K. R. Naik
Executive Chairman - Smartlink Network Systems Ltd.

Very seldom does one hear of a 'Made in India' technology brand that's not only survived against MNC competition, but - so to speak - outsmarted it. Yet this is precisely what self-made entrepreneur K R Naik achieved in the fiercely competitive world of networking. In a domain that is practically owned by global players, Smartlink Network Systems Ltd became a dominant player in India.

“The key is to understand the technology trend with market reality and understand the customer needs, expectations and deliver through a carefully selected trained set of partners. Most importantly, this is a continuous and ongoing process.” Says Naik.

Pioneering days

Having spent a decade of Mainframe Computer Peripherals component development in IBM WTC, he had an opportunity to enter and develop complicated components to maintain various types of machines due to closure of IBM in 1979 in India. He founded MOTCO (Modern Components and Toolings Company Private Limited) and entered in manufacturing 8086/80286 Motherboards of early days by importing 'Hollis' soldering machine from USA in Mumbai. Sensing the high growth in Surface Mount Technology trend in PCB assemblies, he shifted to Goa, and founded Smartlink Network Systems; one of the first units in electronic assembly by setting up the earliest SMT line for manufacturing Surface Mount PCBs. This led to a joint venture with D-Link Corporation of Taiwan.

In 2001 Naik launched IPO and got listed on BSE and NSE and was one of the first Networking Company to be listed in India.

Active Networking

The Company put together a comprehensive line-up of Active Networking Products - NICs, Hubs, Modems, Routers, Switches, etc. - tailored for an array of applications and niche markets.

Naik created a network of Nationwide and area-wise dealerships to achieve pan India penetration. It became a trusted name in everything from Modems to Switches, to Routers and other Networking Products in an era when there were more than 30 networking product companies worldwide, company prevailed in the SOHO and SMB segment of the market.

To establish presence in the Enterprise segment, the company became one of the first channel distributors for CISCO in India. Subsequently after 5 years Naik entered in high-end Chassis products business from Foundry Networks of USA by co-branding.

'Active networking' could also describe Naik's own style of functioning. He traveled across the country and Globe in order to bring the best in class technology and products for the Indian Market and customers.

Passive Networking: The dawn of Digilink

In the early 2000, the IT industry was driven by applications which sought increasing network bandwidth needs; Passive products i.e. structured cabling had to follow suit, a trend which company was quick to spot. His interest in the field went back to his early association with AT&T, and Passive Networking products of IBM and Digital Equipment Corporation.

Naik formed a joint venture with M/s Sapphire UK of United Kingdom in 2001 and introduced a range of Passive Products in India by manufacturing. Looking at the high growth potential in passive range he started his own R&D and even got his own patented products and branded this as DIGILINK - a new brand of structured cabling products in India and neighboring countries in 2004. Within four years, DIGILINK grew to become India's No.1 recognized brand in Passive space.

Flying solo

By 2007, Digilink (Passive Networking) made up roughly 50% of the Company's business.In late 2008 it was decided to demerge the company by renaming the Company back to 'Smartlink Network Systems Ltd.' Company created significant growth in the wealth of investors by issuing free shares to all Smartlink shareholders - a truly smart job. Concurrently, a new D-Link India was founded with Active Products as trading business with none of the products manufactured in India.

Smartlink introduced an Active Networking product line branded as 'Digisol' to fulfill the ever increasing demand of quality networking products by the customers and channel partners.

Smart decision at the right time

The Company felt that going abroad and competing with global giants offered greater scope for Digilink brand. It was then that Schneider Electric, with an existing set up in India wanted to strengthen its presence in Passive Products and was willing to enhance their product portfolio.

On 31st March 2010, under Business Transfer Agreement the Digilink business was transferred to Schneider Electric for a consideration of Rs. 503 crores.

Future! Next!

Smartlink has drawn up a road map that will focus on high potential verticals and the company will deploy significant resources to capture opportunities and make strategic investments to improve its competitiveness in the marketplace.

Indeed, Smartlink is poised for growth with three distinct businesses: Digisol, Digilite and Digicare.

DIGISOL:- The DIGISOL range of Active Networking Products offers end to end solutions with a comprehensive product portfolio spanning Ethernet Switches, Wireless and Broadband Networking, VoIP and Surveillance, etc. Though most of the products were introduced under new brand DIGISOL in the last quarter of the last financial year, in a short period of time, the brand has gained immense popularity and is recognized as one of the fastest growing IT brand in India.

DIGILITE:- As an Indian company for more than 3 decades of experience in manufacturing Motherboards right from the dates of 8086/80286, Smartlink has introduced a new brand for Motherboards under brand name DIGILITE. Company has a significant competitive edge with its cost effective manufacturing, its brand building expertise and strong distribution.

DIGICARE:- The company has been providing service and support to its customers, partners and various brands for the last two decades, in year 2009 DIGICARE was launched as an integrated service brand. Today DIGICARE has a nationwide RMA service network with 64 service centers across the country providing Level I to Level 4 support. DIGICARE provides strong logistics support to manage backend delivery. Its technical assistance centre offers 24x7 voice, email and chat based support to many brands of several leading companies in India as well as in the U.S.A.

What's next? Smartlink is now well poised to focus and further enhance its market share in its existing businesses, each of which is all set to provide a robust platform for future growth.