Antenna and radio frequency products? maker Kavveri Telecom Products Limited will commence contract manufacturing services for its overseas clients and subsidiaries in September 2008. Kavveri would commence contract manufacturing at its upcoming Rs 20 crore plant at Jigni near Bangalore, its managing director Shivkumar Reddy said.
Addressing the media, Reddy said, ?contract manufacturing has a bright future in India. The manufacturing cost difference between India and North America is almost 1: 5 or 1:6. Companies are able to get quality products manufactured here at half the price. We are leveraging that advantage?.
The company had already secured contracts worth Rs 200 crore for this financial year, and was in the process of bidding for more, he said.
During the past fiscal, Kavveri grew 167% in net profit, at Rs 12.35 crore for fiscal 2008, compared to Rs 4.61 crore for fiscal 2007. It recorded a consolidated turnover of Rs 157.91 crore during the year, growing 194% from Rs 53.57 crore for the previous year. For the current fiscal, the company is targetting 40-50% growth in revenue, Reddy said.
The company is planning to enter European market and was mulling over strategic acquisitions in the range of $10-5 million in the future.
Reddy said that the company would raise additional capital to expand its operations and to finance the acquisitions, however, did not elaborate further.
