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

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.