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PACIFIC INFOTECH: Playing With Niche Products
 
Pacific Infotech intends to continue its re-distribution business with a difference - the focus will be more on bottomline than on topline. New products are welcome only if it means more profits.
 

 
Monday, September 20, 2004

 

Kishore Jeswani, MD

PRODUCTS: APC, TVSE, Samsung, Microsoft, Microtek, Intex, Logitech, Epson, LG, Seagate, HP, IBM, Typhoon, Iomega, Intel, Umax, Frontech and Quick Heal.
EMPLOYEES: 90
BRANCHES: 3
ADDRESS: 10B, Abbas Building, First Floor, Jallbhai Street, Grant Road (E), Mumbai 400004
TEL: 022-23814000

STRENGTHS
l Ability to get a large portfolio of products
l Good rapport with channel partners
WEAKNESS
l Puts in limited efforts to add value
l Scattered focus with too many products

Though Pacific Infotech ventured in to high-margin products, it grew by only 1% in 2003-04 to post revenues of Rs 120 crore. Notwithstanding the wider array of products under its dealership profile, Pacific continued to add newer products. A lot of focus was given to promote CD/DVD duplicators from Raptex.

During the fiscal, the company took up re-distribution of TVSE products, Epson POS printers, and IBM laptops. It also signed up Sony for re-distributing TFT monitors, PC speakers, digital cameras, handy cams and laptops, for the west regions. The only vendor Pacific discontinued during the year was Microsoft's hardware.

The company set up a unit at Silvasa to manufacture its own brand of Intel-based rack-mountable servers and PCs called Inset. Revenue from selling Inset branded products and its subsequent systems integration activities stood at Rs 9.5 crore. This was, however, not included in the revenue for the Silver Club ranking.

Another niche segment Pacific put its foot in was broadcast solutions. This are basically audio and video conferencing solutions customized for corporate houses. On the software side it added dealership of Quick Heal - an anti-virus target at the desktops.

The company also got in to systems renting business. Being a new venture, it managed revenue of Rs 1 crore only. It is optimistic of growing this business in a big way. Pacific boasts of maintaining steady profitability for the last many years, with almost all the brands giving an equal contribution.

For the next financial year, Pacific will not shy away from adding direct relationship with any more brands if that would  mean  more profits. However, it will keep an eye open for vendors in the networking segment. Overall, the company aims to concentrate more on the distribution business with focus on bottomline from next year onwards.

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