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Steady Business, Good Returns

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DQC Bureau
New Update

For Mumbai-based Mahesh Gupta of Crystal Enterprises, consistency and quality have always been key determinants. He is looking

for a high growth this year which he wants to achieve by entering the SME segment. 









When Mahesh Gupta, an electronics engineer, set up Crystal Enterprises eight years ago, he was entering a field that was relatively new to him, besides being fiercely competitive. Mahesh, who worked for Nelco for three years, says that he always wanted to set up his own business, rather than be a small fish in a big pond. The business, which clocked a turnover of Rs 50 lakh in 1999, was originally a partnership between Mahesh and an associate, but this was subsequently dissolved. “I am expecting a 50 percent growth this year,” says Mahesh. 





He started the business with an investment of Rs 10 lakh, which both he and his partner raised through personal means. It was initially a struggle to establish the business, and Mahesh and his partner would personally service most clients.





While choosing a vendor, says Mahesh, one should look for a company that offers good marketing support, and has an aggressive marketing and pricing program. “Vintron is a good company in this respect. They offer very competitive prices and have an efficient and aggressive marketing support program,” he says. Although his job profile in Nelco was research-related, his stint with the company gave him enough exposure and confidence to be able to enter a field he had no prior experience in. Mahesh initially got customers through old contacts in Nelco, which he built up with consistent quality of service. 





Mahesh tried PCS and Sparr Electronics before finally deciding to stay with Vintron. Though he has a good working relationship with Sparr, he has now decided to stop selling their products, as they are too outdated. 





He decided to cut loose from PCS because, he says, the company did not offer good support services for its channels. Sparr manufactures fax-phone discriminators that help in alternating between the phone line and the fax machine. Says Mahesh, “Now the product is all but obsolete, so there is hardly any demand for it.” 





However, Crystal Enterprises continues to provide service support to clients who brought these machines earlier. 





Mahesh operates with a staff of two senior service engineers and a team that runs the assembling unit. “Though all major business decisions are taken by me, I do consult my staff and base my decisions on the feedback that I get from them,” he says. He is now looking seriously at the SOHO segment, which he says, needs more attention, even though it is one with enormous potential. 





Mahesh is now thinking of diversifying and acquiring dealerships for other hardware as well as software products. “We are also looking at selling networking products. I have a fair number of government customers. However, government clients need a lot of attention and business dealings with them are often characterized by needless formalities,” he says. This is one reason why, says Mahesh, he is trying to nurture the small office segment. 


“I have found word of mouth publicity to be the most effective instrument of advertising so far. That is why our focus has always been on ensuring good service to existing customers,” he says.. 





Besides his focus on SMEs, Mahesh is also looking at potential dealerships with HP and Canon, through which he means to widen his product base.

















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