Anil Sachdeva of Delhi-based Kadam Marketing is focusing on two vendors - HP and LG - to achieve his target of Rs 50 crore for the current fiscal. At the same time, he is also exploring newer opportunities like servicing and selling specialized printers, where margins are higher than in trading.

When Delhi’s Anil Sachdeva started Kadam Marketing with just Rs 20,000 in 1989, he had just one clear focus. To make a name for himself in the business as a reseller with whom doing business is a pleasure. And the growing list of customers is testimony to the fact that Anil has achieved his objective.

Not just his buyers, but even his peers accept this fact. Says Bharat Bhushan of RR Systems, "Kadam Marketing is one of the most respected resellers in Delhi and this is because of the correct business decisions taken by Anil over the years."

Besides earning a good repute, the company has also kept steady on its growth path. In the first year of its operation it clocked revenues of Rs 4 lakh. Growing steadily it posted a turnover of Rs 40 crore in 2001-02, increasing this to Rs Rs 45 crore the next fiscal. Anil hopes to cross the Rs 50 crore benchmark, which will be anther achievement of sorts for him, in the current fiscal.

PROFILE

START UP YEAR: 1989

ADDRESS: 108, Bhandari House 91, Nehru Place, New Delhi - 110 019.

TEL: 011-26221044, 26417333

E-MAIL: kadam1@vsnl.com

SECRETS OF SUCCESS

l Relied on marketing strengths l Made inroads into the government sector l Kept overheads low while adding more products

STAYING LOYAL TO PRINCIPALS
Kadam Marketing can trace its origins to selling add-on cards and motherboards and gradually adding more peripherals into its kitty. Today it is a premier partner for HP as well as LG’s regional distributor, both of which contribute to a bulk of the company’s revenues.

In fact, HP is the company’s longest standing principal, with the association dating back to 1991. "We started by selling HP printers and are today one of its premier resellers," remarks Anil.

One reason why Anil has restricted himself to these two brands is because of the brand pull. "This pull is immense and the amount of business coming in is definitely greater than the efforts we have put in till now," he adds.

FOCUS MAKES IT HAPPEN
Starting by selling to end-users, Kadam Marketing is now consolidating its position by addressing new customer segments. The government sector, which currently contributes 10% to the overall revenues, is one area where it wants it will concentrate on to increase its bottomline. "Surviving is not very easy in the hardware business, given the low margins," Anil explains.

The trick is to keep overheads as low as possible and keeping adding more products to the portfolio, the entrepreneur notes. For instance, the company employs 30 people currently and though it wants to increase its turnover, it will not add more personnel. Anil terms this as maximum utilization of existent resources.

Similarly, Kadam Marketing will continue to function out of its branch office in Gurgaon and Ghaziabad, without opening any more. "It is very easy to go to any upcountry market and open a branch. But with margins moving southwards, one should be cautious before taking such decisions," cautions Anil.  

PRIORITIZING GROWTH AREAS
Anil knows that it is easier to go into any market if you have a core competency in one particular business. Rather, than dabble in several products, he has built up his reputation in just two categories - printers and monitors.

"It is very important to work on your strengths. Today, we are well known as a printer and monitor reseller. This identification will help us make inroads into the government sector," says Anil. And this is not an idle boast. Indeed, the company bagged a lucrative order for supplying printers for the Northern Railways for their ticketing system, solely because of the reputation it had built in this product space.

But entrance into the government space will not dilute Kadam Marketing’s focus in its distribution and end-user business. "These are the mainstay of our business and we will continue our efforts to address these buyer as well," Anil says.

He points out that the distribution business in north is facing a setback because of an incidence of bad debts. The reason for this is that small companies ask and get credit, which they later fail to honor. Moreover, there is a lack of communication between sub-distributors in Delhi, so the same customer can make several purchases from different resellers before the case comes to light. Another deterrent to business, Anil feels, are the high targets set by vendors.     

THINKING BIG ON SERVICES
With low margins to be enjoyed in trading, Kadam Marketing is turning its attention to other business where the returns are relatively higher. And one such business that it has decided to venture into is servicing.

The company is also planning to get into specialized products such as printers printing on plastic cards, point-of-sale printers, barcode scanners or printers. Anil notices a vacuum in this segment and as printer resellers Kadam Marketing has the know-how to fill this gap. The company will also increase its focus on monitor sales.

BUSINESSMAN WITH A CAUSE
Besides running a thriving business, Anil is also involved in making a difference in the channel industry. He was the president of Delhi Computer Dealer’s Association (DCTA) for two consecutive years from 2001 to 2003.

Anil believes that it is important to give as it is to receive. And as a leading member of a channel body he can bring several core issues to the forefront, helping his fellow partner as well.

However, he acknowledges that the Delhi market is still fragmented as the entire channel does not voice their opinions strongly and unitedly. "What is lacking is an association which has the support of the reseller community. It is very important to have unity but I am afraid, we lack that in Delhi," he adds.

But, with unfailing optimism, Anil notes that the channel will survive against all odds. Like he mentions, where there is a will, there is a way. And Anil knows which way he has to go.

ATANU KUMAR DAS

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