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Our Corporate Bureau
MUMBAI, SEPT 29: Philips India on Tuesday announced the sale of its industrial components unit at Loni in Pune to Compass Partners International for an undisclosed sum. Compass Partners is a private equity firm with offices in New York and London.
The sale is part of the worldwide decison to divest its non-ceramic passive components business group as a `going concern' of Philips Components Division. Philips Components is a part of the Netherlands-based Royal Philips Electronics NV.
"Philips and Compass expect to close the transaction by early 1999. Financial details are not being disclosed. All employees will be transferred to the new entity under the current management structure," a Philips India release said.
Royal Philips Electronics NV's decision is aimed at focussing on ceramic components for use in high volume electronic applications, which is part of the Philips components division.
The disinvestment of the components business group will take place subject to obtaining necessary approvals fromshareholders and the government. "For Philips, the divestment allows to focus on ceramic components for use of high volume electronic applications, notably audio, television, consumers communications and PC-related systems, in which digital technology is increasingly important," Philips Components chairman and CEO YC Lo said.
The Loni unit, manufacturing non-ceramic passive components, contributed about 5 per cent of Philip India's sales turnover for 1997. It has over 700 employees and 10 managerial staff. The factory premises also houses the Philips plastic metalware.
The industrial components factory is the oldest and the largest of the Philips facilities. The value of the plant and machinery, along with 65 acres of prime real estate at Loni, is pegged at about Rs 100 crore.
The division is involved in the manufacture of a range of conventional and non-ceramic passive components like resistors, electrolytic, film capacitors, potentiometers, trimmers and gang condensers used in automobile, analogelectronics, telecom and consumer electronics.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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