Gemini Traze bullish on retail sector

Gemini Traze, a manufacturer of radio frequency identification (RFID) readers and antennas, is optimistic that the booming retail sector would fuel demand for its RFID tags.

The company, a wholly-owned subsidiary of Chennai-based Gemini Communication Limited, is at present giving proofs-of-concept to four large retail chains in the country for mass deployment of RFID solutions for warehouse management, and is likely to deploy the same at 100 stores of one of these companies on a pilot basis in a quarter, R Ram Kumar, executive director of Gemini Communication, told Business Standard.

"The Indian retail industry has seen an unprecedented shift and growth in the business operations in the past few months. RFID is all set to transform the way business is done and conducted in the retail space, and most importantly change the way a consumer shops. We see immense scope in this space and expect the retail sector to contribute 15 per cent to our revenues in the next 12 months," he said, adding that the company would pursue shelf-level tagging in 18-24 months from now.

The market size for RFID solutions in retail space is likely to touch Rs 50 crore during 2008-09. Gemini Traze, which posted a turnover of Rs 15 crore last year, expects to close the present financial year with Rs 20 crore.

In February 2007, the company commissioned its RFID manufacturing facility at Tirumazhisai near Chennai at an investment of Rs 25 crore. The facility has an annual production capacity of 100 million units a year.

"The facility is currently running at a capacity of 25 per cent. We expect to see this growing to around 60 per cent in the next one year and to full capacity in six months after that on account of the phase-wise rolling out of national ID cards and increasing business from event and railway ticketing," he said.

The company, Kumar said, was also looking at entering into newer areas including sports ticketing. It had deployed RFID technology for VIP guests for the Australia-West Indies ICC Champions Trophy at Jaipur around one-and-a-half years ago.

Gemini Traze, which exports its RFID tags to West Asia and Europe, plans to foray into the South Africa market in a few months. "Exports currently account for a little over 25 per cent of our revenues. We expect to grow this to 65 per cent in the next two years, which would essentially be centred around ticketing, people identification and retail sectors," Kumar added.

Gemini Communication recorded revenues of Rs 160 crore last year and its outlook for the current fiscal is Rs 225 crore.