CMS Info Systems Ltd. has begun commercial production and manufacturing of banking automation products in its newly opened plant in Chennai. The new facility marks the cash management and payment services company’s foray into manufacture of banking automation products such as ATMs, cash recycler machines, and self-service kiosks.
CMS is India’s largest cash management company based on a number of ATM points and retail pick-up points. It has three business segments — cash management services including end-to-end ATM replenishment services, cash pick-up and delivery, and cash-in-transit services for banks; managed services,including sales, deployment, and maintenance of ATMs, brown label ATM deployment, managed services for bank-owned ATM networks; and tech solutions business including AI-based remote monitoring.
In March, the company announced that it has set up a new manufacturing facility in Chennai for banking automation products.
Speaking to businessline, Manjunath Rao, President - Managed Services, CMS Info Systems, said the Chennai facility has the capacity to manufacture 2,000 ATMs per month and it can be scaled up. He added that the new facility will help the company to offer integrated banking automation solutions to its banking clients right from production to deployment to surveillance solutions of their complete ATM ecosystem.
Presently, there are two models of ATM management. Under the first model, banks typically buy ATMs and then outsource them to managed service providers like CMS. The second model is end-to-end outsourcing, better known as brown-label ATMs, under which the entire process right from capex to sourcing of sites for ATMs is done by managed service providers such asCMS.
CMS has about 22,000 ATMs under its managed service business, of which around 7,000 ATMs are under end-to-end outsourcing.
Rao said the company sees a pipeline of opportunities for banking automation products of 40,000 to 50,000 units in the next 12-18 months in the industry. “Our right-to-win in the upcoming expansion and refresh drive of these products would be 30 per cent in the same period,” he added.
Korean ATM major Hyosung will offer technology solutions including ATM modules for the new plant in Chennai. Currently, 30-35 of the parts used in the new facility are procured from local suppliers and in next 12-18 months, the products will cross over 50 per cent localisation, Rao said.