Gemini Communications Ltd, the Chennai-based provider of networking products and solutions, is exploring the option of setting up a plant in India for manufacturing of 4G (fourth generation) equipment through its subsidiary company Point Red.
However, the setting up of the plant will depend on a favourable government policy on the 4G rollout and access to low cost capital.
“These two are very critical to make the decision to set up the plant in the next six to eight months,” said Mr Pradhyumna T. Venkat, CEO, Enterprise Applications and Services, Gemini Communication.
Point Red, which was acquired by Gemini in 2008, has two manufacturing plants in Taipei. It assembles 4G equipment with an annual capacity of around 60,000 units.
Funds requirement
Mr Venkat said that the company would require Rs 150-175 crore in the next 18-24 months. This includes the amount to set up the new plant, and for marketing and branding. “Infusing private equipment investment is one option,” he said.
BSNL - WiMax
Gemini's products include solutions for networking, security storage, supervision and IT services. It is one of the vendors for BSNL's Rural Mobile WiMax deployment in Gujarat, Maharashtra, Karnataka, Andhra Pradesh, Chennai, Tamil Nadu and Orissa. The Rs 385-crore BSNL deal for Point Red triggered a major boost in revenue to reach Rs 550 crore last year, he said.
“We would do much better than last year,” he said.
PointRed
PointRed, which is the only Indian company in the 4G space, said Mr Venkat, has clients in over 45 countries, serving the needs of 120 network operators worldwide with some trial deployments. It plans to increase its market share in emerging markets like Africa, Latin America, CIS countries, Middle East and BRIC nations.
With the WiMAX subscriber base estimated to reach 14 million by 2013 and, thereafter grow annually at about 130 per cent for the next four years, India is estimated to have around 20 per cent of the global WiMAX users. This makes India a $13-billion market, says the company's annual report.
Energy sector
Gemini entered the energy and utilities sector recently. It is setting up a solar-based grid connected power project at Sattur in Tamil Nadu with an investment of Rs 16 crore. It has also entered into an agreement with a Bihar-based telecom operator for providing solar-based energy systems integrators for its 220 sites, he said.
“Energy and utilities is going be a major focus area for us,” he said.