Incap Looking at Growth for its Indian Operations

Electronics manufacturing in India is slowly recovering of the recession and based on the order book, the year 2010 will be a year of growth for Incap’s Indian operations, too, the company announced.

Majority of the customers of Incap’s Indian factory is operating in the energy efficiency business and accordingly, the major part of the products manufactured in the unit are power supplies, equipment for transformation and conversion of electrical energy and UPS equipment for undisturbed current input, which secure undisturbed current feed. The general business in energy efficiency is estimated to grow significantly during the next few years because of the increased emphasis on environmental aspects which will beef up the interest in electronics devices including advanced control technologies.

Incap said the company continued to invest into its Indian operations in 2009. In connection with the inauguration of a new factory building, the equipment was modernised and an automatic PCB assembly line was transferred from Vuokatti, Finland into the new factory. Also design services competence was strengthened and the recruitment of new engineers into the team will continue so that the number of designers will increase to meet new customer expectations even better. Approximate number of design people by end of 2010 is expected to number thirty. Strengthening design services is a significant part of Incap’s strategy, according to which a customer can get all the life cycle services from design to controlled ramp-down from one provider.

”We have recruited new personnel during the last year and the personnel of Indian operations increased by over 30 percent into approximately 300 employees. Measured by the number of personnel, the Tumkur factory is the largest factory of Incap. And if the growth expectations will come true, we need even more personnel”, said Jarmo Kolehmainen, Managing director of Incap Contract Manufacturing Pvt Ltd.

Increasing attractiveness of Asia
Production volumes of Incap's Indian unit grew in 2009 and expectations for increasing business is high for this year, too. Possibilities for this are good thanks to the current customer forecasts, promising market potential in Asia, and even in new emerging market like Africa.

Growth of the Indian operations is clearly driven both by local and global market growth and products manufactured there are delivered all around the world.

New customer acquisition has been expanded also to China, where the company's previously known partner is looking for new customers for the Indian factory. This partner is charting at the same time also new business possibilities for Incap in China.

”Our target is to deliver added value to our customers by offering original equipment manufacturers in energy efficiency business the best service in design, material sourcing and manufacturing in India. This is our vision, which we believe in firmly and for which we have invested strongly both in equipment as well as in human resources. In the future we are aiming to acquire more international customers for our unit”, exposes Jarmo Kolehmainen Incap’s Indian strategy.

Operating in the Indian markets also involves some challenges. Even if Indian infrastructure is in some respects undeveloped and the bureaucracy impedes business operations, Incap has managed well in gaining a solid foothold in the Indian market and is having a good cooperation with the local partners and authorities. One important contributor in this respect has been the fact that the Tumkur factory was acquired from a local company, which had a good reputation in issues of social responsibility and production quality.

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