top button
    Connect to us
      Facebook Login
      Site Registration Why to Join

Facebook Login
Site Registration
Print Preview

Green ATMs Expand their Reach in India

+1 vote

For Chennai-based Vortex Engineering, this makes for a huge business opportunity. With its portfolio of innovative automated teller machines (ATMs), the company is all set to aid banks in reaching out to unbanked and under-banked regions. The company is backed by investors like Tata Capital, Aavishkaar, Ventureast, Oasis and IFC. Vortex has ATMs that are tailor-made for the Indian rural milieu. Its indigenous Gramateller ATM can run on solar power, has a builtin uninterrupted power supply (UPS), doesn’t need air-conditioning, prints receipts in regional languages, is designed to work in extreme temperatures and can operate through biometric authentication. Its Ecoteller model is a low-cost, low-power-consuming machine. 

As reported in various media and on the company’s website, “Conventional ATMs are designed [for] a developed-world scenario — they require airconditioning and consume 1,500 to 2,000 watts of power. It is an unviable and expensive proposition to install them in rural or semi-urban areas [in India] where the transaction amounts are low and operational costs are high. The people in these areas, therefore, end up traveling 15 to 30 miles to access banking services,” says Mr V Vijay Babu, CEO of Vortex. According to Babu, the overall cost (installation, operations, etc.) of Vortex ATMs works out to 35% to 50% less than conventional ATMs, which typically cost around US$6,000. 

Vortex currently has more than 800 ATMs deployed in the country. Of these, over 300 are solar. “We have orders to set up 9,000 ATMs in the next two years. We opened our second manufacturing facility in January this year, upgrading our capacity from 100 ATMs to 900 ATMs per month. We closed last fiscal [year] with a turnover of US$2 million and are targeting US$7 million this year,” adds Babu. The company also has been exporting its machines to SAARC (South Asian Association for Regional Cooperation) nations and a few African countries over the past six months. Mr Babu’s optimism is rooted in pure numbers. “Though India has seen a four-fold increase in the number of ATMs in the past four years — from 25,000 in January 2008 to 100,000 in December 2012 - [the country’s] ATM industry is largely underdeveloped. It is also the fastest growing ATM market in world… expected to touch 250,000 by 2015.” 

Other players are not far behind. NCR Corporation has rolled-out a host of new ATMs with features including solar power, biometric readers and a text-to-speech engine that provides detailed instructions for the visually challenged user. Mr Ashok Shankar, solutions deployment manager for NCR India, was quoted in the press thus: “The market dynamics have changed significantly in the last year.… As part of the new announcement by the ministry of finance, PSU banks will roll out over 60,000 ATMs in rural India by 2014. Our new ATMs particularly address the challenges that banks could face in rural India.” 

The opportunity comes with its set of challenges, though. “Unless financial literacy is in place, chances of people adopting these modes of technology seem bleak. RBI is taking proactive steps in this direction, which will hopefully address the behavioral and psychological barriers that people have,” according to business and financial services experts. 

According to Mr Babu of Vortex, loading cash in ATMs that are geographically dispersed in semi-urban and rural areas is a huge logistical challenge. But he believes that it is a short-term concern. “As the ATM density increases, this problem will get addressed automatically.”

posted Sep 15, 2016 by Lub It (message)

  Promote This Article
Facebook Share Button Twitter Share Button Google+ Share Button LinkedIn Share Button Multiple Social Share Button

Related Articles
0 votes

Industrial Spectrum September 2014​

The Third Edition of IMS Foundation and Laghu Udyog Bharati’s flagship event ‘IMS Manufacturing Trade Fair India and Manufacturing Show-2014 organized in Bangalore turned out to be a grand success. Innovations and Quality which was the focus theme of this edition got the right orientation at the show as many high-end innovative and precision engineering products were showcased to the audience. Innovation and Quality are the two constant drivers that are driving the MSME sector in the country.

The theme for the third edition aptly focused on ‘Renewed focus on the Indian Manufacturing Industry: Make in India’ as that is what exactly Prime Minister Mr. Narendra Modi is pitching in for considering the huge business potential and the quality outlook change among the foreign countries towards India in the recent years. Within the overarching agenda to facilitate India’s transformation into an economically vital, technologically innovative, socially and ethically vibrant global leader by year 2022, IMS Foundation’s focus this year was on the revival of the Manufacturing sector, Economic growth, fast tracking Infrastructure and improved Governance. Each of these is inter-connected in the GDP growth of our nation.

IMS 2014 was also an exclusive business-to-business exhibition, the single largest convergence of the best talent from the manufacturing and engineering industries across the globe. The uniqueness of this Edition was about interacting and networking with international and national audiences including global manufacturers, investors, diplomats, Government officials and industry stalwarts and understand the investment in Technology, Quality systems and Applications development.

Over 200 CEOs, domain experts, top bureaucrats, senior quality and strategic planning professionals from across the nation were present at the three-day Summit to exchange and share their inputs. This edition had highly narrowed sessions on Innovation, Aspiring Entrepreneurship and vendor development with speakers sharing their thought processes and experiences to the participants. Keeping in view the fast changing world economic dynamics and how India Inc has to make its moves to grab business opportunities at the world markets, deliberation topics were chosen to derive maximum knowledge sharing on a single platform. Concerns related to economy, infrastructure, governance, quality and innovation were discussed exhaustively. Thought leaders from industry, government officials and domain experts shared their perspectives on contemporary topics and provided ample pathways for MSME sector to learn from experiences and incorporate best practices to meet challenges ahead on.

We hope to make the next edition coming up in 2016 a much bigger event and the ground work has already begun in that direction.

0 votes

Mr. Anand Mahindra’s recorded speech delivered at the IMS 2012 Curtain Raiser.​

The timing of the India Manufacturing Show 2012 is very fortuitous because I truly believe that we might be on the threshold of a new era for manufacturing in India. Manufacturing in India has always reminded me of those fairy tales where the quiet, diligent, honest heroine is constantly pushed aside and overshadowed by her more high profile and glamorous sister. In India we have leapfrogged from the age of agriculture to the age of Information Technology without really going through an Industrial Revolution between the two. And as a result manufacturing for the last couple of decades has consistently been eclipsed by its more glamorous sibling, Information Technology. Happily, I think that situation is about to be rectified. With the adoption of the National Manufacturing Policy last October I am hopeful that manufacturing will finally get the focus that it deserves. It is after all the missing piece in India's growth story.

The preface to the new Policy recognizes the stagnant state of the manufacturing sector, and the need to accelerate its development. And here's a very good reason for doing this: For the first time there is a real pull for giving manufacturing the support it deserves. If India is to reap the benefits of its much-wanted demographic dividend, 220 million jobs will have to be created by the year 2025. And this is going to be impossible without a major contribution from the manufacturing sector. The Policy envisages that 100 million out of these 220 million jobs - a full 45% - will have to come from the manufacturing sector. And if this doesn't happen, we will have an angry and unemployed population of young people whose disenchantment will turn the demographic dividend into a demographic disaster. So almost overnight manufacturing has moved from playing a side role to being the lead actor on the economic stage. And this is an opportunity that we must seize with both hands.

The two large national goals of increasing the contribution of manufacturing to 25% of GDP and creating 100 million jobs have now to become our goals. The Government is displaying an appreciation of the potential that manufacturing holds and an intention to support it fully. I must particularly mention the efforts of the Government of Karnataka and express my thanks for its vision and its constant proactive support.

Government support is welcome and is necessary and I know that all my fellow manufacturers will leverage it to the fullest. But I would like to emphasize that the responsibility to achieve and outperform on the goals is really ours. I would even say that the goal of contributing 25% of GDP is not ambitious enough for a large sector like manufacturing. Why not 35%? Why not 50%? I believe the Government policies set out the baseline goals. But it is for us manufacturers to embrace the goals and indeed to enhance and to outstrip them. Government policy is but the supportive framework, the actions and the efforts have to be ours.

That's why I think the timing of the India Manufacturing Show is so perfect. At just the right moment, it offers a platform for the entire manufacturing fraternity across the spectrum to meet, to learn and collaborate with each other and with global players. It offers knowledge through technical seminars & inputs and networking through vendor development programes. Whether your industry is large, medium or small it offers a forum where you can add value to your business. It is a platform to dream, to act and to achieve.

The IMS Foundation supported by the Reliance Broadcast Network and Bloomberg TV has worked relentlessly to give a thrust to the manufacturing sector. This Show has set itself the ambitious goal of becoming the best B2B platform for Indian manufacturers globally. With supportive Government policies also falling into place it seems to me that this is the right time and the right place to make a concerted thrust to take the manufacturing sector to the next level of performance.

All the planets seem to be in alignment so to speak, for a very great leap forward. I would urge all of you in the manufacturing sector to make full use of this opportunity and to use this platform to grow your business and at the same time to grow the nation. 

I am always inspired by the story of the Chairman of Sony Corporation who in 1946, amidst the ashes of Japan's defeat in World War II articulated a seemingly impossible vision. In 1946, when Japan was on her knees, he said that Sony would see to it that in 50 years, the words 'Made in Japan' would stand for the best quality in the world. And he achieved that goal in far less than 50 years. I too dream of a time in the not too distant future when the words "Made by India" which is the tagline of the India Manufacturing Show, will stand for outstanding global quality. I believe that the India Manufacturing Show is the first step to facilitate and kick-start this ambition. With your help and your participation I have no doubt that we will move manufacturing from playing just a side role to being the hero of India's economic story

0 votes

Industrial Spectrum August 2014​

It has taken just about 100 Modi days for the green shoots of hope to break through the topsoil of policy paralysis and despondence that the National Democratic Alliance government inherited in May this year. Official figures released by the government indicates the Gross Domestic Product (GDP) grew 5.7 per cent during the first quarter of the current fiscal, up from the 4.6 per cent growth rate recorded in the preceding quarter. Growth in the manufacturing, mining and financial services sectors are the steeds the latest economic turnaround is riding. 

With the BJP-led National Democratic Alliance government pushing hard to bolster the economy through fast clearance of growthoriented projects and other affirmative action - in sharp contrast with the previous United Progressive Alliance government - positivity seems to have been unlocked. 

Economic growth has hit a two-and-a-half-year high during the AprilJune quarter, the highest in 10 consecutive quarters. Experts say that we are at the starting point of the pickup in the growth cycle in India. The pickup in growth was mainly on account of a rebound in the manufacturing and mining sectors. Manufacturing which makes up nearly 15 per cent of the economy, expanded by 3.5 per cent in the three months to end June, recovering from a 1.4 per cent annual contraction in the past quarter. 

According to the National Council of Applied Economic Research (NCAER), the business confidence index continued to show an upward trend for the quarter ended June 2014. But there is an apple cast upset. Despite claiming the strongest election mandate in 30 years, Modi lacks the majority required in the Rajya Sabha to assure him of approval for key bills. In the first three months of his term, Modi has focused on incremental measures like faster regulatory clearances to make it easier to do business. But he has yet to hit his stride in tackling structural reforms, such as a proposed General Sales Tax that would unify the market, needed to revive investment and deliver sustainable growth. That has already delayed the proposed legislation to increase Foreign Direct Investment limits in the insurance and pension sector. Meanwhile, India Inc. has cheered the rebound in the economy by saying it expects the GDP to pick up further on the back of conducive investment policies and reforms, which is expected to follow in a phased manner.

+1 vote

 May 2013 | Industrial Spectrum​

If reports are anything to go by, Indian SMEs are going green and this is not just about green technology. SMEs across the board are adopting greener technology. Increased exposure to environment-friendly solutions is prompting small companies to adopt green technologies and resort to non-polluting modes of production. 

Earlier the main deterrent was the high cost, according an official of the Confederation of the Indian Industry (CII). High cost of clean and energy efficient technologies acted as a deterrent for these small units to go green. A near total lack of indigenous development of green technologies was cited as the main culprit. However, the scenario is changing as SMEs are now collaborating globally to adopt cleaner, greener practices. 

Many Indian SMEs are entering into tie-ups with firms across the world to develop green manufacturing technologies and eco-friendly production processes, according to a report recently published in the Economic Times. In an important development SMEs, which have been in quest of environment friendly technologies, signed an agreement with the European Association of Chambers of Commerce and Industry. The agreement was signed with Federation of Indian Micro and Small & Medium Enterprises (FISME) in this regard. According to a FISME official, formalising cooperation with Europeans would positively impact the efforts of SMEs’ access to green technologies. Indian SMEs are continuously under pressure of supply chains to improve and upgrade technologies which are environment-friendly and sustainable. 

The European Union needs “more robust” SME policies in order to create jobs and economic growth and to face up to globalisation and energy and environmental challenges, EU competitiveness ministers concluded at an informal meeting in Lisbon recently. Besides, as part of their social responsibility and support to environmental concerns of the country, SMEs are adopting energy efficient, zero emission technologies. The Gujarat example seems to have inspired companies across the country to adopt these technologies as SMEs in Vapi, Ankleswar and other industrial areas of Gujarat have proved that greener technologies are cost-effective in the long run. 

Through the FISME programme, co-funded by the European Union and implemented by Euro Chambers, the Indian SMEs will connect to an association of more than 1,200 European industry bodies and which voices the interests of over 19 million member enterprises in 45 European countries.

However, it’s not smooth going. Particular focus should be given to developing new methods of financing for start-ups and reducing the “disproportional regulatory and administrative burden” placed on small companies in comparison with larger ones, said industry sources, citing a study showing that, on average, where a big company spends `62 per employee because of a regulatory duty, a small business might have to spend up to 700. “That’s clearly a big difference,” says the CII official.

It has been estimated that manufacturers and assemblers of electronic equipment in India alone generate about 1,200 tonnes of electronic waste per year. India’s burgeoning scrap business also attracts substantial amount of degraded components from the developed countries, which adds to the alarming volume of e-waste is a critical issue. However, this problem has been addressed to a certain extent through the initiation of environmental protection and pollution control measures across the globe. 

This also sends a message to buyers out there, especially in the western markets. Companies are opting for environment management systems (EMS) to send a strong message to their environmentally conscious buyers in the world market. Some big IT companies like Wipro and Infosys have already begun sharing their internal green computing practices with their clients. Increasing awareness about such technologies is enabling SMEs to tread the green path in the face of growing environmental concerns. Green practices by SMEs will pave the way for a cleaner and greener environment for future entrepreneurs ability in adopting the right cleaner production concepts in production process, know-how in eco-product design, identifying a cost-effective pollution control technology, understanding the local and global legal requirements in environmental protection, proper ways in responding global environmental supply chain pressures, strategic planning for long-term environmental improvement and obvious constraints from capital and human resources.