Gemini Communications Ltd is in talks with US retail giant Wal-Mart to supply at least 1,000 radio frequency identification tags.
The Indian firm is also in negotiations with UK retailer Tesco.
MUMBAI: Gemini Communications Ltd, the Rs 126 crore Chennai-based networking solutions company, is in talks with US retail giant Wal-Mart to supply at least 1,000 radio frequency identification tags.
If negotiations succeed, it will be a big boost to Gemini, which is setting up a new RFID plant at Baddi in Himachal Pradesh.
Talking to DNA Money, Vijay Kumar, chairman, Gemini Communications, said, “We are in talks with the UK-based Tesco and Wal-Mart for supply of RFID tags for their retail foray in India. As with the plant, we are initially investing Rs 20 crore in Baddi. It will have a capacity of 6,000 tags an hour. The plant will be commissioned by September. As the retail market in India is growing at a rapid rate and we see a huge market for RFID tags in the country.”
He said RFID products in the country are still in the experimental stage. Gemini is India's first RFID product manufacturer with focus on readers, antennas and tag packaging, he said. It will be able to bring RFID solutions at an affordable price for the Indian market to go for immediate deployment.
Gemini is now looking for security solution providers or barcode solution providers to sell its RFID products. It is also eyeing partners who are into selling barcode solutions.
Gemini's clients in the RFID field include Murugappa Group, ISRO, Sundaram Clayton, L&T, TVS Electronics, Davanam Jewellers, Strides Acrolab, etc.
The company is also in touch with barcode companies who would source the RFID product. It also wants to bring in a co-branding set-up with some barcode companies, which will be beneficial for both the products. It plans to target Middle Eastern and North American markets besides Europe.
Gemini, which posted a turnover of Rs 126 crore in the last financial year, expects the sales to touch Rs 200 crore this financial year.
It has a presence in about 70 locations across the country. Some of its domestic customers include MTNL, VSNL, Airtel, BSNL and Idea Cellular, among others.
Meanwhile, Gemini Communications has also acquired PointRed Technologies, a US-based wireless product company, which makes it the first Indian company to acquire an American firm in the wireless technology space. This move is expected to provide Gemini Communications access to the international wireless technology market. The buy would be funded through internal accruals. After the acquisition Gemini will become the largest wireless broadband company in South Asia.
PointRed has a manufacturing facility in Taiwan and a research and development centre in Bangalore.
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