eSys to enter retail biz

In its bid to tap the SMB, SOHO and end-user segment, eSys India will soon be
undertaking a number of initiatives for its channel partners and customers. The
distributor is planning to roll out an initiative for its channel partners
wherein depending upon the size of the partner's business, the company will
provide the partners with training and certification. In addition, the company
has resolved to share resources with its large business partners in terms of
manpower. The company also announced plans to foray into retail segment shortly.
Crazy Pricing, a division of eSys is planning to launch its own retail stores in
cities like New Delhi, Ludhiana and Chandigarh. The company will display all the
IT and convergence products at its retail outlets.

"We are going to fund the manpower of our large partners, and this has been
done to boost their confidence. We want our partners to have a good bottom line
and this move will also motivate them to buy regularly. We have not undertaken
any big branding initiative but translated the same into a price point for our
partners because we are looking to cater to the low-priced market, and targeting
second hand computer buyer segment," opined Vakul Bhatnagar, COO, Branded
Business Group, eSys.

Speaking about the retail venture he added, "This is going to be our first
foray into retail business, and we plan to have many such outlets in an year's
time. We are shortly going to launch eSys brand of LCD TVs and UPS and will
offer a sizable and attractive price range to our customers."

Besides, eSys is also planning to get into another business of contract
manufacturing. "There are a number of small time companies who want to buy some
900 to 1,000 machines under their own brand name. We have been doing this for
leading brands in Singapore and with our scale of economies, we are going to
approach some of the leading brands in India. We plan to contract manufacture
for them as well since our plant in Nagargarh, Himachal Pradesh has the capacity
for the same."

Another plan underway revolves around leasing equipments to SMBs. The company
is targeting management and other related institutes whose buying pattern
depends on their fee structure and they look at having PCs on lease. Keeping the
same in mind, the company will be leasing equipments for 24 months to such
institutes. The company will also be offering assured margin to those partners
who will get them similar orders.

"We have already tried this business model with an institute in UP and
shortly, will rope in others as well," said Bhatnagar.

With the company's own PC brand performing well in the B, C and D-class
cities, eSys has plans to tap the education vertical as well.

Keeping the concept of total cost of ownership (TCO) in mind, the company has
rolled out a new initiative for the educational institutes whereby the company
is giving these institutes an option that when they plan to sell the PCs bought
from eSys after a year's time, eSys will replace the machine, and buy the old
models on the price decided at the time of billing.

"This initiative has been received well by the various educational institutes
and project-based organizations we had approached. We have recently tied up with
many such engineering colleges in UP for the same," stated Bhatnagar.

Apart from these, the company is also looking at extending the 'Digital
Insurance' scheme it had rolled out in the month of January this year and is
looking to address another set of 1,000 partners through the scheme.

The scheme offers a 60-day price protection against any price cuts in its
range of PCs and 90 days stock rotation. Besides eSys is also offering first
point free freight delivery to all its channel partners across the country.