Concerns
One of the major concerns vis-ŕ-vis the market was erratic price fluctuation
in international copper and crude oil price (hence the increase in plastic
price). And this is likely to continue in the ongoing fiscal also. On the
product front, the major concern for recognized brands was spurious supplies,
both produced within India and coming from neighboring markets. This exploits
the tendency of customers to compromise on quality over price. There are
components with recycled materials, cables with copper over aluminum conductors.
This would not only affect customers on performance and network failures but
also tarnish brands with no fault of theirs.
Ignorance of end users toward inferior installation practices and
unstructured physical layers, especially in SOHO and residential cabling, are
yet another perennial problem of this industry. There is an urgent need to
follow best practices when implementing data center designs, which data center
managers need to ensure. Failure in this would cost them dearly with
mission-critical data traffic getting affected adversely. The accent should be
on right education for installers on how to design and implement data centers.
The industry has put standards to help educate the end users.

Compliance to standards like TIA/EIA 568B, BICSI, and ISO is an absolute must
when it comes to structured cabling installations. This helps maintain a
superior network that gives enough 'headroom' for expansion. But such standards
are not adhered to and this is a concern that the industry should address, if
India wants to meet global standards and best practices. Structured cabling at
times provides technology necessary for infrastructure build up, but is labeled
as a commodity, which is another concern for the industry.
Shock Absorbed
Each player had its unique challenges during the last fiscal. For DIGILINK,
there was a sudden dip in customer requirements in the last quarter of FY
2008-09. Moreover there was additional trouble due to copper, crude oil, Indian
rupee and US dollar fluctuation. This would have caused tremendous negative
impact in the company's operations, if the company would not have had strategic
tie-ups with its OEMs. Also meticulous just-in-time inventory management and
staying focused with its loyal partners on its trusted verticals helped overcome
the situation. So, it managed to actually end the worst quarters with decent
growth and with no bad inventories.
In the current fiscal, in addition to ongoing product development
initiatives, DIGILINK will have three new focus areas-solution for datacenter,
product range suitable for FTTH solution and few unique offerings for fiber
solutions in tactical environment.
For ADC Krone also, the main challenges were the volatile copper prices, and
a weak rupee, apart from high dependency on the IT/ITes vertical for its
business. All this contributed to project timing delays and curtailing
infrastructure investment. But with its product innovation for both datacentre
and LAN cabling which include CopperTen, TrueNet Physical Layer Management
System and Fiber Management Systems, the structured cabling major is hoping for
a good year ahead. Apart from this, ADC Krone's Aires cable is another
innovative product offering-the smallest cable diameter, keeping in mind the
green requirements.
Tyco's main challenge was to remain profitable especially in view of falling
copper prices and competition, dropping prices since the market size was
reducing. So Tyco managed the situation by better planning, inventory management
system and reducing operating costs. In the last few months, it has tightened
its inventory management by better forecasting and planning which has definitely
led to good results in overcoming roadblocks to profitability. It is facing the
harsh reality with its state-of-art technology systems, pre-sales design
capability and post sales support, logistics in terms of bonded warehousing,
huge distribution network supported through national and regional distributors,
etc.

The same problem was tackled by Molex by its consultative approach. It worked
with its customers to understand and address their business Its Mod-Link range
is a state-of-the-art product in fiber as well as copper variant to service
datacenters and high density network needs. And, a new 'Advanced Physical Layer
Management Solution(ILM)' is to be offered to the customers this year to resolve
the existing market condition.
With global recession affecting investments, Nexans was quick to realize the
importance of delivering value to customers. Enterprises invested cautiously and
Nexans ensured that it delivered ROI to customers by getting into a consultative
mode. It offered hybrid solutions that were a combination of types of
cable/solutions that was application oriented and also addressed the pain points
of the customer - be it appropriate design, product or even the pre and post
installation aspects.
CDT Belden absorbed the market pressures by innovative technologies and
product offerings. Belden Total Enterprise Network components is designed to
work together as an end-to-end system contributed to withstand the market
conditions, as it provides high performance and reliability.
Dax Networks efficiently managed the pricing pressure by forward booking its
orders when LME rates were lower. It constantly monitored the LME rates. This
enabled it to remain competitive in the market place. And, since it was a great
advantage for its channel partners and end users as it is a one point contact
for their active and passive solutions/support, they managed to gain its share
of market.
The Siemon company has managed the hard times with its technical strengths.
It further intends to strengthen its distribution channel in India both in terms
of geographic reach and numbers of channel partners. And, besides appointing new
partners, it intends to support them better in terms of technical training,
sales and marketing support, customer support, etc to also reach the B and C
class cities as well as the upcountry market.
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