Diebold acquires Indian subsidiary; signs orders for 1500 ATMs
08 May 2003 | 3669 views | 0
Diebold is to acquire the remaining 50% equity of its Indian joint venture business from partner HMA Data Systems after winning significant new ATM contracts from banks on the sub-continent.
After the acqusition is complete, Chennai-based Diebold HMA Private will become the 100 percent subsidiary of the US corporation.
Gregory Geswein, senior vice president and chief financial officer at Diebold, says the acquisition sends a clear message that the company is committed to pursuing its international expansion plans.
He adds: "It also allows us to leverage our relationship with Tata Infotech by utilising its technological edge and skilled workers to manufacture Diebold automated teller machines (ATMs) in Goa, India, for local distribution and throughout South Asia and Southeast Asia."
The move to acquire the HMA business comes as Diebold secures a major order for advanced function cash machines from Punjab National Bank, for its onsite and offsite ATM centres for 2003. The bank intends to increase its ATM network from 250 units to at least 1000 machines by March 2004.
PNB has also contracted for site installation services, cash replenishment, and maintenance. Diebold has worked with the bank since 1996 - when its first ATM was installed for SPNS in Mumbai.
In the first quarter of 2003, Diebold also captured a significant order from UTI Bank in Mumbai and additional contracts from several other Indian banks which total more than 900 units.
Diebold has additionally been commissioned to provide custom designed ATMs to Punjab National Bank and UTI Bank for railway ticketing on Western Railway in Mumbai. The machines will give the bank's customers the ability to perform automated on-line self-service transactions by booking their season ticket passes through ATMs at railway stations.