Friday, March 29, 2013

T&M Industry in India : A precursor to FY14.....

As we discussed in the previous few blog postings ,the T&M industry revenues in the year winding down today have seen tepid growth. Overall the revenues growth was tepid with few bright spots and the odd big deals closing on the Mega Defence and Telecom Sectors. The Defence particularly the Army and Naval units were able to procure large no. of handheld and portable instruments,even though there was this cutback on huge budget of approx 193 K Cr. Likewise some deals on the 4G deployment were squeezed into this FY . Some of these deals came really by the skin of the teeth and had a long suspense of uncertainty!

Now what could be the prospects and outlook for the FY 14  ahead of us,just the week starting Monday? We have also to remember the crucial nature of this decade we anticipated right in the beginning of  FY11. And the churning is happening as we write this post.Many small acquisitions are being done by top 4 companies Globally and more is expected. I reckon that more than the M&A activity what is likely to happen change of architectures,standards evolution and fusion of Digital Techniques and FPGA in a wider range of frequency instruments. This off course will lead to smaller blade size in the modulars, new formats of ATEs and progressive use of USB and super-USB in portables.

We will see yet another change in the market place and channel realignment. And this will be through productivity increase with numbers of feet on the street and technology both.Now that has lot of consequences for manpower development and deployment. Propelling online sales will happen because we in general are facing lot of logistics issues on global delivery and connectivity. E-Commerce will be catching on in our very protected ( rather insular market of T&M) space. I expect at least 1-2 international chains sprucing up the chain to handle portable deliveries this way.More than probable will be one of them will be an European chain. Watch this space for FY 14 . Bye for now FY13.    

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