On the comeback trail

Vipin Kumar

RECENTLY, a newspaper carried an interview of the MAIT Director, Vinnie Mehta, with a photograph showing him in a languid mood. ``You seem to be too relaxed to represent the hardware industry,'' Vinnie's wife pulled his leg when she saw the picture. After all, the Indian hardware industry is still tottering.

But Vinnie knows that he can afford to be a bit relaxed these days. For, signs of a silent movement within the country's hardware industry are becoming palpable by the day. Rather than crying hoarse for support, this troubled sector seems to have decided to seek solutions on its own. For the first time in its history, it is coming out with a number of innovative, low-cost products developed with India and Indians in mind. So even as computer sales plummet and the industry growth rate slides, Vinnie and his association appear more bullish than ever -- and relaxed!

``These initiatives will rejuvenate and turn around our hardware industry,'' says Vinay L. Deshpande, President of MAIT and Chairman and CEO of the Bangalore-based Encore Software. ``Looking at local solutions for local needs -- that is the only way to go about,'' Deshpande feels. Once the products are tried out in India, they can be marketed in other developing countries as well. ``India itself offers a huge market for your product and once you prove it here, then you have the entire Third World as the market,'' Deshpande says.

The great awakening

It's happening all over the country. With unprecedented verve and optimism, small companies are coming out with products varying from hand-helds, connectivity devices, low-cost PCs, set-top boxes, e-mail accessing devices to fibre-optic interfaces that have the potential to make it big. They are low-cost, can understand local languages, are easy to operate and maintain and most importantly, help the common man enjoy information technology. So be it Bangalore, Chennai, Delhi, Pune or Goa, you have at least one company experimenting with such a product.

``The number of people engaged in developing such products is larger than one can imagine,'' says Vinnie Mehta. ``Since many companies want to maintain secrecy about their products, I can't reveal details about them. But believe me, this time around it is really happening.''

Interestingly, it is not just small companies that are into this. Even large companies are involved. For instance, HCL Infosystems and Wipro are reportedly backing the ``Janata PC'' product, spearheaded by MAIT. (We will come to this initiative later). Recently, HCL Insys launched a Net access device called Ezeebee at a price of Rs 20,000. ``Five companies are involved in developing the Janata PC,'' says Deshpande.

Simputer and friends

Although India has had its own hardware companies, for long computers were never meant to be for the common man. That was up until the Internet happened. The infinite possibilities of the Net in changing our lives and its economic potential have spurred the yearning for low-cost devices that provide Net access. Despite falling prices, the computer is still costly for most Indians. But more than that, a PC remains the privilege of the educated, of those who understand English. Hence the need to develop a low-cost, easy-to-use device which also has local-language capabilities.

The Simputer is one such initiative. Developed by the Simputer Trust, which is formed by individuals from Deshpande's Encore Software and the Indian Institute of Science (IISc), it is a hand-held computing device expected to be rolled out by November end. ``About 13-14 people from across the world are interested in licensing the Simputer and manufacturing it,'' says Deshpande. The projected price: Rs 9,000. With a Linux-based operating system, the Simputer will have a browser that can render Information Markup Language (IML).

Another similar product from Bangalore is iStation by iNabling Technologies. This product, an electronic device, helps the user send and receive text-based e-mails throughout the day. To use iStation, one does not require any training or prior exposure to computers. It comes at a price of Rs 6,990. Upto five members of a family can share the device with individual e-mail IDs. Moreover, it has local-language capabilities.

In Pune, meanwhile, two former Centre for Development of Advanced Computing (C-DAC) engineers have developed an Internet appliance called ``Nicetop.'' Through graphics and local languages, it not only helps users to access the Internet but it also does most jobs that a normal computer does. Nicetop has been brought out by I2IT Pvt Ltd promoted by P.P. Chhabria, Chairman of the Finolex Group. ``We hope to sell 10,000-15,000 units by March 2002,'' says Chandrashekhar Raje, Vice-President of I2IT. This product is priced at Rs 20,000. More information on Nicetop is available at www.nicetop.net.

And now about the Janata PC. ``Our target is to price it at around Rs 15,000,'' says Vinnie Mehta. Although most of the specifications of the products are still under wraps, it is likely that this PC will come with a Pentium II chipset or the At last chips from a company called ST Microelectronics. The operating system will be the freely available Linux. ``This PC will remove the entry barrier of price,'' says Deshpande. In the next six to eight months, the Janata PC should be a reality.

Besides these instances, many other such efforts are under way elsewhere. For instance, the Chennai-based TVS Electronics has introduced a point-of-sale terminal named ``Sprint.'' Innomedia in Bangalore is developing an interactive media service called CHOIS. Also, Tejas Networks is readying an optical networking product, claimed to be the first of its kind in India. In the months to come, news about more and more endeavours is likely to trickle in.

`Off with the blinkers'

All said and done, there are a few hurdles to be removed out of the way if we want to ensure that more and more such efforts happen. ``We do need policy as well as financial support from the Government to ensure the success of such projects,'' says Deshpande. For instance, there is a practice that a telecom product, to be used by BSNL, VSNL or any other Government entity, should have been used abroad by two networks for two years. How can we promote indigenous technologies if we have such restrictions in place, asks a company official who has developed a telecom product. As usual, MAIT is lobbying to remove such anomalies and ensure more support from the Government.

But finance seems to be the biggest issue as of now. ``You have an excellent idea but there is no support to develop it and make a prototype,'' says Vinnie. According to Prof Mathai Joseph, Executive Director of Tata Research Development and Design Centre, unless there is sound financial back-up, companies will find it difficult to sustain their products. ``After-sale-service and support and continuous product upgradation are critical and you need money for that,'' he says.

While software ideas get financed thanks to venture capital funds, hardware does not attract such investments. ``VCs always look for quick and high returns. But in hardware, the profit margins are lower and efforts such are these are targeted at a price-sensitive segment,'' says Vinnie. ``We need a mass movement to help such initiatives and we are trying various ways and means,'' he adds.

``The Indian hardware industry has always focussed only on the PC. It's been like a horse with blinkers. We need to change that attitude,'' says Deshpande. Hopefully, once the blinkers are removed, the horse will gallop.

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