Synplicity eyes India, China for growth

With electronic equipment consumption slated to rise in India and China, US-based Synplicity, supplier of software for the design and verification of semiconductors, is banking on the two Asian nations for its growth.

The firm also plans to ramp up its R&D centre in Bangalore, the largest outside the US, to consolidate its position in Asia.

According to Gartner Dataquest's report on 'Design Trends and Electronic Design Automation (EDA) Tools: Asia-Pacific 2006', Synplicity is ranked fourth among the EDA providers in Asia. "Asia, excluding Japan, accounted for 20 per cent of 2006 bookings, up 34 per cent when compared to 2005. We expect Asia, particularly India and China, to further drive the growth. Our focus has shifted to Asia," Synplicity Senior Director (Outbound Marketing) John Gallagher told Business Standard.

The India Semiconductor Association-Frost and Sullivan Report states that the electronic equipment consumption has been estimated at $28.2 billion. It is expected to reach $126.7 billion by 2010 growing at a compounded annual growth rate of 29.8 per cent. Synplicity views this as an opportunity to grow its business in India.

Asia (excluding Japan, which accounted for 15 per cent of total bookings) has emerged as the second largest market for Synplicity after the US. "Asia, led by India and China, is the fastest growing market for Synplicity. Five years ago, India and China were outside the top five markets. Now, the scenario has changed and we intend to further consolidate our position," Gallagher added.

The firm, which has a large client base of 1,800 companies, registered revenues of $62.5 million in 2006. Analysts estimate Synplicity's revenues to touch $67 million in 2007. "We expect Asia to contribute significantly to our revenues in 2007. We intend to expand the R&D base in Bangalore this year to support our growth plans," he stated.

The Bangalore R&D centre of Synplicity was established in 2000 with 40 employees. It is into software development, application support and worldwide customer support.

"It is integrated into Synplicity's global operations. It has contributed to all activities of the firm. At present, the Bangalore R&D centre accounts for 25 per cent of the total R&D headcount. We expect this to go up in the coming months," Synplicity Software India Ltd Managing Director H V Ananda pointed out.

Gallagher said the scope for increasing the headcount at Bangalore R&D centre is immense due to the availability of talent. "Bangalore's contributions are rated high by Synplicity. We are committed for its growth," he said.