Steelage shortlists targets for acquisition

Integrated security solution provider, Steelage Industries Ltd, is eyeing acquisitions in the safety and security solutions space in India. Steelage, at present operates in all three areas of security solutions - fire, physical and electronic.

Without revealing the target company's name, Steelage managing director Naresh Hosangady said, "We have short-listed a few companies in India for our acquisition plans."

He further said that Steelage is yet to decide on the mode of acquisition. The acquisition could either be done by its Swedish parent, Gunnebo or by Steelage itself. In late 2000, Gunnebo picked up 96 per cent of Steelage's Rs 20 crore equity, leaving only four per cent as floating stock. Subsequently Steelage has also been de-listed.

On the company's plans, Hosangady said the residential segment would be the major growth driver in the coming years. The company offers intruder alarm systems and half kilogram fire extinguishers for the residential segment.

The company is also in talks with some of the major public sector banks to sell 'ATM recyclers' which is one of its latest offerings in the bank automation space.

ATM recyclers, which the company expects to sell by end of this calendar year, would be the first of its kind, that allows users to deposit cash in ATM machines. The product is priced around Rs 20 lakh.

"This would be an imported machine. We would however do some indigenisation to bring down the cost marginally," he said. Steelage has three manufacturing units in India - Halol, Mazgaon and Chennai.

In the bank automation space, the company also offer robotic locker systems that would allow users to access their valuables all 24 hours. "The lockers can be placed in the basement and after due checks including bio-metrics, the locker can be moved to the first floor using robotics for user access," Hosangady added.

Steelage Industries reported a topline of Rs 80 crore for the calendar year 2003. "We plan to double our turnover in the next three years in the organic mode," he added.