Avalon sets up facility in MEPZ

Avalon Technologies Pvt Ltd, volume manufacturing arm of US-based Sienna Corporation, a leading electronic manufacturing services provider to global original equipment manufacturers, has set up its fourth state-of-the-art manufacturing facility in the Madras Export Processing Zone.

Set up with a cost of Rs15 crore as part of its expansion to address new markets and business segments, the new facility will be formally inaugurated on November 12.

The capacity of the company could be scaled up to 350,000 - 400,000 components per hour with ten assembly lines. At present, the capacity is 150,000 components per hour with four assembly lines.

The new facility and its Restriction of Hazardous Substances (ROHS) compliant process is expected to help the group strengthen its presence in the European markets. ROHS compliant norms are expected to come into effect from July 2006 in Europe.

Kunhamed Bicha, chief executive officer, Sienna Corporation, told a press conference that Avalon, which started operations with its focus on telecom vertical, had emerged as a niche player in industrial electronics, telecom, automotive electronics and would strengthen its focus on medical electronics. Avalon contributed 70-75 per cent to group's total revenue of Rs150 crore.

He said that Avalon was offering end-to-end solutions while most of the other EMS firms were doing only PCB assembly and outsourced other processes.

Sienna Corporation has three manufacturing facilities in the US and these units carry out the integration processes. The company is also on the verge of acquiring a unit, which is also almost in the same business, located on 100,000-sqft in MEPZ.

"We are in the final stages of discussions and the acquisition, which will involve a couple of crores, is expected to be completed in the next three months," said T Imbichammad, chairman of Sienna Corporation.

Sienna Group has planned an investment of Rs.75 crore in the next three years for its various expansion activities that include creation of new units and also acquisition of facilities. It is also planning to expand its manpower strength to 1000 from the present 700.

The group has set a sales target of Rs 550 crore by 2008 and the employee growth is projected to increase to 2000 by that year.

Sienna is also in the process of completing a $4 million acquisition of an automobile electronics facility in the US to service the automobile electronics sector.