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Home > THE DQCI SILVER CLUB 2005
 

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Godrej Case Study

ESYS DISTRIBUTION: Breaking from the small league
 
Preparing itself for the big league, eSys Distribution India has signed up IT biggies like Samsung, Sun Microsystems, Microsoft and Xerox. Having done this, it witnessed more than a 100% growth in its revenues as compared to last fiscal.
 

 
Thursday, September 22, 2005

 


MD: R Govindan

BRANDS: ADC Krone, BenQ, Canon, Hynix, Intel, IBM, Lenovo, Maxtor, Microsoft, Samsung, Seagate, SMC, Sun Microsystems, Western Digital, Xerox.
DEALERS: 3,600
BRANCHES: 28
EMPLOYEES: 324
ADDRESS: B-65, Okhla Industrial Estate, Phase-I, New Delhi 110020
TEL: 011-51811694-96
SILVER CLUB RANK (2003-04): 5

STRENGTHS
l Emerging as major force after signing Sun Microsystems and Microsoft
l Doubled its topline
CHALLLENGES
l Desire to experiment with product portfolios can create problems in long run
l With increase in business activities, meeting market expectancy will be a challenge

After having created high credibility in the market, the distribution-focused company, eSys is now all set to enter in the big league within India's distribution market. As the company puts its efforts to spur its revenue base, it has signed on seven to eight vendors in the last six months. It is now setting itself away from the small league and entering into the big distributor segment within the country.

The company's sizable growth coupled with its financial muscle is pushing itself to achieve a higher growth mark in the coming year. The company generated close to Rs 1,088 crore revenue in 2004-05 and expects to generate growth of about 80% for the coming year.

While the company still believes in its acquisition strategy, last year itself it acquired 12 companies globally. Incidentally, only one out of this pack is based in India. Moving forward, acquisitions would be an area where eSys would focus its efforts on.

eSys is still eyeing acquisitions to expand its product portfolio in the distribution arena. The company believes that these strategic acquisitions are going to supplement its organic growth and provide the desired access to specific market segments in a shorter time frame.

Leveraging on its national distribution strengths, eSys has signed up with Sun Microsystems, Xerox, Microsoft and Samsung to distribute cutting edge products in the market. The company has already increased its channel base to close to 4,000 within India. It has a presence in 28 cities, which is likely to further increase in the coming months.

As the company moves on towards bigger goals, the biggest challenge for the company would be to maintain the growth path and still keep delivering value for big vendors that it has associated itself. It is expecting to garner about 80% growth in revenue for its next year of operations.

In the coming months, the company is likely to further focus its energies on delivering value to its customers and vendor partners by leveraging on the efficiencies because of its global scale of operations, industry specific logistics infrastructure in place and financial muscle.

Growing with the industry, the company believes that future growth will come in from the fact that the Indian IT industry itself is on a growth turf now. As more and more companies understand the importance of IT infrastructure, growth is going to be inevitable. Segments like BPO, telecom, and banking and finance, Government and even the home segment are set to drive this growth for the company's Indian operations.

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