Kodak To Invest $30m For Revamp

Imaging company, Kodak India (KIL), will invest around $30 million over the next few years to set up new manufacturing facilities and upgrade its existing set up, company managing director, Humayun Dhanrajgir said yesterday at a formal pre-launch meet of Kodak's latest cinematographic film Vision. KIL has posted a turnover of Rs 440 crore approximately in 1997(ending December 31st).

The KIL investment plan in the country, however, is modest compared with the investment package Kodak has lined up for China, which is likely to emerge as the largest market for imaging products by the turn of the century. Currently, India is the second largest market in the world for cinematographic or vision films after the US. The market size for such films in the country is around Rs 50 crore--Rs 55 crore per annum, with the production ranging between 30 - 31 million feet.

 

Kodak will phase out its earlier version of films and replace it with 'Vision'. The new film will help in anti-mortgaging and offer film companies the option to buy as per requirement.

KIL, which has invested around $25 million during the past two years in India, plans to set up a camera manufacturing unit which will also serve as an export unit for a range of cameras.

Other investments will be in consumer imaging products and health imaging.

KIL is currently trying to impress upon the government to reduce the high tariff on digital cameras by bringing it under the category of computer peripherals, which enjoy a much lower tariff of around 20 per cent.

KIL has four main divisions in India, the largest being the consumer imaging division, which accounts for 65 - 70 per cent sales. This division manufactures films, cameras, photographic paper and chemicals.

The motion picture or professional motion imaging (PMI) division churned up revenues of around Rs 95 crore in 1997.

The other two divisions are the health imaging, which manufactures X-ray and medical diagnostic films and the professional division dealing with graphics, digital products etc.

Kodak India Ltd is a subsidiary of Kodak, UK, which has a 74 per cent holding.