Home-bred telecom gear maker Tejas Networks is expecting its international business to grow significantly in next few years to become as big its domestic business on the back of new customer wins and foray into newer countries like Mexico and the United States.
“A really big chunk of our focus has been internationalizing our business and that has been the fastest growing part of our business and we hope that a couple of years from now on in international should be, you know a larger portion of our business in India,” Sanjay Nayak, CEO and executive director of Tejas Networks.
The top executive said that the listed company has been “winning a significant number of customers in all the regions” with the confidence that if you can compete in India you can compete anywhere in the world.
Tejas’ 75% revenue comes from India, while rest is contributed by its international business. “If I take a 3-year outlook, international as a percentage of revenue to increase, and it should be close to 50 – 50 between India and international,” Nayak said, adding that India on an absolute basis market will also increase since it is growing fast.
Tejas already has a presence in 70 countries and has so far been majorly focusing on countries like Bangladesh, Vietnam, Indonesia, the Philippines in the South East Asian region, and Africa.
Nayak said that the company’s success and involvement in the national broadband project, BharatNet, has helped it get into and win customers in African and South East Asian countries because they are similar to India in terms of price points and infrastructure status.
“So, whatever works in India, is a great reference. We are actually using our India’s success as a launchpad into these markets. The margins are better internationally because the competition is not as intense as in India,” he said.
Tejas went public last year and gave 20% CAGR growth projection for the medium term. “We still believe that is something we will exceed,” Nayak said, adding the company’s profitability has continuously improved.
He further added that profits are higher outside India, and as the international business rows it will reflect in its profitability. “This year, our top line growth seems pretty solid…we need to continue to invest.”
Nayak said that India is currently the hotspot in the world for the optical network which is seeing huge growth, despite recent teething phases. “…in that sense, it has been good times for the company and going forward I think they are very well positioned for growth,” he added.
Tejas is said to be in talks with private telecom operators for their fibre network expansion in the urban parts of the country, while for the rural parts, it is primarily working with both central and state governments.
“For the phase two, many states are building their own BharatNet,” Nayak said, adding that it in discussions with Vodafone Idea Limited (VIL) for its wireline network expansion.
He added that there are a lot of new tenders coming out from BSNL and for the Bharatnet project, which will grow Tejas’ government business.