Smartlink Network Systems Ltd (SNSL) today announced that it is
selling its Digilink Business to Schneider Electric India
(Schneider) for Rs 5,030 million, under Business Transfer Agreement
(BTA). The transaction would primarily include the transfer
of the “Digilink” brand and trademarks, part of the
manufacturing facility at Goa, the distribution network, and
employees who served Digilink. The company has agreed to a
non-compete condition for a period of 5 years for the passive
networking business.
Digilink is SNSL’s passive networking arm that manufactures
structured cabling solutions. This sale will enable SNSL to focus
on its other businesses which are Digisol, catering to the active
networking space and Digicare, its network of RMA/Service Centers
and service partners across the country. Digicare also caters to
companies like Gigabyte, MSI, IBM and HP (among others) for
R&D.
KR Naik, Executive
Chairman, Smartlink said, “In the last two years we decided
to focus more on active products. The Digisol business grew quickly
in one year and we are now number two in this space with more than
100 (active networking) products. We will continue to focus
strongly on the Digisol and Digicare businesses”
Naik said the sale Schneider includes two buildings in the
manufacturing plant in Goa, and all the sales, service and
marketing operations concerned with Digilink.
He did not give more details about the financial terms of the
agreement with Schneider.
Responding to a question from
InformationWeek during the
press conference, Oliver Blum, Country President of Schneider India
said, “Digilink has a huge spread in India with 3,000 retail
outlets and we will benefit from this network. We will distribute
some of Schneider’s products through this network.”
Schneider is looking to increase its share in the enterprise data
center market. It already offers solutions for electrical
distribution, low- and medium voltage, UPS and cooling systems
(APC) and rack systems (APW President). It is also in the security
business (it acquired video surveillance provider Pelco in
2007).
Blum said that network connectivity (structured cabling) will
complete the Schneider portfolio to compete in the data center
market in India.
Speaking to
InformationWeek after the press conference,
Manish Pant, Director – Strategy & Alliances, said
Schneider will also take over the support for the existing customer
base for Digilink’s passive networking products (structured
cabling solutions).
It may be recalled that Smartlink demerged with D-Link India in
2009 and was renamed as Smartlink Network Systems Ltd. SNSL began
manufacturing structured cabling products in 1999. It had earlier
formed a JV with Sapphire UK (in 1995) for manufacturing and
selling structured cabling solutions in India. The structured
cabling business was rebranded as “Digilink” and
re-launched in 2004.
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