Bigger opportunities than IT
Sensing that the hardware integration business would no longer bring growth, Surat-based Innovative Telecom & Softwares has built a strong practice around physical surveillance and intelligent building management systems
Surat-based, ` 120 crore Innovative Telecom & Softwares embarked on its transformation journey toward physical surveillance (PS) and intelligent building management systems (IBMS) four years back when it realized that the pureplay hardware integration business would no longer bring growth and margins.
“We chose these two domains because there were very few partners offering such solutions, and hence there was lesser competition. Moreover, these domains offer healthier margins compared to IT. While the systems integration business offers about 10-15 percent margin, PS and IBMS solutions provide more than 20 percent margins as well as stickiness to the customer,” explains Moin Shaikh, Director, Innovative Telecom & Softwares.
The first year was full of challenges for the company. “Being a new domain it was very difficult to build capabilities. We also faced stiff competition from analog solutions providers. However, our partnership with Verint enabled us to build skills and we educated customers about the benefits of IP. We managed to bag projects from our existing customer base of diamond dealers,” adds Shaikh.
Innovative later added skills in access control, fire safety, temperature control, etc to build a strong IBMS practice by 2011.
Says Shaikh, “Getting into IBMS expanded our horizons and more than tripled the ticket size of our projects, because it covered data center, networking and electrical solutions.”
The company invested in acquiring skills to develop software interfaces to integrate various components of IBMS. “Besides, we added skills around electrical systems, instrumentation and process control. We began targeting customers around the time they were making their plans to build their new offices,” says Shaikh.
In a short period of four years PS and IBMS are contributing one-third of Innovative’s business. “This fiscal they will contribute close to ` 40 crore to our revenue. We already have a strong pipeline of ` 200 crore for PS and IBMS projects,” informs Shaikh.
The largest PS project being implemented by the company is the Surat Safe City Project. To be implemented in five phases, the project will see the deployment of a network of 5,000 surveillance cameras
Getting into IBMS expanded our horizons and more than tripled the ticket size of our projects because it covered data center, networking and electrical solutions
at 500 locations across Surat.
Says Shaikh, “In the past two years we have deployed two phases which included 650 IP cameras, a state-of-the-art control and command center with video analytics, and a data center for the same. In all we have made ` 30 crore so far in the first two phases. The next three phases will be implemented over the next two to three years.”
Since venturing into IBMS, the company has executed 15 projects each ranging from ` 1 crore-`1.5 crore largely for gem and jewelry companies in Surat.
The successful implementation of the two phases of the Surat Safe City Project has given the company the confidence to bid for such projects in other cities.
“We have bid for six such projects where the total value of our contribution will be ` 400 crore. We are confident of bagging at least 2-3 of these bids which will easily contribute in excess of ` 100 crore-`150 crore over the next 2-3 years,” Shaikh opined.
On the back of these successes, Innovative is confident of topping ` 300 crore by the end of FY2016-17, of which 60-70 percent business will come from PS and IBMS.
We are confident of topping ` 300 crore by the end of FY2016-17, of which 60-70 percent business will come from physical security and intelligent building management systems
Director, Innovative Telecom & Softwares