During 2006, Microsense began to recognize Patton as a leading developer of Voice-over-IP and Network Access technology and an up and coming player in the telecom market. Similarly, Patton recognized the capabilities of Microsense distribution business unit and the distribution business unit and the potential of the telecom market in India as a growing opportunity over the coming decades. (Patton and Microsense have had a strong distribution relationship for many years.) Gradual changes in the market in India with significant growth projected on the horizon, made both companies recognize the opportunity to expand. Expansion would not only entail local sales, but also offer the opportunity to leverage what India has to offer in order to make a real contribution to both the local market and the world. Both companies recognized the need for new investment capital to exploit these opportunities. Utilizing an associated investment partner in Switzerland, Patton-Inalp Holdings, the companies hatched a plan and secured a healthy initial new investment.
The plan has become a reality and a new company is launched: Patton Electronics Pvt. Ltd. This new company is now formed by spinning out a part of the Microsense business involved in the distribution of products from Patton, Nomadix, Transition Networks and others. Patton Electronics has granted the new company rights to trade under the Patton name in a “quasi-franchise” type agreement with exclusive distribution rights for Patton branded products in India. The new funding provides the fuel that translates the dream into reality.
“We could not resist expanding in India,” said Burton A. Patton, Executive Vice-President of Patton Electronics and Acting President of Patton India.”“The telecom market will be too big, the local talent too strong, and there is an emerging manufacturing sector which could rival Shenzhen.”
Patton-India will leverage the local technical talent and deep relationships with industry peers to deliver seamlessly-integrated, world-class solutions for carriers, service providers and enterprises throughout India and the world. Patton’s prior investment in India includes outsourced software development employing local professionals. Plans for growth include increased local software development with new local hardware development and manufacturing in India.
“The local market in India expects telecom equipment providers to deliver best-in-class technology,” said S. Kailasanathan, Chairman of the Board for Patton India. “We are committed to exceeding those expectations. Patton-India is an integrator’s integrator. We deliver end-to-end solutions with proven interoperability.”
As a solutions provider, and member of the Triple Play Alliance, Patton-India will offer system design, integration and support services. While distributing Patton Electronics Co.’s entire catalogue of over 1,000 network access, connectivity and Voice-over-IP products, Patton-India also plans to expand its portfolio of best-in-class third-party products.
“India is a world-class telecom market,” said Andreas Danuser, Member of Patton-India’s Board of Directors. “Chennai is a strategic location with sophisticated technology. Drawing on local and global resources, Patton-India will contribute significantly to the future of networking“– not only in India but worldwide.”
Patton India is formed by merging Patton’s world-class engineering, manufacturing and global marketing prowess with Microsense’s local marketing expertise, mature distribution system, and expert project and technical support. Microsense will continue to focus on its wireless and solutions businesses.
Leveraging the Patton’s products and brand name, Patton-India intends to emerge as an “integrator’s integrator”, offering integrated and interoperable solutions that incorporate several “best-in-class” third-party brands. Customers for Patton products increasingly demand systems which provide end-to-end interoperability, manageability and scalability. Long ago, Patton recognized that partnerships are required to deliver these solutions. Patton-India is a key component of the strategy to deliver those solutions, bringing together multiple brands of products with a local team of engineers and developers who can leverage the contributions of all parties to deliver seamlessly integrated solutions to large enterprise and carrier customers. The technical contribution for integration will come from India and the company will grow into a solutions provider with significant locally developed products and technologies that enable these solutions. These solutions will then become available to the local market through an extensive network of system integrators, carriers and VARs operating under distribution agreements with Patton-India for the products and solutions being sold.
Patton has already been involved in outsourcing software developments in India. Patton-India intends to expand these operations and engage in both hardware and software development in India. Patton-India will engage in local manufacturing for both the local market and for exports to the rest of the world. Chennai in particular is a promising location for electronics manufacturing. In recent years, many telecom-oriented multinational companies have inaugurated new manufacturing facilities in Chennai, including Motorola, Nokia and Flextronics.
By setting up a shop in Chennai, Patton-India reflects a global trend. Motorola, Nokia, and Flextronics have all recently inaugurated manufacturing facilities in Chennai.
