Vishay acquires BC Components India

PUNE: Vishay Intertechnology Inc. has acquired BC Components India. Vishay, manufacturer of discrete semiconductors and passive electronic components, is acquiring the Netherlands headquartered BC Components Holdings BV and inheriting the 100 percent Indian subsidiary in Pune.

Vishay is acquiring BC from equity investor, Compass International. BC Components was spun-off from Royal Philips’ passive component products business and was picked by Compass in 1999. The New York Stock Exchange (NYSE) listed Vishay is a $ 2 billion company headquartered in Malvern, Pennsylvania with plants in 14 countries. The company has been on an aggressive acquisition spree over the last few years.

Nazario Projetto, CEO, BC Components Holdings B V , the Netherlands said that the merger will result in multifold jump in offerings from BC. "Vishay is a zero debt financially strong company and the BC team found it to be the best to partner and become a one-stop shop for electronic components," Projetto said. The final merger would be completed on December 13, 2002. Vishay does not have any operations in India and would retail the BC name in India.

Projetto was in Pune to launch BC Components’ 100 percent EOU. The unit exports power resistors and high voltage resistors and it is the only global supply center of the company for this product range. Projetto said that this project was the parent company’s strategic decision to be closer to the growing Asian market and to remain cost competitive. "We have started exports of about Rs 5 crore every month and are confident of achieving Rs 75 crore next year," RG Deshpande, MD, BC Components India, said.

BC is Vishay’s major acquisition in the passive components’ area. Apart from the expansion of the product portfolio, Vishay is looking at synergies and cost savings. Vishay rates the Indian facility highly and the acquisitions to be in tune with the company’s program of shifting production to regions with lower labor costs.

The Indian operations would play an important role in Vishay’s Asia-Pacific foray. The company already has a strong presence in China and Japan, where it is doing a business of about $ 750 million. Vishay’s clientele includes AT & T, Alcatel, Delco, Ford, IBM, Motorola, Qualcomm, Siemens, Sony and Samsung.