The Hindu Business Line : Motorola mulls plant in India

US-BASED communications technology provider Motorola is exploring the option of setting up a manufacturing facility in India. The company is also planning to foray into new service segments, including automobile electronics, public safety, telematics and environment emission systems.

Mr Eugene A. Delaney, Executive Vice-President, Motorola Inc, said, "We are constantly evaluating the option to set up a manufacturing base in India. The decision will be based on cost advantage and improving efficiencies of our existing units, combined with identifying the right product portfolio. India is an important market for Motorola and it is on top of our minds."

Recently some large telecom vendors, including Nokia and LG, have announced their plans to set up handset manufacturing units in India. Ericsson has also announced that it is setting up a unit for its network equipment.

On the new segments, Mr Delaney said the move was part of Motorola's strategy to expand its product portfolio. Motorola's product portfolio in the auto segment includes enabling automobile manufacturers in meeting stringent emission norms. Motorola will bring in its automatic chipsets in place of the existing MpFi technology. Motorola will also enable the car manufacturers to meet safety norms.

With mileage trackers, wireless Internet in cars, navigational and mapping services and automatic door locks, Motorola's technology is expected to bring in more convenience to car owners. The new products are expected to be launched by mid-2005.

Motorola is also betting big on the wireless broadband segment. The company is in talks with all the major telecom players for setting up their broadband network. Mr Delaney said that the company would launch new generations products such as dual mode handsets that can switch from 2.5 G to 3 G and from a wireless local area network environment to a fully mobile environment.