baker
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Global Ambitions
The $2-billion expansion initiative is being undertaken with the intention of leveraging India to power a larger global expansion strategy. The big goal is world domination. At present, Huawei trails Swedens Ericsson as the worlds second-largest telecom equipment maker by revenues. The company closed financial year 2010, ended December, with $28 billion in revenues (unaudited). This was just a few steps behind Ericssons $31.3 billion. Paris-based Alcatel-Lucent follows third at $21.3 billion revenues and Finlands Nokia Siemens Networks comes in fourth at $17 billion. Incidentally, while Ericssons global revenues have dropped 1.6 per cent during this period, Huaweis have grown 28.4 per cent.
That makes the Chinese firms sudden transformation in India from quiet builder to aggressive expansionist interesting. The companys rapid advance in India became visible in 2009 when it grew revenues 76 per cent to topple Ericsson as the second-largest equipment vendor here. But to beat Ericsson on the global stage, it must first dominate the Indian market, which is currently led by Nokia. The reasons are not difficult to see.
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