RR SYSTEMS: Moving towards providing solution

RR Systems will look upon 2004-05 as a significant year in its history. It
set up its new sister concern, 'Vaidaik Infotech' in July 2004, which will
take care of its sub distribution and wholesale business. Nishant Bhushan, son
of RR Systems' CEO, Bharat Bhushan will head this new venture.

The initiative has paid off really well and is apparent from the fact that in
less than a year's time, the new company contributed Rs 17 crore or 25% of the
topline revenue. Vaidaik Infotech currently plays with limited brands like HP
and Kobian Mercury laptops as well as Intel processors. The company grew by 42%
to clock Rs 68 crore in 2004-05.

One of the strengths of the company is its strong presence in the north
Indian market through more than 1,000 partners. It gets 100% revenue from the
north region because the company has seven offices in this belt. The company has
also leveraged on its strong reseller base (40%) to maintain its steady growth.

After establishing a strong hold and playing a long innings in sub
distribution business, the company has geared up to shift its business focus
towards solution providing especially into verticals like corporate and
government. It is concentrating more towards revamping the sale of its own Aryan
brand of PCs.

Since this fiscal, it has clocked Rs 4 crore revenue from the sales of own
brands and products. In order to push its own company products, RR Systems is
set to introduce a new brand called 'Trot' for USB products and multimedia
cards. The company is expecting 10%-15% increase in its bottom line by selling
it is own brand.

In the current fiscal, it is going to open another retail outlet in Delhi. In
the overall business, 32% of its revenue comes from Intel, followed closely by
HP at 28% and Samsung at 15%. 90% of this disty's business comes from
distributions purely from the Northern region.

Last year, the company made seven new recruitments, which has taken the
manpower count to 55. RR Systems boasts of minimal employee attrition rate,
though actual figures are unavailable.