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MICROMAX TECHNOLOGIES: Ups and downs

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DQC News Bureau
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MD: Rajesh Agarwal

BRANDS: LG, HP, Samsung, Wipro, Xerox, Epson

EMPLOYEES: 37

DEALERS: 700

BRANCHES: 6

ADDRESS: 304 Eros Apartments, 56, Nehru Place, New Delhi 110019

TEL: 011-2644755, 25875875

SILVER CLUB RANK (2003-04): 19

STRENGTHS
l Added Xerox to its portfolio
l Branched into telecom business which grew by 100%
CHALLLENGES
l Should venture into other regions besides north
l Needs to rethink strategies to stop downslide of growth rates
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In 2003-04, New Delhi-based Micromax Technologies posted a growth rate of
13%. But last fiscal this dipped to just 7% growth, with the company's revenue
touching Rs 75 crore.

The fiscal started on a good note for Micromax as it was appointed as
regional distributor for Samsung in North, for its laser printers. This was
shortly followed by an announcement that Millennium Automation and Systems had
signed up Micromax as its distributor for Delhi.

In a bid to get closer to its channel, the sub-distributor expanded
operations to new cities like Rajasthan, Ludhiana and Gurgaon, taking the total
count of its offices to six. Currently, it has a channel network of 700
partners, primarily in the northern region. Twenty additions were made to this
community in the last fiscal.

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LG and HP were clearly the leading brands for Micromax, with both brands
contributing about 45% business during the year. In the product line, TFT
monitors and high-end laser printers did well. The company also managed to
generate good business for CD writers and pen drives.

The sub-disty was one of the first companies to get into the telecom market
by spinning off Micromax Informatics four years  back. This division
started off as a technology incubator and is currently focusing on embedded
solutions in telecommunications. It registerd 100% growth and started doing
import business for fixed wireless terminal and fixed wireless phone from China.

Micromax Informatics received a letter of intent from Idea Cellular to supply
fixed wireless terminal. It launched a GPRS/EDGE (general packet radio
service-enhanced data rate for GSM evolution)-enabled data transfer modem that
operates on a SIM card. The new device promises data transfer rates of 144 Kbps,
which is better than an ISDN connection. It was priced at less than Rs 10,000
and was co-branded and co-launched with Nokia. However, Micromax did the
distribution of the modem.

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One of the biggest achievements for the company this year was its appointment
as a Xerox regional distributor for its copier and office automation products.
The company is betting on the educational and government segments for the
current fiscal.

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