To invest $10 mn in India; sets up subsidiary
Posiflex Technology, a manufacturer of point of sale (POS) terminals, has announced to set up its own subsidiary in India with the acquisition of majority stake in Bangalore-based Protocol Solutions, which used to be its distributor in India for the last eight years.
The Taiwan-based company which competes with global majors like IBM, Fujitsu and NCR in this segment, plans to invest $10 million in India in the next three years, a part of which has gone to acquire controlling stake in Protocol Solutions, Owen Chen, CEO of Posiflex Technology told Business Standard.
“We have already marked a good presence in the organised retail market in India with our relationship with Protocol. With having our own subsidiary in India will now help us serve both the organised and unorganised retail solutions, market in India in a much better manner as we see huge opportunities in this market going forward,” Chen added.
He said the immediate goal of the company would be to strengthen the sale and marketing activity in India other than increasing the brand awareness. A part of the investment would also go to set up its R&D team which would basically help the company understand the local customers’ need and customise the POS products accordingly. “We are also considering to establish one assembly line here after reaching specific sales target,” Chen said.
Posiflex, listed on the GreTai Securities Market in Taiwan, reported a revenue of $57.4 million in the previous fiscal. The company has nine subsidiaries across the world with its subsidiary in the US being the largest one contributing about 40-50 per cent of its topline. The retail technology solutions market in India is estimated to be about $500 million, and expected to grow up to $1.2 billion in the next two-three years, according to various studies.
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Protocol, which is now majority-owned by Posiflex has so far sold about 500 units of POS terminals with customers like Spar, Fresh@, Subway, KFC. According to IDC figures, the company was the second largest POS terminal seller in India with a market share of 20 per cent, next only to IBM.
Protocol employs about 70 people in India including 25 people in support roles other than 35 certified partners spread across the country. Dinesh Rao Ullal, the co-founder of Protocol, said the Posiflex was planning to raise the headcount in India to about 100 people other than increasing the channel partners’ network.