Zenith Tight Margins, Slow Going

PERFORMANCE HIGHLIGHTS

  • Sold around 60,000 units
  • Posted a revenue of Rs 250 crore
  • Tied up with IBM, Seagate, Intel and Microsoft.

For a PC company that aims to be India’s
answer to Dell, Zenith grew only marginally, by 10%, in fiscal 1999-00, posting
a turnover of Rs 250 crore.

Zenith aimed to reach the number-one
slot, but still is a long way from de-throning HCL from the number one position.
It sold around 60,000 units in the last fiscal, a marginal increase over
1998-99. Of the total Rs 250 crore revenue, Rs 198 crore accrued from sales of
its own PCs. It continued to maintain its strength in the home PC segment. In
the branded home PC market, it was second only to HCL, which turned out to be
the biggest revenue earner.

Zenith
focused on the banking, government and home segments, and expanded its dealer
network, which touched the 500 mark. The government sector contributed
approximately 11%. Fiscal 1999-00 also saw the launch of new products like
Infotainer, which was aimed at the consumer market, and Zenith’s own branded
notebooks for the corporate
market. The company continued to focus on banking and finance, which together
contributed approximately
11% to the revenue.

Zenith gained from tie-ups with MNCs
like IBM, HP, Epson, Seagate, Fujitsu, Intel, Microsoft, Lotus,
Novell and AT&T.
Peripherals contributed 3% to the revenue–approximately Rs 9 crore–while
networking brought in just 1%. Zenith sold Rs 15 crore worth of PC servers,
while desktop sales raked in Rs 179 crore.

Last fiscal also witnessed a major brand-building
exercise by Zenith. And with mobile computing touted as the next wave in the
internet age, it would be interesting to watch Zenith’s strategy in the coming
years. The company intends to focus on selling traditional ‘beige boxes’ rather
than mobile computing devices.

Fact Sheet

START-UP YEAR: 1980 l PRODUCTS AND SERVICES: Desktops,
notebooks, servers DEALER OUTLETS: 412  BRANCH OFFICES: 25 ADDRESS: Zenith
House, 29, MIDC Central Road, Andheri (East), Mumbai 400 093 TEL: 837 7300, 836
6030 FAX: 837 7297 WEB: www.zenith-india.com

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