Micro Tech plans capacity expansion

Mumbai-based software solution enterprise, Micro Technologies is planning to increase its production capacity of safety devices for home and automobile by four times, to 20,000 units per month.

The company has already started a capacity-expansion project in the city at its existing facility, which manufactures 5000 pieces per month.

Micro Tech intends to raise Rs 50 crore funds by issuing preferential shares. It is also in the final stages of developing a number of new products.

"We are expanding our manufacturing capacity at Mumbai with an investment of Rs 50 crore. At present, we are expanding our distribution network across India aggressively and expect it to be in place by the end of current fiscal. We are hopeful to increase our revenues from sales of safety devices substantially in the next couple of years," said Vijay Merchant, vice president-marketing, Micro Tech.

Merchant, who was in the city to launch Micro Vehicle Black Box and Micro Home Security System, further added that the company intended to generate Rs 75 crore in sales turnover from safety devices by the end of the financial year.

Satyen Bhatia, the sole distributor for Gujarat said that it will appoint a network of 15 dealers in the state. A senior company official said that the company was in talks with a Japan-based firm to appoint it as a distributor.

The company is also in process of developing various other innovative products with provision for safety. Commenting on product development, Merchant said, "A team of developers is working on new products. We will shortly launch two new products targeting banks, jewellers and courier companies. The prototype of the products are ready and we will initiate talks with bank from October this year."

Micro Tech has developed a tool, which will contact bank account holders for approval on their mobile phones, when their ATM card is applied in the machine.

Meanwhile, the company with its ambitious plans for marketing of safety devices, has set itself a target of Rs 75 crore to be achieved by March 2006. The company had reported sales turnover of Rs 26 crore for the 2004-05 period.

Currently, almost 50 per cent of the company's income, comes from overseas territories such as Kuwait, Indonesia and Dubai.

For technical assistance, the company has an agreement with global giant Siemens, to collaborate on pioneering research and development efforts and identifying new partners for developments of wireless technologies.

The company has also tied up with Idea and Air Tel to utilise their telecom network in a number of states.