As part of its initiative to grow inorganically, security systems provider Zicom Electronic Security Systems is planning both overseas and domestic acquisitions. Zicom is in discussions to acquire a company in Singapore.

"Our acquisitions would be in the areas of product development or system integration. Areas targeted include Radio Frequency Identification technology and biometrics," said Pramod Rao, managing director, Zicom.

The foreign acquisition is expected to be completed by the next three months. Zicom recently raised about $ 11 million through issue of foreign currency convertible bonds. A part of the funds would be utilised for the company's acquisition, he said.

The security systems market is growing in India.

"Events like the September 11 attack and attack on the Indian Parliament have boosted demand for security systems at the government and the corporate level," said Rao.  Zicom provides security services to government, corporates, retail industry and home.

The security systems market is pegged at about Rs 400 crore (Rs 4 billion). The organised market owns half of this. As per an internal study conducted by Zicom, the security market is likely to touch Rs 1,200 crore (Rs 12 billion) by 2008. Of this, home, retail and banks would cover about Rs 800 crore (Rs 8 billion).

"Home and retail segment is another emerging market for security systems. In the next 2-3 years, we see the home market alone expanding to the tune of Rs 400 crore, that is about 500,000 houses," said Rao.