OSI Systems in expansion mode

Mulls setting up 10-acre facility at Hardware Park

OSI Systems Private Limited, a global developer, manufacturer and seller in the areas of security, optoelectronics and healthcare, is expanding its manufacturing facilities in Hyderabad with an investment of $0.5 million (excluding the equipment).

The company, a wholly-owned subsidiary of Nasdaq-listed OSI Systems Inc, is also looking at setting up a 10-acre facility in the proposed Hardware Park in Andhra Pradesh.

Addressing the media, Deepak Chopra, chairman and chief executive officer of OSI Systems Inc, said, "We have secured 50,000 sq ft of area on lease in Cherlapally, on the outskirts of Hyderabad. We will be shifting to the new premises by January 2006. Excluding the equipment cost, this relocation will cost the company $0.5 million."

"At present, we have an employee strength of 130 in Hyderabad and are looking at increasing this to 200 over the next two years, and around 500 in three-four years," he added. The company employs 2,400 people globally.

"We are also looking at moving the production of some components that are used in weapon simulation devices to Hyderabad from Malaysia, for economies of scale," Chopra said. These devices enable the armed forces to practice warfare without the use of real arms and ammunition.

OSI Systems had formed ECIL Rapiscan Limited as a joint venture with ECIL, a Government of India undertaking, in 1995. Rapiscan Systems is the security and inspection division of OSI Systems. Through its security scanning devices, the company is eyeing the upcoming airports in the country.

Apart from this joint venture, OSI Systems has a presence in Hyderabad through two companies "� Spacelabs Healthcare Private Limited and OSI Optoelectronics Private Limited. While Spacelabs provides manufacturing and software development support in the healthcare segment, OSI Optoelectronics develops, designs and manufactures devices like photo detectors, optical sensors etc.

The total turnover of the company on a global basis is "slightly under $400 million." OSI is looking at moving to a 10-acre facility in Andhra Pradesh's proposed Hardware Park in the next few years, L Satyanarayana, vice-chairman and managing director, ECIL Rapiscan Limited, said.