One man's meat could often prove to be another man's poison. The mega merger of Ingram Micro and Tech Pacific resulted in many of their existing principals looking for an alternate strategy to mitigate the risk of having all eggs in one basket; what followed was a significant exodus to other distributors and eSys gained the maximum. Net effect: it added 14 vendors including Microsoft, Samsung, Xerox, IBM software, WeP, Apple, Acer, MSI, Tally and Sun to its kitty during the year. Out of these, substantial business came from Microsoft, Samsung and Xerox, while from its existing principals, IBM servers and Lenovo too contributed handsomely.

eSys' own branded desktops/notebooks contributed to 10% of its coffers; the Wizard range of notebooks (with Centrino Duo) as well as miniature PCs, eSys Mini were launched during the year. This contribution could increase once the company succeeds in its ambition to set up an integrated
manufacturing, logistics, R&D and services hub and functional global headquarters in India. During 2005-06, eSys announced plans to invest $230 mn in a phased manner by the year 2010, specifically for this purpose.

Internally, the company undertook an exercise to realign its current manpower resources, so as to manage the expansion without resorting to significant addition in people. The jury's still out on whether this has succeeded, as there was still a 60% increase in manpower.

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