MICROMAX TECHNOLOGIES: Ups and downs

In 2003-04, New Delhi-based Micromax Technologies posted a growth rate of

13%. But last fiscal this dipped to just 7% growth, with the company's revenue

touching Rs 75 crore.

The fiscal started on a good note for Micromax as it was appointed as

regional distributor for Samsung in North, for its laser printers. This was

shortly followed by an announcement that Millennium Automation and Systems had

signed up Micromax as its distributor for Delhi.

In a bid to get closer to its channel, the sub-distributor expanded

operations to new cities like Rajasthan, Ludhiana and Gurgaon, taking the total

count of its offices to six. Currently, it has a channel network of 700

partners, primarily in the northern region. Twenty additions were made to this

community in the last fiscal.

LG and HP were clearly the leading brands for Micromax, with both brands

contributing about 45% business during the year. In the product line, TFT

monitors and high-end laser printers did well. The company also managed to

generate good business for CD writers and pen drives.

The sub-disty was one of the first companies to get into the telecom market

by spinning off Micromax Informatics four years  back. This division

started off as a technology incubator and is currently focusing on embedded

solutions in telecommunications. It registerd 100% growth and started doing

import business for fixed wireless terminal and fixed wireless phone from China.

Micromax Informatics received a letter of intent from Idea Cellular to supply

fixed wireless terminal. It launched a GPRS/EDGE (general packet radio

service-enhanced data rate for GSM evolution)-enabled data transfer modem that

operates on a SIM card. The new device promises data transfer rates of 144 Kbps,

which is better than an ISDN connection. It was priced at less than Rs 10,000

and was co-branded and co-launched with Nokia. However, Micromax did the

distribution of the modem.

One of the biggest achievements for the company this year was its appointment

as a Xerox regional distributor for its copier and office automation products.

The company is betting on the educational and government segments for the

current fiscal.