Mumbai-based Kaytek Computers has stuck to a single vendor - Wipro - for the last 17 years. The promoters, Mahesh and Atul Khatri, believe that they are in the business of selling trust and relationships, not boxes. And this trust can only come through long-standing vendor association.

STANDING TALL (left to right): Mahesh and Atul Khatri became successful by adhering to ethical practices and focusing on customer satisfaction PROFILE START-UP YEAR: 1986 ADDRESS: 102/144, Adarsh Industrial Estate, Sahar Road, Chakala, Andheri (E), Mumbai - 400 099 TEL: 022-28390709, 28393629 FAX: 022-28215908 E-MAIL: kaytek@vsnl.com

Mumbai-based Kaytek Computer Services got into IT business with a long-term focus, adhered all the while to ethical practices and ensured customer satisfaction. The result is that the company has turned out to be a star performer in systems integration business.

Kaytek which was started by Mahesh Khatri in 1986 from his residence, today boasts of 95% customer retention and a manpower strength of 40 people. "The reason we could grow from a meager turnover of Rs 15 lakh in 1986 to Rs 4 crore in 2002-03 is because we had a clear focus on where we wanted to position our company and which customers we wanted to deal with," says Mahesh.

FAITHFUL TO A VENDOR
Kaytek started its business as a Wipro partner and till date, remains loyal to this vendor. Atul Khatri, brother of Mahesh, who joined the business in 1991 says, "We believe in relationships and not brands. Ultimately, the PC is just a box. What we are selling to our customers is trust and confidence, which can only come through long-standing relationships." He maintains that opportunistic alliances with multiple vendors do not work out in the long-term.

At the same time, if a client insists, Kaytek does buy products from other vendors as well. But it is Wipro that they promote primarily and then leave the choice to the customer. Kaytek has also started selling IBM machines recently.

Coming from a financial business background family, Mahesh has always focussed on the bottomline, sometimes at the cost of topline. "We are not in the number game and instead would like to make some money at the end of the day," he reiterates.

There have been instances, when Kaytek has even turned down lucrative orders, just because of some disagreements about the prices quoted and those expected by the customer. Mahesh feels that it is better to work with fewer customers, who don’t compromise on quality, than work with a large number of clients, making little or no profit in the bargain.

CUSTOMER SATISFACTION
At Kaytek customer satisfaction is not just another word in a brochure, but is taken very seriously. "Once we engage a customer we make it a point to see that his best interests are served," says Mahesh. And this attitude has won them customer confidence, which has resulted in most of their customers sticking to the company, over the years.

Besides a lot of hand-holding in the initial stages while selling a solution to a customer, Kaytek also does its fair share of acting as a consultant even after the solution is deployed. "We had once done a turnkey project for Baroda Rayon Corporation and for over a year after the project was implemented, we stationed one of our staff members to give training to the client’s team," reminisces Mahesh.

The brothers believe that the systems integration business is now services-driven. And users are realizing this and are willing to pay for these services. But what matters is that the buyer should get total value for his money. "If you can bridge this gap, then you have bagged a customer for life," the duo say.

SOFTWARE SERVICES
Atul manages the hardware business of the company, while Mahesh, an expert software developer, is responsible for the services division which includes consultancy and after-sales support. Their father looks after the financial matters of the business, making sure that the working capital ratio is well balanced.

Mahesh’s expertise in the software development was put to use in the initial days of the company by developing specialized software for its customers.

Today this division has metamorphosed into a true services division, which provides post-sales support as well as consultancy to buyers. "We started with two programmers and today have 40 people in the team," says a proud Mahesh.

The services division contributes 30% to the overall business revenues. Now Mahesh wants to create a platform wherein he can help Indian customers to promote their goods and services globally, through this division.

"We have created an IT infrastructure for a manufacturer of jute sacks in western India, wherein the company can sell its products internationally. The company has already bagged a couple of orders nationally," exults Mahesh.

The brothers are inspired by the success story of Michael Dell to come up with innovative business ideas. "Michael took the direct sales route for IT business and has turned it around to a multi-billion dollar company, silencing all his detractors," says Mahesh

Taking a leaf out of Dell’s success book, Mahesh believes that soon the channel will become redundant unless it starts offering valuable service. "And that is why we are constantly re-inventing ourselves to change with the market dynamics," he quotes.

VINITA BHATIA

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