Karnataka signs MoU with Penang

The Karnataka Electronics Consortium has signed a
memorandum of understanding with the Penang
Electronic Consortium as a way of beginning the Indian Hardware Summit 2003.
"The memorandum signifies the decision by the group of companies comprising
both consortiums to leverage on comparative advantages and strengths and thereby
present a better and more value-added face to the global arena," said
Karnataka State Council chairman, Vinay Deshpande.

According the memorandum, Indian design companies along with Malaysian
manufacturing setups will look to set up joint ventures and work in partnerships
to address the Indian, ASEAN and eventually the global market with their added
on value proposition. Deshpande added that together they wanted to become a
viable and good alternative to competitors, namely China.

"The seed for the idea began when the Malaysia-based BCM Electronics
Corporation did some work with HiCal in Bangalore for a customer who needed
something in the area of magnetics. The Penang Electronics Consortium then
approached us with the idea of a wider partnership around six weeks ago. The
Karnataka counterpart consortium was formed as early as three days back and we
already have fourteen companies," informed Deshpande. The consortium, which
includes Tyco Electronics, TVS Electronics, United Telecom, Processor Systems
and Solectron Centum Electronics among others, will be looking to add more
companies in the future.

"While we are adding, we want to make sure that there is no unnecessary
competition between companies in the consortium. So we will be adding similar
companies only when we feel the market can take one more. We will only be adding
companies who deliver what they promise and have integrity," he added. The
two consortiums will be involving themselves in several pilot projects of
co-coordinated work before branching out into broadening on the consortium base
and product range and zooming in on niches. Tan Sri Dr Koh Tsu Koon, chief
minister of Penang, who had come down for the function, emphasized that the
project will be private sector driven but supported completely by the
government.

Team DQ