Tokyo, Japan – Zenrin DataCom, a leading Japanese location and navigation technology provider, has substantially increased its presence in the Indian and South East Asian telematics sector with the acquisition of Singapore-based Infotrack Telematics Private Ltd.
Through this acquisition, Zenrin DataCom will accelerate expansion of its B2B location-based business, which includes a fleet tracking system, starting in India and emerging Asian countries and moving to the Middle East and North Africa. As part of the acquisition, Zenrin DataCom will become majority owner of Cert Infotrack Telematics Private Ltd, based in Bangalore, India.
Infotrack has a rapidly growing business operating in India and South East Asia, and boasts a solid customer base that includes logistics, transportation, and BPO companies, and maintains strength in the development of GPS-based solutions for enterprises and the provision of maintenance services.
Zenrin DataCom released its Navigation Service (B2C) in India in January 2013, and now expects to expand its B2B location-based businesses as well. Currently, India is seeing a dramatic increase in location based businesses, and Zenrin DataCom aims to strengthen and expand its businesses based on skills and development capabilities which have been cultivated through extensive experience in Japan.
Mr Tatsuhiko Shimizu, President of Zenrin DataCom, commented: “In view of its size, enormous growth potential and indigenous talent, we see India as a strategic market of the upmost importance. Our acquisition of Infotrack Telematics and its Indian operations give us a unique opportunity for long term growth, and for the development, of new and exciting navigation, tracking, dispatching and fleet management solutions for specific local conditions.”
Managing Director of Infotrack Telematics, Mr CK Ramakantha, added that the combination of Zenrin’ s technical expertise and adaptability, and Infotrack Telematics’ technical capabilities and deep domain knowledge, decade of experience, particularly in employee transport, logistics and taxi operations in India, creates a powerful combination which will take the Indian telematics to the next level.
According to Steve Kremer, of industry analysts TRN Ltd and co-author of the recent report ‘TRN Indian Vehicle Tracking & Fleet Management Market, 2013-17’:
“Zenrin Co Ltd, parent company of Zenrin DataCom, is also a key shareholder in the leading Indian mapping and navigation provider MapmyIndia. Their latest acquisition further boosts confidence in Indian telematics, and continues the trend for foreign direct investment in the sector. This trend has seen key global companies such as M2M Telematics Group, Digicore Holdings, Efkon AG, Trimble Navigation, Teltonika Wireless Solutions all enter the Indian market in recent years through direct investment or acquisition”.
“These investments by foreign technology companies are in addition to involvement by foreign venture capital firms such as Sequoia Capital, Kleiner Perkins Caufield & Byers (KPCB) and Seven Hills Capital Management, which are playing an important role in bringing capital and expertise into the high growth Indian telematics sector. Continuing strong infrastructure investment, liberalisation of the retail sector, expansion of mobile data networks beyond urban areas, and ever-improving mapping data are all contributing to increasing demand for value-added location based services in India which Zenrin DataCom will be well placed to meet.”