D-Link India Sets Aside $5 M For Acquisitions

Mumbai: | Updated: Jul 29 2002, 05:30am hrs
Networking company D-Link India is on the lookout for acquisitions of technology or companies in the networking industry as part of its inorganic growth strategy. The company has earmarked a budget of about $5 million for the acquisition.

D-Link India managing director KR Naik said, The company has moved on from the assembling stages of a product to actual designing, development and manufacturing of products. It is in this context that the company may either invest in acquiring the knowhow or even paying a royalty for complementary technologies. D-Link may also consider a joint venture or an acquisition of a product company with complementary technologies.

Mr Naik expects this venture to fructify in the near future. D-Link is targeting companies in India, US and Taiwan with focus on the high-end routers and VoIP segment.

He added that the mother company D-Link Corporation is bullish on D-Link India and has recognised India as an ideal place for designing, developing and manufacturing of products. The company has recently moved its existing software division to a new facility in Bangalore. This centre has plans to develop products in areas such as voice embedded switches/ routers, network security, broadband access devices for the local market under D-Link brand.

Mr Naik said, In the current year, D-Link India has been assigned to design, develop and manufacture routers and voice over Internet protocol (VOIP) for D-link globally. Last year D-Link India was assigned the development of ISDN and leased lines products.

According to Mr Naik, the companys net profit is likely to grow in the range of 20 per cent in 2002-03 on a identical revenue growth of around 20 per cent as against the corresponding quarter last year.