Perlos Corporation inaugurates Indian plant

Sriperumbudur: Perlos Telecommunication & Electronic Components (India) Pvt Ltd, a subsidiary of Finnish mobile phone outer casing and mechanics manufacturer Perlos Corporation is mulling capacity expansion.

Inaugurating the Indian plant here on Thursday Matti Virtanen, president and CEO, Perlos Corporation said, the plant has sufficient space to double production.

Built at an outlay of $30 million inside the Nokia Telecom Park, a special economic zone here, Perlos'' plant has a capacity to make 6 million full sets per month.

Initially the plant will make the outer casings and other mechanics for Nokia''s low-end models and later enlarge its product and the customer base. It should be mentioned that another handset manufacturer Motorola is setting up its plant near Chennai.

The Indian plant is the company''s eighth one in the world. The company has closed down its production operations in Finland and has shifted its major production base to China.

After China, the Indian plant is of strategic importance for Perlos Corporation as the mobile handset market is seeing exponential growth in Asia.

According to Virtanen, around 12 per cent of the company''s production will come from India this year. The Chinese plants will cater to 58 per cent of the company''s production needs followed by Hungary 13 per cent, Brazil 6 per cent and Mexico 10 per cent.

In 2000 Perlos Corporation started manufacturing in Asia at its Chinese plant with a floor space of 8,000 sq.ft. In seven years time the company has increased its floor space in Asia to 1.15 lakh sq.ft, nearly 70 per cent of its total manufacturing space worldwide. The company employs 5,700 people in Asia out of its total 8,900 worldwide workforce.

The Indian plant employs 770 people out of which nearly 40 per cent are women.

Interestingly Lite-On Technology, a Taiwanese company has made an open offer to acquire the outstanding shares of Perlos Corporation.

Virtanen said when the take over happens Perlos Corporation and Lite-On would form a formidable combination in the mobile handset industry. The Taiwanese company has expertise in handset electronics while Perlos Corporation''s expertise lies in handset mechanics.

Queried about the impact on the company''s Indian operations post acquisition he said there will not be any change in the plans. On the other hand Perlos India may offer Lite-On a platform to launch its operations here.

Speaking at the inaugural function Finnish Ambassador to India Asko Numminen said the bilateral relations between India and Finland is growing strong. He said Finland invites Indian investments in information technology sector.

Shaktikanta Das, secretary, Industries Department, Government of Tamil Nadu said, the Nokia Telecom Park is an example for the success of the country''s special economic zone concept. He also said, Tamil Nadu is now the electronic hardware hub.