VINTRON INFORMATICS Building Up The Brand

This PC and peripherals manufacturer

underwent another bout of restructuring and repositioning during 1999-00. In

1998-99, Vintron had emerged stronger after the merger of Vintron Electronics,

Vintron Industries and Ritika Electronics. The company’s strategy of first

establishing itself in the peripherals market, then creating brand awareness and

finally using the brandname to enter the PC market really paid off. Vintron sold

20,598 of its own PCs last fiscal, contributing 37% to the total revenue of Rs

170 crore. That it achieved this volume was nothing remarkable, since it had

managed to sell 10,000 PCs in its very first year of operation. What was

noteworthy was that Vintron achieved this volume despite shedding its agency

operations, including sale of HP machines.

While

the decision to shelve agency operations affected the company’s topline, the

operations accounted for 21% of its 1998-99 revenue of Rs 122 crore. And that

Vintron managed to clock a growth rate of 40% indicated its decision was right.

The decision was triggered by a clash of Vintron’s growing ambition to be

number one in the SOHO segment and that of its agency partners’. The company

also took long strides toward consolidating its position in the

local branded PC market by expanding its distribution channel. The growth in the

number of its distributors from 79 during 1998-99 to 1,465 in 1990-00 was a

clear indicator of its aggressive game plan. Vintron also split its distribution

network in two–systems and peripherals–to

enable better focus on each segment.

Vintron made an investment of Rs 6 crore in its

manufacturing units to increase capacities and introduce new lines of products.

It also started another production line in Daman, doubling its monitor capacity

to 240,000 per year. DQ

Fact Sheet

START-UP YEAR: 1989 PRODUCTS AND SERVICES: Desktop PCs,

monitors, keyboards, motherboards, UPS DEALER OUTLETS: 1,465 BRANCHES: 12

EMPLOYEES: 495 ADDRESS: F-90/1A, Okhla Industrial Area Phase I, New Delhi 110

020 TEL: 681 0815-16, 681 0033 FAX: 681 0382, 681 0460 l WEB SITE: www.vintron.com