Gearing up for a bigger India play with its motherboards, ASUS is eyeing local manufacturing, ramping up AI servers and IoT products. From expansion plans to its ‘Make-in-India’ focus, ASUS’s Vinay Shetty shares a roadmap with EFY’s Yashasvini Razdan.
Q. What kind of presence do you have in India?
A. ASUS has a presence in both the channel market and the retail market. The channel market caters to PC assembly, such as when a gamer wants a high-end gaming PC with a newly launched RTX 5090 card or a Z890 motherboard chipset that is not readily available in laptops. The retail space includes channel businesses that have retail outlets. This includes large-format retail (LFR) stores like Croma, Reliance, and Vijay Sales and the online space as well as our own ASUS exclusive stores.
We have also ventured into the commercial segment, which focuses on enterprise solutions such as artificial intelligence (AI) servers.
Q. Can you elaborate on your business divisions?
A. ASUS India operates through three main business divisions to meet the needs of different users. First, there is the system business. This division offers fully ready and pre-configured devices such as laptops, desktops, tablets, mobile phones, and all-in-one systems. It is ideal for users who prefer an out-of-the-box solution without additional assembly or setup. The second division is the component business, which caters to DIY enthusiasts and professionals.
ASUS provides a wide range of components here, including motherboards, graphics cards, monitors, power supplies, chassis, wireless devices, and servers. It also manufactures 10 out of the 13 essential PC components across 17 different product categories, making it a strong choice for those building or customising their own systems.
The third division is the ASUS-IoT (Internet of Things) Business, which focuses on smart and embedded technologies. This includes offerings which are widely used in education, artificial intelligence, drones, and compact computing applications. You see, each of these divisions plays a vital role in delivering tailored solutions, whether for everyday consumers, technology professionals, or innovators pushing tech boundaries.
Q. Do you have any plans to manufacture in India?
A. Currently, it is a sales-oriented unit, but we are working on manufacturing under the ‘Make in India’ initiative. Our focus is on four key categories—laptops, desktops, mini-PCs, and, going forward, possibly motherboards that are the foundation for many other developments, but there is still a long way to go. Even in the server space, we are exploring the possibility of working with Advanced Manufacturing Services (AMS) to begin local production. However, this is still in the early stages.
Q. Which is your largest-selling product segment in India under the components division?
A. At this moment, motherboards remain our largest-selling product segment in India, followed by graphics cards, monitors, and wireless devices.
However, servers are a different category altogether. While the total number of units sold is lower, their high value makes them a significant revenue driver. For instance, an AI server costs approximately ₹20 million, so selling 500 units generates ₹10 billion in revenue. This makes direct comparisons difficult, as unit sales and revenue contribution vary across product categories.
Q. For motherboards, LCDs, and wireless products, who constitutes the major customer base?
A. The majority of our business for motherboards, graphics cards, and similar components comes from the channel market, which accounts for almost 90 per cent of sales. Online sales contribute only about five per cent of motherboard and graphics card sales.
For monitors, however, the online-to-offline ratio is different—approximately 40 per cent of sales come from online channels, while 60 per cent come from offline retail. The distribution varies depending on the product category.
Q. What about AI servers?
A. AI servers are entirely focused on data centres and large enterprises. There is no direct end-customer market for them.
Q. How do ASUS AI servers compete against traditional server giants in India?
A. It is a tough market, but ASUS is not just a hardware company. When it comes to AI servers, three crucial factors matter—infrastructure, hardware, and knowledge. We bring all three together, thanks to the server expertise we have gained in Taiwan. We handle everything if a company wants to set up a data centre in India—from space planning to efficiency optimisation, cooling system setup, and even billing management. ASUS has a division called ASUS Cloud, which not only supports hardware installation but also offers billing management software for customers.
Q. What role does ASUS play in the IoT space?
A. In the IoT space, we focus on small form-factor (SFF) computing devices, which we categorise as AIoT—ASUS IoT. This differentiates our offerings from generic IoT solutions. It includes tinker boards (compact computing solutions), 4×4 PCBs (small-sized printed circuit boards) and mini PCs (compact yet powerful computing units). These products cater to enterprise customers, developers, and research institutes, as I mentioned earlier.
Q. What kind of market share does the ASUS-IoT business hold in India?
A. It is difficult to determine an exact market share because IoT adoption in India is still fragmented. Many startups are working in this space, and their approaches vary—some build products from scratch, while others integrate existing solutions. This lack of clear segmentation makes market share estimation challenging.
However, we are seeing growth in this area. Our goal is to capture at least a 15 per cent IoT market share in the next two years. Currently, our share is in the single digits, and while we have made progress, we are not yet satisfied. We believe that if a brand has less than 10 per cent market share, it does not hold significant influence in the industry. So, our focus is on scaling up and strengthening our position.
Q. What are the market trends that influence ASUS business strategy for India?
A. Globally, if we look at product segmentation, the mid and high-end segments account for about 60 per cent of the market, while the entry-level segment makes up 40 per cent. However, in India, the scenario is reversed due to the country’s large population, making volume a critical factor. That is why the entry-level market appears so large. Some legacy stock-keeping units (SKUs) continue to exist, and the ratio is approximately 60-40, as opposed to 40-60 in global markets.
But this trend has changed significantly over the last decade. Earlier, the ratio used to be 90-10 in favour of entry-level products. Over the past seven to eight years, however, it has shifted to 60-40 as demand for mid and high-end products has increased.
The key reason for this shift is the increasing importance of product longevity. COVID-19 was a game-changer in this regard. Take, for example, Wi-Fi routers. Earlier, a 150 Mbps router was sufficient for basic internet usage at home. But during the pandemic, with work-from-home and online education becoming the norm, a 150 Mbps router struggled to support even a single PC, let alone multiple devices.
Suddenly, the demand for 750 Mbps or 200 Mbps routers became standard. With better routers, people also wanted better mid-range PCs to support their needs. This led to a shift from low-end products to more capable devices that could sustain long-term use. That is how the Indian market is evolving, and our business strategy is adapting accordingly.
Q. Coming to your customers, whom do you target in the enterprise segment?
A. In the enterprise segment, our target customers include large corporations like Larsen & Toubro (L&T) and Reliance, which require high-end computing solutions.
We also cater to service providers like Yotta, E2E, and NextGen, which operate data centres and set up server farms. Additionally, we work with organisations like HLBC, which collaborates with government agencies for IT infrastructure procurement. These are the key enterprise customers we serve.
Q. And, who is your target customer for ASUS-IoT products?
A. A large part of our ASUS-IoT or AIoT customer base consists of startups, making it difficult to define a fixed target. However, we also work on project-based opportunities with companies like HLBS and manufacturers of ATM machines, who require specialised boards, CCTV cameras, and drones. Our main focus is on value-added resellers (VARs) who exclusively deal with such enterprises. They handle project requirements, approach us with their inquiries, and we provide technical mapping, pricing, and availability.
We strictly maintain channel integrity—ASUS does not sell directly to customers or quote prices to them. If an end customer reaches out, we guide them to our system integrators, ensuring that our business always goes through the right channel partners.
Q. When selling components and peripherals, do you approach customers through the research and development (R&D) route or the sales route?
A. We use both approaches. The first step is always a sales pitch—every company presents their sales proposal. However, what truly differentiates us and creates an entry barrier for competitors is our R&D expertise.
For instance, when AI server bids were invited, there were multiple contenders during the initial sales bidding phase. But once the evaluation moved to the technical bid stage—where the advantages of each brand were assessed—our R&D capabilities made all the difference. That is where we showcase our superior performance, power efficiency, and infrastructure expertise to convince customers why ASUS is the better choice.
Q. How do you intend to expand the ASUS-IoT business?
A. Expansion happens at three levels — end customers, system integrators, VARs, and dealers. End customers consume the product and do their research. Our role is to provide them with good service. System integrators and VARs interact with the final customers. We run campaigns, training programmes, and incentives for them, including trips and rewards. We run monthly engagement programs for dealers without interruption, ensuring they remain focused on the ASUS business.
Q. You are constantly launching new products. How do you keep up with updating your enterprise segment customers with the latest updates?
A. In the enterprise segment, most of the marketing for chipsets is already handled by vendors like Intel, AMD, and Nvidia through global campaigns. Our role is primarily to ensure that the right customers have access to these products. At the enterprise level, intensive product education is not necessary, as the decision-makers—such as chief technology officers (CTOs)—are already well-informed. Their technical expertise allows them to understand why they need a particular product. With information readily available, our primary responsibility is ensuring product availability.
However, ASUS adds its own value to these products by introducing additional features. We market these enhancements through social media, enterprise databases, exhibitions, and conferences. This ensures that customers are aware of the advantages ASUS offers over competitors. Moreover, whenever ASUS launches a product (except for a founder or base edition), we always introduce an N+1 feature, meaning we add at least one extra feature beyond the standard.
Q. Where do you record maximum sales—from online or offline channels?
A. For our business, it is always offline. Since assembling a PC is not a common practice for many users, our business remains channel-driven. We work with dealers, system integrators, and VARs, who collectively account for 80-85 per cent of our sales.
Q. How important is the website and digital marketing for ASUS?
A. Our official website is primarily an information hub, rather than a direct sales channel. So, we leverage our channel partners’ websites for digital marketing. Many of our top 15-20 channel partners have their own e-commerce platforms with higher footfall than our website. Customers prefer visiting these sites as they display product availability and pricing. So, instead of focusing on direct website sales, we run digital campaigns on partner websites to increase product visibility and engagement.
Q. How is after-sales service handled? Do system integrators manage it, or is it backed by ASUS?
A. While the first point of contact is usually the system integrator or dealer, ASUS manages the complete backend service operations. We have a dedicated service team that includes call centres for customer support, technical support departments (TSDs), and regional service managers (RSMs). System integrators assist with frontline support, but repairs, technical solutions, and post-sales service are entirely handled by ASUS.
Q. If an enterprise customer receives a defective batch of products, should they approach the system integrator or ASUS directly?
A. Customers can reach out through either channel, depending on what is convenient for them. There is no strict protocol that they must go through a system integrator.
However, they must provide details on the purchase source so we can track the issue. If it is a hardware, logistics, or damage-related concern, we handle it accordingly. Our system integrators are well-equipped to resolve most issues. But if needed, we send engineers from our local teams, and in critical cases, even our R&D team can fly in to provide solutions. This is the level of post-sales commitment we maintain.
Q. How has ASUS expanded its reach in India over the years?
A. About 10 years ago, we were present in only 8 cities. Today, we have expanded to 33 cities, and we continue to grow as the market develops.
We use multiple channels such as third-party training providers who educate system integrators and partners, and local distribution teams to ensure a steady supply chain. ASUS has in-house teams that travel and engage with customers directly.
Q. How do you envision ASUS’ growth over the next five years?
A. Rather than setting a rigid five-year plan, I prefer taking it year by year. Technology is evolving too fast—three years ago, no one expected AI to become such a massive boom. The impact of servers and AI has been greater than anticipated, so we focus on quarterly and half-yearly strategies.
However, one thing is clear—AI and servers will dominate the next three years. Last year, we identified this trend, and moving forward, AI-driven solutions, from servers to AI PCs, mini PCs, and AI laptops, will be key growth drivers.
Additionally, the Government of India has a strong vision for AI, which will further accelerate adoption across industries. While it may take time to percolate to end users, ASUS is already prepared with solutions that cater to both enterprises and consumers.
The next three years will be transformative, and AI and servers will lead the way in shaping the technology landscape in India.
