That the company grew by 26% in topline is great news after its constrained growth record for the past three years. Nonetheless, the protagonist of the recovery and growth story was the systems business worth Rs 734 crore-a near 60% jump since the previous year, with HP bringing in Rs 305 crore and IBM Rs 205
crore.
There are two parts to this growth: the organic part that came in from increase in domestic demand, and the inorganic part that came in after the HCL tie-up. Tech Pacific took itself beyond its traditional role of being the supply chain partner by integrating with this persona the function of being the marketing partner handling market development, channel management, and brand management for the Indian PC vendor. It sold 29,000 units of EzeeBee, helping itself as well as HCL gain access to previously untapped markets. Tech Pacific also started distributing optical storage media in various formats required by the customer, allaying the vendor's worries about managing the logistics behind various product formats. Tech Pacific is demonstrating its capability to 'build a business' for the partner.
Krishnan Jaishankar
CEO
|
K Venkat
Executive VP-Value Division |
Deepak Ashar
Director (Finance) |
Ram Mynampati
President (Commercial & Healthcare) |
M Mohapatra Sanjay Achwal Bimal Das, Ketan Doshi
Business Unit Heads |
Atul Gaur
VP-Operations & Credit |
|
To handle this new role, Tech Pacific added about 100 new people and created a new vertical organization to handle exclusive partners. To grow as well as balance dipping margins on IT products, Tech Pacific also added convergence products like MP3 players and digicams to its portfolio.
One huge opportunity that Tech Pacific seems to have missed this year was mobile phones, which would have helped its toplines as well as bottomlines. While other distributors primed up their topline by a couple of hundred crore, Tech Pacific was left with Rs 33 crore through Siemens and Panasonic. The other two areas which could have added to the topline are white-boxes and services, offerings that Tech Pacific does not have.
