SET-listed Delta Electronics will invest more than 1 billion baht to construct a research and design centre in India to begin operations in 2018, says board member Anusorn Muttaraid.
The investment plan was approved by Delta's board of directors on Monday.
The company's investment of US$32 million (1.12 billion baht) will fund a hub for research and design in Bengaluru, Mr Anusorn said.
Work on the centre is scheduled to start early next year. Delta's main products are power supplies and electronic components.
"Once the centre is finished, our competitiveness will improve," Mr Anusorn said.
The board also gave the go-ahead for Indian subsidiary Delta Electronics India Pvt to buy 125 acres (316 rai) from the local government of Tamil Nadu for $12.3 million for a factory. Products made in India will mainly serve local demand.
Mr Anusorn said funds for investment in India will be raised through subsidiary Delta Energy Systems (Singapore) Pte Ltd, a major shareholder of Delta in India.
Delta in the second quarter of this year had sales of 11.27 billion baht, down 1.7% from a year earlier, with a net profit of 1.33 billion baht, down 22%.
The poor showing was blamed on shrinking sales of electronics, especially mobile power supplies, in the US, as well as higher research and development spending.
DELTA shares closed yesterday on the Stock Exchange of Thailand at 72.75 baht, up 25 satang, in trade worth 145 million baht.