Kingston banks on Indias growth

MUMBAI, INDIA: India’s growth and economy has been so much impressive for the global memory chip maker Kingston Technology that the company’s co-founder and president John Tu is keen to invest and expand business here.

“India, like China, is on a way to become a giant economy. We had tried to set up our base 3-4 years back; however, it is now the right time to invest here,” Tu told reporters during his maiden visit to Mumbai on Tuesday.

According to Tu, India, China, Brazil and parts of Eastern block countries including Russia are potential upcoming markets. “In next 2-3 years we want to invest in India and will try to provide value to consumers by offering service support,” he said.

While speaking to CyberMedia News, Tu discussed the company’s future business plans in India and differentiated the country’s economy against Chinese economy.

“We want to increase our product capabilities, possibility of making products’ availability locally and invest in huge Indian market, in terms of population and economic power, unlike China which looks mainly at exports,” he said.

Though the company’s growth in China is higher when compared to that in India because Kingston had entered there many years before and already has a manufacturing plant, Tu stated, “We want India to grow parallelly with China.”

Despite the global economic slowdown, the privately held company posted US$4.1 billion global revenues in 2009, which is the second highest gross earned in a year since Kingston was formed in 1987.

“We expect about 40-50 per cent growth for 2010 with a global revenue target of around US$6 billion for this year,” Tu stressed.

According to him, Kingston has been in India for just two years; however, the business has been impressive. While India contributed towards about 10 per cent of revenue from the Asia Pacific region, Tu hoped that India revenues would reach around US$150-200 million in next two years.

Pointing memory products as commodity, he hinted that in trying to make products locally available the company is exploring the future opportunities of having manufacturing base in India.

In Tu’s observation, the memory chip is no longer just an IT product as it is used in mobile phones, cameras, computers and entertainment devices.

According to iSuppli 2009 report, Kingston has 40.3 per cent market share globally in the memory market business, while the 2009 Inc. 500|5000 ranked the company among the top 5 and topped in the Computer Hardware category by revenue.

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