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Toshiba to set up wholly-owned subsidiary in India

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DQW Bureau
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Toshiba Corporation, a Japanese technology company, has announced its

decision to set up a wholly-owned subsidiary in India with an investment of 5.2

crore. The new entity, Toshiba India, will replace the liaison office that has

been in operation in the country for the past 16 years. 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.

The company has already obtained the government's approval for its plans to

expand business in the India, focussing on the twin sectors, information

technology and infrastructure. Toshiba India will not only promote operations in

these segments, but will also provide marketing and sales support to all Toshiba

group products in the neighboring countries, like Nepal, Bhutan and Sri Lanka.





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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 Indian government, seeking

permission to undertake infrastructure projects and to procure Indian equipment

for projects.

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.

"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

Genichi Kobayashi, Managing Director, Toshiba India. Kobayashi, who headed the

erstwhile liaison office, will be in charge of the new company.

"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.

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