eSys Information Technologies, the quintessential IT component distributor the world over, has a burning vision of bridging the yawning ‘digital divide’ in India, and many other geographies of the world. Vikas Goel headed eSys Information Technologies has also accelerated the process of carving out a different niche into the challenging space of PC manufacturing, and their distribution. As expected, eSys has chosen India as one of its cardinal hubs for manufacturing PCs in the world. The company has already started its manufacturing operations in the country, and heralds a new phase where the ‘population continuum’ is poised to be covered with PCs tagged with ‘congruent costs’ and ‘ cozy flavors’. Given the rich ‘sourcing efficiency’ (As a top rung IT component distributor), it looks that, in coming days, a fewer IT companies in India could match the depth and scale of PC manufacturing, and their subsequent distribution by eSys Information Technologies. Watch it.
In a relatively shorter span of seven years eSys Information Technologies has crafted a distinct image of its own as a world class IT distributor handling products (components and finished ones) from the top class brands like Intel, MSI, Foxconn, Hynix, Samsung, BenQ, Microsoft, SAP, WatchGuard, Krone, Xerox, Fujifilm, IBM, Lenovo, Acer, Wipro, Geneva, and Numeric among host others. Empowered by these products, eSys ventured into most of the evolving markets of Asia, Africa, and Latin America. Not only that, the company has distribution operations in North America, and Europe as well. The global footprints of eSys Information Technologies have something to do with the world vision of its 37 years old mentor, Vikas Goel who, quite successfully, has built a highly efficient intra-organizational structure across the globe. In fact, under his leadership, the company has internalized nicely various business niceties prevalent in divergent geographical swathes of the world.
In the field of capital intensive ‘IT distribution’, apart from logistics manage ment, prices and profit margins play the central theme of the business dynamics. “A smartly chiseled mechanism for better profit margins, and the rich sourcing efficiency are the recipes behind the making and the success of any IT distributor”, says a global IT industry watcher. Over a period of time, eSys Information Technologies has crafted a commendable balance among all these factors that ensure a sustainable business model around IT distributionship.
Tryst with promise
Primordially, a holistic IT component distributor active across the length and breadth of the globe, eSys Information Technologies has got the pragmatic competency for coming out with shades of PCs that can be ‘all embracing’ even for ‘flimsy pocketed ones’ who expect ‘value and dignity’ for their hard-earned money. Thus, emboldened by the rapidly growing prowess of eSys.
Information Technologies’ India operations (that saw a turn over of Rs 2,213 crore in 2006-07) around its IT distributionship, the company has kick-started a nicely structured plan for manufacturing PCs in the country. Mind you the firm distributes all the PC making components in India and across the world, and hence the plan for rolling out quality PCs (of its own brand) for the ‘masses and the elites’ sounds feasible and sustainable at the same time.
In an interaction with ‘Digital Edge’ quite recently, Vakul Bhatnagar, General Manager, eSys Information Technologies Ltd, says, “The Indian demography offers innumerable space for IT vendors to place their PCs tactically. The Indian markets teem with a large number of PC makers both MNCs and native ones who cater to the Indian markets according to their respective genius. Even then, a huge untapped market is lying out there. I think there is enough space for every PC player in this country. Our plan to come out with our own brand has been guided by this rationale only”. It is to be noted that eSys Information Technologies is the frontline distributors for PC brands like Lenovo, Acer, and Wipro (on the server and storage front the company works with IBM). In fact, a good percentage of Lenovo PCs (desktops as well as notebooks) are being distributed by eSys. Similarly, eSys Information Technologies serves as the frontline distributors for Acer, and Wipro line of PC products in the country. For IBM, eSys Information Technologies takes its servers and storage products to the Indian markets that crave for top quality computing devices. “We’ve delivered on the promise made to these IT vendors, and would continue to work as closely as ever with them so that eSys feels happy and satisfied in taking their (principals’) products across the country”, stresses Bhatnagar. As an IT distributor, eSys Information Technologies works with highly integrated, and capable network of 7000 partners in the country.
"We’re going to cater to the Indian PC market the same way in which
‘Deccan-Kingfisher’ flies with the people of all the
‘income-brackets’" |
The Mission
As the tilt of ‘sourcing efficiency’ is decently in favour of eSys Information Technologies, the move to manufacture PCs in an organized way (marked by sophisticated automation, and quality supply chain management) in India has some unique virtues. Yes, three years back eSys Information Technologies did come out with PCs of its own brand in India, but then the move was just an experiment. It was not very much backed by large-scale manufacturing provisioning, and intrusive marketing strategies. “Then eSys Information Technologies was mainly focusing on getting entrenched as a quality IT distributor”, says Bhatnagar. But as the IT distribution business is thoroughly established, and has become a potent force to be reckoned with in India, it’s the time for the company to embark on to the next level of evolution and diversification. Prior to Indian PC making operations, eSys Information Technologies had already set up manufacturing facilities in Singapore, Dubai and Los Angeles. From these facilities, the company has been catering to the PC markets of Asia, Africa, and Americas. “We’ve adopted some of the most advanced manufacturing methodologies, and processes at these facilities”, says Bhatnagar. “Now, we’re going to introduce the same best practices at our manufacturing facilities here in India”, adds he.
The company runs state-of-the-art manufacturing unit in Delhi. But the production capacity at the Delhi centre is relatively smaller. However, the major manufacturing initiative comes up with the establishment of company’s Nalagarh (Himachal Pradesh) facility. “The relatively clean environment of Himachal Pradesh obviously attracted us into setting up the facilities at Nalagarh. But then, the encouraging ‘Tax Holidays’ being offered by the state government also solicited us to be there”, says Bhatnagar.
The largely automated Nalagarh facility has the peak production capacity of 1.2 million PCs a year. “From these facilitates alone, we can virtually cover the entire country with our PCs”, says Bhatnagar. However, at this moment, around 10,000-15,000 PCs a month are being manufactured at the Nalagarh facilitates. “The manufacturing capacity is quite flexible, and scalable at the same time”, adds he. It’s to be noted that in India eSys PCs come with a consolidated brand name of ‘eSys Wizard’.
In the global scheme of eSys’ operations, India holds a pivotal importance for the company. The firm is also coming up with a state-of-the-art facility (on six acres of land) near Chandigarh that would serve as the ‘global business hub’ for eSys Information Technologies (see the CAD generated photograph). In a way, the company is all set to harness the bounty bestowed on it in India.
In the kitty
Cognizant of the divergent buying capacity of the Indian masses (with its middle class being in different evolutionary phases), eSys Information Technology devised the prices of its PCs (desktops, and laptops) accordingly. “We’ve the entire range of PCs; entry-level as well as high-end PCs. I greatly appreciate the ‘tariff strategy’ of ‘Deccan-Kingfisher’ that caters to the people lying at the lowest stratum of the middle class pyramid to the affluent top cream. The ‘Deccan-Kingfisher-like’ phenomenon has a much wider social ramifications; it reaches out to a vast majority of the Indian citizens”, says Bhatnagar.
Quite recently, eSys Information Technologies has launched some of the most exciting, and promising PCs fitted with latest components that assure an enduring performance. The desktop products fall under various series namely ‘Value PC’; ‘Trend’; and ‘Lifestyle’. While notebooks come under
product series of ‘Ameetza’ among others.
It’s interesting that despite the marketing blitzkriegs by multitudes of IT vendors (around their branded machines) in India, why does the assembled PC market still thrive in the country? Is it because the assembled PCs exactly suit the requirements, and are more responsive to ‘price-performance’ expectations of customers? This despite the fact that an assembled PC ‘as a package’ neither offers structured-warranty, nor does it provide any assured service support to the customer. But then, this is a truth again that the ‘assembled-PC-market’ provides (to knowledgeable customers only) a wide array of choice in terms of component selection, and having finer grips on one’s budget. The flexibility, and the federated decision-making process (on the part of cus tomers), while getting a PC, is the brightest hallmark of this market segment. Fewer IT companies (making branded PCs) have appreciated, and imbibed ‘this particular characteristics’ of assembled PC market. But, just imagine a branded PC maker (backed by robust warranty, and post-sale service facilities) offering the flexibility ‘with which an assembled PC market works? Isn’t a great idea? That too with patterned and honest pricing regime (unlike assembled PC market where cost of components are prone to naughty variations)?
Over a period of time, eSys Information Technologies has conducted extensive market studies in India (regarding the factors influencing the buying patterns around PCs), and have come out with the conclusion that customers indeed crave for wider choice in terms of ‘configuration malleability’. Thus eSys Information Technologies has come out with a large number of PCs (under its Wizard brand) that offer almost all the flexibilities, and configuration options that customers can look for. However, the company has thought it wise not to include the monitor as the part of the ‘PC as a package’. That is, in the marketing parlance of eSys Information Technologies; a PC means a package ‘excluding monitor’. However, the company offers a wide range of monitors from where a customer can chose one (and pay accordingly), and thus a complete PC package gets ready. “These PCs, apart from offering a broader choice in terms of component pick-outs, also provide the option around excitingly affordable monitors (CRT, and LCD ones)”, says Bhatnagar. “This aspect is getting an overwhelming appreciation from the Indian PC market. Every body is excited about this great flexibility”, adds he. It is to be noted that prices of the monitors are pretty affordable like: 15” CRT (Rs 2,490); 17” CRT (Rs 2,990); 14” LCD (Rs 4,990); 15” LCD (Rs 5,990); 17” Wide LCD (Rs 6,990); 19”TFT (Rs 8,490); and 22” Wide LCD (Rs 9,990).
Under the Value PC Series, the company provides models like Value PC Entry; Value Fighter; and Value PC High. Out of the four present models under the series, Value PC Entry, and Value Fighter are based on AMD platform (mind you all the AMD processors are based on cutting edge VLSI technologies). Value PC Entry comes with AMD Sempron; integrated motherboard (supports up to 2GB RAM; 2xPCI slots; 2 DIMM; and integrated sound, VGA, and LAN); 40 GB HDD; 256 MB DDR RAM; 52x CD ROM; and multi media keyboard & mouse. Given the configuration, this PC (Value PC Entry) can be a serious computing device. This much talked about ‘Value PC Entry’ carries a highly rationalized price of Rs 5,999 (excluding monitor). Likewise, ‘Value Fighter’ is fitted with AMD Sempron 3000 (or Higher); 120 GB HDD, and 512 MB RAM, and multi-media keyboard & mouse. This comes with a price tag of Rs 6,990. On the other hand, ‘Value PC Mid’, and ‘Value PC High’ are based on Intel plat form that come with excitingly affordable prices. So is the case with PCs under other series like Trend, and LifeStyle (Mid and High-end PCs) that are fitted with quality components: All at prudent prices. At the same, eSys Information Technologies has given a great thrust on the post-sales services mechanism. These machines come with extensive warranty support (even with on-site service provision).
As a part of over all hardware initiative, the company has launched its ‘Divoom’ series of speakers and woofers in India. Also, eSys Information Technologies has introduced external hard drives called ‘No-Touch’ (in the capacities of 100 GB to 500 GB) in the country. “These external HDDs (No-Touch) are fitted with data management software from IBM-Tivoli”, informs Bhatnagar
Novel Marketing
Now that the company has introduced a rich variety of PCs in the country, they require sustained and innovative marketing strategy.
“For us the brand recognition of eSys Information Technologies as a PC maker is very important. We’re planning to embark on an all India marketing campaign where media (both print, and electronic ones) have been roped in so that people get to know about eSys’ Wizard brand of PCs that are truly tough on performance, but gentle on price. So, the quest for ‘brand building’ around our Wizard PCs is in full swing, and we’re getting very encouraging market response from across the nation”, says Swati Bahl, Deputy General Manager, eSys Information Technologies. “We’re even working with regional (vernacular) media houses for the targeted dissemination of information”, adds she.
For taking the products evenly across the Indian cities, the company maintains a dedicated set of 120 partners. “These partners are doing pretty well at this moment. Going forward, this is our aspiration that in every city there must be a partner selling eSys line of PCs in the country”, says Bhatnagar.
As a part of its intrusive marketing strategy, eSys Information Technologies is working very closely with most of the large format retailers (LFRs) in the country. “We expect that we would be getting a carved out segment (e-corner) with these LFRs especially for eSys’ line of products (that can also accommodate eSys’ range of exter nal hard drives; speakers and woofers)”, says Bhatnagar. But, here is a great innovation on the part of eSys for LFRs themselves. “As we’re running extremely flexible and highly automated PC manufacturing facilities in India, we can provide these LFRs to come out with PCs of their ‘own brands’ (even co-branded ones). The designer PCs; the PCs ‘manufactured-on-demand’”, says Bhatnagar. Just think about ‘Shoppers stop’ selling PCs (laptops and desktops) of its own brand. Great add-on! This capability of ‘personalized manufacturing’ of computers is sure to attract the market imagination in India, and can empower the aspiring entrepreneurs to come out with PCs of their ‘own-crafted’ brands. Not only that even MNCs, operational in India, can avail of eSys’ extended PC manufacturing prowess. “The OEM capability (contract manufacturing) is going to effect a paradigm shift in the PC manufacturing grammar of the country”, adds he. On the international front, eSys Information Technologies supplied the Mexican Telecom firm called ‘Telmex’ with 1 million PCs of its (i.e Telmex) brand.
Another marketing novelty is the ‘buy-back’ scheme underway where any person can exchange an old PC with an eSys PC (of course, after the due diligence). “The older (workable) PCs thus exchanged can, in turn, be given to NGOs who work for the upliftment of the disadvantaged citizens of the country. This is the commitment of eSys Information Technologies towards extend ing a help to the marginalized segments of the society. We want to move on with our social responsibility”, says Bhatnagar.
Moreover, the company is engaged in vertical-specific marketing strategy. “We’ve have identified some of the emerging business-verticals including government, BFSI, Telecom, manufacturing, and pharmaceutical among numerous others, so that eSys Information Technologies takes care of the ‘PC-needs’ of these verticals smartly. We’ve got a dedicated team of 25 salespeople who focus on their allocated business-verticals with PCs of our own brand (Wizard PCs)”, says Swati Bahl of eSys Information Technologies.
On the vital issue of ‘on-time product supply’ to the market, eSys heavily draws the inspiration from IBM that has perfected the art of “Just-In-Time” delivery mechanism. “We’re very particular about the hassle free, and on-time product delivery provisions. On this front, we’re unbeatable”, stresses Bahl.
Channels in DNA
“The entire drive of eSys Wizard PCs in India is partner-oriented. So, we’ve formulated comprehensive plans for making the engagement with our partners really special”, informs Bhatnagar. Towards this aim, the company has come out with progressive measures that would make the lives of partners dealing in eSys PCs, a blissful joy. “eSys Information Technologies has offered its partner-dealers a 60 days ‘price-protection’ provision. This, in itself, is unprecedented. Next, we’ve given the option to our partner-dealers of ‘90 days stock-rotation’. This again, is revolutionary”, says Bhatnagar. With an aim to address any after-thoughts of a PC buyer, eSys Information Technologies can even bring in the 30 days money-back offer (i.e if the machine is returned in 30 days period since the purchase, the company would return the money back). For swifter, and hassle free delivery of machines to customers, eSys Information Technologies does not seek any freight charge (free delivery).
Truly, the company is keen to work with a happy and satisfied partner-dealer folks in the vital Indian market. The company already offers numerous incentive schemes to its channel partners. “And yes, we do take care of their profitability issues”, adds he. From every angle, it looks that eSys Information Technologies has holistic plans to intensify the process of ‘Digital Inclusion’ in the country.
|
.gif)
