The US $2.3 billion Imation Corp, a world leader in data storage products, plans to set up manufacturing operations within the next one year in India and establish an export base in the country. The company has already applied to the FIPB for setting up a wholly owned subsidiary that will undertake manufacturing operations and also look after sales and service support of its products in the country.
Brian Plummer, managing director for the south Asia region, Imation Singapore Pte, informed Business Standard, We will be investing over $2 million in the initial stages over the next 12 to 18 months and have also decided to manufacture in the country. This would help us price our products competitively, since the average customs duty on our range of products is between 50 and 60 per cent. There are a number of options before us and we are currently in the process of evaluating the prospects of each of these options.
Plummer said the company is considering three options, either assemble diskettes in the country or undertake spooling and packaging of films or conversion of photographic plates used in medical imaging. He said the company was keen to develop India as an export base as manufacturing costs in India were lower and thus more attractive for the company. A final decision on the matter will be taken after a detailed study of the market . The company is also expected to announce the headquarters for its Indian operations soon.
Imation sells over 50 per cent of its products outside the US. The company is a global leader in the $20 billion market for data storage products like diskettes and medical imaging. It also is a strong player in the development of printing and packaging solutions and consumer amateur photography markets.
Imation was hived off from US giant 3M as a separate company in July 1996 to focus exclusively on its data storage and imaging businesses.
The company yesterday announced the launch of its 120 MB Super Disk at IT India97/Comdex being held in the capital. The disk multiplies storage capacity nearly 83 times the level of 1.44 megabytes. This product was launched in the Comdex fair held at Las Vegas a few weeks ago.
We will be investing over $2 million in the initial stages over the next 12 to 18 months, and have also decided to put up a plant in the country
-Brian Plummer managing director, South Asia, Imation
