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TES Solutions to expand Indian presence

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CIOL Bureau
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BANGALORE: France-based design and manufacturing services firm, TES Electronic Solutions, which until now focused on the European market, is now expanding its horizons beyond its traditional bastion.

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Founded in 2004 by three strategic investment firms following the sell-off of Thales' Electronics Solutions division in 2004, TES undertakes manufacturing (at the board and system level) and design services for customers, mostly based in Europe.

TES works on technologies like multimedia, human-machine interface, high-speed boards and RF-Wireless and also provides IP licensing and support services, and new product introduction.

Since last year, the company has been making strategic moves to expand its presence. In September 2005, the company acquired PurpleVision Technologies in Bangalore and two months later, started a manufacturing plant in Penang, Malaysia. And in January 2006, TES opened a design center in California.

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“What attracted PurpleVision was its skills in Silicon design and verification, board design and software capabilities and also the fact that it provided TES with the gateway to the Indian market,” said Michel Desbard, chairman and CEO, TES electronics Solutions.

In the next two years, TES plans to double the intake of engineering hires from the current headcount of 220. The company intends to pump in around $5-$10 million worth of investment into the Indian center.

“We have distributed design competencies across various centers. We are also trying to exchange competencies between various centers so that there is interplay within the teams,” said Jagannathan Balaji, CEO and president, Purple Vision Technologies.

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The company is transferring design expertise on graphic solutions for the embedded market from its European design centers to India.

Replying to a question on how the company differentiates itself from other engineering and design services outfits, Nick Walker, senior VP, global sales and marketing, TES, said, “Customers these days are looking for a single player who can deliver both design as well as manufacturing services. In contract manufacturing and EMS, when a problem arises, it goes back to the customer. They want someone who is responsible, technology driven and also easy to manage.”

Desbard added that TES is uniquely positioned since it is one of very few companies providing both design and manufacturing services. “We are a one-stop outsourcing company since we run the gamut from consulting, turnkey projects, IP licensing, New product introduction to manufacturing.”

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Pointing out market trends, he said that the services model is moving from generalist to the specialist mode.

Besides Malaysia, TES has two manufacturing plants in Langon, France. The company uses these facilities for its low-volume high mix products while the Malaysian plant is used for high volume and low-mix projects. Contrary to what the market indicates, he need for local manufacturing has not gone away, said Desbard.

While Desbard did not quote the company's exact revenues, he gave a ballpark estimate that it was between $150-$200 million last year. He added that the company's topline was growing 30-40 per cent every year.

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