BUDGET 2000
SPECIALS
INTERVIEWS
COMMENTARY
GOVT&ECONOMY
Y2K: BIZ FEATURES
INDIA & THE WTO
CREDIT POLICY
BIZ IN THE USA
CARS & MOBIKES
MANAGEMENT
CASE STUDY
BIZ-QUIZ
USEFUL INFO
ARCHIVES
NEWSLINKS
SEARCH REDIFF

Delphi plans software centre in India

Passenger car component major Delphi Automotive Systems or DAS is seriously examining whether to set up a full-fledged software development centre in Bangalore, the company's top brass said in Detroit today.

The US firm is also open to expanding its component business in India through acquisitions if synergies are available, DAS chairman and chief executive officer J T Battenberg-III said here.

"We are always looking at acquisitions provided there are synergies,'' Battenberg said. In fact, Delphi has been acquiring companies world-wide over the last few years to expand its business. ''We have made 42 acquisitions recently,'' he said. Presently, DAS has four facilities in India, where it manufactures most of the car component except engine blocks and fuel injections.

President of Delco Electronics Systems David B Wohleen said Delphi is keen to tap the Indian software resources and is studying various options. Delphi is already sourcing its software requirement from India through a Bangalore-based company and is now set to take a crucial decision whether to get its additional requirements from the same source or have its own centre.

Company general director (engineering) Jeffrey J Owens said Delphi is studying the General Electrics' business model for software sourcing. ''Some announcement is expected by June this year.''

Electronics and software play critical role in modern cars equipped with integrated safety systems and multimedia technologies.

The Delphi top management is generally pleased with the performance of its Indian operations, which are giving an incremental business of 30-50 per cent annually. Last year, the $ 31-billion company, through its Indian facilities, did a business of Rs 2.6 billion and is expecting to achieve a 30-50 per cent growth this year.

''We are pleased with our Indian operations and are quite upbeat about the country. Of the $ 550-million investment outside the US, we invested over $ 100 million in India alone,'' Battenberg stated.

After a spin-off from its parent General Motor Corporation, the company had rewarded its staff with employee stock option plans or ESOPs. The 1,300 Indian employees would also be getting this incentive, the company CEO confirmed. However, the legal and financial details are yet to be worked out.

UNI

Business