Flextronics to invest $100 million in India
Thursday, 26 October 2006, 07:00 Hrs
New Delhi: Global communications software company Flextronics Software Systems said it would invest $100 million in India over the next three years. "We are planning to invest $100 million in India, including the research and development (R&D) costs here," said Manoranjan Mohapatra, president and COO of the company, at a press conference here. The US-based firm also announced that it was changing its name to Aricent following the acquisition of 85 percent of its business by (KKR) Kohlberg Kravis Roberts and Co. and Sequoia Capital. Flextronics will retain 15 percent of the ownership and five percent would be retained by the company's management. The transaction valued the entire business at about $900 million. "With the re-branding of the company, we are planning a greater business and enhancement of our capabilities towards our customers," said Ashish Bhardwaj, CEO of the firm. Added Mohapatra: "We are also planning to hire 2,500 additional employees in India. Currently, the company has around 6,700 employees globally, of which 80 percent are in India." The company has two manufacturing units in India - one in Bangalore and another in Chennai. At present, it commands less than 20 percent market share in India. The revenue for the company for the financial year 2005-06 was $230 million. It plans to achieve $300 million by the end of the current financial year. "India contributes less than five percent of the total revenue," said Mohapatra. Aricent was known as Hughes Software Systems when it started out in 1991. It became Flextronics in 2004.