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RR SYSTEMS: Moving towards providing solution
 
RR Systems started 'Vaidaik Infotech', its new sister concern to handle its sub-distribution business, in 2004-05. The parent company is now eyeing the solution providing business.
 

 
Thursday, September 22, 2005

 


CEO: Bharat Bhushan 

BRANDS: LG, Samsung, Intel, HP, 
TVS-E, Seagate, Mercury 
EMPLOYEES: 55
DEALERS: 1,000
BRANCHES: 7
ADDRESS: 103 Bajaj House 
Nehru Place, New Delhi 110019
TEL: 011-26293125-26
SILVER CLUB RANK (2003-04): NEWCOMER

STRENGTHS
l Strong hold over resellers, SOHO, retailers and end customers
l Started Vaidaik Infotech to handle sub-disty business 
CHALLLENGES
l Difficulty in tapping corporate and Government verticals 
l Services business needs kick start

RR Systems will look upon 2004-05 as a significant year in its history. It set up its new sister concern, 'Vaidaik Infotech' in July 2004, which will take care of its sub distribution and wholesale business. Nishant Bhushan, son of RR Systems' CEO, Bharat Bhushan will head this new venture.

The initiative has paid off really well and is apparent from the fact that in less than a year's time, the new company contributed Rs 17 crore or 25% of the topline revenue. Vaidaik Infotech currently plays with limited brands like HP and Kobian Mercury laptops as well as Intel processors. The company grew by 42% to clock Rs 68 crore in 2004-05.

One of the strengths of the company is its strong presence in the north Indian market through more than 1,000 partners. It gets 100% revenue from the north region because the company has seven offices in this belt. The company has also leveraged on its strong reseller base (40%) to maintain its steady growth.

After establishing a strong hold and playing a long innings in sub distribution business, the company has geared up to shift its business focus towards solution providing especially into verticals like corporate and government. It is concentrating more towards revamping the sale of its own Aryan brand of PCs.

Since this fiscal, it has clocked Rs 4 crore revenue from the sales of own brands and products. In order to push its own company products, RR Systems is set to introduce a new brand called 'Trot' for USB products and multimedia cards. The company is expecting 10%-15% increase in its bottom line by selling it is own brand.

In the current fiscal, it is going to open another retail outlet in Delhi. In the overall business, 32% of its revenue comes from Intel, followed closely by HP at 28% and Samsung at 15%. 90% of this disty's business comes from distributions purely from the Northern region.

Last year, the company made seven new recruitments, which has taken the manpower count to 55. RR Systems boasts of minimal employee attrition rate, though actual figures are unavailable.

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