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Oulu based Finnish electronics contact manufacturer Incap Corporation and TVS Electronics Limited of India have signed a Letter of Intent on the acquisition of TVS Electronics’ contract manufacturing unit. The objective is to transfer the business operations to a new Indian subsidiary of Incap in the second quarter of 2007.
The business operations to be acquired by Incap are located in Tumkur, near Bangalore in southern India. There are approximately 260 employees working in the unit and its services cover electronics manufacturing, materials procurement, distribution and logistics services as well as maintenance. The factory unit with a floor space of approx. 6,000 square metres manufactures power supplies and medical electronics, among others products, for customers in India and Europe.
With this acquisition Incap claims that it aims to strengthen its position as an international partner to the world’s leading equipment manufacturers. To this end, the company has been exploring the possibility of starting up manufacturing operations in India and has had a sales office in New Delhi since early 2006. Incap’s target is to gain revenue of about EUR 10 million from its India business during 2007.
According to Juhani Hänninen, President and CEO of the Incap Corporation, the business deal under negotiation is a significant step in Incap’s internationalisation.
“Already in early stages of our study we concentrated in searching for a local partner in India, because it is the fastest way to realize our chosen strategy. In addition to a smooth functioning production facility we will also receive an established customer base, because TVS Electronics’
contract manufacturing unit has a stable market position.”
“We will also have TVS Group’s support in developing our business further in the future. Actually this is more about building a partnership in India with the recognised TVS Group rather than just an acquisition”, says Mr. Hanninen.
Gopal Srinivasan, director of TVS Electronics Ltd. says: “We believe that this move will continue to provide outstanding services to our valuable customers in India and Europe who will additionally benefit from Incap's global contract
manufacturing delivery platform. Thus, it best serves the interest of customers, employees and other stakeholders".
TVS Electronics Limited, a part of the 95-year-old TVS Group, is one of the largest manufacturers of computer peripherals in the country. The range of products includes dot matrix printers, keyboards, printing supplies, transaction solutions and customer support services.
TVS has a large distribution and service network, which reaches over 450 towns across the country with two national distributors, more than 200 regional distributors and over 3,000 authorized dealer partners. The company has
manufacturing facilities in Tumkur and Chennai.
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