SAVEX COMPUTERS: A Grip On Profits

Savex Computers is one of the few true national distributors in the country,
which has been maintaining a steady growth in the

last many years. However, with revenue of Rs 231 crore, Savex Computers grew
only by 5% percent in 2003-04 over the last fiscal.

It had achieved 32% growth the previous year. The company maintains that in
2003-04 the bottomline has increased by a whopping 29.5%.

The company could achieve higher bottomline only because of its conscious
effort to focus on high margins rather than volumes. Managing expenses
efficiently also tuned the profitability to some extent.

During the year, the company added Lexmark as a new principal. Lexmark's
all-in-one was one product category that did extremely well.

But maximum contribution, of about 75%, came from Samsung India Electronics
products. 17" monitors, TFT monitors and hard disk drive were some of the
few products that drove Savex's business. It relationship with Kobian was
restricted to lifestyle products like digicams, binocams and MP3 players only in
the north and west.

Savex added two new branches, one each in Jaipur and Ludhiana, in its efforts
to become a truly national distributor. For the next year, increasing
geographical presence and widening its products portfolio will be the two top
things to do in Savex's agenda.

Currently, there are about 1,900 active dealers and systems integrators
buying from Savex. During the year, the company organized European trip for 75
of its top channel partners under its dealer reward program. It also conducted
concerted promotion for Lexmark with series of roadshows.