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Xerox to fully own local outfit
New Delhi, May 05: Xerox Corporation today said
it will increase its shareholdings in Xerox India Ltd to 100 per cent from 86
per cent at present.“Yes, that is our objective. We intend to increase our
stake to 100 per cent. However, at the moment we have not approached the foreign
investment promotion board (FIPB) for an approval,” said Andrew Horne, managing
director of Xerox India Limited.At present, the public, financial institutions and
Modi Rubber together hold 14 per cent of the equity that Xerox Corp does not
own. The company has refused to spell out a timeframe for the buyout.Xerox Corp’s relations with Modi Rubber turned frosty
after it accused the Indian partner in 2001 of paying bribes to secure
government contracts. The accusation was investigated by the Serious Frauds
Office but no real action was taken. Asked if there had been any communications
with Modi Rubber on the buyout, Horne said, “There is no problem at all.”Xerox India, which earned revenues worth $98 million
in calendar year 2003, “wants to be aggressive in the Indian market,” Horne
said.The financial results for 2004-05 are expected to come
out in July or August this year.At present, Xerox enjoys a 37 per cent share in the
copier business and 13 per cent in the digital multi-functional market. In
India, companies like Canon and Hewlett-Packard are Xerox’s competitors in
copier and printer segments respectively.Unveiling its business strategy to grow its share in
the Indian document management industry, the company has introduced Xerox office
services. In addition, Xerox India plans to launch 30 products this year.The company has identified colour, new business of
printing and inkjet and laser conversion as key elements of its strategy for
2005.Xerox has signed partnerships with IT companies like
Salora International, Ingram Micro, Godrej Prima, Redington India Limited and
Accel Icim.Explaining that outsourcing document management can
help companies cut costs, L. V. Sastry, associate director, Xerox Global
Services, said, “These companies can save as much as 10-30 per cent of their
printing costs. The Indian market presents a huge potential for such
solutions.”
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