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INSPAN INFOTECH: Striving For Systematic Growth
 
Over the last two years, Inspan, has been strengthening its processes and this move helped it register a 30% growth in 2003-04.
 

 
Monday, September 20, 2004

 

S Sudhir, CEO

PRODUCTS: PC components
EMPLOYEES: 75
BRANCHES: 13
ADDRESS: No. 8/52, Lakshmi Complex, North Boag Road, T Nagar, Chennai 600017
TEL: 044-52124192/93

STRENGTHS
l Put in place systems and practices to become a process-oriented company
l Successfully implemented Radix ERP
WEAKNESS
l Limited itself to component distribution
l Dabbled in very few brands

This Chennai-based distributor is consciously maintaining a low profile in the channel community. The company wanted to put systems and process in place before growing at a fast pace.

Despite this mindset, the company, which started its operations in November 2001, has done extremely well achieving a growth of 30% in 2003-04 to close its books at Rs 65 crore.

As part of its internal restructuring process, Inspan Infotech has recently implemented an ERP solution using Radix solution. Besides this, it also streamlined its RMA procedures, payment terms and pricing policy. The company is clear that it will not react to price issues in the market and will grow strategically and systematically.

Inspan Infotech started mainly with Mercury range of products, adding brands like Celetron, AMD, Seagate and Mitsumi subsequently. Mercury is the major revenue earner for the company contributing over 40% of the total turnover and is expected to continue at this pace in the current fiscal as well.

Seagate brings about 30% revenue occupying the second position, while Celetron stands third in the list with about 20%. AMD and Mitsumi put together contributed 8% and Maxtor is yet to take its space, since the tie-up happened only during the end of last fiscal.

Last fiscal, the company brought in only Maxtor. It is expected to add PCs, peripherals like hi-end solutions and some component brands, this year. With all these developments, the company is projecting a 25% growth to register more than Rs 80 crore in the current FY 2004-05.

Inspan Infotech is presently focused on south and north, with south India alone accounting for 85% of business. The same trend is expected to continue even in this fiscal, and the company does not want to enter west until they have wide range of products and services. Currently, Inspan has 13 branches across the country and 75 people working in the company.

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