Stockholm: Global technology products and services conglomerate NeST Group plans to acquire companies in India in the optoelectronic sector through its subsidiary SFO Technologies Northlight Division. Optoelectronics uses light signals to operate electronic devices and has applications in optical fibre networks, solar (photovoltaic) cells and photoresistors.
“We are looking at a number of companies in the optoelectronic area with a revenue between $10 million (Rs40.6 crore) and $20 million (Rs81.2 crore),” David Darby, general manager, Northlight AB said.
He declined to elaborate on the plans, citing commercial reasons.
SFO Technologies is already present in India through its software development centres, research ?and ?development (R&D) and manufacturing facilities located in cities such as Thiruvananthapuram, Kochi and Bangalore.
The US is the company’s main market and its customers include Lucent Technologies, ABB, Alstom, Motorola and Areva, among others.
SFO Technologies also plans to develop new products in India. It currently manufactures and markets optical transmitters, receivers and fibre amplifiers operating up to 10GB for high-speed LAN, metro and long-haul applications.
“There is a lot of expertise in software design and tunable laser is among the new products we plan to develop there (India). The joint development will be done at our Kochi facility,” Darby added.
“India is becoming a low- cost hub and there is a long way to go before the market gets saturated. It makes sense to set up base in India and Indianize the production. In such a scenario, it absolutely makes sense to acquire. However, there has to be synergy,” Romal Shetty, director at accounting firm KPMG said.
NeST Group has a global revenue of $170 million and believes that India has a very important role to play in its global operations and aspirations.
“Our plans in India have been very successful and it will play a very important role in the future development of electronics and software. We want to work together with resources in India and Sweden. We are hoping to get customers in India as well,” Darby said.