1. VALUE DIVISION ADD VALUE: Brings Profits

In a year when economy slowed down and demand saw a sharp decline, the #1 member of the DQCI Silver Club, Tech Pac India, naturally could not maintain its growth momentum. With a revenue of Rs 1,676 crore in 2001-02, Tech Pac saw a negative growth of three percent over 2000-01 when it had touched a revenue of Rs 1,727
crore.

The slowdown during the year gave an opportunity for Tech Pac to consolidate its operations and manage the cost structure better to remain profitable. Says K Jaishankar, CEO, "Last fiscal, we were not primarily driven by revenue growth. However, we continued to maintain highest marketshares for the products that we distribute."

Tech Pac particularly did well in packaged software. Over all, if the market declined by two percent in this segment, the #1 distributor saw a growth of 34 percent.

Despite the slowdown, Tech Pac did not take a defensive attitude towards its business. Points out Jaishankar, "We did not resort to any drastic cost reduction measures. We did not have any lay-offs. In fact, we recruited more people."

The additional people became handy for Tech Pac to take ownership for brands such as 3Com, Palm, APC AVR Range and Autodesk with whom it signed exclusive distributorship agreements. The distributor went full hog to create demand through promotional marketing programs and fulfill it with efficient logistics. Roadshows were organized to create awareness which brought in incremental growth for respective vendors.

The focus on Value Division was increased as it brought in maximum profits.

Business was brisk in products on the Unix platform from HP, Compaq, IBM and Oracle. "The Value Division caters to the enterprises and is the cornerstone of our profitability," says
Jaishankar.

MEASURES THAT BROUGHT MOOLAH: Exclusive distributorship for 3Com, Palm, APC AVR Focus on Value Division especially for Unix products platform, substantial improvement on logistic support

Investments were made to train people in skill-sets to handle products in the Value Division. Tech Pac brought together independent software vendors and systems integrators to offer total solutions to enterprises.

The distribution major is happy at the investments that were made to establish eight new branch offices during the year making it a total of 28 offices across the country.

Tech Pac provided value-addition to its select customers by recommending their names to financial institutions for additional credit. The credit policy of the company came under fire from ection of partners when it reduced the credit period to only 14 days. However, partners gradually saw the measure bringing some discipline in the market.