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

CRN - - COVER STORY - — Amit Singh

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

MOIN SHAIKH

Di­rec­tor, In­no­va­tive Tele­com & Soft­wares

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