India's first storage memory brand is born

NEW DELHI, INDIA: Om Nanotech, a semiconductor company promoted by two non-resident Indians, today announced the launch of the first 'made in India' memory modules and flash product brands. These brand names are Zipmem and Dolgix.

“There are three main market segment in memory modules — high-end, medium, and low or entry level. We are catering to all these three segments. We started our manufacturing facility in Noida SEZ in 2007 and have been shipping our product to 21 countries,” said Ashok Khosla, CEO, Om Nanotech.

“In the first stage we did not sell our product as made in India product because people in foreign market would have not accepted it. In the second stage we started making space for India-made memory product in the mind of our customers and after achieving success in doing so we are now formally announcing our brand name, ” he added.

Om Nanotech is the subsidiary of Om Associates based out of Singapore and the company plant was established in Noida in 2007.

“It is very easy to setup a company in Singapore. Everything is online. Taxes are very low and also all the process is online as well as very simple. Therefore we established our company in Singapore. Starting up business in India is our passion. We want to see India grow and therefore we decided to set up a manufacturing facility in India as well, which no one has done so far,” said Atul Khosla, director, Om Nanotech.

Om Nantotech has production capacity of 150,000 memory products per month which the company has plans to scale up to 200 thousand per month by April 2011.

The company at its Noida plant produces memory modules ranging from 512 MB 333 Mhz DDR1  to 4GB 1333Mhz DDR3 RAM, USB pen drives from 2G to 32 GB, micro SD cards from 2GB to 16 GB.

The company in June 2011 will start production of electronic multimedia cards as these cards are expected to replace micro SD card in the coming days.

“We are left with no option because of technology shift from micro SD card to eMMC. Probably by June 2011 we will start production of these cards,” said Ashok Khosla.

When asked about the profit margins of the company compared to Chinese and Taiwanese companies, Ashok Khosla mentioned that his company has come up with the business model which gives it edge over competition from Chinese and other foreign products that are floating in the market.

“We have realized that customers are very good. It is vendors that spoil the relationship with them. Therefore we have built strong customer support system in our company and in the last five years we have not lost any customers. This had been our USP in capturing the market share,” said Khosla.

“Secondly we have been very competitive in terms of price compared to to all known brands in the market. We pick up chips from Micron and Samsung and even those chipsets that they have not been able to sell. By using our technology we upgrade those chips and sell end product in the market. We also make margin in buying ICs from these two companies which we pass on to our customers,” he added.

Ashok Khosla mentioned that he is pretty confident of making Om a billion dollar company in the next three years and India will contribute up to 30 per cent in the overall pie.

“At present the contribution of India is 20 per cent in our revenue. We are going to start shipment of the product in the domestic market from January 14, 2011 onward. In the next financial year, we expect India will start contributing 30 per cent to our total revenue,” said Ashok Khosla.