1. TECH PACIFIC: Enduring Alliances

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DQC News Bureau
New Update

K Jaishankar

CEO

START-UP YEAR: 1986;

NO OF PARTNERS: 6,000

BRANCHES:
31; 

AGENCY OPERATIONS:
Accton, Acer, Adobe, AMD, AMP, APC, Autodesk, Avaya, CA, Canon, Cisco, Citrix, Epson, HCL, HP, IBM, Iomega, Macromedia, MS, Moser Baer, NAI, Oracle, Samsung, Sun, Symantec, Tandberg, Toshiba, TVS-E and 3Com 

ADDRESS:
Gate 1A, Godrej Industries Premises, Off Eastern Express Highway, Vikhroli (E), Mumbai - 79.

TEL:
022-25960101 FAX: 022-25960102

WEB SITE: www.techpaconline.com

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AGENCY
REVENUE (RS Cr)

MEASURES THAT MATTERED

Introduced AMD-based PC kits for Rs18,000 
Converted multi-disty partnerships into exclusive contracts

It was a year of introspection and action for Tech Pacific, which posted revenues of Rs 1,720 crore. The company continued to top the Silver Club, but witnessed only a growth of 3%. K Jaishankar, CEO, says this minimal growth can be attributed to incubating new business propositions and taking some tough decisions. 

Dropping Intel from its product portfolio was one of the toughest decisions Tech Pac took, considering the fact that this brand alone contributed around 10% to the total revenues. 

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AMD replaced Intel, which now contributes 13% to overall revenue. “We compensated for the revenue loss after Intel'sdeparture by ramping up AMD business and growing in other areas,” claims Jaishankar. Other alliances were with HCL Infosystems for EasyBee PCs, Toshiba's mobile devices, Tandberg Data's storage solutions and Moser Baer media. 

“The highlight for us were the exclusive contracts we signed with several companies,” points out Jaishankar. Besides new sole distribution tie-ups with 3Com, Targus and APC India (for Back UPS Pro), Tech Pac also managed to make some of its existing principals deal exclusively with it. These include 3Com, Adobe, Autodesk and Symantec. “In these kind of relationships, we invest a lot into making the company a success as the level of ownership is high. Since we are the only interface to the market, the vendor is dependent on us to set and achieve the targets set for the country,” adds
Jaishankar.

Tech Pac also started offering AMD-based PC kits to partners last year, selling almost 12,000 units. However, it discontinued the supply due to component sourcing problems and will re-launch the program again this year. The kits were available for Rs 18,000 with the monitor and Rs 14,000, without the monitor.

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In a bid to give value-addition to partners, the Silver Club leader tied up with banks to provide working capital to dealers to fulfill back-to-back orders. “We recommend high-performance partners to banks, which then offers them credit at relatively low interest rates,” informs Jaishankar. Already 45 partners have availed of this assistance. 

For the current year, Tech Pac has also ventured into a non-traditional product distribution with
Siemens.