Business Daily from THE HINDU group of publications
Friday, Jun 01, 2007
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Business Daily from THE HINDU group of publications Friday, Jun 01, 2007 ePaper |
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Info-Tech
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Mergers & Acquisitions Finland firm Incap buys TVS Electronics unit Our Bureau
DEAL INKED: Mr V.A. Raghu (left), Director, TVS Electronics Ltd, and Mr Juhani Hanninen, President and CEO, Incap Corporation, at a press conference in Chennai on Thursday. — Bijoy Ghosh
Chennai May 31 Incap Contract Manufacturing Services Pvt Ltd, a subsidiary of Incap Corporation, Finland, expects its electronics manufacturing services business in India to double in its first year of operations and sustain a 50-100 per cent growth in the coming years. Incap Contract today finalised a Rs 41.12-crore deal acquiring the TVS Electronics Ltd contract manufacturing unit at Tumkur, 80 km west of Bangalore. Briefing reporters on Incap Corporation's plans here, Mr Juhani Hanninen, President and CEO, Incap Corporation, said that this was the company's first facility outside Europe. The € 89-million (Rs 480 crore) Incap Corporation expects to double its business by 2010 with more than half its revenues coming from facilities outside Europe. The company manufactures electronics and mechanical components and equipment for use in industrial electronics, electrical power technology, telecommunications, healthcare and security. Its business in India is expected to contribute to a significant portion of that growth. The Tumkur facility has a business of about € 12 million (Rs 65 crore), which Mr Hanninen expects to double in the first year and sustain an annualised growth of 50-100 per cent. Enabling this growth would be Incap's investment to increase the production capacity at the facility. Three new lines would be added with one new line a year at a cost of € one million (Rs 54 lakh). The company's focus would be on automation. Its strength is in offering a wide range of low volume components. The facility now has four lines. Also, Incap would look at more acquisitions, Mr Hanninen said. Mr V.A. Raghu, Director, Corporate Services Group, TVS Electronics Ltd, said the company sold the Tumkur facility to concentrate on dot matrix printer making business at the Uttarkhand facility. The company wants to grow in the transaction printers business and customer support. So it exited the power electronics business, in which the main clients were GE Power and GE Medical, who were Incap's customers in Europe. TVS would be associated with Incap through Harita TVS, a company in engineering design and services, which will provide contract design services for Incap.
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