Huawei eyes enterprise business for India growth
India’s concerns over Chinese telecom imports notwithstanding, Huawei, the Chinese ICT (information and communications technology) firm is betting big on the Indian market. Albeit in a different vertical — Enterprise Business.
Addressing the sixth India Telecom event on December 7, Prime Minister Manmohan Singh had expressed concern over large Chinese telecom imports. Two years ago, national security advisor Shivshankar Menon had brought to fore security implications of large scale Chinese imports, especially in sectors such as telecom, having strategic implications.
Eric Yu, president, Enterprise Business - Huawei India, told Financial Chronicle, “We don’t have any issues pertaining to security concerns. Going by the response we have been receiving from various government organisations and large private companies, we are extremely bullish about the Indian market. At present our headcount in India is 150 and by 2015, we plan to raise it to at least 1,000 to back up our growth plans. Our target is to notch up a revenue of $1 billion from Enterprise Business in India by 2015.”
Huawei operates in four business verticals — telecom, enterprise business, consumer business and other business. Enterprise Business, which is a new domain for the company, earned $2 billion revenue out of a total global revenue of $28 billion in the last calendar year. It is projected to be earning $4 billion out of a total global revenue of $30 billion in the next calendar. “In India too, we are confident of maintaining the same proportion,” said Yu.
The company expects to get 30 per cent of its revenue from the government sector, while 40 per cent from large companies and the remaining 30 per cent from SMBs. The sectors being tapped by Huawei include government, transportation, BFSI, power, to mention a few. The Enterprise Business Solutions include some innovative technologies like Telepresence 2.0, AR G3 Router, Lan Switch and so on.
Yu said that going forward another thrust area for the company in India would be R&D. “We already have a 3,000 member strong R&D team in India and we would like to strengthen it further. We are already sending products and solutions designed by our R&D team in India. We will continue to do that increasingly,” said Yu.