The Hindu : TECI to play crucial role in Tyco's global operations

Online edition of India's National Newspaper
Thursday, May 29, 2003

Business

Business

TECI to play crucial role in Tyco's global operations

By Preeti Mishra

BANGALORE MAY 28. Increased outsourcing of components and products from Tyco Electronics Corporation India (P) Ltd. coupled with business from its European affiliates will buoy TECI's strapping growth estimated at 20 per cent for the coming year. With a projected turnover upwards of Rs. 400 crores and a global realignment process in the offing, the Indian subsidiary of Tyco Electronics Corporation is poised to play a critical role in the company's worldwide operations.

Financially, the company has recorded a good performance with turnover for 2001-02 (October-September) at Rs. 300 crores and Rs. 380 crores for 2002-03. "We want to be more than an electrical and electronic interconnector company. Tyco is streamlining its manufacturing plants worldwide. As a fallout we expect to increase the utilisation capacity of the Indian plant,'' K. U. Subbaiah, Managing Director, Tyco Electronics Corporation India, told The Hindu.

Till date Tyco's global affiliates especially in the U.S. and Europe had viewed China as a cost effective manufacturing hub. According to Mr. Subbaiah, even though Tyco's facilities in China and India are the same, the total product cost is much cheaper in the latter's production facility. However, the European affiliates are now convinced of the Indian advantage and TECI proposes to capitalise on this new perception and utilise greater plant capacity through the affiliate orders.

As of now, the company utilises 50 per cent capacity at the Indian manufacturing facility and this level will be expanded by 20-25 per cent once the realignment process has been completed.

The Indian plant would be responsible for fulfilling new orders bagged in structured cabling. TECI has also won a huge order from Telco wherein the former would supply the traded component for the Indica cars (to be shipped to the Rover auto firm). Tyco India has entrenched itself firmly on the path to organic growth with a renewed thrust on the telecom and telematics areas.

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