Proof: Of total systems sales of Rs 460 crore, the ‘New HP’ brand brought in Rs 261 crore, signifying the strength and impact of the HP-Compaq merger. Overall, the systems portfolio grew by 11% in revenue terms, despite price drops during the year. This was also an index of the recovery in the market.

The strategy aimed at inorganic growth—and one that worked well—was the signing of exclusive distribution agreements with niche product vendors 3Com, Autodesk, APC, Adobe and Symantec. For many of these companies, Tech Pac carries out market development and demand generation activities, apart from demand fulfillment, paving the way for total ownership of the business. The direct impact of this was an increase in both revenues and profitability. Tech Pac has since invested in a separate division staffed with people trained in configuring technology solutions, delivering marketing programs and recruiting channels.

Drivers for growth in the coming year are likely to be storage, wireless, security and cellular handsets. Credit management by the channel continues to be the most vulnerable part of the business. But Year 2002-03 saw profits grow faster than revenues. And the company now feels that the growth in demand over the quarters is a sure signal that the slowdown has come to an end.