Sahara Outlines Rs 400 cr Investment to Expand PC Market 

Sahara Computers and Electronics (SCEL), a JV partnership

between the South African IT company, Sahara Computers and Sahara India Parivar,

has announced an additional investment of Rs 400 crore in the next three years

to expand the PC market in India. The company has also launched a slew of

products, including a hi-tech media center PC and tablet PC.

SCEL COO George Van Der Merwe said, "Given the advantage of local

manufacturing coupled with the strength of our expertise in R&D function, we

are aiming for market leadership in the PC segment by the year 2007. We expect

to grow the PC market in India and are aiming at reaching out to the B, C and D

class towns by educating the masses in these towns." In order to reach out

to the B, C and D class towns, Sahara plans to start Project Goldmine aimed at

covering 700 towns across India. This would also lead to the expansion of



Sahara's service network across these towns.

Van Der Merwe said, "We would invest Rs 150 crore for

this expansion and would employ 1,400 people directly and 600 employees in

reverse integration. We are currently identifying 700 towns which can be

developed and made sustainable i.e. where at least two-three PCs can be sold on

a daily basis." Keeping the TAM growth rate of 35 per cent YoY in mind,

SCEL has adopted a two-pronged strategy to address the Indian market. According

to Van Der Merwe, the company has already tied up with over 6,000 conventional

IT channel partners with one national distributor, SES Technology.

"We plan to invest Rs 150 crore to expand this market

and take our total channel base to 15,000 by 2008," he added.