APW simplifies channel structure

APW President has decided to take the help of channel partners to touch its
turnover target of Rs 162 crore this fiscal, up from Rs 130 crore in 2007-08.

Currently, it has 17 partners who act as stockists or marketing agents. Now
it is looking forward to appoint four regional distributors who will stock and
sell to value-added resellers. However, it is unwilling to adopt the national
distribution model because the company officials believe that the latter will
not have the expertise to push a technology product like racks.

The company has further decided to shift its focus to SMB clients in B and
C-class cities. The company is also adding finishing touches to its channel
partner program called 'President Business Associates' (PBA), which will be a
channel enrolment and loyalty program.

"We will launch this program by October. We are trying to get in touch with
as many value-added resellers as possible, and see how many of these can be
enrolled into our PBA program," informed Pramod Agashe, COO, APW President.

The company has set itself a modest target of enrolling 50 partners by March
2009. This is because there is a lot of technical expertise that goes into
selling racks. These products come in a knockdown package and there are several
permutations that have to be kept in mind while integrating it. "Without proper
training, a partner will not be able to deploy the racks, which is why we want
to concentrate on working with few VARs and then add more to our network,"
Agashe informed.

None the less he is not too bothered about this low number because he
believes that if this channel initiative brings in around Rs 40 crore of
business then APW can achieve its turnover target of Rs 162 crore. Currently, it
has 3,000 partners in its database of which 500 are active.

APW has also expanded its manufacturing facilities in Pune and Bangalore to
keep up with its growth plans. It is also in talks with an undisclosed
organization to take over the 30 percent stake held by APW Electronics in the
company.

"We do not want a mere venture capital company to invest in us. Instead we
want a technology partner whose offerings will complement ours so that we have
an unified stack of solutions to take sto the customer," Agashe said.

APW President specializes in electronic enclosure systems, a market worth
about Rs 450 crore, with 30 percent marketshare.