CMS Info List: CMS Info is a key player in the ATM managed services space and has a massive order book: CEO

“Baring Asia’s subsidiary, Sion, owns most of the company and the 34-35% dilution is on their side. This helps the company to open up a much wider field of growth and this is where all of our new shareholders, the public shareholders, will benefit from the potential and the future of the company, ”said Rajiv kaul, executive vice-president and general manager, full-time director, CMS Information Systems.

How do you see the property after the IPO, a full OFS. How are things changing? How does the list help you?
It has been a very difficult year for all of us but it has been a year that has humbled us and we are also filled with pride that we were able to successfully launch an IPO and complete it and also listed on the last day of it. ‘year . This is a full sales offer (OFS) from our Baring Asia shareholders via their subsidiary Sion, which is our promoter. Our business has been profitable for 12 years. We have liquidity on the balance sheet, so the business does not need a capital injection to grow.

We have grown up very well. Baring Asia, through its subsidiary Sion, owns most of the company and the 34-35% dilution is on their side. This helps the company to open up a much wider field of growth and is where all of our new shareholders, the public shareholders, will benefit from the potential and the future of the company.

What is your market share in the key services you provide and who are your main customers?
We focus on the BFSI sector. We are a large B2B outsourcing service company and as India grows over the next decade. not only will consumption increase, but business outsourcing will also increase. We have focused on working with all the banks in the country. We have a variety of services at a fundamental level. Our strongest and oldest business is a very strong network that we have put in place to ensure that currency is available anywhere and anytime in the country – from the largest cities to the most remote parts of the country. It is our job of cash management. It’s a business where we have 15,000 PIN code coverage, a fleet of 4,000 vans, and we do close to a million to 1.5 million activities every month.

By using this business we have gone from a logistics business to technology solutions. In technological solutions, we have two activities. We are a key player in the entire ATM managed services space, which includes everything from ATM deployment and management, maintenance, and software running on ATM. We have a huge backlog in this area.

The third company is a technology solutions company that we incubated in 2020-21. It is an IOT-based, cloud-based, software-based and remote monitoring technology that helps banks manage and monitor physical assets that could be an ATM site, branch banking using very high-end sensors, cameras, artificial intelligence and self-learning technology. . All of these companies are set to experience very rapid growth in the next five to ten years.

What is the impact of PayTM, Google Pay, BHIM and various other applications?
India is largely an informal economy. As this economy becomes formalized, this formalization will take many forms. But if you think of the retail industry, there are many small retail stores out there. We can’t even satisfy them. We can’t even work with them. But as they formalize into large organized retail stores, there will be a tremendous amount of work. The money in circulation has increased from Rs 14 lakh crore to almost Rs 30 lakh crore. In any department store, you see lines of people who want to pay with cash.

As a company, we are comfortable with cash. I see more digital transactions happening. We clearly see the effects of demonetization. However, my belief is that much of semi-urban and rural India is still looking for banking access, ATM access. These modes of trade will increase and as formalization occurs the opportunity for CMS is fantastic as we can expect to reap the rewards when an informal business moves into the formal sector.

What growth are you seeing for ATM services? Where do you see this geographic and state growth for that?
The total addressable market (TAM) for us is around Rs 8,000 crore. It is expected to reach 21,000 crore rupees by 2027, an increase of almost 2.7 times that would lead to 17-18% growth in the market. As a market leader, we hope to aspire to grow to this level or even higher if we can. This is at the high macro level for the industry.

India has 2.5 lakh vending machines. Semi-urban and rural markets are developing more than metropolitan markets, but metros are also developing. Penetration is not a geographic issue, I think it’s a state-by-state issue. We have a penetration in states like Delhi then Tamil Nadu where there are 35 or 40 ATMs for a lakh while in large parts of India like Bihar, West Bengal, Odisha, Rajasthan and Madhya Pradesh, the penetration levels will be 7 or 10 or 12 or 14.

In a 10-year perspective, as these states are more successful in increasing GDP income per capita, consumption will increase, people will have more commerce, they will use both cash and digital. They will use more ATM services and this will lead to growth in ATM transactions and hopefully the number of ATMs.

But ATM cash management is part of our business, but not the only one. We work a lot around the value chain, whether it’s software or deployment or how to keep the site operational. During Covid, most of us had no problem accessing cash from an ATM because most of us weren’t going to bank branches, but running all this infrastructure at the bank. Naming Banks is something CMS and our other industry contributors do very well for the nation.

What about the customer mix, the integration of new customers? How will the services be extended?
We work with all banks in India. We work with a limited number of banks. As more and more banks get licenses, we will have more customers.

But when I think of retail, on behalf of banking clients, we work with over 2,000 retail clients across the country. These can be retail stores, NBFCs, insurance companies and various retail outlets where we work and serve for cash management and technology needs.

The remote monitoring activity is the last that we are starting by launching it for the BFSI sector. There is a huge opportunity to automate and use software to better manage, monitor and control an ATM site or gold lending branch or bank branch. But it’s software, it’s a SaS game. Once you’ve built that, there’s nothing stopping us from being able to go and sell that to jewelry stores, solar parks, warehouses, logistics. So it’s a very exciting business for us where we believe there is an opportunity to make it horizontal outside of BFSI and get hundreds of new clients over the next five to six years.