NEC to establish India office

NEW DELHI: Japan-based NEC Corp. (NEC), provider of Internet, broadband network and enterprise business solutions, plans to float a new company here to expand its IT/network business in the Indian IT market.

Tentatively named NEC India Pvt. Ltd, the new company is scheduled to start operations next month.

The $1 million new company will provide IT/network solutions and wireless systems, besides selling mass-market IT products. The company also has plans to open branches in other Indian cities as well.

Announcing this at a press conference here, Tomohiro Yagi, CEO of Asia Pacific Pte (NECSAP), said: “On establishment, we would employ 50 people and plan to increase this number to approximately 300 employees over three years. There are also plans to open three more branches in Chennai, Mumbai and Bangalore.”

The company expects to generate business to the tune of $10 -20 million in the first year. It will also make an additional investment of $1 million during 2006-'07 for advertising and marketing purposes.

“Our new company in India will provide solutions that meet local needs, responding to the rapidly growing IT/network demand that is forecast in the booming Indian market,” said Norihiko Kunishima, senior VP at NEC Corporation.

“We also plan to capitalize on high-quality local software resources to develop our own proprietary products and expand local sales, contributing to the expansion and growth of India,” he added.

NEC Corporation will own 40 percent in the subsidiary company, while the rest will be with NEC Solution Asia Pacific.

The company has started negotiations with some state governments and also the central government for solutions business.

NEC's association with India began with the establishment of its representative office in 1977. Later, NECSAP set up an office in 2002 to sell IT equipment. In addition, NEC also has a liaison office in Chennai since 2002 as a procurement support base mainly for offshore outsourcing of software development.

NEC Systems Technology has established a JV company with HCL Tech, NEC HCL Technologies, for software development.