Austrian firm in expansion mode

Mysore-based printed circuit board manufacturer AT&S India is looking at expanding its business, for which its parent Austrian company is likely to invest about ¤30 million soon.

Speaking to Business Standard, MD and CFO Pradeep Mehta said that as part of the company's expansion plans, the production capacity will be expanded to half a million square metres from the existing 2 lakh square metres. The company is also looking at adding 250 more knowledge workers, he said.

The company was established in 1989 by Elcan, Canada, as a unit of the India Aluminum Company Ltd and in 1999 was acquired by AT&S, an Austrian company. It has invested ¤20 million in AT&S India Private Ltd its wholly-owned subsidiary.

AT&S India serves 80 clients in Europe, Australia, US, Singapore, Malaysia and India. About 80 per cent of its business is from exports. Its clients include telecom majors like Siemens, Nokia and Motorola.

The company posted revenues of Rs 143 crore in 2004 and is aiming at Rs 170 crore this year. The parent was able to double its profit despite a devalued dollar, thanks to hedging.

Europe's largest circuit board manufacturer, it has further strengthened its position by entering new markets like Japan and Russia last quarter. New products, such as flexible circuit boards and new customers, such as TCL & Alcatel Mobile Phones, also serve to strengthen AT&S.

The construction of a second plant in Shanghai is yet another step towards the goal. The total investment will be between ¤80 million and ¤100 million and production in the second plant is planned to start in autumn 2006. AT&S expects around 50 per cent of its total sales to come from Asia in the next few years.

AT&S, which terms 2005 to be a year of strategic positioning for future growth saw a 129 per cent growth in profit during the first three quarters (October-December 2004).

It began the last quarter with a turnover of ¤249 million after three quarters (4.8 per cent)and an operating profit of ¤19.2 million (-2.7 per cent). Considering the weak dollar, management expects a turnover of ¤335-345 million for the fiscal.

Recently, a 140-member business delegation, led by Austrian President Heinz Fischer, his wife Margit, and the Austrian minister for economics & labour, Governors of Austrian States Tyrol and Salzdurg, businessmen, officials, scientists and journalists visited the AT&S's facility in Najangud in Mysore to get a hands-on experience of an Austrian company in India.

The high-level visit also comes in the wake of Austria's interest in ramping up its presence in India and looking at newer types of collaboration in areas like outsourcing, technology transfer and combined R&D.