BANGALORE, May 7: Tektronix India (TIL) will become a wholly-owned subsidiary of Tektronix Inc of the United States. This follows Tektronix Inc's policy of operating through wholly owned subsidiaries worldwide.

Tektronix India managing director Brijesh Wahi told The Financial Express that ``there will be no change in the business orientation of the company. The parent company prefers not to involve an Indian partner or the public in its future decision-making''.

Wahi said that the company's customer base, manufacturing facilities or scale of operations would undergo no change. In other words, everything remains the same as there is no material change to the profile of the company, he said. The company is at present involved in assembling and distributing of measurement equipment, colour printers and video and networking equipment.

Tektronix India, formerly Hinditron Tektronix India, was set up in partnership with the Hinditron group and public participation.

In 1995, owing to a change in government policies, Tektronix Inc raised its holding to 62.38 per cent by picking up its Indian partner's stake of 22.38 per cent.

Tektronix Inc later decided to delist TIL's 13.54 lakh shares from the stock exchanges comprising 37.62 per cent of the company's paid-up share capital.

Tektronix Engineering Development India (Tedi) plans to come out with a public issue at Rs 40 per share, Wahi said. A resolution to this effect will be moved at an EGM to be held on Friday.

Tektronix Engineering is a wholly owned subsidiary of Tektronix Inc with a paid-up share capital of Rs 8.75 crore. This will now increase by Rs 5.4 crore following the public offering.

The company was set up in July 1996 and is involved in establishing a software park in Bangalore.

TIL recorded a decline in its profits during the first half of 1996-97 to Rs 16 lakh from Rs 17 lakh during the corresponding period in the previous fiscal. According to Wahi, this was due to the political uncertainty in the economy following the elections.

TIL corporate manager (marketing) Naresh Victor said the company suffered because 45 per cent of its business is conducted with the government sector and orders were not forthcoming from that sector. Infrastructural investments had also been made by the company during the period.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.