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Godrej Case Study

MULTILINK COMPUTERS: Taking Risks In Reselling
 
When this Delhi-based company entered a crowded market, it decided to do things differently. Its promoter, Saurabh Nagpal, dares to sell the latest technology, and this move has helped the company grow by 66% in 2002-03.
 

 
Friday, February 06, 2004

 

Saurabh Nagpal

When Delhi-based Saurabh Nagpal started Multilink Computers in September 2001, with just Rs 20,000, he already had a clear idea of what the company would deal in. After having worked for different IT companies before taking this initiative, he knew that only a clear focus would help him survive in this competitive market.

"After working for a few years I thought of starting my own business. I started a company called Anupam Networks in Guwahati. Then I shifted base and started Multilink in New Delhi," Saurabh recalls.

Within a year, Multilink clocked a turnover of Rs 10 crore in 2002-03, up from Rs 6 crore in 2001-02. Today, Multilink is one of the fastest growing resellers in Delhi, willing to sell new products that are launched every now and then.

PLAYING DIFFERENT
Delhi had no dearth of resellers when Multilink set up shop in 2001. Given this situation, it was very important for Saurabh to be innovative to stand apart from the crowd. "I realized it in the first year of operation that I have to be different from the rest.I decided to go for all the latest technology products and be the first to learn and sell them. And it worked," Saurabh exults.

PROFILE
START-UP YEAR : 2001
ADDRESS : 24, Second Floor, Deepak Building, 13, Nehru Place, New Delhi-110019
TEL : 011-26474477, 26488877, 51617562
FAX : 011-51617563
E-MAIL : multilink@vsnl.com

Saurabh´s ambition is to reach the top in reselling business. Starting with just one employee, the company today has 18 employees.

Though Saurabh now wants to open branches in other cities as well, he is working out on the right strategy for different regions. According to him, Multilink’s strategy to adopt latest technology products may not work in other cities. Despite being aware of the risks involved, Saurabh is willing to take the plunge. "This year we will open at least two branches as an experiment," assures Saurabh.

30% of Multilink’s business comes from networking solutions and the remaining is shared between imaging solutions, servicing and repairing. We will continue to concentrate on networking and communication products, but will also back them up with other products. This way, we will be on the safer side, if one product segment is not doing well," Saurabh.

He will stick to his stratagem of adopting new technology products and getting rid of older ones. In the coming fiscal, it plans to add more product ranges and get a dynamic product mix.

The future appears bright for Multilink. "The recent duty cuts announcement by the Government will surely help us grow more than our expectations," says Saurabh. Despite this, Multilink has set a modest target of Rs 12 crore for the next fiscal. This is because not all gambles pay off and Saurabh would rather sets his sights on achievable targets, then scale impossible summits.

ATANU KUMAR DAS  

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