Nitsuko of Japan has entered into a collaboration with Mumbai-based Enkay Telecom for producing key telephones systems in the country.
Nitsuko will have a 20 per cent stake in the equity of the Rs 40-crore project, while the remaining will be held by Enkay Telecom.
The plant for manufacturing the systems would be located within Mumbai. The venture, Nitsuko Enkay, would have Nanik Rupani as chairman. The Nitsuko nominees on the board are, however, yet to be finalised.
Enkay Telecom already has a strategic alliance with Nitsuko through which the Indian firm has introduced the latters range of key telephone systems in the domestic market.
The strategic alliance also includes marketing of telecom-related products like Digital ISDN Nice 288 series, medium-sized digital SDN 321 series and Hybrid TX series manufactured by Nitsuko.
The arrangement has been recently broadbased to include PictureTel video-conferencing systems and Brother Faxes.
Nitsuko was searching for a manufacturing base in the country to produce its range of telecom products.The strategic alliance helped in ensuring that they entered into a joint venture with us, Rupani said.
The investments from both parties is only the starting point and as the market expands more funds into the equity of the company can be expected, he added.
The joint venture expects a turnover of around Rs 40 crore in 1996-97, which is likely to grow to around Rs 75 crore in 1997-98, the first year of production.
