Private equity fund Blackstone owned CMS Info Systems, cash management service provider, is scaling up operations through capital expenditure of Rs 200 crore over next three years and increase head count to 35,000 from present 20,000.
This capex is keeping with the surge ATMs network expansion in the country due to aggressive plans of public sector banks to grow network.
Also Reserve Bank of India has thrown open the sector for non-bank players to set up network of white label ATMs.
Rajiv Kaul, executive vice chairman of CMS said the company is well capitalised and will use internal accruals to fund expansion plans. The financial year 2011-12 was for a period for consolidation.
This year (Fy13), CMS will grow the number of offices (branches) to 300 from base of 220.
Kaul said the capital expenditure plan excludes any money it may need for merger and acquisition in cash management services space.
In December 2011 CMS acquired the Securitrans India Ltd, a New Delhi based company for about Rs 200-250 crore. Securitrans Ltd set up in 1986 is engaged in providing services of security coverage to banks, financial institutions, hotels etc.
The sector is still in the nascent stage with lot of room for growth. The scale is very important to manage business of this nature, he said.
Given extensive spread of ATMs in country, ability to reach – moving cash in secured environment to stuff in into ATMs- is must. There are over 1,00,000 ATMs (End September 2012) in the country.
It is manpower intensive activity. Hence, CMS plans to grow the headcount to 35,000 from 20,000 over medium term.
On the other side CMS Info Systems, deals in IT services and training, print services, cash management services and card services.
CMS Info Systems, the entity carved out from the CMS Group, is 60% owned by Blackstone and 40% by the promoters, the Grover family.
Blackstone had acquired the stake for $40 million in December 2008.
