • Huawei’s move in India comes while its traditional clients–telecom service providers–are slowing expansion following allegations of corruption in the sector and a decline in monthly additions to the number of telephone users.

 

  • The company expects the newly launched enterprise unit to post about $1 billion of annual revenue in India by 2015, accounting for a quarter of its total revenue from the country at that time, Eric Yu, president of the division at Huawei Telecommunications India Pvt. Ltd., said.

 

  • Huawei posted about $1.50 billion revenue from India in 2010.

 

  • Enterprise business accounted for 8% of Huawei’s $28 billion global revenue in 2010. It is aiming for the unit to record $15 billion by 2015. In India, Huawei is planning to tie up with system integration companies like Wipro Ltd. and AGC Networks Ltd. to sell network-based products to clients in the government, power, transport, banking and Internet sectors. Cisco Systems Inc. is the market leader for network products.

 

  • In India’s telecom gear market, Huawei competes with other Chinese vendors such as ZTE Corp. and European companies like Nokia Siemens Networks. It has made significant inroads in the country, offering products and services which are about a third cheaper than most global competitors. The company had in December committed $2 billion of investments in India over five years, including to set up a research and development center.

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