India: M2M Telematics is planning to build a navigation equipment production facility in India, announced the company’s Executive Director Alexei Smyatskikh. Production is likely to be based on NIS GLONASS, the Indian subsidiary of Navigation and Information Systems (NIS GLONASS), which was registered in the country in December 2011.
“The Indian market is quite specific and the chief requirement is a low price for the equipment. That is why, in order to avoid additional expenses, NIS GLONASS has decided to organise production locally”, Smyatskikh said.
NIS GLONASS CEO Alexander Gurko stated that the company plans to enter more foreign markets, while the Indian market is the company’s top priority. According to him, so far the attempts by international navigation services providers to approach the Indian market have had little success. Chinese companies have been most active on this market in India. NIS GLONASS has already established its first contracts, albeit modest in volumes.
To ensure close interaction between the companies, AFK Sistema has transferred a 51% stake in M2M Telematics to NIS GLONASS. Even so, Gurko assures that the companies themselves will undergo no change and the brands, structure and management of the companies will remain in place.
Source: Russia & India Report