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Despite the sluggish markets, Compuage, which focuses on distribu-tion of
products to resellers and systems integrators, posted a high turnover growth for the
second successive year. It grew from Rs 43.83 crore in 1996-97 to Rs 88.89 crore, during
the last fiscal year-a growth of over 100 percent. The group turnover stood at Rs 95.06
crore with its group company, Addonix Computers adding Rs 6.19 crore to its kitty.
Compuage's 1997-98 performance is a classic example of three basic things that a
successful company should keep in mind in a business like distribution. First, proactive
diagnosis of market trends and identifying customers. Second, based on that diagnosis,
identify the areas for expansion-physical as well as operational. And, third, to ensure a
proper inventory management thus promising the channels full-time availability of its
entire product range.
That's what Compuage did last year. Toward the end of 1996-97, it realized that the
Home segment and SMEs are going to be the pillars of growth in the coming year. So the
company introduced three basic lines of products to address this highly exploding segment.
It tied up with Addtron for low and medium range networking products, BTC for peripherals
to strengthen its existing product portfolio, and Creative for its multimedia products.
This, according to the company, paid rich dividends, as these product lines contributed
significantly toward increase in sales revenue in the financial year, 1997-98.
The peripherals and the multimedia products contributed about 90 percent to the
company's turnover, while the remaining 10 percent came from networking products and UPSs.
To reach out to the SMEs and SOHO segment, and to make its presence national, the company
opened up offices in major cities like Chennai, Secunderabad, Ahmedabad, and Calcutta.
About 90 percent of its turnover came from Western and Southern regions.
Compuage has distribution tie-ups with APC for UPSs, Addtron for networking, BTC for
peripherals, Creative for multimedia, Syquest for storage devices, Odyssey for
peripherals, Genius for mouse, scanners, and digitizers, and Western Digital for hard disk
drives.
The company, in the current fiscal, plans to expand its operations so as to offer its
products locally. With the kind of growth it has registered over the last few years, the
company aims to be the premier distribution house in India.