Bangalore (Reuters) - Canadian telecom equipment maker DragonWave Inc said it formed a joint venture with India’s Himachal Futuristic Communications Ltd to expand into the Indian market.
The joint venture, which will be 50.1 percent owned by DragonWave and based in New Delhi, India, will provide packet microwave solutions to the Indian market.
The joint venture will utilize Himachal Futuristic’s (HFCL) knowledge of the Indian market and expertise to sell and market DragonWave products, the companies said in a joint statement.
HFCL will provide the joint venture with local manufacturing of DragonWave products from its telecommunication equipment manufacturing facility at Solan, Himachal Pradesh.
“We share a vision with HFCL that this is the moment to enter the strategically important Indian market. HFCL has all of the attributes we are looking for in our partner,” DragonWave Chief Executive Peter Allen said in a statement.
Ottawa-based DragonWave reported a quarterly profit earlier in the month, despite a fall-off in business from major customer Clearwire, looking ahead to booming interest in high-speed wireless networks.
DragonWave shares, which have gained 23 percent in value since reporting its quarterly profit, closed at C$8.32 Tuesday on the Toronto Stock Exchange.
Reporting by Isheeta Sanghi in Bangalore; Editing by Unnikrishnan Nair