RASHI PERIPHERALS: Spreading Its Tentacles

Mumbai-based Rashi Peripherals' agency revenue for the year 2003-04 grew by
18%, which is lower than the 28% growth it achieved in the previous year.
However, the company registered a marginal increase in its bottomline.

Major contribution towards the revenue this year came from Sony products.
Sony's aggressive marketing, commanded by a strong brand positioning,
contributed 33% to its total revenue. While Rashi maintained that it was yet
another year of consolidation, it continued to add branch offices and newer
brands to its kitty.

Seven new branches were added during the years, viz. Goa, Surat, Hubli,
Madurai, Pondicherry, Gurgaon, Jammu and Kashmir. Currently, Rashi has 33
branches across the country with more than 3,000 resellers who are working
together under various programs like Authorised Rashi Partner (ARP), Rashi
System Integrator (RSI), Rashi Retail Partner (RRP) and Genuine Logitech Dealer
(GLD).

On the product segment, it added two new premium brands - IBM for laptops and
LCD monitors, and Compex for networking products. Compex and Rashi jointly held
a nationwide training program for partners, starting from mid-January 2004.

Overall, it was products like notebooks, DVD-RW and cordless desktop, that
did extremely well for Rashi from B, C & D- class cities. Despite being
headquartered in the West, it was the southern region which contributed the most
with around 35% of its business coming from there. The West followed with 31%
and North with 24% and the East with 10% business.

After treating its Sony Authorized Partners (SAP) to an exciting trip to
Tokyo, Rashi also organized another sojourn to Australia. The trip was an award
for 50 SAPs for their performance in the distribution of Sony's range of
products.

On the services side, the company launched four Rashi Care Centers (RCC) in
Mumbai, Delhi, Chennai and Kochi. Along with all the products which are sold
through Rashi, third party service will also be provided through this care
centers. According to the company, the concept and implementation of RCC is one
of the several value addition from it has undertaken and helps bringing service
nearer to the channel community, as they concentrate more on the sales of the
Rashi portfolio products and are assured about the speedy and accessible care
centers.

Future plans include further exploring untapped markets and to achieve a
revenue of Rs 225 crore by the close of 2004-05.