TVS Elec sells contract mfg biz to Finnish firm

Printer manufacturer TVS Electronics has sold off its contract manufacturing services business at Tumkur for Rs 41.12 crore to Incap Contract Manufacturing Services, a 100% subsidiary of Finland based Incap Corporation.

TVS Electronics, one of country's leading contract manufacturing service providers, through it CMS business served global original equipment manufacturers by making box assemblies as well as PCB assemblies in its QS 9000-certified facility at Tumkur (near Bangalore).

"TVS Electronics today executed the business transfer agreement for transfer of the contract manufacturing services business at Tumkur (CMS Business) for a consideration of Rs 41.12 crore with Incap Contract Manufacturing Services, a wholly-owned subsidiary of Incap Corporation, Finland," the company said in a communique to the Bombay Stock Exchange.

According to the agreement, TVS Electronics' contract manufacturing unit in Tumkur and a related design services in Bangalore will be transferred to Incap's subsidiary Incap Contract Manufacturing Services on June 1.

"The business operations acquired by Incap include the manufacturing services business as well as the property and the factory building with its equipment in Tumkur," Incap Corporation said in a statement released to the Helsinki Stock Exchange.

The Tumkur plant, is spread over a floor space 6,000 square feet and operates with the help of 230 personnel, making box assemblies like UPS, inverters, rectifiers, pay phones, keyboards, hand-helds, etc.

Incap forecasts that its Indian operations will generate about euro 8-10 million (over Rs 45-55 crore) in revenue during June-December 2007.