Cisco revenues in India have, for the first time, leapfrogged the $1 billion mark indicating that the developing country is turning out to be a major market for the networking giant so much so that India will become one of the top four markets for the networking company in the next few years.
Increased government spending on information technology and automation as well as enterprise growth owing to a range of government initiatives have been pegged as the two major reasons behind the massive revenue surge. Beyond the sales perspective, Cisco has been investing a lot in India already has 11,000 employees in India and also considers India as its second headquarter after the US.
“If you look at our business performance over the last couple of years, our business is over a $1 billion in India. Last year, it grew over 20 percent,” Cisco CEO Chuck Robbins revealed to reporters in a statement recently. He added that the company will continue to invest and launch new projects in India.
Cisco President India and Saarc Dinesh Malkani added: “In the next few years, we should be top 3 or 4 (in terms of revenue).” Asked if this could be achieved before 2020, Malkani replied in the affirmative.
Cisco has been making some huge commitments not only from its own business perspective, but is also taking keen interest in start-up scene in India. In March, Cisco had committed $100 million to be spent over 18-24 months, including $40 million to fund early-stage and growth-stage companies in the country, and train around 250,000 students by 2020.
Further, the company is going to start its manufacturing operations in Pune by 2017, making India the 12th country after the likes of the US, Mexico, China, Brazil and Malaysia to house a production unit.
Cisco, which reported global revenue of $12.6 billion for the quarter ended July 30, 2016, saw its top line in India rising significantly by 20 per cent, even as the overall revenue fell 2 per cent. Its India operations have seen nine straight quarters of growth starting from the fourth quarter of 2013-14 (18 percent) to the just-concluded one.
Talking about its team here, Robbins said India is an “incredible source” of highly-talented engineers.
“They are completely energised around the challenge of new innovation. For me, this is not only a talent pool, but a living laboratory. This is a place where we will continue to see investment and new projects being launched and new businesses being developed. I see nothing but opportunities,” he said.