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Home > THE DQCI SILVER CLUB 2005
 

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Godrej Case Study

ADITYA INFOTECH: Slipping into negative growth
 
After a good growth rate of 37% in 2003-04, last fiscal saw New Delhi-based Aditya Infotech post a negative growth at Rs 114 crore.
 

 
Thursday, September 22, 2005

 


MD: Aditya Khemka

BRANDS: Pinnacle, BenQ, Asus, Typhoon, Autodesk, AverMedia, Dazzle, Labtec, Pinnacle Systems, Discreet
EMPLOYEES: 140
BRANCHES: 22
DEALERS: 1,500
ADDRESS: 2-5, Khemka Center, Nehru place, New Delhi 110019
TEL: 011-26223810-11
SILVER CLUB RANK (2003-04): 12

STRENGTHS
l Strong focus on animation, post-production and video-editing products 
l Well-spread channel network of 1,500 partners
CHALLLENGES
l Lacks aggression to match the market pace 
l Distributing very few brands

The distribution house needs to rethink and fast, to regain its once prominent position in the channel space.

Aditya Infotech is one of the old timers in the distribution business. But over the past few years, the company has maintained a very low profile. It has also not signed up with any big brands, which is probably the reason why its revenues saw a dip in 2004-05. The company posted a turnover of Rs 114 crore in 2004-05, down by 5% compared to the previous year's Rs 120 crore.

Currently the company distributes Pinnacle, BenQ, Asus, Typhoon, Autodesk, AverMedia and lacks the attraction of big banner brands. Most of its principals are into products to do with video editing, animation software, keyboard, mouse, speaker, gaming and TV tuners. This primary focus on components could be one reason why the company is losing its sheen in the channel business.

Surprisingly, despite being a New Delhi-based distributor, a major bulk of Aditya's revenues comes from the southern and western region. South contributes 31% with west bringing in another 26%. North comes in close with 25% contribution while revenues from the east fill the remainder. The company has 17 warehouses across India, but its stronghold is the Northeastern region where it claims to deliver in 12 to 15 hours.

The highlight of last year for the company was its launch of Typhoon, which is a German vendor of multimedia products. Its range includes wireless mice, keyboard, speakers, sound cards, Bluetooth products and gaming devices.

Aditya also tied up with BenQ for its storage products, DVD RW, MP3 players, digital cameras and scanners. It sold almost 2,000 BenQ DVD-RW monthly, with a prime focus on 8X DVD-RW.

Aditya Infotech launched a couple of programs for its channel in the last fiscal. One of them was the 'Malamaal Offer' for run from January-March 2005 on Typhoon products. This was a point-based scheme, wherein a partner is eligible for certain points against the billing of each Typhoon item. The company plans to take qualifying partners to Germany to a technology
showcase.

It also started promoting the Pinnacle Media Center, a multi-purpose entertainment software, claiming that it will bring convergence trend closer. The system features photo slideshow projector with music, TV viewing, and personal video recorder utilities besides music jukebox and home cinema.

This fiscal the company plans to open demo centers to promote Pinnacle products across the country, based on market conditions. It had opened one such center in 2004-05 in Mumbai for support, demo and training. The company has also entered into animation education by starting the first Autodesk-Discreet training center of Southeast Asia in Mumbai in March 2005.

The Aditya Group of Companies also has interests in software, thermoware, solar energy, newsprint and textile industries.

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