The proposal covers expansion of the production capacity of aluminium electrolytic capacitors from the present 150 million pieces per annum to 250 million pieces and to 500 million pieces in due course.

Proposals are on the anvil for setting up a Rs 3 crore national facility for etching and forming of aluminium foil, a basic facility for the raw material process for capacitor industry which has been so far dependent on import. The Department of Electronics has agreed to lend financial support.

Keltron's move is viewed as significant in the wake of the draft policy on IT hardware, announced by the government, which gives specific emphasis for enhancing indigenous production ofcomponents. Keltron management has claimed that the move proved the corporation's "inherent capability for fast track strategic initiative to cope with the changing business environment for putting the company on the growth track."

A three-member delegation, headed by corporation managing director Sathish Kumar who is also the chairman of the Keltron Component Complex Ltd, has just returned after a visit to Japan, Korea, Thailand and Taiwan, to identify and finalise technology and business tieups in connection with the KCCL's expansion programme.

Sathish Kumar said the most significant observation by the delegation was the emergence of China as a major player in the electronic components industry. The delegation had also identified a few Chinese companies at the Hong Kong electronics trade fair for a possible technology and business tieups.

The largest aluminium electrotytic capacitor manufacturers, Rubicon in Japan, has evinced keen interest in associating with Keltron in the manufacture of theirlatest range of capacitors and supply of most sophisticated equipment for upgradation of facilities. Broad understanding has also been reached with Nagano Denshi in Japan for possible cooperation in technology transfers for setting up a pilot plant for low voltage etching. The Keltron delegation had visited etching and forming facilities of aluminium foil to acquire technology for the proposed national facility at Kannur.

Sathish Kumar said an understanding had also been reached for tieups for introduction of snap-on-type capacitors with Chin San Electronics in Thailand. Formal proposals have been received for upgrading the technology in Piezo-Electric Crystals and Crystal Devices, manufacture of PTC and NTC Thermistors, Nickel Cadmium Cells, Resistor Network and Glass Fuses. The delegation has also identified technology and equipment supply sources in Taiwan for establishing captive lead tab manufacture facility at Kannur to support the expansion project.

An MoU has been signed between Sathish Kumar andE-Tech Inc vice-president Steeve Su in Thailand for cooperation in the telecom equipment sector. The Thai company has also shown interest in marketing some Keltron products in Thailand and Mainland China. Keltron has responded positively to the offer.