The deal will help the company strengthen its business portfolio
Dutch co.'s IP will be transferred to Moser Baer IndiaLaunches new CDs in the southern markets with 100 film titles
NEW DELHI: Moser Baer India, a leading optical storage device company, has acquired the optical R&D arm of Dutch electronics major Philips for an undisclosed amount to produce high-end discs at a much lower cost.
Moser Baer has acquired 81 per cent stake in the optical research and development company OM&T BV, a wholly-owned subsidiary of Philips, through its Cyprus-based arm Peraround, Moser Baer India Executive Director Ratul Puri told reporters here on Tuesday.
"At present we have acquired 81 per cent stake in the company and the balance will be acquired in the next two years,'' he said.
The deal is effective from January 1. The acquisition is being done by an offshore fund.
"The deal would help Moser Baer strengthen its business portfolio in the blue-laser format,'' company's Chief Financial Officer Yogesh Mathur said, adding that the platform provided a $5-billion worth of market opportunity.
At present, the market was in the range of $500 million to $1 billion but it would grow to the size of $5 billion in the next three years, Mr. Mathur said.
"This acquisition is a milestone for Moser Baer as we implement our strategy to be at the forefront of technology in optical and solar photovoltaic (PV) segments,'' Mr. Puri said. All intellectual property (IP) created by the Dutch firm would be transferred to Moser Baer.
The joint venture would also focus on development of photovoltaic (PV) technologies to support Moser Baer's PV business, he said.
The acquisition will complement the existing technology research being done in the company's R&D centre in India and would help Moser Baer in the optical media market to further consolidate its leadership position.
"We will produce CDs and DVDs at a cost of Rs. 28-34 and it would help us compete with the pirated CD market, which is 90 per cent of the total market size,'' Mr. Puri said.
The company has also ramped up its marketing plans and has launched the new CDs in the southern markets with 100 film titles. he said.
The company targets 7,000 titles and would launch the low cost CDs across the country in the next six months, Mr. Puri said.