E Cube to expand Vadodara facility

Having found an increasing number of international takers for its mobile-operated vending machines and products like V-Cash which enables payments to vendors directly through the cellphones via an SMS, Vadodara-based E-Cube India Solutions, is planning to expand its manufacturing facility in Gujarat.

It will also roll out its latest product, a small ATM for microfinance institutions, which can be operated using smart card.

In 2006, E Cube sold 1,000 large-sized vending machines or combo machines with multi-storage facilities to major food and beverage companies in the country. Close to 300 large vending machines were picked up by operators for companies based in Australia, the US, Dubai, Kuwait and others.

Typically, the bigger vending machines are priced around Rs 80,000 to Rs 95,000, a price, company officials say will fall rapidly with an increase in sales volume.

Responding to the growing international demand, the company is ramping up operations at its Vadodara facility to manufacture 300 vending machines from last year's capacity of 75 units per annum. An investment of Rs 45 crore is being planned.

For its latest product, a small ATM for microfinance-related organisations, the company has begun giving demonstrations to banks and microfinance institutions.

The product enables collection, disbursement of money and other transactions through the smart card technology where a customer can access his or account through a single SMS.

The functionality is similar to the technology used in its vending machines where a customer can punch in an SMS to an electronically-enabled vending machine. Not only could the product be delivered to the customer, payment to the vendor will be done directly through an m-commerce gateway.

"The market for vending machines in India is all set to mature in the coming years. Through a strong R&D base we are looking at a market of Rs 500-600 crore in the next two years or so with smart card applications and re-engineering of the transaction systems," said Ashesh Shah, MD, E Cube India Solutions.

With more expansion plans in the pipeline, Shah added that the company was looking for venture capital and plans to hit the capital market within the next two years.