Polycom Inc., a maker of teleconferencing and videoconferencing equipment and a provider of solutions aims to grow its India revenues to more than $100 million (Rs395 crore) by 2010, from about $35 million this year.
India is the fastest growing market for Polycom, which closed 2006 with revenues of around $700 million, with growth rates of 50% in the last few years for its wares. India is the fifth largest market for the California, US-based firm.
“India contributes less than 5% to our total revenues and in the next 18-24 months India will move up to the No. 3 position and soon after will be the largest revenue contributor for Polycom globally,” said Robert C. Hagerty, chairman and chief executive officer of Polycom, on his second visit to the country since 2003, when the firm entered India.
Polycom products straddle two segments: voice and video solutions. Sales of video conferencing equipment, such as the so-called “telepresence” solutions that allow users in far-flung locations to communicate with each other and hold meetings, contributes around 60% of its revenues.
Research firm Frost & Sullivan estimates Polycom in India has a 61% share of the video solutions market and 92% in voice applications. The total revenues of the Indian videoconferencing systems market are projected to grow at over 20% each year until 2012 from $15.2 million in 2005.
“The market in India will take another five years to mature,” said Nupur Sen Andley, assistant manager, communications research, at the Gurgaon office of International Data Corp.