Price instability baffles Thanjavur

Situated beside the mighty river Cauveri, Thanjavur is an important cultural city of Tamil Nadu. Once ruled by the Cholas, it is home to some great pieces of art and architecture. The famous 'Brihadeeswara Temple' is esteemed as a UNESCO World Heritage Monument. Besides, the town is also known for its beautiful Tanjore painting, a painting style unique to the region. Fertile soils and surplus production of crops such as rice and wheat has earned the city the name as 'Rice bowl of Tamil Nadu'.

Prableen Kaur Jubbal
27 Aug 2012

Situated beside the mighty river Cauveri, Thanjavur is an important cultural city of Tamil Nadu. Once ruled by the Cholas, it is home to some great pieces of art and architecture. The famous 'Brihadeeswara Temple' is esteemed as a UNESCO World Heritage Monument. Besides, the town is also known for its beautiful Tanjore painting, a painting style unique to the region. Fertile soils and surplus production of crops such as rice and wheat has earned the city the name as 'Rice bowl of Tamil Nadu'.

Talking about the Information Technology market of the city, the sales have been smooth, but not exceptional, in the last two months. Says Rajesh of Ansi Computers, "The business has been average. However, there were partners who informed of a positive scenario. Arular Okiaraj, CEO, Opal Systems said, "The prevailing market has been satisfactory." Similarly, Srikant, CEO, SB Systems said, "There has been a 10% improvement in the sales."

SOHO, SME, and education are the prominent growth verticals of the city. "SOHO is the only market in the city as there are no big industries here. But there are many deemed universities in the region, so education is another strong vertical," said Srikant. "Apart from SOHO, resellers and end-users comprise the main buyers," said Okiaraj. Laptops are the top-selling products, the ruling brands being Sony and Dell, followed closely by Acer and Lenovo. "Approximately, we sell 25 laptops per month," said Okiaraj. The printer category is said to be dominated by HP and Canon.

The biggest challenge faced by the IT dealers in Thanjavur is lack of a service center. Besides, partners also have problems with the pricing and warranty period of products. "Price stability is not there. Variable pricing from vendors is a crucial problem. Also, there is a lack of marketing support from vendors to push the products. Besides, warranty and DoA is a constant issue," said Srikant. "Warranty period is not addressed well. Also, customer awareness is lacking," said B Babu, CEO, Sri Venkateshwara Systems. The partners expect redressal of the aforesaid problems and on-site service from the vendors.

The city has a computer association called Thanjavur Information Technology Association (TANITA). Of late, the association has not been playing its pivotal role. Says Babu, "There is no support from the association. No monthly meetings and activities have taken place. The association needs to be revamped immediately." On a similar note, Srikant said, "Day-to-day issues are not discussed."

Market Name: Thanjavur
Market Location: Tamil Nadu
Surrounding Markets: Chennai, Coimbatore, Tirupur, Vellore, Erode, Tiruchirappalli, Madurai, Kumbakonam
Computer Association: Thanjavur Information Technology Association (TANITA)
Business Verticals: SOHO, SME, education
Prominent Dealers: Ansi Computers, Opal Systems, SB Systems, Sri Venkateshwara Systems, National Computers, Entrepreneurs System Service, Feanix Systems, Sri Unicon Systems

Interview 1:
Rajesh, CEO, Ansi Computers

How many active dealers are there in the region?
Approximately 10-15.

What is the annual turnover of the market?
Around Rs 50 crore.

What are your market predictions for the year?
Government's prevailing free laptop scheme will effect sales.

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Interview 2:
Srikant, CEO, SB Systems

What are your market predictions for this year?
Every year, we expect a certain amount of growth. Laptops and tablets are expected to fare well.

What is the annual turnover of the market?
It is tough to predict. Local sales comprise Rs 50-60 lakh per month.

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Interview 3:
B Babu, CEO, Sri Venkateshwara Systems

What are your market predictions for this year?
Expecting atleast 25% growth. Sony products are doing good. Price is the major parameter in the market.

How many active dealers are there in the city?
There are around 75 members, but only 15 members are dealing professionally.

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