Test sourcing specialist Livingston – providing a full service, managing every aspect of test equipment supply. This includes procuring equipment, inventory management, asset recovery and disposal of defunct equipment, as well as the sale of used equipment.
Shailendra Kalra, Managing Director of Livingston India talks here about rental advantages, Livingston strategies, India operation and future plans.
How long has Livingston been addressing the India market?
We officially entered the Indian test market back in September 2010, having recognized its incredible future potential as India emerges as one of the world’s most important economies. We opened a facility in Gurgaon and hired local staff with experience in the test and measurement field.
Why should companies consider renting test equipment rather than purchasing it?
Direct purchase of equipment is normally thought of as the approach that should be taken. However, the reasoning behind this is now starting to be doubted. There are a number of issues affecting its wisdom. Among these are the numerous additional costs that mount up over purchased equipment’s lifespan (such as maintenance, insurance, recalibration, downtime cover, repair, finance repayments and disposal). On top of this there is the issue of underutilization. If a piece of equipment is only used for a small proportion of the time, it is difficult to justify the upfront financial outlay that the direct purchasing route entails.With a great deal of test activity being carried out as part of contract work, there is always a risk that once expensive equipment is acquired it may end up gathering dust on a shelf. Things are further compounded by the fact that modern day test requirements are in constant flux, as the latest iterations of industry standards appear and new technologies are adopted. This means that acquired equipment may become redundant before it’s been possible recoup the initial investment, as the need to upgrade to a higher spec model cut its operational lifespan short. Finally rental means that the customers can get access to latest equipment, rather than having to settle for something less suitable because of the costs involved. It eliminates the need to compromise.
What differentiates Livingston from other companies serving the Indian test rental market?
It is our view that in order to address the test demands of Indian technology companies effectively, a local presence is required. We are only rental global firm that currently has local operations in the sub-continent. Without on-sitesales and logistical staff, the level of service other firms can deliver has to be brought into question Communication is less satisfactory and delays can arise while getting equipment shipped/through customs, so lead times can be considerably longerAll this is likely to prove frustrating for customers The considerably smaller Indian-based rental firms, though they have local operations, don’t generally have a wide enough portfolio equipment to meet the needs of multinational OEMs, CEMs andtelecom operators. In addition, they may not be able to supply the in-depth technical support that is expected by these customers. Livingston’s strategy combines local support plus access to a global network. It means that our technical staff canrespond rapidly to customer enquiries, without any time zone issues. It has also allows equipment inventory that is stored locally to be backed up by the swift transfer of items from other sites within the organization. In addition, Livingston offers greater flexibility in terms of rental options. For example our Easy 2 Source offering is becoming very popular, withmany major OEMs showing interest in the ‘rent to buy’ approach.
What is the structure of Livingston’s organisation in India?
We have built up strong external and internal sales teams with a wide range of application knowledge helping them to define the best instrument for a particular task. I personally have decade of director level experience in the telecom industry, both here in India and internationally.
What level of investment has the company made in India so far?
Livingston has invested heavily in stock with a total value of 250 million rupees allocated for the Indian market, so that our customers here have access to an expansive product range. This includes high end 40/100 Gbit Ethernet optical test equipment, EMR testers and high performance spectrum analysers. The company has also recruited talented individuals to ensure its sales and engineering functions are highly efficient.
Which equipment manufacturers are proving most popular here?
Agilent, EXFO, Kaelus, JDSU and Rohde & Schwarz are all proving to be very popular.
How do you co-operate with test equipment vendors in India?
Exactly as we do in Western European countries, we try to source equipment for our lndian operations through local suppliers. We recognize that it is important to build up local relationships, rather than trying to source everything in North America or Europe.
What are likely to be the main challenges that the Indian test market has to deal with during 2013 and how will Livingston make sure that it is better positioned than its competitors to deal with these?
As India moves towards 3/4G wireless technology, more sophisticated testing procedures will be required. Among these will be advanced drive testing, network optimization and passive inter- modulation testing. There will also be optical test challenges ahead, as the rollout of network infrastructure supporting 40/100 Gbit begins.
What do you envisage will be the largest opportunities for growth for Livingston in Indiain the next few years (telecom, industrial, manufacturing, aerospace)?
The Indian test industry is continuing to witness strong growth – Frost & Sullivan predicts that in 2013 the market for general purpose test equipment will be worth 9.5 billion rupees, with the wireless test equipment worth 860 million rupees and the fibre optic test equipment worth 800 million rupees. With the migration to 3G technology and further roll out of optical network infrastructure, we see a great deal of potential for our telecom equipment offering. We also expect increased business from our industrial products, such as power quality analysers and thermal imagers.
Are there plans for future expansion – larger workforce, or offices elsewhere in India?
Because India is such a rapidly growing market there are likely to be opportunities to expand here over the coming years. We have recently added a Mumbai sales operation and will continue to look for further opportunities for growing our sales network. Also as part of our Indian expansion strategy we intend to open up a technical support centre and calibration facilities here.
