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The Comeback Kid
Ambitious and spirited, RP Infosystems is back, and this time for a lengthier and finer innings
Piyali Guha
Monday, June 23, 2008
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Kolkata-based RP Infosystems is once again back with its PC brand, Chirag, and this time the frame is much bigger. Interestingly, it has opted for a pan India operation in its comeback trail instead of limiting its reconstruction to the east. It has also changed its anti-channel policy, wherein it has decided to offer the channel a more important task.

The history of Chirag goes back to an era when the country saw many PC brands sprouting from eastern Indias capital, Kolkata. Almost all other brands having gone into oblivion, Chirag has stood firmly, and after overcoming its share of rough patches, is all set to play a lengthier and finer innings.

Although maintaining a low profile, Chirag has batted all through since its launch in 2005, and unlike its contemporaries, the brand has been able to sustain the rough patches and stand out for a longer show. We have maintained a slow but steady performance throughout. And unlike other competitors we have always kept our budget and related precincts in mind, and have accordingly built our strategies, says Kaustav Ray, CMD, RP Infosystems. Instead of jumping on everything at one go, we covered our journey step-by-step so that we dont lose track. From the beginning I started this venture with one goal in mindto survive in the long run and capture the market slowly without making much noise or creating unnecessary attention, he maintained. Probably this thought, backed by meticulous planning and execution has kept Chirag going in spite of odds.

At the front-desk of Chirags new office in Kolkatta

Journey This Far
With an intention to keep production costs low and offer users a PC range to suit all pockets, Chirag had started with its own retail outlets to sell and service its computers. In a deliberate attempt to avoid channel sales Ray took to self-confession. Being a newcomer there were not many takers from the channel for Chirag and push sale had never been Rays modus operandi. But once the brand established itself and people understood that we were not mere fly-by-night operators but were here to stay and deliver, the pull automatically developed. And we started operating through the channel, he says. Nonetheless, before its entry into the channel the company completed the necessary homework by studying the markets and building its network. And once it was ready, Chirag was launched on a national platform last July.

RP began its national journey by launching Chirag in northern India first, followed by the western market, the focus albeit has been higher in northern India. As per Ray, the brand has successfully earned a good reputation by now in the north, Today, apart from the east, Chirag is a well-known PC brand in north and west India. Based on last years performance, we are now confidant to take it further and expand our reach all across.

The company presently has branches in Delhi, Noida, Lucknow, Jaipur, Chandigarh, Mumbai, and Bangalore. This year Chirag is set to launch in south India and RP is also planning to open branches in Pune, Ahmedabad, Goa, Nagpur, Chennai, Hyderabad, Cochin, and Thiruvananthapuram. It has three manufacturing units at Howrah, Parwanu in Himachal Pradesh, and Barapani in Meghalaya, and intends to open two more in Puducherry and Sylvesa; and has also proposed to come up with a 30 acre hardware SEZ in Baruipur, West Bengal. The Rs 1,000 crore project is expected to start within the next two years and will be manufacturing motherboard, RAM, keyboard, cabinets, LCD monitors, etc. Further, across eastern India, Chirag has around fifty retail showrooms-cum-service centers, apart from showrooms in Kurukshetra, Lucknow, Satna, Barabanki, and one soon to be opened in Shimla.

The team of professionals handling Chirags operations

Eye on the Dream
A follower of Dhirubhai Ambani, the creator of the most powerful business house in Indian history, Ray believes in keeping his aim simple. We started our journey from scratch, with minimum resources and financial strength. But we aim to be counted among the top PC brands in India in the near future, he says. And we have always been aware of our limitations and have stepped cautiously toward our objective. People might think us crazy to have such an ambition. But we are working toward our goal with sincerity; the rest is to be seen. The business is new to us as well, but we believe that if we can stick to the basics we will attain our goal, he added. A believer in systematic growth, Ray has never kept his companys target sky high. Instead he prefers to pose month-to-month targets and this strategy has done him good. The most important lesson I have learnt from Dhirubhai Ambani is that to be successful, one needs to be a visionary as well as craft his way toward making his vision a reality, and so far this has immensely helped me in my mission, smiled Ray.

As per the company, last year Chirag sold approximately 1.5 lakh PC units all over India and closed the last fiscal at Rs 250 crore. This fiscal the company is targeting to convert the sales figure to around 3 lakh units and hoping to touch a turnover of Rs 500 crore. We believe it is our process-driven working mode and team effort that has resulted in a fruitful journey. And now that our infrastructure is in place, its time to reap the harvest, he observed. However, we still believe in a slow yet steady growth and our strategies are fabricated on this platform. Since we aim for a long innings, we are not in a hurry, he concluded.

Piyali Guha
piyalig@cybermedia.co.in

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