Zyxel India : IT By Chance

Lalwani may have entered the IT industry by chance, but his success here is a
story of determination and perseverance. Through hard work, he has taken ZyXEL
to greater heights and harbors plans for further expansion and follow in the
footsteps of his role model - Shiv Nadar of HCL

As a child Mahendra Lalwani, Director, ZyXEL India, cherished a few things.
Playing with marbles on the street, was one of them. At 43, nothing much has
changed, as he still enjoys the simple things in life. While his competitors in
the IT industry continuously seek to overtake him, they ultimately realize that
running a successful venture is an art known to and bestowed upon few, and
Lalwani is one of them.

Born in Siwana, Barmer in Rajasthan on July 22, 1965, Lalwani was a docile
child and an introvert. Throughout his school life, he remained an average
student though sports was one of his greatest strengths. One of the lesser known
facts about Lalwani is that he was a star cricketer and had represented the
state team (Andra Pradesh) in the Under-15 South Zone Cricket Tournament. He
completed his schooling from Vidya Mandir, Cuddapah and thereafter got a Diploma
in mechanical engineering from Ndandya. However, he aspired to becomes a
businessman and hence he enhanced his entrepreneurial skills further by
obtaining a PGDPM degree from IIPM, Gurgaon.

Different direction

Lalwani's journey in the IT industry is an interesting tale. His father was a
wholesale spice merchant, and none of his family, including Lalwani, had the
foggiest idea about the functionalities of the IT industry. After completing his
PGDPM from IIPM in 1988, Lalwani was all set to carry his father's legacy
forward but fate had other plans for him. His senior at IIPM, Vijay Reddy,
founder of Teknotron, an IT company based in Nehru Place, offered him a
partnership. The offer was tempting enough for the young Lalwani and he accepted
it readily. Herein commenced the spice trader's son's journey in the IT
industry. “In 1988, I became associated with Teknotron, which was then selling
Toshiba fax machines and laptops. I invested a lot of money in the business and
was handling sales and support for the company,” said Lalwani.

However, difference in opinion soured their relationship and Lalwani chose to
part ways with Reddy as he had incurred heavy losses during the course of the
partnership. This setback, however, did not deter him. Neither did it crush his
desire to remain in the IT industry. Instead of opting for the safety of the
family business he chose to set up his own company. In June 1993, he founded
TelExcell Information Systems with his brother Tarun Lalwani. TelExcell began
offering affordable communication products and solutions to Indian customers.
Thereafter, the company grew through its tie-up with Prolink Taiwan, AT&T
Paradyne USA, Lucent Technologies, Ascend Communications, Xircom Communication
and 3Com as their value-added distributor.

“My focus has been very clear. I believe in offering best of the breed brands
and connectivity solutions. Today, TelExcell is a leading company in data
communication, connec­tivity and networking solutions space,” Lalwani
emphasized.

Challenges galore

Lalwani believes that business in India is full of unseen challenges. “Rules of
business cannot be learned through textbooks. There are numerous laws and acts
that we need to abide by. When we incepted Telexcell we faced a host of
challenges including lack of financial support and operating under such
circumstances was difficult,” he reminisced.

However, later Telexcell carried out some major contracts including those of
DSE Wan Trading Project, Indian Airlines Reservation Systems, Indian Railways
and a host of other projects related to communi­cations that were both demanding
and full of challenges. At the moment Lalwani's brother is running Telexcell
while Lalwani occasionally offers support and suggestions from his end.

The ZyXEL journey

TelExcell was ZyXEL's country distributor when the company first entered the
India market. DR Chu, Chairman, ZyXEL, paid a short visit to India to have a
deeper insight into the market and under­stand the market dynamics. During one
of his brief interactions with Lalwani he was impressed with the way Lalwani was
running Telexcell's business. Thus, he entrusted Lalwani with the responsibility
of commencing ZyXEL's operations in India. Since then, Lalwani has been taking
relevant decisions for the company and helping ZyXEL India create its own space
in the Indian sphere.

“My journey with ZyXEL has not been a smooth one. After two years of
struggle, I have been able to understand the way channel functions in India. I
have now been able to put a clear channel model in place. I faced difficulty
because at TelExcell I was dealing with system integrators and the manner of
operating with them is completely different,” informed Lalwani.

Source of inspiration

While at school, Lalwani's harsh social science teacher had ridiculed him by
saying that he would not do be able to do anything worthwhile in his life.
Lalwani, however, chose not to take the remarks to heart. Today when he reflects
back and ponders at his teacher's comments, a sense of pride come overs him. “I
chose not to feel dejected by my teacher's senseless comments and have always
concentrated on achieving my goals instead. I believe in going step by step and
that is one mantra that has kept me going,” he added.

When it comes to doing business, Lalwani draws inspira­tion from Shiv Nadar
of HCL and he would like to follow in his footsteps.

Future bright

On the business front, Lalwani is very clear about how he plans to take
ZyXEL a step further with every passing year. Having created a strong foothold
in the IT market and with channel partners in place, Lalwani wants to create
opportunities for WiMax and broadband router products from ZyXEL in India. ZyXEL
has been maintaining a steady growth rate in India and Lalwani wants to leave no
stone unturned in strengthening ZyXEL's position further. “The initial few years
at ZyXEL India were full of challenges and the company was registering negative
cash figures. The scenario has now changed completely and we are now growing at
an exponential rate,” pointed out Lalwani.

However, deep down in his heart, Lalwani is nurturing a different dream
altogether. Having attained some of his ambitions in life, Lalwani's heart
yearns for the serenity of simple living. “Once I retire, I will go back to my
village in Andhra Pradesh and buy agricultural land over there. I will practice
farming, which I hope will lead me towards achieving peace and satisfaction in
life.”

Pooja Sharma

poojas@cybermedia.co.in