'Our business model is not click and portal. Neither is it brick and mortar. It is click and brick!'

Ketan Sheth, CMD, Orient Infotech has made a name for himself in India and abroad by developing software for public utility services, government organizations, public sector companies, banks, financial institutions and airlines.

What business model do you follow for CyberITmall?

We have tied up with distributors like Tech Pacific, Redington and

Ingram Micro. For computer books, we have alliances in place with publishers. Our USP is

choice and variety. Besides, we sell both software as well as hardware. Our site has all

the information that a customer wants. How does a buyer decider which computer to buy and

what are the most competitive prices in the market? Therefore our sites have a lot of

pre-sale information. CyberITmall.com sells anything related to IT. In that sense, we are

different from CIOL or ITSpace. Everything is done on the basis of tie-ups and reciprocal

arrangements.

How do you handle support and service for the products sold?

We have an e-helpdesk. Any question addressed to this helpdesk is

answered. For this service we have tied up with Web Help and Trackmail, which are both

US-based companies. For information on IT stocks, we have tied up with Capital Market.

What role do you envisage for channel partners in this business model?

We have roped in the infrastructure of our partners like Tech Pacific,

Redington and Ingram Micro. In fact, Redington’s network of 17 service centers will

be tightly integrated with the central support monitoring cell at CyberITmall.com via our

web-based network. Besides, ensuring and controlling quality and prompt services on each

call, managing maintenance and extended warranty packs, the central cell will also work

towards building a strong central support helpdesk on selected products.

CyberITmall.com will offer cybershoppers with ongoing product service

and support on major leading brands and models. This will include installation support,

repair and replacement services as per warranty and return policies. Even after the

warranty period has expired, CyberITmall.com will provide cybershoppers with the option to

enter into maintenance agreements at reasonable prices. Purchase of such services will

entitle shoppers to receive continuing product service and support at any of the service

locations.

So where will your concentration be? B2B or B2C?

CyberITmall.com enables both B2B as well B2C transactions, though our

focus is on B2B. We expect corporates to buy in large quantities because we give credit

facilities and quotations. Usually, purchase managers are suspected when such bulk

purchases are made. Now they need not come under suspicion if they buy through

CyberITmall.com because the prices are all there on the Web.

Do you have any franchisee arrangements?

Well, we have around 100 franchisees all over the country through

distributors as well as directly. Our business model is not click and portal. Neither is

it brick and mortar. It is click and brick. Our experience has vindicated the belief that

it is easier to convert a dealer into a franchisee. Existing dealers are welcome to become

our franchisees. We have incorporated 60 depots of Tech Pacific and Ingram Micro into our

network.

When a customer purchases from CyberITmall.com, the delivery schedule

is mentioned and if we have to stick to it, we have to work in close co-ordination with

our franchisees.

What are the other features of your site?

We have loan and finance options from HDFC Bank. Our customers can do

online order tracking. They can know what is the status of their order. In fact, they can

even cancel the order the last minute. Customers can configure what kind of product they

want. They can give the configuration that they want to have in their machines. Suppose

someone wants a 17-inch monitor with a 550MHz CPU, CyberITmall.com will locate such a

machine for customers. CyberITmall.com also has a bid or buy section.

Seconds and outdated products can be auctioned through this site. We

also have special schemes for NRIs. They may approach CyberITmall.com if they want to gift

computers to someone in India. Corporates can also conduct online negotiations for bulk

purchases through our site.

How reliable are your security and payment systems?

We have put reliable systems in place. For example, our quotations are

available as both hardcopy and e-mail. It is possible to get a printout of the quotation.

You might require your CEO to approve purchases. A co-branded Cyber ITmall.com credit card

— corporate and individual — will be launched very soon. We are talking to

couple of banks in this regard. Payment gateways will also be put in place.

What are your future plans for CyberITmall?

We do not want to remain an ‘Indian’ site. We have already

got inquiries from the Middle East. Almost all models used in the West are available in

India and we will soon start operations in UAE, Singapore, UK and USA. By the fourth

quarter of this year we will be in Dubai, Bahrain and Kuwait.

Are you negotiating with channel partners there?

Yes, we are talking to channel partners in UAE. Basically, we intend to

go wherever Orient Infotech has a presence, namely Australia, Singapore and USA.

How will you put in place payment systems for your overseas

operations?

We will go through local banks with which Orient has relationships. For

example, in the case of UAE, it will be the National Bank of Dubai.

What is the equity holding pattern?

We acquired 70 percent of this company for Rs 40 crore. Orient is the

major investor. Three months down the line, we’ll be divesting 10 percent. Strategic

partners are willing to take a stake. Even FIIs are being considered. Our stake will be

reduced to 60 percent. The total equity is Rs 10 crore. Though a foreign merchant banker

is talking to us, we don’t really want money. At present, Orient holds a 40 percent

stake in CyberITmall.com, while I hold 10 percent and others hold the rest.

What kind of returns do you expect?

Well, all I can say is that our 2001 balance sheet will be green.