Moser Baer adopts the channel route for growth

Having carved a niche for itself in the international market, Indian CD
manufacturer Moser Baer India is upbeat about increasing its marketshare in the
Indian market. Moving ahead on a two-pronged strategy, the organization is
marketing its own products in the country and is also working closely with HP to
establish HP-branded CD storage media in India and the SAARC region. To sell its
own products, Moser Baer has appointed Tech Pacific as its distributor.

"We are already present in all major cities. We have identified about 70
B- and C- class cities, which we will be addressing together with Tech Pacific
in the coming months," informed Moser Baer India VP, Bhaskar Sharma.

As the company flexes itself to expand its marketshare, it is looking forward
to working with an increased number of channel partners as well. "Ideally,
we are looking at having one partner in each city that we address. this would be
done in co-ordination with our national distributor," Bhaskar added.

"We are targeting to garner 65% marketshare by the end of 2006. 50% of
this will come from our branded CD business and the rest 15% from HP CDs,"
said Bhaskar. Presently, 20% of Moser Baer revenue comes from the domestic
market while the rest is from international markets. As the company increases
its focus on the domestic front ­ these figures are likely to change a bit as
well.

The company is also in the process of putting in place its strategy towards
marketing HP CDs in the SAARC region. "Things will be put in place once all
the necessary procedures are completed for the Ingram Micro and Tech Pac merger.
We will be taking the HP CD business to the SAARC region with the help of our
national distributor over here," he explained.

Moser Baer is keen to enter the digital photography segment. It is already
partnering with HP for its digital photo shop initiative. Moser Baer's CDs are
going to be branded with every digital photo shop. Bhaskar added that they are
selling close to 40 million CDs per month in India.

ZIA ASKARI