Zicom Electronic Security Systems Limited, a Rs. 100 crore, Mumbai-headquartered listed electronic security equipment maker, may conclude two overseas acquisitions, one in China and the other in a nearby country, by May-June 2007.
The acquisitions will be in the range of Rs. 30-35 crores each and will be funded through the company's internal accruals and proceeds of the $11 mn FCCB issue which it had floated in September 2005.
Zicom presently enjoys around an 18% market share in the domestic electronic security equipments segment. Zicom may acquire a 49% stake in a firefighting equipment manufacturing company in a nearby country. The acquired company enjoys an order-book position of Rs. 75 crores and its products will be introduced into the Indian market under the brand name of that company so that the high brand value of Zicom in the Indian electronic security space does not get diluted. In China, Zicom is looking at a JV or a complete buy-out of a firm manufacturing electronic security equipment.
Presently, Zicom sources its components from various players before assembling them into a product. Earlier, this business was mainly restricted to corporates but now it has expanded to cover many other segments as well such as railways, buses, airports and ports which would need highly sophisticated electronic security equipment to meet emerging threats.
The company is also scouting for venture capital funding to fund its retail foray. The company has already opened 11 shops showcasing its products and plans to open 20 more within the next two months.
Read The Economic Times article.
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