Diebold To Set Up 100% Subsidiary

New Delhi: | Updated: Jul 31 2002, 05:30am hrs
US-based $1.7 billion Diebold Incorporated, a company in the business of Automated Teller Machines (ATM) and related software solutions, is planning to float a 100 per cent subsidiary in India with the primary objective of setting up a global software development centre.

The company will also explore the possibility of developing India as a base for manufacturing ATMs to supply and support in South Asian market. Diebold has already applied to the Foreign Investment Promotion Board (FIPB) for the wholly-owned subsidiary.

In an exclusive interview, Diebold senior corporate counsel Michael E Lindroos told eFE, Im here to answer any questions or to provide any further details if required by FIPB.

Although Mr Lindroos did not disclose the volume of investment the company is planning to bring in India, he said that the company would start outsourcing its software development activities to India. We will start with a partner to outsource the software development on contract basis before setting up our own dedicated software centre. Outsourcing will be the quickest way to kickstart the operations, he said.

The company also plans to bring in new products such as smart card-based systems and security systems in the Indian market. Mr Lindroos indicated the the company would preferably set up its office in Mumbai.

Diebold is already selling its ATM in Indian market through its joint venture with Chennai-based HMA group.

As per the agreement, Tata Infotech will source the core ATM machines from Diebold and assemble them at its Goa manufacturing facility with locally-sourced metal cabinets. The assembling will be done by Tata Infotech on contract basis.

The machines will in turn be marketed, sold and serviced by our joint venture with HMA group. The local content in the machines will gradually be increased so that the quality can be maintained, Mr Lindroos said, adding that the company might export the machines assembled in India to other South Asian countries.

The company already has a manufacturing setup in China to service the Asian market.