Aar-em Electronics to focus on servicing of UPS systems

With the prices of UPS systems crashing down to an all time low in the SOHO
segment, Aar-em Electronics Pvt Ltd has decided to change its strategy and focus
on building services aro-und this sector.

"The prices of UPS systems have come down drastically. So have the
margins. No doubt the prices of component have dec-reased. Therefore, we can
afford to reduce prices of our systems to the Rs 2,000 level. However, we have
decided to focus on the service stream to ensure better service to our customers
and build a long-term rela-tionship," said Ranjit Mohite, Director, Aar-em
Electronics.

Aar-em is adding another four centers to its existing list of 15 service
centers in the country. Mohite believes that the company's decision to branch
out to B and C class towns in two to three years would be beneficial since
growth would come from smaller towns. With the addition of the service centers,
it would be easier to serve these areas, he felt.

The company currently manufactures 2,000 units every month. Mohite expects
reven-ues to increase when services take off in a major way. Mean-while, the
company has diver-sified into sale of generators, currency counting machines and
currency verifying machi-nes. "We are in the power sec-tor. We offer UPS
systems and follow it up with the sale of generators to ensure a proper back up
for the corporate sector," Mohite explained.

The three new products will be sold under the brand name 'Champion'. The
company is creating a new channel for marketing these products. During Q1 this
year, the company introduced UPS models in the range between 700 VA to 1500 VA.
The com-pany expects its turnover to increase to Rs 12 crore next year from the
current figure of Rs 11 crore for the year ended March 2004.

Nanda Kasabe

Pune (CyberMedia News)