Thomson mulling R&D center in India

PARIS: French technology group Thomson, which has eight research and development centres worldwide, wants to locate a ninth centre in India in coming years, its chairman said on Thursday.

This would be done by expanding its existing capacity in India and not through acquisitions, Frank Dangeard told the Association of French Economic and Financial Journalists (AJEF).

"We have eight research centres worldwide and we need a ninth centre. We need to have one in India," he said.

Thomson already operates from three locations in India -- in Bangalore, New Delhi, and Mumbai -- with staff of around 150 in each involved mainly in post-production, video gaming and marketing.

Thomson has yet to decide which centre will boost its capacity through the hiring of new staff. The move should come before the end of the group's three-year strategy plan in 2009.

Asked which size he had in mind for the Indian R&D centre, Dangeard said that Thomson's large R&D centres around the world employed between 500 and 600 people.

Thomson has two R&D centres in France, two in Germany, three in the United States and one in China.

A year ago Dangeard told the Reuters Global Technology, Media and Telecoms Summit that the company planned to locate more of its business, notably film post-production and DVD manufacturing, in India to cut costs and to serve local clients.

In February, Thomson said its Technicolor Content Services business had made a strategic investment in Paprikaas Animation Studios in Bangalore to bolster its position in the fast-growing Indian entertainment industry.

Last year Thomson also won an agreement to deliver digital set-top boxes to support Tata Sky's new direct-to-home satellite television service in India.

Thomson, which focuses on services, technology and equipment for the media and entertainment industry, has transformed itself since 2004, exiting consumer electronic businesses such as TV manufacturing.

The media and entertainment businesses, which include activities such as DVD replication, film post-production, professional broadcasting equipment and TV set-top boxes, are now the group's main growth drivers.