Tejas Networks Ltd

tejas networks

About the Company:

Tejas Networks is a communications equipment manufacturer and is headquartered in Bengaluru, Karnataka.

It designs, manufactures and maintains specialised optical network equipment ,Ethernet switches, IP routers and GPON equipments.

Companys products are deployed in the networks of many large global network operators, spanning over 60 countries

Besides India, it has operations across USA, Singapore, Middle East and Malaysia.

Company gets around 35% revenues from exports.

Companys products have been deployed by leading telecom operators in India, such as Bharti Airtel Limited, Tata Communications, Aircel Ltd, BSNL, Railtel, Gail and power grid Corporation.


Highlights about the Company:

  • Companys TOP 5 Customers contribute around (average) 58% of the revenues.
  • Since last 4 years company generated around (average) 96% of the revenues from their existing clients. (which indicates that company is getting repeat orders)
  • Company has a history of high customer retention and the top 5 customers are giving repeat orders for over a decade.
  • In India company had the second largest market share in the overall optical networking market.
  • In 2016 Company introduced FTTX product based on GPON technology.(FTTX products will be the future growth driver for the company)
  • Company expects to benefit from government projects such as Smart City, NOFN,
    NFS, NKN, Digital India and Make in India.
  • Management expects to grow 30% y-o-y for the next five years.
  • Company has competitors which are large global companies such as Huawei Technologies , Nokia Corporation, ZTE Corporation, Ericsson, Ciena, Coriant, and Fiberhome.
  • Company will be one of the biggest beneficiary of the Digital India Project.(Company has more than doubled its revenue in the last 2 years because it is supplying its products in a big way for various projects in india)


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Positives for the Company & the Telecom Sector:

  • The last few years have seen domestic Telecom manufacturers grow significantly because of policy support.
  • In telecom alone, projects worth about Rs.10,000 crore are being executed by domestic players under government procurement.
  • With a massive focus on Make in India and Digital India initiatives, a large opportunity for telecom products and services has been created.
  • Indian telecom sector is considered as the fastest-growing telecom market in the world which requires equipment and technology.
  • While awarding the contract “Bharat Broadband Network Ltd” is following India’s Preferential Market Access (PMA) policy.( where it is mandatory to procure 75% of its total equipment requirement from the Indian vendors)
  • Preferential Market Access (PMA) rules will apply in case of mega government telecom projects like NOFN, calling for mandatory local sourcing of 24 telecom products classified as security sensitive.



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