From Textiles To Computers

It was in 1992, that Bharat Bhushan left his family textile business in Gurgaon, Haryana to start his own venture. He began with the import of telecommunication components to supply them to Indian Technology Institute. But four years later when the computer parts came under the Open General License, he was quick to recognize the opportunity this change offered. 



Bhushan ventured into the import of products like CD ROMs, HDDs, motherboards and add-on cards, mainly VGA cards. Though the hi-tech world of VGA cards and motherboards was a far cry from the textile trade that Bhushan was a part of for nearly 12 years, he took to it like the fish to the water. 

The market too has come a long way since then. The most significant change according to Bhushan is the common woe of all those in the trade -- shrinking margins. “Margins have become so thin that one has to struggle hard to survive in the market,” says

Bhushan. 

Robust growth

Bhushan partnered with GD Bhargava to start Aryan Technologies in 1992. RR Systems came into existence only on February 5, 1999. The first year the company posted a turnover of Rs 16 crore. And in the last fiscal, the company grew by a phenomenonal 268 percent, to close its books at Rs 43 crore. And this does not include Aryan Technologies' figure which was another Rs 15

crore. 

The growth has been visible on the manpower front. What started as a four man outfit today has a workforce many times that number, though Bhushan is reluctant to reveal just how many employees he has on the payroll. 

The current economic slowdown has put a brake to many an ambition. Bhushan too, is following the cautious approach. “For RR we have projected a turnover Rs 50 crore and another Rs 20 for Aryan this year,” Bhushan informs. 

He views the contemporary scenario as an opportunity to set his house in order. Bhushan is now looking at improving his supply chain and further strengthening his relationships with vendors. And he is also adding a dash of color to his office. “We have doubled our shop floor space from 200 to 400 square feet to augment our existing functioning and bring in retail business,” says

Bhushan. 

Broad product portfolio 

RR Systems today has nearly 125 items on its active trading list. Such a broad portfolio has helped Bhushan cater to a wide plethora of customers. A major part of this constitute resellers, mostly from Delhi, Uttar Pradesh and Rajasthan. “Nearly 80 percent of our customers are resellers,” says

Bhushan. 

This is not surprising as the RR Systems has become a convenient one-stop shop for many a reseller. While an array of motherboards are available, customers also have the choice of an Intel, AMD or Cyrix processor, not to mention a wide variety of cabinets and other components. “Customer satisfaction arises from good service, proper warranty and support,” muses Bhushan. “And RR Systems strives hard to deliver.”

Apart from maintaining a diverse product portfolio, Bhushan has also learnt to manage the inventory impeccably. “Excess stock can lead to losses that become difficult to manage,” says he. 

Distribution: The next stop

Aryan was recently appointed as the sole distributor for HP Pavilion in the northern region. Bhushan is now busy appointing resellers for the brand and already has over 10 dealers. 

“We are planning to add another 20 by the end of this calendar year,” says Bhushan. “Anything above that and it will become difficult to provide a committed support to our channel.” He plans to sell 2000 HP machines by the end of this year. 

Another of Bhushan's plan is to aggressively venture into the retailing of branded machines from Nehru Place. The reason he is contemplating this move is because of the 100-odd walk-ins that he gets in his store everyday. A foray into retailing, he feels, will add strength to his bottom-line. 

Nothing succeeds like success

According to Bhushan the most important factor that propelled his success in the trade is his knowledge about the tech world. “It is important to be aware of the latest,” he believes. This not only enables one to exploit the opportunities that the dynamic market creates, but also ensures that a loss making proposition is kept at an arm’s length. 

Another important factor, he feels is to manage the ends of the value chain with the vendor on one end and the customer on the other. “It is the relationships that need total attention in totality and not certain groups in isolation,” he says. 

Reminiscing about switching fields after having worked for over a decade in the family textile trade, Bhushan says, “I could not have done better in my life.” And this feeling is shared by his family today, with his son lending a helping hand to the business.

MOHIT CHABBRA in New Delhi