Australian security and IT peripheral product company Swann Communications has initiated a major international expansion plan with the launch of a new operation in Hong Kong.
With an office in Hong Kong -- often touted as the regional centre for Asia-Pacific -- the company would look to enter China and India by the end of the year on the back of an expected boom for closed circuit television (CCTV) products.
Swann opened an office in the United States two years ago and had setup a distribution network in the UK. Over the last two months it had also started distribution in Germany, France and South Africa.
Ron Lane, the new CEO at Swann Communications in Australia, said the company was on a “massive expansion route” and was hoping to double in size (revenue wise) every year for the next five years.
Globally, Swann expected to report sales revenue of between US$45 million and US$55 million this financial year. Around 75 percent of these revenues would be generated from international markets, he said.
He expected that Swann would enter “every country around the globe” over the next two years with the exception of some African countries.
The expansion plan would be funded with cash in the bank and Swann was also talking to several international banks to help fund growth, he said. “We’re in a strong financial position and we’re managing the situation. We see no need in the short-term to raise additional equity,” he said.
It is believed that the CCTV market worldwide is potentially worth around US$3 billion. Last year, only 2.4 percent of Australian households installed any type of surveillance and security infrastructure and similar numbers were being reported overseas, said Lane.
Sales of Swann’s traditional IT products such as modems and USB peripherals were still strong, the growth market was security, Lane said.
Swann expected CCTV to grow strongly due to concerns about vandalism, crime and even terrorism. CCTV products were also used in the arrest of suspected terrorists following the recent bombings in London.
The company also recently signed an agreement with an unnamed supply partner that would allow it to develop products exclusively for some of the world’s largest retailers. Swann was targeting the top 200 retailers around the world, Lane said.
Swann Global Limited (HK) was formerly opened with an inaugural board meeting on Friday 22 July at the company’s office at Hong Kong International Airport’s Tradeport complex.
Last month, Lane replaced Tim Swann, who has left the company. Tim is the son of company founder David Swann.