Moser Baer gets Philips unit in optical disc race
Delhi-based Moser Baer acquires 81% in OM&T BV, a 100% owned subsidiary of Philips Netherlands BV, reports Prerna K Mishra.india Updated: Feb 06, 2007 18:18 IST
Aiming to corner an early advantage in a $5 billion worldwide market for the blu-ray format discs, Delhi-based Moser Baer said on Tuesday it has acquired 81 per cent in OM&T BV, a 100 per cent owned subsidiary of Philips Netherlands BV, for an undisclosed amount. It will help Moser Baer get an edge in high-tech research compete with the likes of Korean giants Samsung and LG.
Blu-ray is the next-generation optical disc format jointly developed by the Blu-ray Disc Association (BDA) that offers five times the storage capacity of traditional DVDs (digital video discs) and can hold up to 25 gigabits (GB) on a single-layer disc and 50 GB on a dual-layer disc.
With OM&T being the only company outside Japan shipping blue ray discs, the acquisition will not only give Moser Baer a leadership position in the next generation optical format race but also a strong foothold in the European market, company officials said.
Moser Baer is already the second largest optical disc manufacturer in the world and controls about 16 per cent of the global market with assets worth $900 million and 7,000 employees.
Moser Baer is expected to acquire 100 per cent stakes over the next two years in the technology company that specialises in optical research and development and closed last year with a turnover of about Rs 60 crore.
Moser made the acquisition through an offshore fund it floated nine months ago. "Since the acquisition is funded by the offshore subsidiary (Peraround) in Cyprus, it is not mandatory for us to reveal the amount. However, it will be an all cash-deal, financed both by debt and equity," said Moser Baer's Executive Director Ratul Puri.
In research and development, the acquisition will complement Moser Baer's India-based strengths. Under the acquisition agreement, intellectual property created by the Philips subsidiary will vest with the Indian company. The deal will also focus on development of photovoltaic technologies for the future.