Ncr Corp Plans $30-Million Base

NCR Corporation, the US-based $6.96-billion world leader in automated teller machines (ATMs) and high-performance stationary bar code scanners, is planning to set up a manufacturing base in India at a cost $30 million (Rs 105 crore).

NCR Corporation, which has six plants worldwide, proposes to set up two more one in Moscow and other in Beijing.

The companys move is aimed at cashing in on the vast business potential these countries have to offer.

China has over 2,50,000 bank branches, while Russia has nearly 100,000. Jim Adamson, vice-chairman of the financial systems group of NCR Corporation, however, said that his company would go ahead with its plans for a base in India after reviewing the market in detail and increasing its sales.

 

The US-based company plans to sell 300 ATMs in the country this year. The concept of ATMs has not yet picked up in this country. India currently has only 400 ATMs, which are mostly installed in foreign and private banks, said Adamson.

NCR will set up the plant in India only after its sales touch volumes of at least 5,000-6,000 units which will, going by conservative estimates, be in the year 2000. Adamson attributed the poor demand for ATMs in the country to the lack of awareness among banks about its advantages and also the problems faced by public sector banks in installing ATMs due to the opposition from unions.

Another reason is the poor power and telecom services, Adamson pointed out. NCR Corporation, which already operates in the country through its wholly-owned subsidiary NCR Corporation India Pvt Ltd, now only develops software which is used for its worldwide operations.

Nearly one-third of our software comes from our software developing facility in Bangalore where we employ 150 people, said Jim Adamson.

NCR intends to launch a mini-ATM in the country next month.

The mini-ATM, which was launched first in the United States, is for low volume transactions and off-premises deals. NCR has just received an order from Bank One in the United States for 1,000 units.

NCR has a share of 27 per cent in the global market for automated teller machines and has installed 200,000 units to date.