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SES TECHNOLOGIES: Chanting The Value Mantra
 
Using value-added business as a key word, SES Technologies created a value division adding networking and telecom products. However, its topline registered a negative growth of 11%.
 

 
Monday, September 20, 2004

 

PK Krishnaprasad, CEO

PRODUCTS: Intel, LG, Microsoft, Kobian, Seagate, Adaptec, Molex, QNap, NCR, Lexmark, Tandberg, Intransa
EMPLOYEES:
120
BRANCHES:
30
ADDRESS:
194, Arvind Chambers, Western Express Highway, Andheri (East), Mumbai
TEL:
022-26822299

STRENGTHS
l Alliance with big names like Intel and Microsoft 
l Took effort to educate partners about improving their business
WEAKNESS
l Too much focus on value-added distribution
l Drifting away from volume business

SES Technologies's revenue slumped by 11% in the year 2003-04. The company justifies the drop in revenue from Rs 298 crore to Rs 265 crore as a result of conscious efforts that were put in place to increase its bottomline.

During the year, the company added Lexmark, NCR, LG, Intransa, Tandberg Data, Microsoft, Allied Telesyn, HP, HCL, QNap and Numeric. It continued with Intel, Molex, Kobian, Seagate, IBM, Acer, Enterasys, Maxtor, Promise and Adaptec.

An increased range of products helped SES reduce its dependence on the Intel brand, as it was contributing almost 70% to their business in the previous year. The business from Intel now stands at 58% of the total revenue.

SES spread its distribution network by opening branch offices in Ludhiana and Thiruvanthapuram. The expansion is in line with company's philosophy of establishing effective reach and penetration with a special emphasis on B- and C-class cities in India.

SES provides a unique combination of distribution, service support and manufacturing. Distribution saw SES creating two separate division like buidling blocks business and value added business. The building block business comprises components, peripheral products, multimedia products, casings, while the value added division comprises networking and telecom products.

During the years, SES spent a lot of time to educating, training and exploring opportunities with the channel partners by conducting programs like Authorized Partner Networking Associate (APNA) partner meets for networking products, APNA School and Face-2-Face.

The company will be adding new product lines that will complement and leverage its current strengths. Towards this SES plan to be a bit more focused on telecom, server and networking line of business.

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