“Channels would be the extended arms of Fujitsu”

After having tested the business feasibility in the Indian market for more
than two years the Japanese IT hardware, telecom equipments and solutions major
Fujitsu finally set up shop in the country. To streamline the India operations
the company established an office in Delhi and also took on board Ramanjeet
Singh to drive its PC business in the APAC region. Singh, who has been
associated with the IT trade for the last seven years, is upbeat about making
Fujitsu a well-known brand among corporate buyers. With his varied experience in
channel and corporate sales he believes he can do justice to the brand by
devising diligent channel strategies.

Outline Fujitsu's expansion plans in India and to what do you attribute
the company's late debut in the IT market in India?

Although Fujitsu has a long track record of serving Indian customers mainly in
the telecom sector, the company never showed any interest in expanding its IT
distribution trade here. One of the obvious reasons that could be attributed for
our late entry into the sub-continent is that we were doing a survey of the
Indian market before instituting direct business processes on this land. Being a
late entrant in the market also meant that we did meticulous planning before
debuting in the market. In August 2004, on an experimental basis to scrutinize
the market size and opportunity Fujitsu appointed Mumbai based Fujisan as its
sole distributor to market the company's range of IT products in India. This
test trail gathered fabulous customer response and added to our confidence.

Ramanjeet Singh Head — PC Division, Fujitsu India

What are the measures that you are taking to establish the company's
presence in the region?

The paramount task in front of Fujitsu India right now is to strengthen our
service capabilities before taking up marketing initiatives. Predominantly,
there are two areas, which we are concentrating on. First is to pyramid manpower
and the second is to tightly weave together the service network across the
country.

Soon we will also introduce a pan-Indian toll free number to provide instant
solutions to customer's queries. In order to win brand equity for Fujitsu in
India, we want to invest heavily on brand building activities along with
periodic partner and customer training programs. Partner training sessions would
take center stage, as we will organize technical and product oriented seminars
more often.

What kind of business model are you looking at implementing to address the
Indian clientele? Are you also looking at doing business directly?

Fujitsu is a 100 percent channel driven company and we will address Indian
customers through channel sales only. We plan to adopt a two-tiered channel
distribution model with national distributor forming the level one of the
hierarchy and resellers and retail partners occupying the second stratum.

How important a role will channel partner's play for Fujitsu in India?
How many business associates are you planning to appoint to kick start your
business?

Channels quintessentially would be the extended arms of Fujitsu and we will rely
greatly on them to effectively position our products in the market. As mentioned
earlier that Fujitsu had already taken on board Mumbai-based Fujisan as its
national distributor to overlook countrywide sales at tier one, we will continue
to proceed with the same partnership as of now. Primarily we will engage 200
reseller partners at tier-two, who would take Fujitsu products to corporate and
retail customers. These reseller partners would be working under the direct
supervision of the national distributor. We will not clutter channel sales by
taking on board endless number of partners. Nevertheless, we will approach our
target customers though a limited but the top layer of channel partners.

The Indian market is already flooded with MNC brands offering IT products,
what is the USP of Fujitsu that would make it stand apart in such a competitive
scenario?

I would like to point out that Fujitsu is not a new brand in the IT products
category. Fujitsu desktop and notebook PC's have already gathered rave review
with the global clientele. The use of biodegradable components is the USP of
Fujitsu. Also, I believe that the Japanese make of Fujitsu products will
certainly add credibility for us in the Indian. Hence, brand positioning would
not be a very cumbersome process for us.

How will the govern­ment's decision to levy 12 percent excise duty on
imported products affect Fujitsu's business?

It is a good move that Government of India is easing out the path for local
manufacturing companies, but I don't foresee this move affecting MNC brands in
any way. Moreover, the market will take a more vibrant hue, as all players will
have a level playing field.

As far as the budget is concerned it will lead to a net 5 — 5.5 percent
hike in the price of products, which would be applicable for all the
manufacturing companies based outside India.

Retail is the new mantra in the Indian market. How do you plan to cash in
on the retail sector for Fujitsu's growth in India?

Yes, the mushrooming retail sector has caught the fancy of everyone. In order to
cash in on the retail buzz we will institute at least 50 concept corners or
exclusive Fujitsu brand outlets across the country. To begin with we are aiming
to target the top 16 metro and mini metros cities to roll out Fujitsu retail
shop fronts. These partners owned retail junctions would be based on the
international line of Fujitsu retail outlets and would be funded and executed by
Fujitsu.

ANJALI CHOUDHARY