Tadiran Telecom to Allocate $10 Million Annually for IP Phone Manufacturing in India

Israel-based Tadiran Telecom, a leading unified communications company, has announced its plan to invest at least $10 million (approximately Rs 80 crore) annually to establish a manufacturing base for IP telephones in India. This strategic move aligns with the company's ambition to expand its presence in the Indian market, particularly in the business communications sector. Tadiran has partnered with DCM Shriram to manufacture the IP phones, marking a significant step in the company’s growth strategy in the region.

Partnership with DCM Shriram for Manufacturing

Tadiran Telecom has teamed up with DCM Shriram, a prominent Indian conglomerate, to support the manufacturing of IP telephones in India. DCM Shriram, known for its diversified business ventures, will provide manufacturing facilities and infrastructure support for the production of these advanced communication devices. This partnership will also enable Tadiran to leverage DCM Shriram’s extensive supply chain capabilities, including warehousing and logistics, to streamline operations and ensure timely delivery of products to the market.

Production Goals and Future Expansion

The company aims to manufacture 100,000 IP telephones annually, a target which it considers to be a conservative estimate. CEO Moshe Mitz confirmed that the investment of $10 million in the first phase will focus on setting up manufacturing capabilities. However, Tadiran plans to increase its annual investment as it achieves its production targets. If the first phase proves successful, the company intends to launch the second phase of its expansion plan, which will include software development.

Long-Term Commitment and Investment Strategy

Tadiran Telecom’s expansion in India is part of a long-term strategy to strengthen its position in the Indian market. The company has been operating in India for the past 26 years through its network of channel partners. In addition to hardware, Tadiran generates 70% of its revenue from software, underlining its commitment to delivering integrated communication solutions. Tadiran’s focus on manufacturing in India will also meet government procurement requirements, as the company plans to produce class 2 equipment, which qualifies for government procurement.

Phase 2 Expansion for Software Development

The second phase of Tadiran's expansion strategy in India will focus on software development. The company is already in discussions with major Indian software firms for potential collaborations. This will further diversify Tadiran’s operations and strengthen its foothold in the software and communications sectors. The company’s successful manufacturing operations will serve as the foundation for its software development initiatives in India.

DCM Shriram’s Role in the Partnership

DCM Shriram’s involvement in this venture is significant as it marks the group’s first foray into electronics manufacturing. The group will play a key role in establishing a dedicated team for Tadiran’s product manufacturing, ensuring quality control and timely production. Moreover, DCM Shriram will handle the logistics and supply chain aspects, including warehousing and distribution, which will be critical to meeting production goals.