6 COMPUAGE INFOCOM LTD:Size Does Matter

Among distributors, Compuage is in a class of its own. A leading APC distributor with a 25 per cent market share nationwide, it also enjoys 60 per cent market share for Creative. This was made possible by its strong logistics and infrastructure setup as well as support and service capabilities. Backed with strong financial support, Compuage also has a committed and experienced work force. This helped the company to grow by 17 per cent and gross Rs 164 crore in 1999-00.


One of the most important activities undertaken by Compuage for its channel was the launch of the value PC. It set up a manufacturing facility at Daman with a production capacity of 2,000 PCs per month. This was targeted at partners with smaller operations, who found it tedious to assemble PCs themselves. However, Compuage decided against branding these white boxes.


The company also extended its product range to include LanBit networking products and fax modems, Tanberg storage devices, Yamaha CD-writers, as well as LG monitors and storage devices. In fact, it took over the LG distribution business from Ashtech
Infotech.


Compuage Electronics also took over the hardware distribution business of Worldwide Infocom Ltd and became a listed entity called Compuage Infocom Ltd during this period. It also began distributing AMD processors through its subsidiary called Cel Infotech and launched its own brands of speakers and fax modems under the brand name of ‘Odyssey’.


The company concentrated on providing value-added services with an emphasis on building relationships. It ran some channel promotional activities for the channels during the year like the ‘Explore Europe’ scheme. ‘Monsoon bonanza’ scheme was also offered for APC products during March, April and May. Besides these, a ‘Business Leadership Program’ was also organized at Bangkok for Compuage’s top 100 channel partners.


Various technological changes were also incorporated to ensure systematic growth. To begin with operations between the branch offices, warehouses, nine service centers and the head office, is controlled with a totally integrated FACT package capable of accounting inventory control and performing an excellent MIS. All these inputs have led to effective inventory control. Plans have been drawn up to upgrade this onto an ERP package during 2000-2001.


Compuage expects a turnover of Rs 300 crore during 2000-2001. To achieve this, the company has opened branches in Chandigarh and Pune while offices at Nagpur, Indore and Lucknow are on the anvil.


Compuage is also working on product additions like batteries, consumables, networking products, PCs, printers and storage products. It also plans to tie up directly with LG for distribution of its complete range of
monitors

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