Zicom to open 300 stores by 2009

Firm to tap home and small businesses segment.

Zicom Consumer Service Group, a security goods and solutions provider, plans to open 300 retail outlets in India by end 2009.

Security is a growing need for every segment be it government, religious institutions like the Sidhivinayak Temple, Ayodhya, defence, enterprises or the home consumers and small and medium enterprises, reasoned Pramoud Rao, managing director, Zicom Electronics System, who was in Pune to open the company's 12th retail store.

"Security is a Rs 1,000-crore market and growing at 30-35 per cent to become a Rs 1,700-crore market by 2010," he added.

Explaining the retail foray as an important strategy to tap the home and small businesses segment so far untapped by the organised market, he said: "The home and small business segment is a Rs 250-crore market that will double in size over the next three years."

The Rs 85-crore company ventured into retail in September and plans to open 35 stores in three months "" up from the current 12, Rao said, "We plan to have a total of 50 stores by March 2007, 200 by end of March 2008 and 300 stores by March 2009," said Shirish Deshpande, vice-president (sales Operations) and added, "By 2009, we expect to be a Rs 500-crore company and retail will account for 60 per cent of our revenues and government and enterprises would contribute around 40 per cent."

Zicom had raised $11 million in June last year through foreign convertible cash bonds and is using these funds for its expansion plans. The company is also renegotiating with its joint venture partner in Shenzhen, China, for becoming a stakeholder in the company.