The Hindu Business Line : Moser Baer to invest $13 m to set up facility in Germany

MOSER Baer India Ltd is in the process of setting up manufacturing operations in Germany at an investment of $12-13 million (Rs 54.9 crore - Rs 59.5 crore).

"We are setting up a manufacturing operation in Germany in Thueringia, for which we will invest close to $12-13 million. This facility would manufacture a full range of our products including pre-recorded CDs," Mr Ratul Puri, Executive Director, Moser Baer India Ltd, told newspersons here.

Mr Puri said the production at the new facility would start from the third or fourth quarter of 2005.

Commenting on the reasons for establishing the overseas facility, Mr Puri said, "There are high-end niche products which are difficult to develop sitting far away. These products require a collaborative developmental process with the customer. These products account for 1-2 per cent globally by volume, but as much as 15 per cent by value of the global market... It is an onshore solution not an offshore solution."

The other reason was to be closer to the customer to have a lower time-to-market, he said. The facility will cater to the company's existing and new customers in Europe.

On whether Moser Baer will look at similar overseas facilities in other markets, Mr Puri said, "We could look at a similar strategy in North America at a later date, but we are not looking at it immediately."

Mr Puri said the capacity of the new facility would be 10-15 per cent of the company's global capacity.

The company has pegged its total capital expenditure for the current financial year at about $160 million (Rs 732.7 crore). "Majority of the investment would go into expansion activities in Greater Noida," he said.

Currently, about 80 per cent of Moser Baer's production is exported to over 82 countries. The company supplies its products to 11 of the 12 leading original equipment manufacturers in the world, leading to a 16 per cent global market share.

Moser Baer's products include recordable compact discs, rewritable compact discs, pre-recorded CDs/DVDs, digital versatile disks and rewritable digital versatile disks.

In the magnetic data storage category, the company offers compact cassettes, micro floppy disks and digital audiotapes. It is also a distributor of data cartridges and computer and magnetic tapes.

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