MODI PERIPHERALS: Cashing On Experience

SHYAM MODI

Having been in the IT re-selling business for over 16 years, New Delhi-based
Modi Peripherals has rightfully earned the respect of the channel community in
the capital. Set up in 1987, the company is a leading partner for top vendors
like HP, Samsung, LG, Epson, Acer, BenQ and many others.

The company started with a simple motto of selling peripherals and providing
the best-of-breed service in the industry. While the peripheral business
continues to be its mainstay, its PC business has also emerged strong over the
last three years.

And with the company recently getting appointed as IBM’s regional
distributor in the northern region, it is looking very confident of further
boosting its PC and notebook business.

Singing praises of Modi Peripherals, Vikas Singla, Channels Sales Manager­IT,
BenQ India remarks, "This company has earned its name and customers now put
unswerving faith in this organization."

CHANGING FOCUS

When Shyam Modi, CEO, Modi Peripherals started his venture, his only ambition
was to make it the one-stop shop for all peripheral needs. But the company
hopped onto a major restructuring exercise in 2000.

It was then that Shyam realized that a full-fledged distribution business was
the ideal thing to do. Once, that decision was taken, the company went on to be
the distributor for major IT vendors in the country.

It was also a result of this restructuring that the company got into PC
business and is currently able to sell between 450 to 500 PCs a quarter as well.
And now, seeing a good growth happening in the notebook market, this reselling
organization is eyeing this space too.

"Our decision to diversify has really helped us in increasing our
bottomline," reasons Shyam.

And it’s not just partners, but even Shyam’s principals, who wax eloquent
about his business acumen. Says Aseem Kumar, Regional Sales Manager (North),
Samsung India, "Shyam has what it takes to convince his resellers to sell
the products."

But Shyam doesn’t want to become complacent with his success. "We have
worked very hard to earn the respect that we currently command in the market. We
want to make sure that we don´t lose it and hence will concentrate on our
post-sales service to keep our customers satisfied," adds he.

RAMPING UP THE REACH

Having established a strong presence in the north, Modi Peripherals is
currently looking at expanding its reach further in the western region. It has
its office in Mumbai and the company has decided that this region would have a
major focus in the next fiscal.

"We have more than 1,000 resellers selling our products, but our reach
in the western region is not strong. So we want to expand in this region within
a year´s time," Shyam points out.

The company also wants to increase its revenue by 20 to 30% in the coming
fiscal. The company recorded a turnover of Rs 30 crore in FY 2002-03 and it is
hopeful of clocking at least Rs 35 crore in 03-04.

Also being a tier-1 partner for many vendors has proved advantageous for the
company. "As vendors give more authority and freedom to us we can address
the market more aggressively and also improve our profitability," remarks
Shyam.

While speaking to Anuj Modi, Shyam’s nephew, who has joined his uncle’s
business only two months ago, latter’s cautious nature also becomes apparent.
"In these two months I have noticed that my uncle always makes it a point
to consult everyone before he takes a decision. He thinks about the possible
consequences beforehand, so that the company is not faced by any problem in the
future," reflects he. He also adds that one of the main thrust areas of
Modi Peripherals is its after-sales support system.

EYING THE PC BUSINESS

With the overall IT business witnessing a buoyant phase Modi Peripherals has
set a very clear vision for itself: Be the leader in every product it sells. The
company now wants to make waves in the PC and notebook business too. "This
is a major market 

and with the kind of growth its witnessing we do not want to
be left out of the party," Shyam says jovially.

He believes that since the company is selling the best PC brands like IBM, HP
and Acer, it will help its business grow well. "With leading MNC vendors
reducing their product prices, customers will buy more branded products,"
feels Shyam.

He is confident that within a couple of years, the company will make inroads
into the notebook market and become one of the leading partners for the same in
the country.

VOICE OF THE CHANNEL

Shyam has been instrumental in various channel association-related activities
and taking partner grievances to the right people. Today, he is the President of
India Infotech Dealers Association and Chairman of Delhi Computers Traders
Association. Shyam says that this pro-activeness to be a part of dealer
associations springs from a need to resolve reseller issues with vendors or
distributors. "As long as my involvement helps resellers, I am happy,"
he states modestly.

ATANU KUMAR DAS