Calcutta, Jan. 3: Zicom Electronic Security Systems has set up a separate consumer service group to spearhead its retail venture.

The company will offer security solutions through a retail format for households and small business establishments. It plans to set up 200 outlets by the end of next year.

The company will function on a company-owned and dealer-operated model and the total investment for each store would be between Rs 12 crore and Rs 15 crore.

“Of these 200 shops, around 30 stores would be in the eastern region. The first two have been launched today in the city. These 350 to 600-sq-ft shops would be located in tier I and tier II cities. We are also looking at shopping malls which have high footfalls to showcase our products,” said Manohar Bidaye, chairman of Zicom Electronic Security Systems.

The company plans to utilise funds worth $11 million raised from a FCCB issue last year for expansion. In the current year it would look at debt restructuring and borrowing up to Rs 50 crore but would not go in for further equity dilution.

Zicom is the first organised operator in the security solutions retail market. The market includes households and small establishments and is estimated to be worth Rs 150 crore with a growth of over 50 per cent.

Zicom, which already has Rs 70-crore worth orders in the pipeline, is expecting a turnover of Rs 150 crore by the end of this fiscal, a 95 per cent growth over last year.

At present, 30 per cent of the company’s business is retail while the rest is institutional.

Zicom handles security solutions for the Reserve Bank of India and has also embarked on a major project to install security solutions in the western and central line local trains and platforms of Mumbai. Other institutional projects are for NTPC, Cipla, HSBC, ICICI Bank, Metro Railways of Calcutta. Narcotics and explosive detectors have also been bought by the defence department.

The security solutions market for institutions in India is around Rs 600 crore with a growth of 30 per cent per annum.

Zicom develops the software and product design in India but manufactures the product through third party contracts in China, Taiwan and South Korea. The company does not yet have the volumes to contemplate a manufacturing unit in India.