The $40-billion Japanese electronics giant NEC Corporation is planning to set a wholly owned subsidiary to provide sales and service support for its products in the country.
Shigeo Matsumoto, senior manager (international home electronics division) of NEC Corporation, said the company intends to establish a 100 per cent subsidiary in India, and will be applying to the government in order to receive the necessary approvals. The company already has a presence in the country through distributors for its various products.
However, it has no plans to undertake manufacturing in the country through the proposed subsidiary. NEC has three major divisions: mobile communications, personal communications and computers and home electronics.
Its range in the home electronics and the mobile communications division are available in the country through distributors and this arrangement is likely to continue. The proposed subsidiary will also look after the sales and service of its products.
NEC Corp is a leading supplier of electronic products that comprise primarily communications systems and equipment, computers and industrial electronic systems and electron devices.
However it is considering the option of assembling low end monitors through its Singapore based subsidiary, NEC Singapore Pvt Ltd, though a final decision will only be taken after making a detailed study of the market over the next one year.
At present it has six factories for manufacturing monitors two each in Japan and Malaysia and one each in China and Thailand where it makes low end products.
Matsumoto said the company may shift manufacturing operations from China to India in case it decides to make low end monitors in the country. NEC already has a tie up for distribution of video display and presentation products with Entel Private Ltd, a subsidiary of Shivaki of Japan.
The Japanese major has broadened its alliance with Entel by extending its tie up to include the complete range of multisync monitors ranging from 14 inches to 37 inches in size to meet the needs of the home computing market, the DTP market, multimedia applications and corporate users.
Entel plans to sell 20,000 monitors in the country in the first year out of a total market of around 5 lakh monitors. Matsumoto pointed that NEC is targeting a revenue of $10 million as its revenues from the sale of monitors in the first year.
Eventually Entel is targeting a grab 25 % share of the market.
