‘Crystal’ Clear Focus

His readiness to learn from mistakes and quick relook at business strategies, has helped him to tide over difficult times.

Business was nothing new to Devang Shah when he decided to take up IT
reselling way back in 1988. His family was already into manufacturing notebooks
but not the PC variety!

But adventurous by nature, Devang was always willing to try new things. And
understanding the way IT would shape in the years to come, he diversified into
the business of data media and consumables.

He formally established a company under the name Crystal Impex in 1991. And
since then, Crystal Impex has always maintained a healthy growth making it one
of the largest channel players in the data media and consumables segment.

Thriving in media and consumables business

Devang Shah

ELEMENTS OF SUCCESS...

What started as a three-man outfit with a capital investment of Rs 4 lakh,
today has assumed the size of an organization with four offices, 20 employees
and an annual turnover of over Rs 18 crore.

Crystal Impex today has nearly 500 channel partners spread across northern,
western and southern India. It deals in practically all the major brands of data
media and consumables including HP, Sony, Imation, Canon, Epson and Mitsubishi
among others.

Just last year, the company also became the exclusive distributor for Princo
range of CDs. And this tie-up has brought in never-before success according to
Devang. Says he, "Ever since we launched Princo CD-Rs in the market last
year, its volumes has seen a phenomenal growth and volume-wise, today it is
second only to Moser Baer in the CD-R market."

Though refusing to quantify the volumes, Devang does inform that owing to
this success, he will gradually concentrate his business on Princo and couple of
other selective brands. The company is also doing reasonably well in Creation
range of optical media.

AND THE HURDLES

Though a success story today, Devang’s journey was not without its share
of disappointments. He started this venture by selling mega-file floppies of a
local brand called BCR. However, he soon realized that Indian customers were
adamant about only buying MNC-branded IT products. "That was when we
started talking to MNC companies, 3M being the first one of them. But this
primarily to widen our domain knowledge," says Devang.

By around 1992, he started importing products of companies like Verbatim and
Image3 and in the same year was appointed as distributor for Sony. A partnership
which lasted for nearly four years before Sony made its direct presence in the
country. Devang then went ahead and tied up Imation and TDK. However, by that
time, IT business had already become crowded and margins were fast shrinking.

It was during that time, that Devang ventured into an altogether new area of
hardware and started dealing with Seagate HDDs. "And that was the biggest
mistake that we committed," muses Devang. According to him, government
policies were unfavorable to sustain the HDD business. "There was no way we
could see ourselves making money in the HDD business, instead we lost quite a
bit," says Devang. And since then, Devang consciously realized that data
media and consumables is his strength area and decided to focus only on this
business.

RESTRATEGIZING ON BRANDS

Though business goes on smoothly today, Devang is planning to bring a change
in his business strategies. "In the days to come, we would like to
consolidate our business on just two-three good brands instead of selling many
of them," says he.

Devang has also taken an active interest in peripherals and accessory
business by distributing Value Max range of products. "We decided to deal
in such peripherals and accessories as these sell a lot through stationery
stores. And we have a strong channel which deals with this segment,"
reasons Devang.

And Devang is more than confident that this will ensure far better growth for
the company. "We will clock about Rs 24-25 crore by the time this fiscal
finishes," says he confidently. And going by the way Crystal Impex has
grown over the years, the figure may just be achieavable.

Devang has also been a very active member of the Computer Media Dealers
Association (CMDA) since its inception in 1991. And for over a year he has
successfully performed his duties as the Administrative Director of the
association. And this entire success he credits to his family. "I have been
able to manage business as well as association only because of the strong moral
support extended by my family," says Devang.

And if he were 25 today and given an option to start the same business as he
is in, would he do it? "No. I would instead foray into something which is
more exciting and happening like satellite and wireless technology," quips
Devang and adds, "There so much new to learn and experience in that
field!"

GOLDIE in Mumbai