US-based Intel Corporation has increased its investments in the Asia-Pacific region including India. According to Leslie L Vadasz, senior vice-president, who looks after the $ 4.8 billion investment portfolio of Intel said that about 33 per cent of the $1 billion investment made by the company in 1999 has been routed to the Asia-Pacific region.
"In 1998, less than 5 per cent was allocated to the Asia-Pacific region. In 1999, 33 per cent of our $1 billion investment is in India and other Asian markets. We will invest more in the year 2000," he said.
Intel has so far invested in seven companies in India. These include besides Rediff On The Net, Avigna, Eastern Software Systems, Network Solutions, Ritechoice, Silicon Automation Systems and Bharti Telespatial.
He declined to comment on individual investments made by the company in each country or company.
He said that Intel adds to value to its investee companies. "By introducing Eastern Software Systems to members of Genuine Intel Dealer Channel, Easter Software Systems has been able to market their products. The participation of the company in portfolio companies includes in areas like technology collaboration, insight into future trends, inclusion in marketing programmes and access to distribution channels, networking with other portfolio companies and worldwide infrastructure," he said.
He said that there is a necessity of an adequate Internet infrastructure in countries like India for spreading the Internet. There is also a need to create local content to create a local demand. "The idea behind making investments in portals is that it leads to greater sales of computers and in tern complements Intel's core business of making computer chips," he added.
Vadasz was also of the view that the access mode of Internet will remain a desktop personal computer. "It is true that new access devices like telephone handsets and webTV will be used for browsing through the Net. However, the predominant device will be a multimedia computer kit. I do not believe that even after convergence anyone will be keen to watch a movie on the mobile phone. The utility will depend on the specific need of the consumer," he said.
The investment focus of Intel in the Asia-Pacific region is on eight regions, Australia, China, Hong Kong, India, Japan, Korea, Singapore and Taiwan.
Intel's investment in India in 1999 is higher than any other venture capitalist. "We are not venture capitalists. We are strategic partners investing with a motive of growing the technology market. We see our role as complementary to that of VCs," he added.