In a move that will help it improve declining profits, global technology manufacturing company Moser Baer has diversified its portfolio to higher margin business one of which is information and web security solutions.
From this month onwards, Moser Baer will offer information security solutions like public key infrastructure token (PKI), data encrypted USB device and one-time password token (OTP) to increase data security for e-commerce transactions. The business will initially be an extension of the company?s solid state storage business but going ahead, it will be made into a separate business unit. At present, the company has four divisions namely-storage media, solar, entertainment and IT peripherals and consumer electronics.
?We have been working on this for more than a year now. The products that will come out of the business will be of similar form factor that we produce now but the software and hardware inside will be different. We will give extra levels of security to the devices,? said Vijay Malhi, senior vice-president, solid state media, Moser Baer India.
The other high margin business that the company entered a few years back was of Blu-ray discs and other products in high definition formats. Moser Baer will design and develop these solutions from its manufacturing facility in Noida in association with Germany’s Giesecke and Devrient (G&D) a leading international technology provider and other players of the data security industry. The company will provide the funds and the manufacturing capacity while G&D will offer a part of the technology.
?We will start out the business as part of the existing operations and then it will be spun off into a separate unit. The margin potential of the business is 6x to 8x which will substantially contribute to the bottomline,? added Malhi.