IT partners have identified IBMS as a big opportunity because of a strong trend to integrate once-separate systems like access control, fire safety, video surveillance, rodent control and incident response.
According to MarketsandMarkets, the Indian intelligent building management system (IBMS) market is expected to reach $1,891 million by 2016 at a CAGR of 25 percent from $621 million in 2011.
Many IT partners have identified IBMS solutions as a big opportunity because of a strong trend to integrate once-separate systems such as access control, fire safety, video surveillance, rodent control and incident response.
Says Manoj Bisht, CEO of the Delhi-based MK Infosystems, “Many corporate hubs in metro cities are going in for IBMS solutions. We are also seeing demand from segments like PSUs, hospitality and real-estate.”
Partners who have ventured into IBMS says it’s a natural progression and is very profitable compared to the IT business. “While the IT systems integration business offers about 15 percent margins, IBMS solutions provide 25 percent margins or more,” reveals Moin Shaikh, Director of the Surat-based Innovative Telecom & Softwares.
He says that partners can leverage their systems integration skills to target existing large customers demanding centralized control to enter the IBMS space. “Partners need to gain skills to develop software interfaces to integrate various components of IBMS. It’s essential to add skills around electrical systems, instrumentation and process control. Also, it’s better to target customers before they execute their building plans.”
During the last fiscal, Innovative implemented eight IBMS projects which contributed about 20 percent to its Rs 115 crore revenue in FY2012-13. While most customers were from the gems & jewelry vertical, some were from manufacturing and infrastructure companies. “In the last two years large gems & jewelry exporters have been compelled to deploy IBMS solutions for Kimberley Process compliance,” explains Shaikh.
For MK Infosystems, the IBMS business is expected to grow manifold. “Our IBMS business has grown 100 percent YoY in the last fiscal. This fiscal too we expect 100 percent growth,” says Bisht.
MK Infosystems executed four large IBMS projects in the last fiscal including one for C-DOT and another for ONGC. “We have partnered with a large SI to do the installation and integration work for their IBMS projects,” informs Bisht. “We are also doing projects for our own customers. In the current fiscal we are working with the SI partner on a large IBMS and data center project for UIDAI in Bengaluru where the installation services revenue is Rs 2.5 crore. We are also implementing IBMS for Duet Hotels and a large real-estate player.”