48. Compuage Infocom: Odyssean Struggle

The

Mumbai-based distribution company fell short of its own expectations, even though it registered a healthy growth of 49% to mop up revenues of Rs 240 crore in 2000-01 as against Rs 161 crore in the preceding year. The projected figure was Rs 300

crore. It has already revised the target for 2001-02 to Rs 360 crore from Rs 400 crore projected earlier. All revenues came from the domestic market. 97% of its revenue flowed from marketing peripherals of

Tandberg, Mercury, Lanbit and Creative, and its own Odyssey brand of PC components, launched in FY 2000. Its distribution tie-up for LG’s Goldstream range of products ran into rough weather, and LG appointed another distributor.

The company has acquired a 76% stake in the US-based software development firm, Informatics Systems to market its IT solutions and services abroad. This is part of its plan to move to software services, with margins thinning in the distribution business. It plans to set up a development facility in Mumbai that will be operational in Q2 of the current fiscal.