Chennai : Finland-based Incap Corporation's subsidiary Incap Contract Manufacturing Services Pvt Ltd Thursday acquired the manufacturing facility of TVS Electronics in Tamil Nadu for Rs.420 million ($10.40 million).
Incap has also taken the 250-odd TVSE employees on board along with the 6,000 sq m plant at Tumkur, 80 km from Bangalore and near Hosur in Tamil Nadu, to set up its biggest Asian manufacturing facility.
Thirty-one percent of all of Incap's electronic manufacturing will be done from the Tumkur facility, Incap Corp CEO Juhani Hanninen told reporters here.
Incap has invested Euro 12 million for the Indian facility and "hopes to see 100 percent growth and double our business from Tumkur", the official added.
"Incap will provide electronics manufacturing of high-value, low-volume box systems to all its and TVSE's existing and future clients," Hanninen said.
TVS Electronics director V.A. Raghu said the company was selling the Tumkur plant as it had decided to exit from power sector equipment manufacturing.
"TVS is re-focussing and expanding its transaction products and printer businesses," Raghu said.