Israeli firm to exit JV with MRO-TEK

RAD Data Communications, a Tel-Aviv (Israel)-based company that manufacturers access equipment for telecommunication applications, has reportedly decided to exit its joint venture with MRO-Tek, a Bangalore-based company that provides networking products.

The company has decided to exit the JV with the aim of setting up its own manufacturing unit in the country owing the favourable conditions for global firms to manufacture in India, and "minimising the expenditure and administrative delays", sources in MRO-Tek told Business Standard. It, however said that MRO-Tek would continue to be RAD's exclusive distributor in India.

According to a company spokesperson, the decision of RAD to exit the JV might happen sometime in 2008. However, whether RAD will sell its stake or MRO-Tek will sell its share, is yet to be decided, the company said.

Presently, RAD Data Communications is the majority partner in the JV with a 51 per cent stake. The JV, forged in 1998, now employs about 25 persons with a manufacturing set-up which is co-located with MRO-Tek's manufacturing set up in the Electronics' City area in Bangalore.

RAD's products were first introduced in India in 1991 by MRO-Tek as its authorised nationwide distributor. Since then, MRO-Tek has been providing sales, support, maintenance and repair services for RAD products in India.