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eSys Distribution: Upheld By Acquisitions
 
This Delhi-based distribution house witnessed a phenomenal growth of 68% in its agency revenues in 2003-04. Part of this growth could be attributed to the fact that the company started rupee billing only last fiscal.
 

 
Monday, September 20, 2004

 

Neeraj Chauhan, CEO

PRODUCTS: Asus, BenQ, Canon, Hynix, IBM, Intel, Seagate, Western Digital, Maxtor, Alps, SMC
DEALERS: 2,700
BRANCHES: 25 
ADDRESS: B-65, Okhla Industrial Area, Phase-I, New Delhi 110020
TEL: 011-51811694-96

STRENGTHS
l Emerged as the largest Intel distributor in South Asia 
l Made BenQ the fourth largest selling mobile handset brand in the Indian market
WEAKNESS
l Management upheavals created negative publicity for the company 
l Concentration on own brand could lead to dilution of distribution focus

Of the Rs 490 crore business that eSys Distribution clocked in 2003-04, Rs 110 crore were in rupee billing. This is a significant number considering the fact that eSys started rupee-billing operations in India only in 2003-04. eSys is confident of clocking Rs 600 crore revenue in rupee billing in the current fiscal. Currently the company is billing Intel, Canon and BenQ in rupee.

One of the growth drivers for the company was the acquisition of distribution rights for BenQ mobile handsets in December 2003. It claims to have made BenQ the fourth largest mobile handset selling company in India already.

The company's acquisition of Chennai-based Nebula Technologies last year also helped it leverage on the south Indian company's ready-made infrastructure and facilities. This acquisition also helped it grow in manpower terms from eight people in 2002-03 to 250 last year. It shifted to a bigger head office in Okhla to accommodate this personnel increase.

eSys is also eyeing acquisitions to expand its product portfolio in distribution. Strategic acquisitions shall supplement the organic growth and gain access to specific market segments in a shorter time-frame.

To demarcate the different business areas to fuel growth, eSys formed four divisions within the company: distribution, PC, service and manufacturing division. It tied up with SMC to distribute it networking solutions. Simultaneously, it also increased its geographic spread by appointing 80 regional distributors.

eSys has a major presence in the branded and whitebox PC market, as well as IT components distribution. The company is focused on delivering value to its customers and vendor partners by extending the efficiencies attendant to its global scale of operations, industry specific logistics infrastructure and financial robustness.

eSys is the largest HDD distributor worldwide for last fiscal, shipping over 12 million units. It partnered with Intel on the mobile value-added distributor program to enable resellers, SIs and assemblers to be able to offer white box notebooks, thus giving an impetus to mobile computing.

The company came up with its own brand the eSys PC range last year, which has been doing significantly well. eSys clocked Rs 32 crore this year out of its PC range.

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