Cisco’s Double Bet on India: Growth Market Plus Export Hub (CSCO)

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Cisco’s Double Bet on India: Growth Market Plus Export Hub (CSCO)
The use of networking devices across increasing number of telecom towers
and data centers, and the larger use of mobile data across smart devices and the Internet of Things would help Cisco capitalize on the available future opportunities.
The annual Internet Trends Report by Mary Meeker of investment firm Kleiner Perkins Caufield & Byers indicates
that India recorded a healthy year-on-year growth rate of around 40% in terms of its internet users, which was more than four times the global average of 9% growth during 2015.
Cisco also announced it will make India a global export hub for its products
and finish 50 digitization projects by the end of the year across India, which is part of its $100 million investment announced last year.
The ambitious move is supported by the government’s aggressive push towards digitization, along with the key developments in the country’s telecom sector, which includes the recently announced merger of two leading operators Idea
and Vodafone and the launch of 4G service across the nation.
Despite that, only 22% of the market is penetrated, leaving room for future growth as the rapidly increasing
internet penetration is expected to more than double the number of internet users to 730 million by 2020.
The last fiscal year of 2016 saw a big spike of 41% in revenues and a healthy increase of 340% in profits from the Indian market
that helped Cisco to clock more than $1 billion in revenues.
With the Indian market contributing only 2% to the company’s total global revenues, India may not figure in the
list of top markets for Cisco Systems Inc. (CSCO) at present, but the company is gearing up to change that.


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