IT peripherals manufacturer TVS Electronics Ltd, part of TVS group, is planning to set up a facility at Oragadam, near Chennai, with an estimated investment of Rs 16.5 crore in the next three years, to manufacture its the new range of products. The company also roped in Mumbai-based Tranzmute Capital and Management Pvt Ltd as a strategic advisor.
The company would leverage government initiatives like Unique Identification (UID) programme and Financial Inclusion along with the growth of retail industry for its future growth.
The new facility will come up in a phased manner, to manufacture its new products to cater the UID, Financial Inclusion and retail industry, said Gopal Srinivasan, chairman, TVS Electronics Ltd.
“With our base in Chennai, we would like to keep one of our manufacturing plant close to our headquarters. We are examining ways to transform our business to become an end-to-end solutions and service providing company in the segment,” he said.
The company has initiated civil works for the Chennai facility and is expected to commence first phase of production in the current fiscal, which will spread across on a six-acre site.
The new facility would manufacture handle terminal for financial inclusion programmes (to be used by the business correspondents), UID initiatives and at Point of Sales (POS). New lines of products and capacity would be added to the facility in next three years and the company expects an investment of Rs 16.5 crore in next three years for this. At present, the company has its manufacturing plant in Uttaranchal.
The company, which is into transaction automation IT products and solution business, would also focus on manage services, repair business and address the end of life products segment. The company is also planning to develop solution and service capabilities to provide enterprise solutions and managed services to customers in sectors including banking, financial services, retail, hospitality and health care.
He said that the company see huge potential in serving the requirements of the UID and financial inclusion initiatives and the retail industry in the country.
The company has also engaged with strategic advisor, Mumbai-based Tranzmute Capital and Management Pvt Ltd, in its growth initiatives. As part of this, Tranzmute would invest in th equity share capital through its associate Tranzmute Business Advisory LLP. TVS Electronics, in its annual general meeting on Wednesday, availed consent from its share holders to issue 3,50,000 warrants with option to exercise the right to be allotted equal number of equity shares of Rs 10 each, of the company on preferential basis to Tranzmute Business Advisory.
