Is SSS Systems shutting shop?

Early this week, the market was abuzz with rumors that SSS

Systems Pvt Ltd had closed down its shop. The rumors triggered panic in the

market since I Sadiq Batcha, CEO, SSS Systems owes money to few leading

resellers here. The entire issue started when an IT news portal-MarketFlash (www.marketflash.in),

reported that SSS Systems had downed its shutters. “We got this news only

through the portal and I was shocked on reading it. I could not believe Batcha

would have done it, because I know him as a friend and a businessman. But,

later, I got the news that Batcha has only shifted his shop to a different

premises and is very much in business,” said J Ramesh, Business Manager, Ralco

International. Batcha owes over Rs 1 lakh in business to Ralco.

SSS Systems was a leading reseller once upon a time and

created a wave in the market, when it opened the country's largest IT retail

showroom with over 4,000 sq ft of space at Royapettah, Chennai, in 2001. Things

were going good for the company before it got into a financial crisis in 2004.

“It was a bad phase for us in business. We lost huge amounts of money and the

cash flow got stuck. We had more than Rs 45 lakh as outstanding in business,

which is down to Rs 30 lakh today. Recently, we have only shifted our shop from

Royapettah to 1,000 Lights to save some money on rent and overheads. We have

already put up the cloth banner in the old place, informing the customers and

suppliers about the shifting,” clarified Batcha. He also said, the rumors were

spread by people who are working against him in business.

However, channel partners are worried about the indefinite

delay from his side and worried whether they would get the money back. “We

know him as a good businessman but, he should also try to understand our

position in business. Batcha should not keep buying more time and settle our

dues at the earliest,” said B Krishna Kumar, Director, Sri Lakshmi System

Products, who has to get about Rs 2.5 lakh from him.

“Batcha is a good person and I believe he would not have

any intentions of cheating suppliers. Actually, he owes me more than Rs 6 lakh

in business and I have told him to settle it whenever he makes a turnaround. All

we can do is just wait and pray for his early revival in business,” said G

Sundaram, Director of Coimbatore-based Bloom Electronics Pvt Ltd.

Like Sundaram of Bloom Electronics and Krishna Kumar of Sri

Lakshmi System Products, many resellers are waiting with bated breath for the

good day. According to market reports, Devraj Computers (P) Ltd, Microtek

International Limited, Bohra Technology Pvt Ltd and Madras Computech are also

some of the suppliers waiting for SSS Systems to repay the money.

S Gopikrishna Chennai, March 3