Tech Mahindra invests in Indian RFID companies

IT company Tech Mahindra Ltd said that it has acquired 18.1% stakes in each of two India-based logistics and asset tracking firms – Infotek Software and Systems Pvt Ltd and Vitaran Electronics Pvt Ltd.

With the acquisitions, worth Rs 130 million, the company aims to leverage the presence of the companies in the Radio frequency Identification (RFID) space to build a strong footprint in the asset monitoring, tracking and automated billing solutions space in India, Tech Mahindra said.

For the 12 month period ending September 30, 20l8, lnfotek had a revenue of Rs 292.8 million while Vitaran had a revenue of Rs 126.8 million.

The investment will also help expand Tech Mahindra’s solution portfolio to cater to smart city projects, the company said.

Infotek in engaged in the trading of RFID products and providing installation and software maintenance services and is a nine year old company. On the other hand, Vitran, incorporated in 2006, is engaged in the trading of RFID products which form part of access control systems.

RFID (radio frequency identification) is an automatic recognition technology that uses wireless communication.

By using RFID, data can be written and read between points that do not touch each other, and also multiple sets of data can be read as a batch.

Also, communication can be carried out over a distance of several meters, provided that the RFID reader/writer and the IC tag are located within the range over which radio waves can be transmitted.

RFID is used in various fields as new automatic recognition technology which replaces barcodes and QR codes.

Headquartered in Pune and part of the USD 21 billion Mahindra Group, Tech Mahindra is an Indian multinational provider of information technology (IT), networking technology solutions, Integrated Engineering Solutions (IES) and Business Process Outsourcing (BPO) to various industries.