COMPAGE COMPUTERS: Ready For A New Game

Secunderabad-based Compage Computers is into trading of computers, components
and consumables. Compage entered in to IT business in 1992 under the banner
Compage Data Products, mainly focusing on IT supplies. In 1997, Compage floated
one more company called Compage Computers to look into the sub-distribution
business. Today, both the companies put together did a revenue of Rs 50 crore in
the 2003-04 fiscal. This was a growth of 38%, a lot better than the 19% growth
it had achieved in the previous year.

Last fiscal, the company had decided to change its business composition from
volume sales to value sales. Which means the company will focus more on
end-users than on resellers. This move is to help it improve its margins and
keep healthy bottomlines.

Last fiscal, the company made 70% of business by supplying to the resellers,
while 30% was earned from end-users, which includes corporate, SMB, government
and home segments. However, it hopes to reverse the ratio in the next three
years.

Presently, Samsung is the major revenue earner with over 20% share, while HP
and Intel stands second and third position with 17% and 16% respectively. TVSE
and LG contribute seven percent each and the rest comes from other brands such
as Epson, Sony, Seagate and Wipro. The company makes 74% revenue from
peripherals, while 20% from systems, five percent from networking products and
less than one percent from software.

Compage caters to over 200 resellers in all major towns and cities. The
company has 60 staff working for it.

The company is seriously looking at retail business to tap the home segment
and it plans to open at least four showrooms this year in the twin-cities,
Hyderabad and Secunderabad. Compage already has four showrooms in the city.

On the other hand, it is increasing its workforce to get aggressive in direct
business, mainly with corporate, SMB and government departments. The government
contributed a very small portion in the total turnover.

The company is very conscious about the growth considering the market
situations and competition in business. Meanwhile, the company is changing its
focus from resellers to end-users. For this it is getting into value business
and high growth areas like Wi-Fi, digicams, LCD monitors, Plasma, hi-end
laserjets and plotters.