Niche Market Player

Sandeep Agarwal's Brij Infotech is a striking example of the growing reality that the days of generalists are over and the era of niche players is here to stay. Graduating quickly from dial-up modems to ISDN products, Sandeep now has his sights fixed on DSL and ADSL modems. He brims with confidence when he says that a 'dedicated' band of partners can make pots of money in niche businesses.

If you think higher education is a must for success in business, then Sandeep Agarwal, Director, Brij Infotech, is an exception. He is only a 12th pass but talk to him on the latest ISDN, DSL and ADSL technologies, and he can teach you a lesson or two. Sandeep has made up for the lack of academics with down-to-earth business acumen. 

Unlike many in the industry, Sandeep is not in the turnover rat race. His primary objective is to offer value to customers and his partners. He does this by offering solutions with latest products and technologies. He keeps a close track of the latest developments by visiting international exhibitions. For instance, Sandeep was at CeBIT 2001 to sample the state-of-the-art products in the DSL and ADSL fields. 

This globetrotting will soon result in at least six international tie-ups that will give Brij Infotech an opportunity to distribute cutting edge products in DSL, ADSL and Internet areas. Says Sandeep, "Our long-term objective is to become a technical solution company in areas like Internet and WAN."

Saturated market

The road to achieve the long-term objective, however, is full of obstacles and one of them is market saturation. According to Sandeep, in the IT market, if 100 suppliers are required, it is flooded with 1000! The result is that margins are squeezed and resellers suffer. 

Sandeep points out that a leased-line modem, which was being sold for Rs 70,000 in the recent past, is today available for only Rs 40,000. While the demand has gone down, supplies have risen manifold. 

To get out of this problem, Brij Infotech has always moved to niche areas to do business. Sandeep started the company as a partnership firm to do business in CD-ROM drives seven years ago. He claims that his firm became an industry leader very soon doing business in 2X to 20X CD-ROM drives. 

In 1996, Sandeep ventured out on his own to do business in modems when Motorola and US Robotics were the market leaders. He came out with his own brand called Rockwell Smart. Claims Sandeep, "Within a short time, Brij Infotech became the largest modem seller in Western India."

From dial-up modems to ISDN products

When modems became mass-selling products with shrinking margins, Sandeep took to ISDN and leased line products. "ISDN started off well, but slowed down after a while and presently it is going steady. We managed the situation well because we had internal finances," points out

Sandeep. 

In the meantime, technologies like DSL and ADSL took the fancy of customers and Brij Infotech was ready with products to cater to the market demand. Sandeep actually broke into a market where big systems integrators had a monopoly. The 'smallness' of his company helped him to deliver quick results to his clients and the result is that, today Brij Infotech has become a name to reckon with in the market. 

The strength of Brij Infotech is that the company understands technology well and has remained nimble-footed in a market where deliveries on time and reliable support make or break a business. Sairus Printer, Director, VCom Technologies, agrees that "Brij Infotech has good contacts for sourcing products and they ensure timely availability. The company also keeps its commitments regarding deliveries."

In-house couriers

Brij Infotech has been able to keep delivery commitments because the company has invested on building up an in-house courier division to ensure that products reach customers and partners right on the dot. "We not only deliver on time, we also follow this up with support which is based on one-to-one relationship," says

Sandeep. 

One-to-one relationship is also the foundation on which Brij Infotech has built up its channel business. If someone wants to join hands with him, Sandeep expects "pure dedication" from his partners. He says that he usually sells his products slightly at a higher rate because the price includes guaranteed support as well. 

Currently, Brij Infotech has 80 partners, which Sandeep would like to increase to 120, by the end of this financial year. He is very clear about the fact that a solution provider like him can't walk away with all the margins when he wants to do business through partners. He says, "No one is dedicated to anyone in IT today. Dedication comes only when partners see margins to be made."

Sandeep is looking for partners who are niche players and understand specialized communication products well. According to him, sales through partners are no big deal. He finds making 'valuable sales' as one of the biggest challenges today. 

The employees of Brij Infotech are trained to make such kind of valuable sales and this is the reason that Sandeep has started a 'Solutions Division' within the company. Says Ritesh Kadekar, Technical Head, "Brij Infotech is a growing company and offers very satisfying working environment." With Internet and VPN solutions in the offing, there is no wonder why a technically oriented person like Ritesh is excited about working for Brij

Infotech.

Focus on telcos and ISPs

Sandeep's eyes are set on telcos and ISPs to bring him business in the near and long-term future. National and regional systems integrators are also his immediate targets. He sees business coming from large and medium-size corporates as well.

Some of Brij Infotech's big customers include, HDFC Bank, Goa and Sangli Telecom and Videocon International. Besides a team of 30 employees, Sandeep is also assisted by two of his brothers. While one looks after the Delhi office, the other takes care of finance and administrative matters. "Marketing solutions is my forte," Says

Sandeep. 

This marketing savvy has laid a solid foundation for Brij Infotech, which can expect increased growth and profitability in the coming days because of its diversification plans. Sandeep plans to diversify into voice solutions on leased lines, disaster recovery equipment, terminal adaptors required for last-mile connections and special converters for VSAT and microwave communications. 

With not too many players in these segments, Sandeep can play his old game of staying around for some time and then move on to other niche areas when market segments become crowded. The name of the game that is dear to Sandeep is: play the niche market and prosper.