The FINANCIAL — Wincor Nixdorf and AGS Transact Technologies Limited (AGS) have signed an agreement that includes the provision of a total of 40,000 cash dispensers from Wincor Nixdorf in India within the next two years. Furthermore, as part of their continuous efforts to offer banking technology products to Indian consumers, the companies have entered into a manufacturing cooperation agreement for producing cash dispensing machines locally in India.
Taking inspiration from the government’s “Make in India” scheme and in line with the financial inclusion activities in the country, an ATM tailored to the requirements of remote rural areas will be developed and will feature only important core functions. A sizeable part of the value-creation process will be migrated, with AGS taking over the most of production in India.
The locally manufactured machines, without compromising on technology and quality, will enable a stronger payments infrastructure in smaller towns and cities of India, thereby making both AGS and Wincor Nixdorf important contributors to the financial inclusion initiative launched by the Indian government in recent times. The manufacturing facility is currently being established in Daman (Union Territory of India) with a capacity of 30,000 units per year, according to Wincor Nixdorf.
“The agreement concluded between our companies will help to strengthen our competitive position in the rapidly growing Indian market for ATMs. We have thus created a solid foundation for Wincor Nixdorf to operate at a more profitable level in India than in the past and further expand the good market position we have already created for ourselves,” said Eckard Heidloff, CEO & President of Wincor Nixdorf. Mr. Ravi B Goyal, Chairman and Managing Director of AGS Transact Technologies Limited, amends: “With the government of India laying special emphasis on making India a manufacturing hub and trying to include a large part of the Indian population in the formal financial system, this agreement concluded between our companies is well-timed.”
By the end of 2019, approximately 2.1 million ATMs are expected in the Asia Pacific region. Net growth in India is expected to be approximately 295,000 ATMs. Over the next four years, approximately 70% of ATMs shipped to the Asia Pacific region will go to China and India. By 2019, China and India will represent approximately two-thirds of Asia Pacific’s installed ATM base. (Source: Retail Banking Research (RBR), Global ATM Market and Forecasts to 2019, Asia Pacific).