ECIL in joint venture with US Electronics

Hyderabad-based Electronics Corporation of India Limited (ECIL), under the Department of Atomic Energy (DAE), has tied up with Minnesota-based US Electronics, Inc, to produce a host of low-cost diagnostic tools at its Hyderabad campus.

Digital radiology equipment, considered to be the most advanced technology in the area of X-ray applications, which not only eliminates the need of X-ray film but also contributes to the field of tele-medicine, is the first product to come out of this public-private collaboration.

President APJ Abdul Kalam, who formally launched the digital radiology set here on Friday, advised ECIL to target the entire Southeast Asian market for these equipment, besides providing modern healthcare to rural India.

The joint venture, currently named as Medical Electronics India Limited, will be setting up an assembly, manufacturing and development unit located on the ECIL campus with an initial investment of close to $5 million.

USEI, an original equipment manufacturer (OEM) with clients like GE and Kodak, will bring in all the technology besides investing in the venture, according to Madhu M Reddy, chief executive officer of US Electronics.

On its part, ECIL will indigenise and adopt the equipment to suit the Indian conditions and bring down the cost of these products.

"Both the companies are likely to forge an equal partnership in this endeavour. However, the exact equity stake to be held by each of the two companies will be decided soon," Reddy told Business Standard.

He said it was going to be a multi-million dollar business as the low cost of these modern equipment offers huge volumes including export market.

USEI will also bring in other technology partners from Japan, Hong Kong and Korea into the new company's fold, he said.

Patient Monitoring System, Capsule Endoscope, Picture Archive and Communication System (PACS) are among the other products the JV will immediately work on. The products would cost between Rs 20 and Rs 25 lakh, he said.