Zicom Electronic Security Systems is venturing into managed security services serving telecom operators/telecom infrastructure providers for their Base Tower Stations (BTSs) and other assets by forming a subsidiary. In the first year, it is targeting 20,000 BTSs out of around 3 lakh BTSs installed in the country at present. The project will incur investment of around Rs.150 crore.
The cash generated from the Schneider deal, which the company has struck of late, will be deployed for this venture, according to Manohar Bidaye, Chairman of Zicom Electronic Security Systems Ltd. Zicom has sold its institutional and government projects business to Schneider Electric.
Although the telecom sector has been witnessing a slowdown due to high competition from new players and cut-throat pricing that has affected revenues and margins, tower security business could come as a stable revenue generator for Zicom.
Zicom is also acquiring the retail security business of its wholly-owned subsidiary, Zicom Retail Products Pvt. Ltd.
