D-Link will hold up to 90-per cent equity in this new venture. Gigabyte is a world leader in computer motherboards and several other high-quality computer hardware products. The new company has already commenced manufacture of motherboards at D-Link''s state-of-the-art manufacturing facility in Goa, which are being marketed, distributed and serviced under the brand name Gigabyte, which has been licensed free of charge to the new joint venture.

A year ago, D-Link India launched motherboards under the brand name Digilink-Gigabyte. By the fourth quarter of FY03, it had captured approximately 20-per cent market share with most OEMs (original equipment manufacturers) as its customers.

D-Link India, with a current turnover of around Rs 325 crore (end user), is known for its quality, extensive distribution network and outstanding after-sales service in networking and Internet-related products and is part of the multinational D-Link Corporation, which has its own business operations in 26 countries. Based on convergence of technology and the anticipated boom in broadband usage, this company has entered into several new segments such as VoIP, firewalls, NAS and digital home products.

Taiwan-based Gigabyte, established in 1986, is one of the largest motherboard and graphics card manufacturers in the world. Its 2002 revenue was $870 million.

The new company, Digi Giga Systems, plans to expand its market share of motherboards on Intel and AMD platforms in India to over 30 per cent this year and also launch a slew of other state-of-the-art products such as graphics accelerator cards, 15" and 17" LCD monitors, keyboards, mice, speaker systems, flex pointers, CDRoms, DVDRoms, CDRWs, laptop computers, server boards, PCs, set-top boxes, mini-PCs and Tablet PCs.

All these new products will eventually be manufactured at D-Link''s Goa plant. D-Link India has already launched three indigenously developed, world-class, VoIP products for the global market. This is the real significance of D-Link''s achievement. Recognising that India and China will become markets as large as the US and Europe within the next 10 years, several manufacturers are considering the setting up of hardware manufacturing facilities in India, but D-Link appears to have stolen a march over the others.

Says D-Link India managing director K R Naik: "We took our company from just Rs 30 lakh revenues in 1993 to Rs 325 crore in 10 years. This proves that manufacturing in India really does make sense. Our strong manufacturing base has enabled Gigabyte to launch its latest global products in India with a miniscule investment and aim for 30-per cent market share within two years.

"The new company will need a fresh investment of only $1 million, of which just 10 per cent will be provided by Gigabyte. This amount will be used mainly for working capital so the return on this investment will be high and will commence immediately. What more could a technology partner ask for?"