Vehicle tracking and recovery company Netstar has signed a licensing agreement with Malaysian vehicle manufacturer Proton to allow Netstar systems to be installed in vehicles on Proton`s assembly lines.
While Proton will be the senior partner in the new venture, JSE-listed parent company Altech will retain all rights to Netstar`s intellectual property.
Altech CEO Craig Venter says the signing of the agreement with Proton was a coup for Netstar as Proton is the largest manufacturer and distributor of vehicles in Malaysia, with annual sales of around 200 000 units.
"This unique alliance will see the installation of Netstar systems into vehicles on Proton`s assembly lines. This will enable Netstar to obtain significant critical mass and reach substantial economies of scale," says Venter.
In terms of the agreement, Netstar has already successfully geared itself to develop and manufacture a complete Netstar infrastructure, mirroring the South African operation, for export and installation in Malaysia within the next four months.
This includes the erection of base stations and beacons, the establishment of helicopter and ground response crews and the opening of fitment centres. The Netstar units will be manufactured in SA.
"The total value of foreign exchange generated for SA is significant, with at least R15 million accruing in the first two months of the start-up phase alone," says Venter.
"While an ongoing revenue stream is assured through royalty payments and component sales, Netstar is already a significant contributor to Altech`s earnings and I`m confident that this deal will greatly enhance its value to the group."
Venter says Malaysia recently experienced an increase in vehicle theft, providing Netstar with the opportunity to tackle the Malaysian market in the first move of its globalisation strategy.
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