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The company expects to double its capacity to 7,000 sq metres in the second quarter of 2006 from 3,500 sq metres at present.

Bangalore , March 3

Spanish printed circuit board (PCB) manufacturer Circuitos Impresos Profesionales (Cipsa) has formed a joint venture in India with two entrepreneurs — Mr Anil Gupta and Mr Alok Garg — to set up a manufacturing facility at Doddaballapur, near Bangalore.

CIPSA holds a 51 per cent stake in the new joint venture CIPSA-RIC India Pvt Ltd, while the two entrepreneurs hold the rest.

CIPSA along with Mr Gupta and Mr Garg had taken over the PCB manufacturing facility of RIC India for an undisclosed sum in December 2005 to start the joint venture.

The Spanish firm expects to invest up to $15 million in phases to expand the Doddaballapur facility, which will be operational in April this year.

"We have already made an investment of $2 million in setting the plant and machinery for the new facility, which will house over 400 people," said Mr Anil Gupta, Vice-Chairman, CIPSA-RIC India. "We are looking at a turnover of $5 million in the first year of operation and reach $20 million within four years," he added.

Mr Alok Garg said the company expects to double its capacity to 7,000 sq metres in the second quarter of 2006 from 3,500 sq metres at present and would raise it to 10,000 sq metres by 2007.

"We also expect to start manufacturing membrane switches," he said adding about 80 per cent of the capacity would be targeted for the exports market. "We are also looking at setting up an outsourcing centre for computer aided manufacturing related work," he said.

Further, CIPSA-RIC plans to set up a subsidiary in Europe later this year to support the customers, he said.

CIPSA-RIC's Indian customers include Pricol, L&T, Solectron Centum, ECIL and 3M among others.

International customers include Zollner, Behr Hella, GE Power Controls in Italy & UK, Technomec Italy among others.

Mr Evaristo Michavila, CEO of CIPSA, said India offered a minimum cost advantage of 10-15 per cent in PCB manufacturing.

The company is looking for some 15 acres to expand its facilities in Karnataka, Mr Garg said adding it was also exploring the possibilities in Andhra Pradesh, Tamil Nadu and Uttaranchal.

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