Incap to expand Indian operations
02 Jun 2007
According to president and CEO, Juhani Hanninen, Incap Corporation, during the current year some investment will be made in further automating the operations. "We plan to double the turnover in a year''s time."
It may be recalled Incap Contract Manufacturing Services Pvt Ltd, a wholly owned subsidiary of Incap Corporation acquired the contract manufacturing facility from TVS Electronics Limited for Euro 7.5 million. (See: Incap Corp buys TVS Electronics'' contract manufacturing business). The division assembled circuit boards and also made power supply units.
As per the deal Incap Contract also takes on board the 230 employees. The company also acquires the inventory and factory equipments. According to TVS Electronics director V A Raghu, "A total of Rs25 crore has gone into the Tumkur contract manufacturing facility till date. We have retained the unit''s debt of Rs13 crore."
At the time of sale the unit did a turnover of Rs65 crore. "We would double the turnover in a year''s time," said Hanninen. The acquisition gives Incap Corporation an Asian presence. "Expanding operations to Asia is an essential part of our company''s growth strategy. The corporate goal is to double the turnover by 2010 through organic and inorganic growth," he added. With the market in Finland logging flat growth the company sees good potential in India and Asia. Many of the company''s overseas clients like - ABB, Siemens, Kone Elevators, GE Healthcare, Nokia - have operations in India. And Incap Corporation would tap them for further business.
The
Indian acquisition gives a sudden boost to the company''s
overall employee strength of 540. Post acquisition around
31 per cent of the Incap Corporation''s employees is
based in India. Back in Finland the company would focus
on product development and the early part of a product''s
life cycle.
