Israeli telematics co starts India ops

Firm cites buoyant eCommerce sector for logistics push, investment

ERM Advanced Telematics (ERMAT), a leading Israeli player in the vehicle security devices and fleet management space, has officially launched its India operations with an investment of $1 million for a period of  three years.

Interacting with Deccan Herald, ERMAT Senior Vice President Kfir Lavi said the company, which is part of the Nasdaq- listed Ituran Group, is enthused by the growing opportunities in the Indian fleet management sector.

“India is witnessing a buoyant eCommerce industry and logistics plays a major role in this.  As per a recent study, the global fleet management system market will grow at a CAGR of 26.23 per cent over the period 2014-2019. Here India has a major stake,” said Lavi.

Besides offering telematics devices and solutions for Stolen Vehicle Recovery (SVR), GPS tracking, and Fleet Management (FMS),  the company designs, develops, and manufactures devices and solutions for driver behaviour, fuel management, fuel theft alerts, motorcycle tracking, immobilising, etc.

“We provide platforms to fleet operators to efficiently control, track, and monitor commercial vehicles. Besides improving the overall operational efficiency, these platforms help reduce the non-value-added activities of the operators,” said Lavi.

ERMAT, founded by Meir Hayman in 1985, began its India entry with two partners two years ago. “We have done a total business of Rs 2 crore last year in India and is expecting to double our revenues this year by roping in more than 25 partners,” said Lavi.

The company is also scouting for opportunities by tying up with OEMs in the automotive industry to supply solutions. “We are already in discussions with a couple of OEMs in the country. But the opportunity in the logistics and fleet management sector is humongous with only 3 per cent of the market still tapped in India,” he said.

In order to reduce costs for its products, the company is ready to start a manufacturing plant. “We are ready for investments on a production line. But here we would like to go with partners. It will help us to manufacture more than 70 per cent of components locally,” he said.