Info-tech

Bartronics may go for divestment of subsidiaries post revamp

K. V. Kurmanath Hyderabad | Updated on March 12, 2018 Published on May 17, 2011

To invest Rs 100 cr on expansion, recruit 900 employees



Bartronics, a barcode and RFID solutions provider, may go for select divestment to raise funds after completing restructuring the firm. The restructure plan includes establishing four distinct subsidiaries and assigning them with assets and liabilities.

“Some investors feel that we are not focussed and they are not comfortable with the way we are growing. But some others are comfortable and bifurcation will give them an opportunity to invest more. We may divest 15-20 per cent to raise funds after consolidation is completed. That would be one of the fund-raising options,” Mr Sudhir Rao, Managing Director of Bartronics, told Business Line.

He said the company would add 900 employees to take the total to 1,500 in the next 18 months to support the growth plans. This included expansion of manufacturing facility near here at a cost of Rs 100 crore. Post expansion, its capacity would go up to 90 lakh units (which included SIM cards) a month from 50 lakh units.

Four arms

While announcing results on Monday, the company said it would divide core activities into four arms –Bartrnoics Identification Solutions, Bartrnoics Banking Solutions, Batronics Citizen Services and Bartronics Asia Pte Ltd. Each arm would have its own Chief Executive Officer.

“We have seen stagnation in growth of revenues. This will not augur well for the company in the long run. We have commissioned consulting firm KPMG to advise on this. Based on their feedback, we have decided to restructure the company. It might take a year to complete the process,” he said.

As part of the revamp, the company would make Singapore its global headquarters by floating Batronics Asia Pte Ltd. “This move helps us save 8 percentage points in income-tax outflows. The effective tax rate for global operations would be 10 per cent from the present 18 per cent,” he said.

Published on May 17, 2011
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