Bartronics ramps up its production
BIL sells telecom SIM cards for around INR 30 – 35 (EUR 0.47 - 0.55). It has also built a presence in other markets such as banking smart cards and MNIC (multi-purpose national ID Cards in India), which offer higher prices of INR 70 – 100 (EUR 1.10 – 1.58). This is expected to drive strong revenue growth with still better revenues from 2010.
BIL announces it has also ventured into manufacturing silicon chips and commences production by August 2008. These chips are currently imported and BIL will be the first in India to manufacture them. This backward integration will help to get raw material for smart cards and improve profitability.
Currently, in the smart cards segment, BIL caters to the telecom sector, manufacturing GSM SIM cards for companies like Airtel and Idea. BIL says its capacity is booked till 2009 as it has signed a two-year agreement to supply 50% of the capacity in the first year of operations and 70% in the second year to Giesecke & Devrient (G&D).
The smart card division is expected to contribute to around INR 1.08 billion (EUR 17 million) to revenues in 2008. In the future (2009 or 2010), Bartronics expects its AIDC division to contribute around 55-60% of the company's total income and the smart card division to contribute 40-45%.
Globally, BIL, which started as provider of niche Automatic Identification and Data Collection (AIDC) solutions, is now positioned as an end-to-end solution provider, including the supply of a wide range of Automatic Identification and Data Collection (AIDC) and RFID cards, handheld terminals, printers and scanners. BIL is a dominant player in the domestic AIDC market with 25% market share in bar-coding and enjoys 95% market share in emerging RFID space in India. BIL has recently set up its subsidiaries in Singapore and US (cf. SI #07-48).
In 2007, BIL had a total income of INR 1.09 billion (EUR 17 million) vs. INR 458 million (EUR 7.2 million) the year before. The 2007 company profit reached INR 157 million (EUR 2.5 million) in 2007, vs. INR 89 million (EUR 1.4) in 2006.