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Delta Electronics likely to delay India plant on poor market conditions

According to reports, Thailand’s biggest electronics firm  Delta Electronics (Thailand) Plc is likely to delay the construction of a new plant in India due to sluggish market conditions, a media report has said.
The company will wait and see how the Indian market performed this quarter and the next, before deciding whether to proceed with the new plant in Chennai, Executive Director Anusorn Muttaraid was quoted as saying by the daily ‘Bangkok Post’.

The facility, which would be the company’s fourth factory in India, was originally scheduled to open this year for assembly of products such as uninterrupted power supplies.

“Indian companies have cut spending, partly due to the economic situation in Europe,” he said.
“We’ll probably decide in the fourth quarter whether to invest in the new plant,” he added.
Commerce and Industry Minister  Anand Sharma is scheduled to visit Delta’s plant in Tambon Bang Pu of Samut Prakan province, where management will propose how India can simplify regulations, he said.

Henry Shieh, Delta’s President, said the company expects revenue generated in India to be similar to last year at USD 100-110 million.

Though Delta has dominated the telecom power system market there with a 40 per cent share, sales have continuously edged down from a peak of USD 125 million in 2007.

“New investment in factories in India for the time being is not as strong as in the past,” said Shieh.
“Hopefully, a turnaround should be expected from next year onwards. With a permanent staff of fewer than 500 in India,” he said.

Delta has transformed itself from a telecom to an industrial-type manufacturer and is exploring new opportunities such as solar inverters and power supplies, the report said.

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