‘We’re Focussed on Channel Initiatives and Programs’

TVS Electronics Ltd is clearly growing on its product strengths. The company

has set an ambitious target of 40% growth in the current fiscal and it looks

confident of achieving it. To reach these numbers, it plans to focus more on new

product lines, while traditional segments will continue to grow and contribute

to the topline. S Gopikrishna spoke to John Aravamuthan, head (sales & service) of TVSE.

Excerpts from an interview:

Has

the ongoing Iraq war affected business at TVSE?



l I would like to say ‘No’.

In fact, the war will help our export business with more orders coming for UPS

systems. Overall, we had a good March and supply could not meet the demand this

month. We got some major orders this March.

l When do you

see the market picking up?



It should go well within a year and we can see the signs of it now. The

banking and finance industry will drive the growth with major computerization

projects pending for sometime now. In 2004, we expect many banks to be

computerized as technology banking is creating waves amongst the users.

l What

products do you expect to supply them?



We are quite successful in passbook printers and high-speed printers, which

are used in a major way in banks. TVSE is in the process of signing up with some

leading banks for the supply of these products. Similarly, we see great

potential in the SME segment mostly in service organizations.

l Which is the

growth area for TVSE in the coming year?



The retail market is picking up fast and according to a study, over two

million retail outlets are expected to be digitized and computerized in the

coming months. TVSE will be positioning its new printer, Proton as the ideal

product for the retail market. Proton is a cost-effective solution, which offers

great speed and low maintenance cost. While others talk about cps per minute, we

talk about bills per minute. TVSE is sure to change the rules of the game.

l What is the

positioning of Proton in the market?



Proton is a new product of TVSE and there is no competition for Proton in

the market. We have test launched the product in Delhi and southern markets and

soon, the product will be rolled out across the country with some added

features. We are expecting to sell 5,000 units per month starting from July.

l There is a

feeling that TVSE is not aggressive enough as far as marketing is concerned...



I disagree with that. Certainly, TVSE is known for its product strengths.

However, we may not be as aggressive in terms of ad campaigns and certain

promotional activity, as ours is not a high-tech product similar to MNCs. But,

we are very strong and focused in terms of channel initiatives and programs. We

look at benefiting more the channel community instead of spending high on

promotional activities.

l How

aggressively are you addressing the upcountry markets?



Interestingly, TVSE is the only company, which talked about upcountry

markets potential some six years back. We are very focused on this and our

SanskriIT program is an initiative to take IT to the heart of India. TVSE is

talking about reaching 2,000 cities and towns in the country in the next two

years.

S Gopikrishna



(DQWeek Chennai)