'We make the channel competent to demonstrate the effectiveness of our solutions.'

Armed with a BTech from IIT-Delhi and an MBA from IIM-Ahmedabad, Anand Ekbote
began his career with the Tata group in 1981. After completing various
assignments, he was placed in TELCO’s international division and had a two
year-stint with Tata Strategic Management Group beginning 1991. In 1993, he
joined the then Tata Liebert as marketing head, sales and service. After doing
assignments such as VP-infotech division and Sr VP, power business, he noࡷ heads
the company (renamed Emerson Network Power) as the MD. He shares with DQCI the
vision and strategy of his re-christened company.

With Tata Liebert now becoming Emerson Network Power (India) Pvt Ltd, what
are the essential changes that one would get to see?

Globally, there are many changes that are going on in the Emerson world which is
constituted of companies categorized under eight different core competencies.
Network power is one of them and so we are trying to bring all the activities
related to network power under one single umbrella of Emerson Network Power so
as to be able to offer complete ‘network availability’ solutions to our
customers.

We are putting together a range of products that would enhance the
availability of networks for the users of those networks. Also we are bringing
in new products to the Emerson Network family like DC power supply systems,
automatic transfer switches and surge suppression products among others.

What role do you visualize for channels in Emerson Network’s business?

Our UPS business is classified into two categories: medium and large segment,
which is beyond 20 KVA and the distributed products group (DPG). The main thrust
of our channel strategy has been on the DPG, which constitutes of
super-standardized products. So for us channels are very important as far as
reach and accessibility is concerned for the DPG products.

This reach and accessibility doesn’t only mean product availability but
also more importantly, service availability. Thus we see our channels as a very
important medium to ensure increased product and service availability and a
better after-sales support so as to offer complete customer satisfaction. Also,
as and when we launch newer products and we see a need for enhanced reach, we
will consider involving the channels.

What strategies have you adopted to enhance your channel business?

Our endeavors are directed towards equipping the channel with competencies
which enable them to demonstrate the effectiveness and applicability of a
solution that they are offering to customers. We are developing these
competencies by way of training, education, awareness, exposure to newer
technologies, modification in existing technologies and upgradation of skills
for the partners. And these value-additions are offered to our partners on a
regular basis.

What is the growth that you have experienced over years? How much of your
business is through channels and how much is direct?

We have grown more than nine-fold in seven years. In 1993-1994, our annual
turnover was around Rs 19 crore and in 2000-2001, it was Rs 188 crore with a
CAGR upward of 36 percent. The contribution of channels to the overall UPS
revenue is 50 percent. Again in the UPS business at the moment, it is the DPG
segment which brings in larger share of revenue via channel sales.

What steps have you taken to ensure training and after-sales support to
channel partners?

We ensure constant training and technical upgradations for our partners. These
trainings are offered at zonal level as well as at the central facility that we
have in Thane. We invite shortlisted partners from all across the country to
participate in modules of training in terms of selling, servicing,
trouble-shooting, application understanding and so on. We also put the best of
resources and constantly evaluate them so as to be able to offer a superior
after-sales support.

Regional UPS players are playing an important role because of an
increasing PC penetration as they enjoy better reach and price offering. How do
you expect to counter this advantage?

This issue is very much at the heart of Emerson’s unfolding strategy for the
DPG segment. We realize that we have to give due importance to those players in
the PC market, which are primarily assemblers, as they are the best influencers
on the SOHO segment. We also are devising strategies to address the issue of
price-sensitiveness in such a domain.

What steps have you taken to ensure healthy margins to your channel
partners?

To ensure healthy margins to the channels, first and foremost, we choose
partners very carefully. We only choose those partners who can work in sync with
our guiding philosophies and ensure better reach in terms of products as well as
service.

Secondly, we eliminate the possibilities of over-stocking by partners. Our
incentivization schemes are so framed that the partners get rewarded only on the
basis of end-sales and not on the basis of their purchase. Once over-stocking is
taken care of, channels automatically start reaping the benefits.

Thirdly, we encourage and offer incentives to partners who go for ISO
certifications. Acquiring these certifications in turn helps channel partners
retain good margins as their internal processes are made highly efficient.

In addition to this, delivery of service is exclusively done by partners and
they are entitled to a larger share on AMC revenues.

Are there any immediate plans of expansion in product range/ channel
network?

We plan to add more products in the DPG segment and as far as channel is
concerned we expect to increase the number of partners from 55 at present to
around 75 in two years time.

What role do you foresee Emerson playing in ensuring an efficient
networked economy for the country?

Our fundamental approach is conveyed in our motto: ‘Powering the networked
economy’. So with the economy getting dependent on a large variety of
networks, we see Emerson playing a very critical role. And we believe that our
business model of offering single-point solutions will be of great importance in
ensuring that the networks function efficiently.

As of today what do you think is Emerson’s weakness?

Out of the soul-searching exercise that we have undertaken for ourselves, we
have found out that we have to climb many a steps to acquire better
cost-positioning. Our products presently have marginally higher prices, which we
expect to bring down by making our internal processes more efficient and by
ensuring total quality management.

Another weakness that we have identified is that Emerson as a brand is not
yet significantly recognized. So we aim to promote the Emerson brand rather than
merely the product lines.

GOLDIE in Mumbai