Last fiscal, Compage Computers had 70 percent of its overall revenue coming in from retail. No wonder then that the company is looking at establishing its retail presence more strongly this year

Compage Computers scored a satisfying growth of 30 percent in 2006-07, growing its revenues from Rs 104 crore in 2005-06 to Rs 148 crore. Most of this business came from the retail initiatives the company undertook, contributing close to 70 percent to the overall turnover. Incidentally, Compage is the only distributor from Hyderabad to have made it to the Silver Club.

It is interesting to note that in 2004-05 Compage's revenue was Rs 148 crore and then the company found its business going through a slump to touch Rs 104 crore. The irony of this situation is that last fiscal it again managed to touch the revenue mark of Rs 148 crore. The distributor pegs this turnaround to two simple aspects - focus and tenacity.

There were no new vendor alliances that the company entered into in the last fiscal. This was also because it made a conscious decision to focus on its existing partnerships with TVS-E, Samsung, LG, HP, Intel, Epson, Sony, Seagate, Microsoft and Wipro for this year too.

This focus helped the company in pushing these brands further to the channel, rather than getting caught up with the promotion of any new vendor. Compage instead tried to popularize the new launches from each of these vendors, gaining more mindshare in the Hyderabad market.

The retail channel ratio is currently at 70:30, but Compage does not expect this to change, because it sees equal growth in both these segments. Also, the channel is the preferred conduit to market where the company does not have any retail presence.

The company has so far limited its operations in Hyderabad and Secunderabad with three offices here. This fiscal, it has set itself a mandate to increase its presence to
other cities Andhra Pradesh.

'When asked why the company is still limiting itself to its hometown state, the answer goes back to the company's main buzzword, which is focus. It does not want to enter into too many markets at the same time. Rather it would like to spread its presence gradually, so that its risks on low return on investment is minimal.

Last fiscal, the company had vendor certification from LG and Samsung, and the highest sales achievement certification from HP, to its credit.

	Profile CEO: G Mahendar Start-up year: 1997 Employees: 80 Collaborations: TVS-E, Samsung, LG, HP, Intel, Epson, Compaq, Sony, Seagate, Microsoft, Wipro Address: 101, Karan Trade Center, SD Road, Secunderabad - 500003 Tel: 040-66310796 Website: www.compagegroup.com
HIGHLIGHTS Got vendor certification from LG and Samsung Won the highest sales achievement certification from HP
SILVER CLUB RANK (2005-06): 19

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