Vijay Seth is gung-ho about his tie-up with Panasonic for its laptops and tablet PCs. In less than six months since this alliance was signed, the brand has started contributing 70 percent to Third Wave Exim's overall revenues. He is now contemplating taking this niche product mainstream, by taking the retail outlet route.

Third Wave Exim has always been perceived as a distributor. How are you trying to change this perception?
We have never been an importer, but have always been selling IT products. Till four years ago, we used to sell office automation and telecom products. Later we started selling Dax Networks in Gujarat and the West. We added Wipro PCs to our portfolio and had good success in it.

It was just six months ago that we signed on Panasonic laptops and tablet PCs. Since then, this brand has contributed almost 70 percent of our revenues. Last fiscal, it contributed Rs 25 crore to our overall revenues. This fiscal, we expect it to generate Rs 60 crore to our target of Rs 80 crore.  

Vijay Seth Director, Third Wave Exim

You are dealing in a product that is very niche. Which are the verticals that you are concentrating on for it?
Yes, we are dealing in a product that is not meant for the mass market. Initially a lot of other competing brands figured that if they create a bit of hype they could sell tablet PCs to the common man. But now they have realized that this is not possible.

We figured from the very beginning that a tablet PC is meant to be used in harsh environments and therefore positioned the product accordingly. This is why we pitched it to the defense segment and these rugged machines are selling well there. Similarly, there are oil and gas companies as well as power organizations where they need laptops which can be used in very low or very high temperatures, which is where our product comes in.

Are you saying that these machines are not meant for the man on the street?
Let me put it this way. You can't give me the engine of an armored truck and expect me to put it in a Maruti 800 and then go and fight a war! Microsoft has delivered a sturdy OS for the tablet PC, but most device manufacturers, other than Panasonic, have not been able to put it into a computing device that can be used by the general public.

So what are the factors that are inhibiting the adoption of tablet PCs in the country?
The adoption of tablets PCs is very much there in India. What is lacking is widespread adoption across all customer verticals. There are several reasons for this. One is that the failure rate is very high at around 30 percent.

This is because most OEMs have put the OS of a tablet PC in a delicate casing, which is wrong. This machine is meant to be used in a rugged environment. The commercial grade devices don't stand a chance in such an situation.

There is an institute in Mumbai that buys 300 tablet PCs annually and over 30 percent of its machines develop problems. Simply because the children use the tablets very roughly and the outer casings break.

Price is also an inhibitor. But as is the case with other machines, once the product becomes well accepted, the prices drop. And besides there are people who are willing to pay a price for this product if they get a product that will justify it.

Weight is another factor why this product is not accepted well in the mass market. These machines often weigh between 1.5 to three kgs. Mass-market customers might not be keen to lug this weight around with them, just for the benefit of being able to detach the tablet and scribble on it. At the end of the day, most tablet PCs available in the market are currently a laptop above a particular ergonomic weight.

So is there a standard for the tablet PC that shows that it can be used in tough environments?
Yes. There is a MIL810F certification, which was a procedure, used by the military to standardize that a tablet PC could be used by the defense segment. Any vertical can use any tablet PC that carries this certification without fear of damage. The failure rate of machines rated under this certification is 1,000 percent less than that of any commercial grade tablet.

Are you trying to take these products to customers in the mass market?
Yes. Initially we were trying to get a foothold in the market. Now that we have been successful in certain core verticals, we are now planning to take this product to the end-users.

To do this, we will soon sign up with retail outlets that will showcase and sell Panasonic tablet PCs and laptops. We plan to have tie-ups with two multi-brand outlets in Mumbai and Delhi each and one each in Ahmedabad, Bangalore and Pune.

Third Wave Exim has predominantly been present in the West and North. Do you plan to enter the other regions?
Yes. We will enter the southern market in a few weeks, by appointing some partners and in the next four months, we will get into the eastern market as well, using the channel again as a conduit.

What is your channel network in India?
Currently we have 11 premium channel partners in the country. We will add four more to this network, as we enter South India. Each of these premium players has their own network of affiliated partners. We do not want to overcrowd our channel. We are open to working with all partners but will continue to focus on a few of them only.

What are the criteria for selecting partners?
We seek partners who are already selling to the verticals that we are positioning our brand at. Also, we have to educate our partners about the kind of applications that can be built in and around our machines, so our partner strategy has to reflect this aspect.

VINITA BHATIA

Page(s)   1