9 SAVEX COMPUTERS LTD: Robust Systems, Low Overheads

MD: Anil I Jagasia START-UP YEAR: 1988 ADDRESS: 124 B Maker Chambers III, Nariman Point, Mumbai 400021 NO OF PARTNERS: 1,500 BRANCHES: 14 PRODUCTS & SERVICES: PCs and peripherals AGENCY OPERATIONS: Samsung, Compaq, Mercury, US Robotics, 3Com ADDRESS: 124 B Maker Chambers II Nariman Point, Mumbai 400021 TEL: 022-2881616 FAX: 022-2041656 WEBSITE: http://www.savex.org/   POINTERS TO PERFORMANCE Has built up strong internal processes Vendor loyalty has increased profit margins   POINTERS TO FUTURE Focusing on development of niche markets  Will expand to three more cities

At 53 percent, Savex Computers Ltd (SCL) showed more than the average industry growth but less than the projected 70-80 percent. The growth came down mainly because of the slump in demand that affected SCL just like any other partner.



Revenues stood at Rs 195 crore for 2000-01 compared to Rs 127 crore of 1999-00. A down-to-earth Anil Jagasia, MD, says that given the current market scenario, he is looking for a growth of only 20-25 percent for the current year. Says he, "The market is not conducive for replicating the growth of previous two years." 

With the entry of SES Technologies in the Silver Club, and Priya climbing one step higher, SCL has gone down one notch, from last year's eighth position to this year's ninth. Perhaps this should spur SCL to work harder this year to regain its position in the Silver Club!

TFT monitor was the star product for SCL which it sold to media companies and high-earning individuals in large numbers, bringing in good business to its primary principal, Samsung India Electronics Ltd. 

SCL also did big business for Samsung in color monitors, HDDs, CD-ROM drives, CDRWs and laser printers. SCL distributes FDDs and keyboards of Samsung Electro Mechanical Company as well. 

The distribution arrangement with Kobian for its Mercury brand of cabinets, motherboards, and internal modems brought in substantial revenues. Besides, SCL also distributes internal and external modems of US Robotics and Compaq systems in the western region.

With 14 branch offices, SCL is in a position to provide logistic support to its partners across the length and breadth of the country. Service is directly provided by principals for most of the products. For others, SCL has a centralized service point at Vasai, a suburb of Mumbai. 

SCL is looking at more of consolidation this year and less of expansion. It has a partner base of 1,500 across the country. The distributor wants to enter three new cities this year with offices being planned in Ludhiana, Nagpur and Raipur or

Bhuvaneshwar. 

Western and southern regions are the strongholds of SCL, with each region contributing one-third of the total revenue. Rest of the revenue has come from northern and eastern regions. 

Anil says that SCL is adopting a more focused approach to distribution. He wants to move from mere box pushing to working closely with vendors to develop niche markets for high-end products. "There is at least 10-20 percent margin in this segment," he points out.

A new ERP system is being put in place to strengthen back-office operations and is expected to be functional by March 2002. 

SCL has built a robust internal system to monitor stocks, logistics, credits and outstandings. Anil says that his company has "probably the lowest overheads in the industry in terms of logistics."

With a pragmatic approach to business and stress on following processes and procedures in its transactions with partners, SCL has gained respect among its partners. 

With a strong brand like Samsung in its kitty, if SCL can complement its list by adding products like printers, the distributer will be in a position to attract more partners and offer them a complete range of products.