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Parametric eyes India's SMEs for growth push
By siliconindia
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Friday, 13 June 2008, 19:30 IST
California: Parametric Technologies (PTC), a leading player in the product lifecycle management market, is increasingly looking at China and India for the next big growth push. While in China, the company clocked 25 percent growth last year, the story in India was focused till now on product development, reported The Economic Times.
Seeing a huge opportunity in the small and medium enterprises (SME) space in India, PTC believes they have the right kind of product range for the design and process-dependent manufacturing sector. The shift in the geographic focus is understandable given the fact that the North American market in particular, along with Western Europe, is not likely to offer huge growth potential for the products the company offers.
In some ways, these mature markets have reached a saturation point. PTC itself has a large proportion of its customers in these mature markets and does not anticipate a significant change in the script to support the companys effort to maintain a high double-digit growth. It did, in fact, do so last fiscal and is on its way to clock a revenue of US$ one billion this year. Not a great deal when compared with big multinationals but fairly large in the market segment it addresses. PTC has over 30,000 customers who use its software both in design and manufacturing processes. A large number of such clients are Fortune 500 companies as well. Its share of about $1 billion is significant given the current market size is about $5.5 billion growing at 10% annually.
Jim Heppelmann, chief product officer of the company pointed out that PTC currently derives a small portion of its revenue from the SME segment. But that is a market growing at 33 percent a year and that is where PTC, which saw a 40 percent grown on a small base in this segment last year, is betting big in China and India. Given that the Indian engineering industry in all segments, notably SMEs, are upgrading their manufacturing processes and systems to, in some cases at least, become a part of a global manufacturing supply line, the potential in India for the range of products the company has is pretty high.
