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PRODUCTS:
Hitachi, Creative, MSI, Adaptec, Netgear
EMPLOYEES: 50
DEALERS: 300
BRANCHES: 11
ADDRESS: 70/4, Merryland, CSI Compound, 2nd Cross, Mission Road, Bangalore 560027
TEL: 080-22223762 |
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| STRENGTHS |
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Fairly established brands in its kitty |
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Enjoys good OEM sales |
| WEAKNESS |
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Product basket comprises only of components; peripherals missing |
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Hardly any niche, high-margin products to ensure good overall profitability |
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Displaying promises of becoming a strong distribution house in the years to
come, Cyberstar Infocom enters into the Silver Club for first time. Backed by
some significant vendor tie-ups last fiscal, the company posted over 30% revenue
growth to clock Rs 50 crore.
It clearly underlined the need to have a wider geographical presence in the
country, as against the four offices that it had been working with so far.
Company's tie-up with Hitachi for its entire range of HDDs and subsequent
disassociation with Maxtor was the most talked about development last fiscal.
Hitachi's strength in the notebook drives segment helped the distributor carve
a niche for itself and also allowed it to fulfill the needs of its OEM customers
seamlessly.
Another much-talked about alliance that happened last year was with MSI. The
vendor snapped ties with SES Technologies before it joined hands with Cyberstar.
This helped it to fill the vacuum that had been created ever since Gigabyte
relationship got discontinued with the vendor choosing D-Link as its Indian
partner. Interestingly, the company was also able to rope in Rajeev Chaudhari
from SES as its director for sales and marketing.
To expand its product portfolio in the networking the distributor also signed
up SMC. Until then it was only carrying Netgear's product range. Arrangements
with storage vendor Adaptec continued at an easy pace. It also tied up with a
Bangalore-based firm First Computing to distribute latter's range of thin
clients. However, this arrangement is yet to yield fruits as demand for such
products were not greatly visible last year.
And in view of expanding product portfolio, the company took the next logical
step last year. That of expanding its channel network and doubled the number of
its dealer base from 150 to 300. However, understanding the risks involved in
dealing with increasing partner base, it tightened its credit policies and for
majority of the cases kept the credit period between 14 and 21 days. Exceptions
were largely made for its OEM customers, wherein it also extended a local
warranty support.
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