EXCLUSIVE: How Cemtrex Is Focusing On VR, The Metaverse, Riding 'Organic Wave Into The Future'

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As the metaverse becomes increasingly talked about, investors are looking for ways to get a piece of the future internet-based space.

Although Cemtrex Inc CETX is shifting more of its focus to augmented and virtual reality, the company has been laying the groundwork for years.

"We've been building in VR for the last three or four years already so we are quite familiar with the space," Cemtrex CEO Saagar Govil said Wednesday on "Benzinga Live."

Cemtrex is a diversified technology company with multiple operating brands spanning the internet of things, security technology and augmented and virtual reality.

The company plans to focus more on augmented and virtual reality moving forward, according to Govil.

"We're very excited for sort of the next phase of the computing paradigm as we, you know, get into the metaverse," he said. "We think the time is perfect for VR now to take off."

The metaverse will present several different opportunities as it dramatically evolves over the next 20 to 30 years, Govil said.

"Our focus is to really drive growth for our business in areas where we see early adoption."

Cemtrex acquired training simulation technology company Virtual Driver Interactive last year. The company is building simulation technology that it plans to evolve as VR is increasingly used for training applications, he said.

Govil told Benzinga that Cemtrex also launched its own gaming studio in which it's building its "first VR game experience as part of the metaverse."

The gaming studio, Bravo Strong, expects to launch its first VR game in the first quarter of 2022.

The Cemtrex CEO noted that the company is also actively investing in other companies related to the metaverse. 

"I think everybody is trying to figure out how to monetize ... so we see that as a big opportunity in terms of monetization strategies," he said. "There are a number of different avenues that we are looking to capitalize on in terms of the next year or two within VR."

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Govil compared the current stage of the metaverse to the early stages of Amazon.com Inc AMZN, in which it took many years for Amazon to develop into the company that founder Jeff Bezos envisioned. 

"We are in the early stages of a computing revolution that could be larger than the mobile computing revolution and has the potential for massive value creation," Govil said. "This is going to take some time to evolve so we kind of want to ride that natural, organic wave into the future."

See the full interview here:

CETX Price Action: Cemtrex has traded as high as $4.20 and as low as 86 cents over a 52-week period.

The stock was down 6.77% at $1.24 at the close Wednesday.

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