In a conversation with CNBC-TV18, Rajiv Kaul, CEO, CMS Info Systems, a cash management company, has announced plans to invest approximately Rs 50 crore in artificial intelligence of things (AIoT). The company's foray into AIoT has yielded promising results, with the technology contributing approximately Rs 100 crore in revenue within the managed services segment.
AIoT combines the power of artificial intelligence (AI) and internet of things (IoT) to enable intelligent decision-making and automation. By integrating AI technologies into IoT devices and systems, AIoT allows for the collection, analysis, and utilisation of data in real time. This integration empowers devices to make autonomous and intelligent decisions, enhancing efficiency and enabling proactive actions.
CMS Info Systems, which manages a staggering 72,000 ATMs and holds a significant market share of 40 percent in cash management, recognises the transformative potential of AIoT. With the company's commitment to growth, it aims to capitalise on this emerging technology to stay ahead in the competitive market.
"We are on track to meet our FY25 targets, and we believe that most of the growth will be organic to meet our FY27 aspirations," Kaul said. "If needed, we will also look at inorganic growth opportunities to accelerate our progress."
One area where CMS Info Systems has leveraged AIoT is in providing predictive solutions for ATM security to various banks. By implementing AI algorithms and IoT devices, the company assists financial institutions in identifying potential security threats and taking preventive measures to safeguard their ATMs and customer transactions.
AIoT has been successfully implemented across 26,000 sites, and CMS Info Systems aims to expand its reach to other sectors, such as telecom, in the near future.
Kaul expressed confidence in the growth potential of AIoT, stating, "We firmly believe that AIoT can contribute 10 percent to our revenues by FY27, up from the current 3.5 percent."
To support its expansion plans, CMS Info Systems is considering allocating around one-third of its future capital expenditure (capex), which is estimated to be approximately Rs 150 crore per year, to AIoT initiatives. Additionally, the company recently completed an acquisition worth Rs 20 crore in the AIoT space and has invested an additional Rs 100 crore to strengthen its capabilities.
With a healthy cash reserve of Rs 450 crore at the end of FY23, CMS Info Systems is well-positioned to spend on growth capex and potential mergers and acquisitions (M&A). The company is particularly eyeing opportunities in the logistics and technology segments, seeking strategic partnerships to further strengthen its market position.
