Toshiba’s subsidiary to invest Rs 5.2 cr in India

BANGALORE: Toshiba Corporation, after operating through a liaison office in

India, has announced its decision to set up a wholly owned subsidiary in India.

Toshiba India, the new entity, has planned to invest Rs 5.2 crore for its

Indian operations. In consent with the government, it plans to expand business

focussing on the twin sectors -- information technology and infrastructure. An

official press release stated, "Toshiba India will not only promote

operations in these segments, it will also provide marketing and sales support

to all Toshiba group products in the neighboring countries like Nepal, Bhutan

and Sri Lanka.

"We believe that India has immense business potential, particularly in

areas such as IT and Power. Toshiba is keen to play a key role in the emerging

sectors. This strategic transition -- from a liaison office to a 100 per cent

subsidiary reflects our growing business interest in this region," said

Toshiba India’s managing director Genichi Kobayashi. Incidentally, Kobayashi

headed the erstwhile liaison office and will continue the charge of the new

company.

The new entity will focus on outsourcing software support services from India

to other Toshiba group companies. It will also concentrate on spearheading

research and development initiatives in the country.

Toshiba has envisaged significant expansion plans in the power sector. While

the company is undertaking several power projects in India, it plans to obtain a

firmer foothold in this area. It has approached the government, seeking

permission to undertake infrastructure projects and to procure Indian equipment

for projects. "The new entity will help us to build a strong presence in

our chosen sectors. It will also strengthen our marketing initiatives -- not

only in India but in other neighboring countries as well," said Kobayashi.

At present, Toshiba India will continue to operate from its existing New

Delhi office. Later, as it establishes its position in the target areas, it

plans to branch out to other parts of the country. Toshiba Corporation is

currently involved in developing power projects and in several information

technology initiatives, including outsourcing software solutions from leading

Indian firms. It is also a significant player in the business of manufacturing

semiconductors and medical equipment.