"Identification Code "-Bartronics

CMP 125

Bartronics offers services that enable automatic identification of products and persons and creates the infrastructure to keep track of their movement. Such services are critical to efficient management of the supply chain, the availability of high-speed computer networks enhances the scope for using information generated in such a tracking process in a comprehensive manner and capitalise on every opportunity to maximise efficiency in logistics.Product-tracking services that are likely to play an increasingly important role with companies focussing on logistics to improve profitability. The boom in organised retailing, the increasing awareness of the need to ensure quality products and packaging, and the likelihood of mandatory tracking information for an expanding range of products in the domestic and overseas markets should drive growth.

Bartronics has focussed on the manufacturing sector and has a clientele that includes frontline players in several industries. Even as opportunities open up in this space, we expect retailing to emerge the major avenue for such services in India.

As FDI in retail is only a matter of time in the Indian context, the entry of global majors will also lead to adoption of best practices. If their outsourcing from India increases in the process it could boost the product-tracking services.

http://www.bartronicsindia.com/about.htm

Bartronics was originally incorporated in 1990 as Super Bar Tronics Pvt. Ltd. and in 1996 its name was changed to Bartronics India Ltd. Initail business was of Bar Coding and Smart Card Technology and later the company started experimenting with the new AIDC solutions.
Currently involved mainly with the manufacturing sector and has implemented a number of projects across companies in their manufacturing set-ups. The projects involved inventory & logistics management, time & attendance and asset tracking systems.

AIDC is seen as an enhancing technology as it automates the data collection for the main systems. Bartronics offers diverse range of AIDC technologies, Barcode, Biometrics, RFID, RFDC and EAS.

AIDC industry is rapidly moving towards the use of RFID in a number of high value and high volume market segment. The RFID market is expected to jump from $1.4 billion annually this year to $6.1 billion in 2010. The Indian market is estimated about Rs.100 cr(FY05)comprising of smart cards and bar codes solutions. This segment is expected to grow at 20-30% annually. RFID and biometrics solutions are growing at a CAGR of 50% and are expected to have an exponential growth with retail and manufacturing growth in India.

Domestic retailing companies appear to be moving gradually towards comprehensive tracking information as it improves inventory management, ensures superior control over payments and billing, and enhances the ability to stock fast-moving products. As suppliers benefit from such systems, expected that the market to grow at a rapid pace over the next five years.

Bartronics has established a brand value amongst its clients (over 1000) over a period of 16 years. The work includes system integration for Barcode solutions, which has applications in areas such as inventory management, attendance recording, dispatch management etc.The companies clientele includes TISCO, TELCO, HLL, ITC, Ashok Leyland, TVS, CMC, Ranbaxy, Compaq, VST, Whirlpool, ITW, Dr. Reddy's to name a few. The company also services to the Devotees of Lord Balaji (Tirupati) by managing the inflow logistics of the pilgrims.The company has partnered with Watch Data, a Singapore based company, and German company Muhl Bauer and ST Micro.

But the demand for the more contemporary tracking services is likely to improve only when prices decline to form a small percentage of the cost of a product. This is likely to happen over three/five years as demand for such products rise in the global markets, driven by initiatives by companies such as Wal-Mart, Metro and Carrefour, to name a few. Declining costs of technology processors will also further the process.

As security concerns mount across the globe, tracking services in airports, Railways and where people congregate, will offer a revenue opportunity. Bartronics has implemented people management systems in Vaishno Devi and Tirupati and this should stand it in good stead to tap
opportunities driven by security concerns.

Financial Highlights

MD and COO of the company, Sudhir Rao, says that their current order book stands at Rs 200 crore, which will be executed over a period of one year. He also says that they have added a number of clients in the past quarter.

For the nine months ended period December 2006 we are already at Rs 45.6 crore as far as the topline is concerned. He said "We believe that we should be able to end the year slightly better off than what we had earlier projected. The earlier projection was around Rs 55 crore and I think we should be ending the year Rs 60 crore based on the orders under execution right now."
He Further added that going forward, acquisitions will impact the company's topline and bottomline. Also, the NPM will remain unchanged

Expansion Plans

Bartronics India Ltd, a barcode and radio frequency identification (RFID) solutions provider, plans to establish an Rs 262-crore facility to manufacture smart cards and RFID tags.

Of the Rs 262-crore investment, Rs 170 crore was for plant and machinery and Rs 45 crore for land and related infrastructure and Rs 25 crore would be for Visa and Master Card certification.
While Rs 100 crore would be raised through qualified institutional placements, Rs 60 crore would come from placement of 44 lakh shares with promoters and another Rs 65 crore would be from term loans. (Bartronics had raised Rs 48 crore through IPO in January last. )

MD and COO of the company, Sudhir Rao, says that " Going through the fund raising steps right now but at the same time simultaneously we have gone ahead, identified the equipment, placed orders and in fact the first machine has landed in Bombay today. Based on our project estimates we expect the plant to start on a commercial production on April 1, which means we will one-full year of commercial production for the next financial year."

With the demand to reduce human error, maximize efficiency in logistics and supply chain management along with biometrics, Bartronics will benefit in the long term.