According to a company release, HP will oversee product quality, testing and branding compliance.
Moser Baer India executive director Ratul Puri confirmed the development.
He told eFE, This is the 12th customer in our list of original equiment manufacturers (OEMs). The manufacturing of the CD storage media products for HP will add a few percentages to our total capacity.
The manufacturing for OEMs contributes 75 per cent to Moser Baers revenue while the rest of the revenue comes from its own branded products.
When asked whether manufacturing for HP will augment any competition for Moser Baer, Mr Puri said, Manufacturing for all the OEMs is competition for us.
HP officials in India refused to comment. But, according to the release, HP vice-president (Asia Pacific & Japan), consumer products and mobile business, See Chik Teik said, Many of our customers were dissapointed when the company ceased to provide the CD storage media it once offered.
The Indian market for optical storage media products is growing at 50 per cent per annum, according to the release.
We expect the HP business to contribute Rs 100 crore to Moser Baers revenues by the year 2006, Moser Baer India vice-president - domestic sales & marketing Bhaskar Sharma said.