The Hindu Business Line : Bartronics plans to manufacture tags

"The new unit for tags would be a logical extension of the growing focus on the RFID business. The project will cover a facility to make smart cards, chips and antennae."

Hyderabad , Aug. 17

Bartronics Ltd., a barcode and RFID (radio frequency identification) solutions provider, is planning a backward integration project to manufacture tags with investment of up to Rs 150 crore.

The company is also at an advanced stage of finalising an acquisition.

To part-fund this expansion, including the acquisition, the company has recently passed an enabling resolution that gives it the power to raise funds up to Rs 250 crore.

The company's Managing Director, Mr Sudhir Rao, said that the manufacturing unit for tags would be a logical extension of the company's growing focus on the RFID business.

"We are in the process of negotiating with some overseas companies for buyback option as well. The project will cover a facility to make smart cards, chips and antennae."

Referring to the acquisition, which the company mentioned during its IPO in January, Mr Rao told Business Line — and declining to name the company, "We expect to conclude this before this quarter," and added that it was not an overseas buy but a buyout of an Indian company.

Expands portfolio

The company, which raised Rs 48 crore through the IPO, has expanded its service portfolio to cover RFID solutions for enterprise business and an R&D centre.

The company has also repaid some of its loans raised through IDBI for expansion within the country and overseas marketing centres.

It still has about Rs 16 crore which would be deployed for working capital and other expenses.

Mr Rao said that during the last financial year, the company recorded revenues of Rs 28 crore and is poised to double it this year on expanded range of services.

The company is at an advanced stage of negotiating for land with the State Government and expects to finalise the deal shortly; it would build its own facility and host employees, spread in four locations, at one place.

Earlier this year, the company raised the authorised capital from Rs12 crore to Rs17 crore.

Bartronics shares ended the day lower at Rs 66.25 as against the previous close of Rs 68.40 on the BSE.

More Stories on : Mergers & Acquisitions | Software

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page