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Microcap & Penny Stocks : JTS- "A Nordic Drive in Every PC and laptop" -- Ignore unavailable to you. Want to Upgrade?

To: Naggrachi who wrote (1688)	2/6/1998 1:28:00 AM
From: rd	Read Replies (3) \| Respond to of 1985

Here is the news that might explain the uptick in stock price: JTS Technology Limited, a global leader in the hard disk drives (HDD) market, is entering the domestic market, with plans to corner 70 percent of the Indian market by the end of the next financial year. JTS, before making this move, was a 100 percent export oriented unit supplying only to its parent company JTS Corporation, San Jose, US. Incidentally, JTS is the only player to have its manufacturing unit in the country--this is situated in Madras Export Processing Zone (MEPZ). JTS is also expanding its manufacturing unit to increase its production capacity by upto 50 percent, i.e, from the present two million HDD capacity to three million by March 1998. C Sriram, Finance Controller, told The DQ Week Madras, "We have decided to enter the Indian market since China and India have been predicted to be the fastest growing markets in the world. By having our manufacturing unit here, we are able to cater to the market and offer our services directly, which we consider as an edge over our competitors. This can also possibly cut down the duty, freight and shipments cost in marketing our products." Commenting on the marketing strategy for JTS in the country, B Sivaraman, DGM (India Sales), said, "We have divided the market into three sections, the short term, mid term and long term. In the short term, we expect to capture 24 percent of the market share, 40 percent in the mid term and 70 percent in the long term. Presently, we are speaking with a few distributors, OEMs and also computer manufacturers in the country to install our HDDs. We looking at a strategy that will ensure a slow and steady increase in our market share." JTS is planning to appoint four distributors in the metros apart from getting into direct sales and through OEMs (Original Manufacturing Units). Out of the 34 billion HDD market in the world, JTS currently shares less than two percent, which it plans to increase to five percent in the coming year. The other major players in the market are Quantum, Seagate Technology and Western Digital. "Though we possess a small market size in the world today, ours has been rated as the second best hard disk in the world, only behind Quantum. This very fact will project our rise in the market," said Sriram. The manufacturing unit in Chennai is the largest and the only HDD unit in the country and, once again, the only manufacturing unit of JTS in the world. It currently has an employee strength of 5,000, which is expected to increase with the expansion of the production unit. Later this month, JTS will be releasing its latest 6.4 GB HDD. JTS Technology recorded an annual turnover of over Rs 600 crore for the last financial year (1996-97). The rise is astounding when compared to its Rs six crore in its first year of Indian operations (1994-95). Conversion: Rs. 1 crore = US $0.28 million Compiled from DQ Week, Chennai