INCAP acquires EMU from TVS Electronics

Bangalore, May 31 (UNI) Finland based Incap Contract Manufacturing Services Private Limited today signed an agreement with TVS Electronics Limited (TVS-E) to takeover its Electronic Manufacturing Unit (EMU) here.

The agreement was in line with the Letter of Intent the companies signed in February this year, the company said in a release.

The contract manufacturing unit of TVS Electronics in Tumkur and the related design services in Bangalore would be transferred to Incap Contract Manufacturing Services with effect from tomorrow. In addition to the TVS Electronics' CMS business, the contract also covered the estate and the factory building in Tumkur along with all the equipment and inventories.

The contract manufacturing unit with a floor space of 6,000 sq m, was located in Tumkur within an easy reach from Bangalore. There were 230 people working in the unit and its services include electronics manufacturing and product integration as well as materials purchasing, distribution and logistics services and maintenance. The unit's manufacturing focus was in product entities, and among others power supplies and medical electronics were manufactured there. The CMS business had customers who were equipment manufacturers based in Europe and in India.

''We are very impressed by the facilities and the quality of products manufactured here and our plan is to develop functions even further. Today the unit is serving the present customers very well, but we are eagerly looking forward to increasing the business and acquiring new customers. So there will be a need for investments in new equipment in the near future'', says Juhani Hanninen, President and CEO of Incap Corporation in the release.

He said the acquisition announced today is a great leap in Incap's internationalisation efforts and to make an inroad into Asian regions. ''We trust that TVS Group is the right partner for us in India with their long experience and good contacts. We have already received great support from TVS Group in establishing our business in India'' he said.

UNI