The Hindu Business Line : Bartronics in consolidation mode

Hyderabad, Sept. 16 Smart card technology company Bartronics India Ltd is in the process of consolidating its operations and is pursuing an overseas acquisition.

The company recently passed an enabling resolution that allows the company to raise up to Rs 500 crore to meet its inorganic growth and consolidation plans in overseas markets.

The Managing Director of Bartronics, Mr Sudhir Rao, said “the enabling resolution passed allows the management to quickly raise funds through either bonds or debt to meet the inorganic growth plans. These funds are not for normal course of business, but mainly to meet extraordinary growth possibilities through the acquisition route and for overseas expansion.”

Scanning for buys

Mr Rao told Business Line that the company has been actively scouting for possible acquisition targets for quite some time. Unfortunately, they have not resulted in actual takeover due to various reasons.

“We are currently doing due diligence of a couple of companies which would provide us with complementary strengths as well as access to new markets where we are not present. This will actually trigger another phase of rapid growth,” he explained.

However, he said “we are still some way away in terms of raising funds and pricing of the issue.”

Smart card unit

The smart card unit manufacturing unit was commissioned in May 2007 and the commercial dispatches from the unit had started in July. The second quarter results are likely to reflect a significant increase due to the turnover from this unit.

Bartronics is looking at expanding operations in South Asia over the next two three years and is now close to finalising some senior level appointments to head operations in the region controlled from Singapore. The company has established a 100 per cent subsidiary — Bartronics Asia (Pte) Ltd., in Singapore.

“Going forward, investments would mainly hinge on expanding Singapore operations on one side and for acquisition which we are close to sealing,” he said.

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