MAXTONE ELECTRONICS : Performance Drops, But Spirits High

For Maxtone Electronics, FY'2008-09 was an eventful year which prompted the
distributor to revisit its market strategies. While the distributor did
establish new tie-ups, it had to cope with recession and falling prices of
several entry-level and mid-range IT products, resulting in a reduced turnover
figure.

Last fiscal also saw it discontinue its tie-up with Lenovo. However, Intel
continued to be their biggest selling brand and the vendor has further
recognized Maxtone as its best ICS and largest volume partner. From a staggering
revenue figure of Rs 330 crore recorded by Maxtone in FY' 2007-08, the
distributor ended up registering only Rs 290 crore FY' 2008-09 which is a drop
of 12 percent. However, this did not deter it from carrying out its market
strategies. Maxtone made additions to its HIS range of IT products and
solutions, and launched a range of netbooks under the same brand name. It
already has motherboards and graphic cards as part of HIS range of products.

Another highlight for the distributor came in the form of initiating
distribution for Microsoft Paper License in the OEM category. Maxtone also
devoted much of its time and investment in appointing sub-distributors for LG
and Videocon brands.

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SILVER CLUB RANK (2007-08): 13
PROFILE
CEO: Champak Raj Gurjar Start-up year: 1994 Employees: 235 Collaborations: Intel, Microsoft, HP, Sony, LG, Lenovo, ECS, Tata, Virgin Mobile, Videocon Address: Unit 414, Creative Industrial Estate, NM Joshi Marg, Lower Parel (E), Mumbai - 400011 Tel: 23011919, 40333000 Website:www.maxtone.com
HIGHLIGHTS Awarded best ICS and largest volume partner by Intel Started distribution for Microsoft Paper Licence, and was appointed sub-distributor for LG and Videocon LCD TVs

Its performance peaked during the JAS quarter with nearly Rs 85 crore coming
in from its distribution business during the period. While West contributed
nearly 52 percent to its overall revenue, 20 percent of it came from the eastern
region, followed by 16 percent from South and 12 percent from North. Maxtone has
identified both IT and mobile communication products as the areas, where it will
enhance its partnerships. It has also tied up with Videocon to further their
set-top boxes and has appointed over 300 dealers to meet their target.

It is enhancing its focus on the mobile communication products and after
tying up with Virgin, it also entered into partnership with Tata Communications
for its USB range.