Mumbai-based SES Technologies, a fast growing distribution company, is getting aggressive in the networking segment. "As network is the future, we want to be there as a leader and this present move would help us achieve that," said PK Krishnaprasad, CEO, SES Technologies Limited.
Till recently, the company was dealing with just the Intel account. Recently, it became a multi-brand distribution channel by tying-up with Acer, Western Digital, Accton and Molex, apart from launching its own brand-Javlien--of PC building block products. SES Technologies has also become Seagate import partner recently. "Presently, we would go ahead with the networking business through Accton and Molex range of components and products. Soon, we will be adding new brand of high-end value products mainly in the central storage product line," he said.
Meanwhile, the market is abuzz with news of SES Technologies becoming the national distributor for Seagate storage products and when asked about it, Krishnaprasad said, "It may or may not happen and Seagate is the one to decide on this. However, we have good track record in the business which may attract some principals to move towards us."
Although, the company is expecting only five to eight percent of business from networking division this year, it feels that the bottom-line would be quite comfortable. "Unlike other segments, the networking business yields considerable margin for the players who are serious about it. It's not a place for volume game," said Krishnaprasad. The company is confident of meeting the customers' demands with Accton and Molex range, and may probably go in for one more brand for high-end routers and ISDN products. "We are very particular about growing along with the principal companies, so our policy is to go with one brand for one product line," said HS Srinivasan, Associate Vice President, SES Technologies Limited.
The company is in the process of appointing network technical consultants in strategic locations such as Chennai, Delhi, Mumbai, Bangalore and Kolkata to support the channel partners in the respective regions and help them converting their leads into business. "We are mainly looking at system integrators (SIs) and OEM partners for business," he said.
The company aims to achieve Top 3 position in the distribution business in the next three years and has set a target of over Rs 1,000 (turnover) in the next fiscal. "This fiscal, we are confident of making Rs 500 crore (turnover) which is almost 100 percent growth when compared to the previous year. Last year, we had registered a turnover of Rs 250 crore which is 160 percent growth from Rs 96 crore in 1999-2000," he said.
The company expects to keep 50 percent of the business from Intel account and the balance 50 from other brands.
SES Technologies is also expanding its geographical reach by opening five new branches in the next three months. SES Technologies has established its presence in 18 locations and is considered to be one of the best companies to have maximum reach by Intel.. "We would also increase our channel numbers for better reach in the market. Currently, we are having over 1,500 channel partners in the network," said