Zicom taps home segment for growth  

Pragati Simlote






NEW DELHI: Electronic solutions security provider, Zicom Electronic Security
Systems Ltd, is planning an investment of about Rs 50 crore — Rs 60 crore to

target the consumer segment in India.






The company recently launched its offering for the home segment -
'ZICOMhome' and ZicomBusiness.






Outlining the proposed investment, Pramod V Rao, managing director, Zicom, said,
“We would be investing around Rs 30 crore for launching our products, setting

up the infrastructure and showrooms. Another Rs 20 crore — Rs 25 crore will be

investment in promotion and market development.”






With this initiative, the company has also made a change in its business model
from that of being a B2B company to that of being a B2C one. Zicom has set up a

separate group — consumer service group (CSG) - for targeting the consumer

segment. ZICOMhome will cover 24 cities in the first phase and the company

expects to acquire around one lakh customers in the retail and the home segment

one year from now.






By 2009, the company expects to garner 40 per cent market share in the home
security solutions market.






In the second phase, Zicom plans to cover another 29 cities, while phase three
will entail expanding the company's reach to another 47 cities. With this, the

company plans to cover around 100 cities in the next three years.






The company's target segments include homes, banks, shopping malls, small
retailers, small and medium enterprises, etc.






Zicom CSG CEO Santonu Choudhury said, “The Indian security solutions market is
expected to reach Rs 700 crore by 2009, while the India consumer security market

is expected to reach Rs 700 crore. We are targeting revenue of Rs 500 crore by

2009, out of which it expects CSG to contribute around Rs 330 crore.”