It has been learnt that Alex Wasilov, the EMU president, would be re-assigned new duties within the organisation as the EMU paves way for integration into a much larger market that will include the Middle East, Africa and even Latin America. Called developing market segment, this segment is expected to be headed by Patrick Martin.

EMU was set up by Xerox Corporation just over a year back. Xerox Ltd, the European subsidiary of Xerox Corporation, holds equity in Modi Xerox, its joint venture company with BK Modi group.

Towards 1997-end, Xerox Corporation had identified the three countries as the focus area for future growth of the company for next five years. EMU's portfolio was to directly strategise and give a new impetus to the sales in the region in view of thegrowth opportunity that was foreseen.

The company's top brass, including CEO Paul Allaire and chief operating officer Rick Thoman, is scheduled to make an announcement in Rochester, UK, on Thursday and it is widely expected that among other things, the company will announce recasting of its worldwide operations. Under the plan, Xerox is likely to map out the world market for its products into three areas of operations. These will be United States, Europe and the rest of the world, sources said.

Disbanding of EMU is a direct result of the economic turmoil in Russia and poor recessionary conditions in India and the rest of Asian region. The countries are believed to have failed to turn in the kind of growth that was expected by Xerox Corporation, a senior Modi Xerox official pointed out.

Senior Modi Xerox officials were not available for comment. While group chairman BK Modi was said to be out of town, Modi Xerox group managing director HN Nanani declined to comment. A spokesperson for the group toodenied knowledge of the plans. Company sources, however, confirmed the plans on the condition of anonymity.

The market has been agog with speculation in the past year that Xerox might want to hike its stake in the Indian venture, but any plan to do so in the immediate future has been consistently denied by the key officials.

Interestingly, Xerox Corp was recently granted permission to independently set up a wholly owned subsidiary in India in spite of Modi Xerox. It has not yet been made clear what will be the role of the two entities in the Indian market and whether the new company will function as a rival to the venture.

Modi Xerox is the undisputed leader in the reprographic market in India with 58 per cent market share with revenues expected to touch Rs 750 crore this year.