Citadel Intelligent Systems riding on fibre optic wave

Citadel Intelligent Systems (CIS) manufactures customised fibre optic inter-connectivity solutions which find their application in enterprise and telecom networks, Smart Cities, security and surveillance systems and harsh environments. KK Shetty, MD & CEO, Citadel Intelligent Systems, reveals how they are focus on providing enhanced fibre optic solutions in the infrastructure space.

Please tell us about your product portfolio and segments

At CIS, we mainly focus on four verticals of business- i) Enterprise (data centre and hyperscale data centres through a strategic alliance with America Fujikura Limited (AFL); ii) Infrastructure which includes Smart Cities, universities, special economic zones, elevated corridors, airports etc. iii) Aerospace and defence sector- we provide strong or ruggedised tactical connectivity solutions for air, sea and land defence; and iv) telecom, where we manufacture telecom connectivity and fibre to the home products.

How was 2019 for your company and the sector?

2019 has been a very promising year for CIS as our revenue growth rose to 75 per cent y-o-y. The enterprise segment has been the largest contributor, followed by telecom. We have successfully completed and delivered substantial orders in these segments. Also, we have significant projects lined up for the aerospace and defence sector which will eventually add to our growth trajectory. These together will help to achieve our revenue guidance of INR 400 crore in the next four years.

On the industry side, the digital phenomenon across the sectors has fuelled the demand for optical fibre. The sector, which is poised to grow at a CAGR of 15 to 20 per cent, saw a vibrant growth in 2019. The influx of new technology, mobile apps and high traction on e-commerce platforms have contributed to the growing data traffic which resulted in development of hyperscale data centres. These perhaps have widened the potential business opportunity for optic fibre sector. In addition to this, the focus on FTTH by private telecom companies, on-going buzz around fibre-based network to support 5G, execution of BharatNet phase 2 across the country and expansion in Smart Cities have been the key drivers to uplift the demand for optic fibre this year.  We see this momentum continue in the coming years too.

It has been two years since CIS partnered with AFL. Kindly explain how it has helped CIS to scale up its business as a startup?

It’s been a successful relationship with AFL for us. AFL is a global leader with its footprint across countries. This has helped CIS to put its business on the global radar as far as the enterprise segment is concerned. We have developed and delivered robust and one-of-its-kind products and solutions with the help of AFL’s technical and engineering support, which has further strengthened our base in India.

India’s data centre market is poised to reach USD 7 billion by 2020. What sort of business opportunities do you foresee?

We foresee a sea of business opportunities coming our way from enterprise data centre segment, as they are all highly depended on optic fibre-backed communication network systems. Also, co-location data centre will be the new wave in Indian data centre segment. It will further trigger the rapid need for optic fibre solutions. With this, we can expect 3-4x business growth coming from the segment.

DoT has set a target to roll out 5G in 2020, how is CIS geared up for this?

We are working on developing connectivity products for OEMs for 5G products. We have already forecast this development and set up a manufacturing and engineering plant at Vasai near Mumbai to cater to the growing industry needs, exclusively in telecom.

As part of Digital Bharat, the Government has been betting high on optic fibre for free internet penetration in remotest areas. BharatNet is one such program. How has this move helped SMEs/ manufacturers like CIS?

Digitisation or Digital Bharat has been a favourable move for startups and SMEs, especially the ones operating in niche segments as it has provided a global platform to market and sell their products. Optic fiber is such one segment which is still at a nascent stage, though it is widely popular in the global market. The initiatives such as BharatNet and smart cities have not only pushed the demand gears for the optic fibre solutions but also laid the foundation stone for organic growth of the industry.

What is your outlook for the sector in 2020?

Industries like telecom, data centres and hyperscale data centres, infrastructure like Smart Cities, government projects, airports and metros will continue to create huge demand for optical fibre in 2020. As stated above, co-location data centres will be the next move in Indian data centre segment and also, there is definitely a lot to watch out in telecom segment with the 5G rollout expected in 2020. Further, we will see growth in ruggedised tactical fibre optic communications market. With this, it is viable to state that good times are ahead for optic fibre sector.