Zicom Electronics - Future Secured

Zicom - A Secure Bet

Next time you visit Pantaloon, Shopper's Stop, Globus, Landmark or any other mall, have a look at the ceiling and observe the Fire Alarm and Water Sprinklers installed, chances are that you will see the word Zicom written on them. Zicom is slowly and steadily evolving as the total Security Service provider.

Zicom Electronic Security Systems Ltd. (Zicom) has emerged as the pioneer and market leader in total electronic security systems for homes, offices, industries and large corporations. Established in 1995, Zicom is one of the few security solutions company which is listed on the Mumbai Stock Exchange.The company offers a wide range of products including access control systems using keypad, proximity cards & Biometrics, CCTV surveillance including remote video surveillance, fire alarm systems, smart cards, perimeter protection system, law enforcement products, etc. The company has also integrated all this multiple security applications into one coordinated hardware and software package. The company has got strong software capabilities relating to the security business. Zicom has positioned itself as the dedicated Electronic Security Solution company. The management has international strategic alliances with CA, Bosch, Motorola etc. The other major companies in the business include Honeywell, Johnson Controls and Group 4.

Moving up the value chain to generate competitiveness, Zicom has transformed itself from the low value added Burglar alarm company to high value added Biometrics Access control, Electronic surveillance system business. The company plans to focus on Home and Retail segments for future growth with technologies like RFID and biometrics being the future growth drivers. Zicom services the diverse and demanding security needs of private and public sectors. The company derives major part of its revenues from the Corporate Divison. The company has a varied client base with over 5000 installations Its customers include several large Indian and multinational companies in the field of Infotech, telecom, media, banking, finance, industrial, etc. as well as various public sector units.

The company has an Equity Capital of Rs.8.19 crores with promoters holding 28.22%. Fidelity Mutual Fund holds 5.26% stake in the company. Zicom has picked up a 49 per cent stake in a joint venture with UAE's Bin Jabr Group. The equity participation with Bin Jabr group will give the company the platform to cater to the fast growing safety and security market in the Gulf region.As per the agreement between the company and Bin Jabr group, Zicom will be responsible for operation, management, implementation, delivery and servicing of safety and security systems, while Bin Jabr Group will be responsible for administration and relationship management. Given the enormous growth in construction activity in commercial, residential and infrastructure segment in the Gulf, the company has aggressive plans to market its product Intelligent Homes in the Gulf. In Intelligent home system, the customer can put in place intrusion detection, fire or gas detection and control devices such as lights, airconditioning etc. Focus on RFID Products / Solutions & Biometrics RF-ID is the technology that uses radio waves for identification, using smart labels that can be attached to products or people. Radio waves are used to identify individual articles, automatically. Zicom has set its focus on the RFID technology to provide total solutions to the customers. The RF-ID components include – Transponders, Antenna, Readers and Software. RF-ID technology provides several benefits - it is a contact less data link and an automatic way to collect information quickly and easily without human error and can be applied successfully to hundreds of applications. The various RFID applications include :-Parking Lot Automation Solution, Personnel Access Control System, Asset Tracking System and Vehicle Monitoring and Tracking System. The RFID market is growing rapidly. Recent research reports by various consulting firms show a strong demand for the RFID solution in the short and the long run. RFID solutions are gaining acceptance in the consumer markets – Supermarkets, Libraries, Automatic Toll Payment, Automatic Refueling etc. The company has aggressive plans to tap the potential that the technology offers and offers the customers solutions using RFID technology. The company is also focusing to provide security solutions at various Malls & Retail outlets. With the government considering allowing FDI in retailing and with the coming up of Malls & Retails outlets, the segment provides good business opportunities.

The company has developed a product Z-Security, an electronic surveillance solution, which has evolved through the convergence of Security, IT and Telecom to deliver a holistic security solution that includes digital video recording and transmission of live video images through internet or broadband to anywhere in the world. The company plans to offer the product as a subscription service and is targeting shops, offices and residential premises. Z-Security is a high tech electronic security service which provides the customers different security levels as per the needs such as Electronic Surveillance system, Central Control Room which contacts and Emergency number in the event of a security breach, which contacts emergency services like Police or Fire Brigade. Mr. Pramod Rao, Managing Director, of the Company, said, "Z-Security service secures a person or an establishment 24 x 7 and will offer end-to-end security solutions. Our focus is to develop and deliver Eco Systems partnerships. We have entered into alliances keeping our ultimate objective in mind. The alliance with Bosch will ensure the world's best product is installed, Cholamandalam will insure the property of our customers and Topsgrup will provide emergency response service. This combination will help us in catering to the security needs of all the segments in the society including the ever-growing retail and home segments."

The company is in talks with Reliance Infocomm and other Broadband providers for the product. Z-Security targets the untapped niche retail market where the need for security is becoming vital. Z-Security would be a high volume business for the company and is capable of generating revenues for the company month on month. Z-Security is an innovative concept, has a potential market which could be HUGE. Any success on the front will lead to a huge rerating of the stock leading to much higher discounting on the bourses. In an effort to increase its revenues through the inorganic route, the company is planning both overseas and domestic acquisitions. The acquisitions would be in the areas of product development or system integration. We believe that innovation is the key to be competitive and successful. The Company today offers state-of-the-art electronic security solutions and has entered into strategic tie-ups with global leaders in this industry. The market is still at the exploratory stage and would see high-growth in the coming years. But the competition would only increase owing to the future industry attractiveness. However, I believe that the initiatives undertaken by the company would help it retain its leadership status in the industry and sustain its first mover advantage. Moreover, any success on the Z-Security product, which could be company’s trump card may lead to the markets giving the company much higher discounting than it currently enjoys.

........and don't forget to visit the website of Zicom.