Tadiran Telecom to invest $10 mn annually to manufacture IP phones in India

We have allocated $10 million for one year for our manufacturing project. Investment will increase based on the performance, said CEO

Israel-based unified communications company Tadiran Telecom plans to invest at least $10 million (about Rs 80 crore) annually to manufacture IP telephones in India, a top company official has said.

IP telephones support multiple communication functions, including conference calls through apps, and are generally used in business organisations.

The company has partnered with DCM Shriram for manufacturing IP phones.

Tadiran Telecom CEO Moshe Mitz, on the sidelines of an event to announce its manufacturing plan in India, said the company is likely to invest more every year in the second phase of production expansion, which will include Software development.

"We plan to make 1,00,000 IP telephones in India every year. This is a conservative number. We have allocated $10 million for one year for our manufacturing project. Investment will increase based on the performance," Mitz said.

Tadiran has been operating in India for the last 26 years through channel partners.

Mitz said that 70 per cent of the company's business comes from software and 30 per cent from hardware.

He said that Tadiran will make class 2 equipment -- a category which qualifies for government procurement with immediate effect.

"Manufacturing is phase 1 of our expansion plan in India. If we achieve success in meeting manufacturing targets, then we will launch our Phase 2 expansion in India for software development," Mitz added.

He said that Tadiran Telecom is already in discussion with an Indian software giant for collaboration.

About the partnership with Tadiran, DCM Shriram President Rudra Shriram said this is the first time the group will make an electronics product.

"Tadiran Telecom has technology. We are putting in place a dedicated team for manufacturing their products. Besides manufacturing, our group will provide them with all supply chain support to Tadiran Telecom, including warehousing, logistics etc," Shriram said.