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SOFTCELL TECHNOLOGIES: Scaling With Profits
 
Though Softcell Technologies' turnover fell by 8% in 2003-04, its bottomline improved by almost 25%. This is because it focused solely on its profits and refused projects where payments were not assured. 
 

 
Monday, September 20, 2004

 

Ujwal Andhari,
DIRECTOR

SERVICES: Messaging, security, storage, backup and hosting solutions
EMPLOYEES: 48
BRANCHES: 7
ADDRESS: 301, Prabhadevi Industrial Estate, 408,  Veer Savarkar Marg, Prabhadevi, Mumbai 400025
TEL: 022-56606969

STRENGTHS
l Focused on profit and projects with shorter payment cycles
l Signed up with IBM as its first hardware vendor
WEAKNESS
l Though a Red Hat partner, it could manage few Linux deployments
l Did not focus on cash flow, bottomline and topline growth together

Softcell Technologies is one of the few solution providers who leverage on software to target new customers. That is because the company started off as a software reseller, and this remains its mainstay. Licensed software sales contributed 25% of the total turnover for the company.

Over 75% of its software business comes from Microsoft. Though it added Red Hat to its portfolio it has not seen much action in Linux deployment.

Softcell's turnover dipped by 7% from Rs 90 crore in 2002-03 to Rs 82.5 in 2003-04. But the company actually improved its profits by 25%. In 2002-03, it was inclined more towards turnover, but in the last fiscal, the company concentrated on those projects where payment cycles were short and assured. This had an impact on the turnover, but the cash flow was strengthened.

Softcell bagged some key projects last year, including one from HDFC Bank, where it did a complete security implementation including firewall and IDS. It also worked on a Lotus Domino deployment for the TVS Honda vehicles division. Another key assignment was the Domino environment and security services provided to LG Electronics.

The key customer verticals that the company focused on were banking, finance, telecom, manufacturing, software developers and the BPO segment.

Softcell offers messaging, security, storage, backup and hosting solutions. It also offers training to the customer's IT team during deployment and to actual users after the implementation is done.

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