PRECISION GROUP: Growing at a fast pace

Coming to individual brands, HP contributed to a healthy 60% of
its total business.

Precision has continued to grow at a quick pace. Though it could not make a
perfect ton, like in the previous two fiscals but, the company maintained its
healthy growth rate with 86% revenue increase to touch Rs 105 crore in 2004-05.

It was also well in line to reach its ambitious target of Rs 500 crore by
2009. The company is scaling up its operations by increasing its reach and
planning to become a national player by mid next year. It is also diversifying
its business by offering new products and solutions in the market.

Keeping in mind the growth and expansions, the company also went in for an
ERP solution from ICICI Orion, to have a robust system and process in place.

Over the last year, Precision had many significant developments such as
growing into an enterprise partnership with HP, becoming Microsoft's Certified
Gold Partner and setting up an HP Experience Zone through its retail arm-Galaxy.
It also got aggressive in facility management services, increasing its service
component in business, through Precision Techserv.

Precision also won a couple of awards from HP for its outstanding performance
in Q2 and Q3 of the last fiscal. HP still accounts for a major share in business
with 60%, while HCL comes second with 14%.

Microsoft is another emerging principal for the solution provider, though it
contributed only 10% in the last year. IBM revenues stood only at 5%, while the
remaining came from all other brands/products, including the networking
services.

Becoming the Premier Enterprise Business Partner for HP, the company started
to focus more on pre-sales consulting in storage and server consolidation. It is
also one of the two Microsoft Certified Gold Partners in the country, which has
built competency in select Microsoft platforms such as ISA server for security
and exchange server for messaging.

On the product side, Precision did well in laptops with HP, Lenovo and
Toshiba, registering almost 100% growth. The Intel server business grew by 120%
in 2004-05. Some major orders bagged by Precision in the last year include a
storage consolidation program from Allsec, facility management services for
Polaris and a couple of projects from Britannia and Innova.

While 80% of the company's revenue comes from sale of products, the
services contribute only 20%.

Precision is aiming to become a national player by mid next year. Recently,
the company opened an office in Visakhapatnam, while expanding into Coimbatore
and Madurai in Tamil Nadu. Mumbai would be the next stop, while the Delhi office
will be established by early next year.