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OA COMPSERVE: Focused approach towards services
 
OA Compserve created two companies to focus on consumables and networking separately. This move helped it achieve a balanced approach towards delivering services to its focused set of customers.
 

 
Thursday, September 22, 2005

 


CEO: RK Malhotra

BRANDS: HP, Compaq, IBM, Wipro, Cisco, Nortel, Fortinet, RSI, Epson, Canon, Keymile, Sun, Redhat
EMPLOYEES: 255
BRANCHES:
ADDRESS: 16/8, Arya Samaj Road 
Karol Bagh, New Delhi 110005
TEL: 011-25717175, 25811599
SILVER CLUB RANK (2003-04): 15

STRENGTHS
l Continued focus towards services segment
l Creation of two divisions for consumables and networking business to leverage inherent strengths
CHALLLENGES
l Inadequate funds limited company's growth 
l Consolidating operations of three groups under parent company

After over 25 years in the business, New Delhi-based OA Compserve has come a long way. Its strategy to keep a strong focus towards adding value to services has helped the company make headway into newer customer segments and product verticals as well.

With an employee strength of 255, the company generated Rs 78 crore as revenue for 2004-05, with services chipping in almost 10% to 15%. Leveraging on its core competencies in the services sector, OA Compserve won about 12 big contracts this year.

Some of these projects include facility management contracts for the Ministry of Finance and also designing end–to-end solutions for enterprises. The company also has a healthy and continued relationship with Hutch in the services space.

As part of its strategy to better concentrate its energies on different segments, the company converted two of its divisions into two different companies - Silicon Comnet and Renovision Comnet. OA Compserve handles storage and security, Silicon targets turnkey projects and industry verticals and Renovision is into consumables. This strategy has worked well for the company and has given the parent company a more focused approach towards its flagship services business.

Moving forward, Silicon Comnet is working towards generating business from areas like high-end security, network management, network audit and network operation center. All this would be done keeping in mind its core focus towards delivering facility management services for its set of clients.

Already an established player in the consumables sector, Renovision Comnet would now be working towards further strengthening its position in the market. With the exponential business growth in upcountry markets and with IT companies venturing into smaller cities, the company wants to address regions like UP, Haryana and Punjab. It will soon launch new products in the market and increase its coverage in the southern part of the country.

The company's biggest strength comes from its human resource pool-- people who work for the company. But at the same time, lack of access to funds acted as a roadblock to OA's plans to expand its operations. The company is working towards this end, and is negotiating with several companies to funds it upward growth.

As of now OA's biggest task will be consolidating operations of its three groups under the parent company. This will be beneficial in the long run, as all three companies will use the same fixed assets, which in turn will lower overheads.

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