RAD exiting from its MRO-Tek JV on manufacturing

Encouraged by the existing government-driven favorable conditions for
multinationals to locally manufacture IT products in India, Tel Aviv-based RAD
Data Communications, a manufac­turer of access equipment for data communications
and telecommunications applica­tions, is all set to exit from its 50:50
manufacturing focused joint venture with Bangalore-based MRO-Tek in India.

According to Motti Holler, Director-Asia, RAD Data Communications, the
decision to exit from the joint venture will not have any affect on the
company's ongoing long-term relationship with MRO-Tek as its sole distributor as
well as a unique partner in the sub-continent. “Today, a lot of multinationals
are coming to India with their manufacturing plans for IT products. We thought
about it much before in 1996. At that point in time, it was favorable for our
overall business in the region to have a joint venture on manufacturing with
MRO-Tek. But today there are a lot of incentives that the government is giving
to encourage local manufacturing by foreign multinationals, so we have decided
to exit from this particular joint venture and manufacture products on our own.”

(The author was hosted in Tel Aviv by RAD)