Finnish electronics contract manufacturer Incap Corp. and India-based TVS Electronic Ltd announced they have signed a letter of intent on the acquisition of a TVS Electronics' manufacturing unit in Tumkur, near Bangalore (India). No financial details have been released.
Through this acquisition, Incap said it seeks growth and internationalization. The company indeed aims to strengthen its position as an international partner to the world's leading equipment manufacturers.
To reach this goal, Incap explained it has been exploring the possibility of starting manufacturing operations in India and has had a sales office in New Delhi since the beginning of 2006.
Incap (Oulu, Finland) said it expects to post revenues of about 10 million euros (about $13 million) from its business in India during the year 2007.
Business operations are due to be transferred to Incap's new Indian unit during the second quarter of 2007. Currently, the unit has approximately 260 employees and its services cover besides the electronics manufacturing and product integration also materials procurement, distribution and logistics services as well as maintenance.
The unit, of about 6,000 square meters, manufactures power supplies and medical electronics to customers in India and in Europe.
"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", commented Gopal Srinivasan, director of TVS Electronics Ltd, in a statement.