PACIFIC INFOTECH: Playing With Niche Products

Though Pacific Infotech ventured in to high-margin products, it grew by only
1% in 2003-04 to post revenues of Rs 120 crore. Notwithstanding the wider array
of products under its dealership profile, Pacific continued to add newer
products. A lot of focus was given to promote CD/DVD duplicators from Raptex.

During the fiscal, the company took up re-distribution of TVSE products,
Epson POS printers, and IBM laptops. It also signed up Sony for re-distributing
TFT monitors, PC speakers, digital cameras, handy cams and laptops, for the west
regions. The only vendor Pacific discontinued during the year was Microsoft's
hardware.

The company set up a unit at Silvasa to manufacture its own brand of
Intel-based rack-mountable servers and PCs called Inset. Revenue from selling
Inset branded products and its subsequent systems integration activities stood
at Rs 9.5 crore. This was, however, not included in the revenue for the Silver
Club ranking.

Another niche segment Pacific put its foot in was broadcast solutions. This
are basically audio and video conferencing solutions customized for corporate
houses. On the software side it added dealership of Quick Heal - an anti-virus
target at the desktops.

The company also got in to systems renting business. Being a new venture, it
managed revenue of Rs 1 crore only. It is optimistic of growing this business in
a big way. Pacific boasts of maintaining steady profitability for the last many
years, with almost all the brands giving an equal contribution.

For the next financial year, Pacific will not shy away from adding direct
relationship with any more brands if that would  mean  more profits.
However, it will keep an eye open for vendors in the networking segment.
Overall, the company aims to concentrate more on the distribution business with
focus on bottomline from next year onwards.