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SAVEX COMPUTERS: A Grip On Profits
 
An excellent growth in Savex Computers' bottomline was overshadowed by the 5% growth in its total revenue. It is seriously planing to widen its small set of principal vendor profile.
 

 
Monday, September 20, 2004

 

Anil Jagasia, MD

PRODUCTS: Samsung, Kobian and Lexmark
EMPLOYEES: 149
DEALERS: 1,900
BRANCHES: 19
ADDRESS: 124, Maker Chamber III, Nariman Point, Mumbai 40000l
TEL: 022 22881616

STRENGTHS
l Long standing distributor of Samsung, registering instant recall 
l Clear focus on bottomline
WEAKNESS
l Has very few principals
l Limited presence in B- and C-cities

Savex Computers is one of the few true national distributors in the country, which has been maintaining a steady growth in the
last many years. However, with revenue of Rs 231 crore, Savex Computers grew only by 5% percent in 2003-04 over the last fiscal.

It had achieved 32% growth the previous year. The company maintains that in 2003-04 the bottomline has increased by a whopping 29.5%.

The company could achieve higher bottomline only because of its conscious effort to focus on high margins rather than volumes. Managing expenses efficiently also tuned the profitability to some extent.

During the year, the company added Lexmark as a new principal. Lexmark's all-in-one was one product category that did extremely well.

But maximum contribution, of about 75%, came from Samsung India Electronics products. 17" monitors, TFT monitors and hard disk drive were some of the few products that drove Savex's business. It relationship with Kobian was restricted to lifestyle products like digicams, binocams and MP3 players only in the north and west.

Savex added two new branches, one each in Jaipur and Ludhiana, in its efforts to become a truly national distributor. For the next year, increasing geographical presence and widening its products portfolio will be the two top things to do in Savex's agenda.

Currently, there are about 1,900 active dealers and systems integrators buying from Savex. During the year, the company organized European trip for 75 of its top channel partners under its dealer reward program. It also conducted concerted promotion for Lexmark with series of roadshows.

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