Zestful Zenith

Raj Saraf, CMD of Zenith Computers, has always been quick on the uptake. He
pioneered networking in India and was the first to introduce notebooks in the
country. When PC retailing was nowhere in vogue, he started selling computers
through departmental stores like Akbarallys.

In recent times, Zenith has given a big push to establish branded retail
stores across the country. Saraf’s keen business acumen could not miss the
potential of B and C-class towns for his expansion plans.

The result is that today, 127 Zenith PC World stores do brisk business in 121
cities across the country. Long before launching the retail stores, Saraf had
done his homework by popularizing the slogan, "MNC Quality, Indian
Prices".

Raj Saraf’s Zenith PC World will give customers more products under a roof
Milestones
	Major shift from being a pioneer in networking to purely a products companyÂ
	Zenith PC World stores to sell PCs and every other IT product under one roof

 "The price-sensitive Indian customer has lapped up Zenith
machines," says Jamshid R Bastani, who runs a Zenith PC World store in Vile
Parle, Mumbai, "Zenith holds our hand, and we hold customers."

VOLUME BUYING TO KEEP PRICES LOW

An expert at sourcing products, Saraf has been able to pass on the benefits
of volume buying to his customers by keeping his prices low. Tightly controlled
overheads have put him in an advantageous position vis-a-vis the MNCs and the
bigger Indian PC vendors.   

Zenith works on the principle of "cash-in, product-out" and hence
interests costs have been well-controlled. Manufacturing PCs in Goa, which is a
sales-tax exemption zone, has helped Saraf to keep the prices of his PCs so low,
that even assemblers seem to run for cover. Resellers today, on an average, earn
seven to eight percent margin on every Zenith PC.

Perhaps the attractive margins and the support that Zenith gives to its
franchisees, has helped the vendor to widen its retail reach to 121 cities in a
short span.

Saraf has plans to introduce several new products, including notebooks,
servers and handhelds through the franchisee stores.