Selling Trust To Customers

Mumbai-based Kaytek Computers has stuck to a single vendor - Wipro - for the
last 17 years. The promoters, Mahesh and Atul Khatri, believe that they are in
the business of selling trust and relationships, not boxes. And this trust can
only come through long-standing vendor association.

STANDING TALL (left to right): Mahesh and Atul Khatri became successful by adhering to ethical practices and focusing on customer satisfaction PROFILE START-UP YEAR: 1986 ADDRESS: 102/144, Adarsh Industrial Estate, Sahar Road, Chakala, Andheri (E), Mumbai - 400 099 TEL: 022-28390709, 28393629 FAX: 022-28215908 E-MAIL: kaytek@vsnl.com

Mumbai-based Kaytek Computer Services got into IT business with a long-term
focus, adhered all the while to ethical practices and ensured customer
satisfaction. The result is that the company has turned out to be a star
performer in systems integration business.

Kaytek which was started by Mahesh Khatri in 1986 from his residence, today
boasts of 95% customer retention and a manpower strength of 40 people. "The
reason we could grow from a meager turnover of Rs 15 lakh in 1986 to Rs 4 crore
in 2002-03 is because we had a clear focus on where we wanted to position our
company and which customers we wanted to deal with," says Mahesh.

FAITHFUL TO A VENDOR

Kaytek started its business as a Wipro partner and till date, remains loyal to
this vendor. Atul Khatri, brother of Mahesh, who joined the business in 1991
says, "We believe in relationships and not brands. Ultimately, the PC is
just a box. What we are selling to our customers is trust and confidence, which
can only come through long-standing relationships." He maintains that
opportunistic alliances with multiple vendors do not work out in the long-term.

At the same time, if a client insists, Kaytek does buy products from other
vendors as well. But it is Wipro that they promote primarily and then leave the
choice to the customer. Kaytek has also started selling IBM machines recently.

Coming from a financial business background family, Mahesh has always
focussed on the bottomline, sometimes at the cost of topline. "We are not
in the number game and instead would like to make some money at the end of the
day," he reiterates.

There have been instances, when Kaytek has even turned down lucrative orders,
just because of some disagreements about the prices quoted and those expected by
the customer. Mahesh feels that it is better to work with fewer customers, who
don’t compromise on quality, than work with a large number of clients, making
little or no profit in the bargain.

CUSTOMER SATISFACTION

At Kaytek customer satisfaction is not just another word in a brochure, but
is taken very seriously. "Once we engage a customer we make it a point to
see that his best interests are served," says Mahesh. And this attitude has
won them customer confidence, which has resulted in most of their customers
sticking to the company, over the years.

Besides a lot of hand-holding in the initial stages while selling a solution
to a customer, Kaytek also does its fair share of acting as a consultant even
after the solution is deployed. "We had once done a turnkey project for
Baroda Rayon Corporation and for over a year after the project was implemented,
we stationed one of our staff members to give training to the client’s
team," reminisces Mahesh.

The brothers believe that the systems integration business is now
services-driven. And users are realizing this and are willing to pay for these
services. But what matters is that the buyer should get total value for his
money. "If you can bridge this gap, then you have bagged a customer for
life," the duo say.

SOFTWARE SERVICES

Atul manages the hardware business of the company, while Mahesh, an expert
software developer, is responsible for the services division which includes
consultancy and after-sales support. Their father looks after the financial
matters of the business, making sure that the working capital ratio is well
balanced.

Mahesh’s expertise in the software development was put to use in the
initial days of the company by developing specialized software for its
customers.

Today this division has metamorphosed into a true services division, which
provides post-sales support as well as consultancy to buyers. "We started
with two programmers and today have 40 people in the team," says a proud
Mahesh.

The services division contributes 30% to the overall business revenues. Now
Mahesh wants to create a platform wherein he can help Indian customers to
promote their goods and services globally, through this division.

"We have created an IT infrastructure for a manufacturer of jute sacks
in western India, wherein the company can sell its products internationally. The
company has already bagged a couple of orders nationally," exults Mahesh.

The brothers are inspired by the success story of Michael Dell to come up
with innovative business ideas. "Michael took the direct sales route for IT
business and has turned it around to a multi-billion dollar company, silencing
all his detractors," says Mahesh

Taking a leaf out of Dell’s success book, Mahesh believes that soon the
channel will become redundant unless it starts offering valuable service.
"And that is why we are constantly re-inventing ourselves to change with
the market dynamics," he quotes.

VINITA BHATIA