NOTE | OMX STO SEK

ticker image

Norrtelje in India!

Quietly, contract manufacturer Norrtelje has built up a network of local electronics manufacturers in India. Unlike its competitors, the strategy has been to choose partners outside the big cities that provide the same capacity - but at a significantly lower price.

Norrtelje currently works with three producers in the state of Karnataka, who in turn have built a local co-operation network to cope with rapid increases in production. The factories, like the Group's other partners worldwide, have been carefully selected and have the capacity to handle everything from purchasing to distribution and after-sales. Norrtelje has signed an exclusivity agreement with the three factories in India.

Trade barriers

With India's trade barriers sky-high, contract manufacturers are queuing up to get local production. "Although most Indians do not have a high standard of living, thanks to the large population, there are still around 100 million extremely well-off people. It's a huge market," explains Marina Filipsson, who is responsible for the group's global network of partners.

High quality

To evaluate the capacity of our partners, Norrtelje has transferred production to all three factories. We handed over material sourcing, production and testing to the factories. "It has worked very well, we are impressed by the capacity and high quality of the factories, while the price was above expectations in terms of materials", Marina Filipsson continues.

Because of the large Indian market, many electronics manufacturers are trying to establish themselves in India. "Norrtelje has made a name for itself for working according to the principle of the 'Internet in reality', i.e. co-operative networks of partners that are communicated with and managed via information technology," concludes Marina Filipsson.

For more information, please contact Marina Filipsson, responsible for the Group's global network of partners, on tel: 0176-799 04 or Caroline Nord, Information Officer on tel: 0176-799 02