Moser Baer to start manufacturing in Germany

By agencies   |   Monday, 18 April 2005, 19:30 IST
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NEW DELHI:Storage media-maker Moser Baer expects its manufacturing facility in Germany to be up and running by early 2006. "At present, we are looking for a suitable site in East Germany. The facility will be up and running by the end of 2005 or early 2006," Ratul Puri, executive director of Moser Baer India Ltd said here. He said that the German facility would manufacture high-end optical storage products in collaboration with niche players. "We are already doing this kind of work from India but are facing some challenges. By setting up a manufacturing base we will become closer to our customers and do the work better," Puri said. He said the high-end products that the company would manufacture in Germany would account for two percent of the volumes and 10 percent of revenues. The Board of Directors of the company have already given their approval for investment of $15 million for the venture, Puri added. Apart from new geographies, the company is also open to diversify its product range. "We are a technology manufacturing company. We are open to opportunities in areas outside storage and optical media," he said. In India, the company had earmarked $130 million for capital investment in 2004-05 and has been able to spend the amount. Currently Moser Baer is putting production equipment in the second phase of its 100 acre manufacturing facility in Greater Noida. "The second phase will be fully occupied very soon and we plan to start work on the next phase in 2005-06," Puri said. Moser Baer, which is the third largest optical media maker in the world, supplies to 11 of the 12 top original equipment manufacturers. "Discussions with the 12th player are also in the advanced stage," another official of the company said. Apart from supplying to OEMs, the company also sells its products under its own brand name in Indian market and has cornered 45 percent of the market. "We have had great success in selling our products under our own brand name," Puri said. He said in coming two to three quarters the company would find it much easier to increase sales and market share as demand for the products it manufactures is ballooning. Moser Baer, which has 16 percent share of the world market, has set itself a target of taking it to 20 percent. "In DVDs we plan to take our share to 20 percent from 15 percent while in CDs we plan to maintain our 17 percent market share," Puri said.