India has emerged as the second-largest market in the world for Ericsson, with the country posting a 108 per cent rise in sales during the quarter ended March 31. India revenues grew from 1.7 billion Swedish krona (around $200 million) in the first quarter last year to 3.5 billion krona during the first quarter of 2015.

The country’s global sales grew 13 per cent during the quarter. India accounts for about 7 per cent of Ericsson’s overall revenues compared to 4 per cent in the corresponding quarter last year.

‘Astonishing development’

“India becoming the number two is an astonishing development for the company, while there was growth from all-across Asia, though North America was down,” Hans Vestberg, President and Chief Executive Officer of Ericsson told BusinessLine in a telephonic interview.

The sales in India rose during the quarter on a year-on-year basis on the back of “continued operator spending” driven by growth in mobile data traffic. India has more than 950 million mobile subscribers, while the operators were also recording increase in data revenues.

In 2014, India was in the fourth position and moving the order is also a testimony of the country’s importance, he said.

Rising number of jobs

The number of employees at Ericsson increased to 1,18,706 from 118,055. The majority of the increase is related to India, following a large new countrywide managed services contract.

The Swedish firm’s global sales rose 13 per cent during the quarter to reach 53.5 billion krona, aided by currency movements.

The company’s global services sales rise showed a strong development, mainly as a result of the first pan-India managed services contract.

However, sales, adjusted for comparable units and currency, fell 6 per cent from the year-ago period, driven by slower mobile broadband activity in North America. “We are growing because of India, China, South East Asia and North East Asia, with services growing now,” Vestberg added.

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