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Kaar Technologies

By Ankita Mitra on Sep 19, 2011
Kaar Technologies
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There is no place for a generic player, says Maran Nagarajan CEO, Kaar Technologies

Snapshot

Kaar Technologies

Founded:
2006
Headquarters:
Chennai
Key Executives:
Maran N CEO, Ratna kumar CMO, Selva Kumar COO, George Guardian CTO
Revenue for 2008-09:
Rs 10 crores
Revenue for 2009-10:
Rs 20 crores
Revenue for 2010-11:
Rs 30 crores
Employees:
200+
Principals:
SAP
Website:
www.kaartech.com

When focus, integrity and dedication join hands on one platform, they open the door of success and expansion. These indispensable qualities have brought Kaar Technologies, where it is today. Headquartered in Chennai, this solution provider for SAP laid its foundation in India in January 2006 when Maran Nagarajan, the CEO, decided to move in from the Netherlands.

Success brings new challenges and like any other inspired beginner, Kaar too faced complexities to achieve a market presence in India. As a start-up, it was extremely tough for Kaar to get recognized as a serious player in the market, both by its vendors as well as customers.

Today Kaar is one of the key partners for SAP in the country, with close 200 plus consultants who are specialized in various SAP technologies. The beginning, however, was not very easy for Kaar. In the year when Kaar Technologies decided to venture into the systems integration space in the country, the list of SAP partners in India was quite long, making it tough for a start-up to stand out. In Nagarajan’s words, this was “one of the principal reasons for SAP being dubious in offering us a partnership in the beginning.” However, over a period of time, they saw Kaar’s proficiency and trusted this solution provider.

Gradually, Kaar built an excellent affiliation with SAP. Once established, gaining acceptance in the market was easy. Nagarajan elucidates, “Name builds the name and reputation builds the reputation”. Kaar’s association with SAP has been a slow maturation process, as the latter already had its presence in India since 1997. This was almost nine years before Kaar Technologies made its debut in the Indian IT field. And it takes time to cultivate a relationship, which seems to be growing for Kaar gradually over the years.

Execution and feat

The SI is confident about its strategy to be an exclusive SAP partner. Nagarajan believes that the Indian IT market is overexploited and hence there is very little or no place for a generic player to spread their wings. Further, the value of differentiation is the key that gets a company acceptance in the field of IT solution providers. From a customer’s point of view, being a focused player not only enhances their confidence but also develops a valued connection for the times ahead.

But every coin has two sides and being an exclusive partner, too, has its cost. Nagarajan says, “The shortcoming is that, sometimes the growth cannot be exponential. So, the growth that we witness won’t be as fast as that being achieved by a generic player in the IT sector.”

The SI has managed to carve a niche in this space. Kaar is not just another ERP implementation partner for SAP. Its association with SAP is very strategic and the SI provides solution around most of the SAP products like, Business Object Strategic Management, Enterprise Information Management, E-travel and many more.

However, a major challenge faced by the organization is the lack of visibility into SAP’s product roadmap. Nagarajan explains, “SAP has a very aggressive product road map. Unfortunately, it’s not visible or transparent to all. So, as partners and technology specialists, we are left to ourselves to make our own choice with respect to which solution stands best for the customers.” So, in those specific cases where SAP does not have a clear answer or a road map to give a proper definition which product to select or which one is superior to the other, it is left to Kaar to take the best call for its customers. Surprisingly, as a solution provider, Kaar Technologies does not focus on verticals. They operate upon a horizontal plain, with SAP tools as its spotlight.

Growing Excellence

Kaar has also taken the first step in the growing cloud market. KaarNet and KaarWatch are two primary cloud-based products of Kaar Technologies at present. The SI has a comprehensive plan to promote these two products. Kaar has appointed a special sales force team that is dedicated solely, to identify channel partners for these products. To start with, the company is planning to work with Ingram Micro to take these offerings to the market. Besides, Kaar is also taking SAP ByDesign to its customers. The company sees a tremendous potential in terms of market growth with SAP Business ByDesign, which is SAP’s cloud-based computing and SaaS offering for ERP. Also, the response they have received from SAP has been overwhelming in this sector.

If one has the right people and clarity in vision, then nothing can stop one from achieving its goals, believes Nagarajan. Kaar, thus has an immense focus on improving its competencies in SAP especially. “We have built a full-fledged datacenter that has about 50 servers running. We have also implemented most of the SAP technologies to use and experiment with,” says Nagarajan. Every new version of software that comes from SAP was flown-in and installed, which was then given to the Kaar consultants to get trained on. Kaar’s sharp focus on SAP and its value-oriented services to its customer is the prime reason for its success. Nagarajan shares, “As an exclusive solution provider of SAP, we have certain values that the company will not compromise for anything.”

Kaar also conducts ‘annual leadership meet’ every year to set the tone for the next financial year. “We discuss and debate upon the opportunities, pitfalls and ways to organize the subsequent growth plans in the following quarters,” says Nagarajan. This initiative helps the company to be prepared to address the opportunities in the market.

Extension and strategy

While India is a major focus for the SI, it has also tasted success in the overseas markets. After gaining recognition in Saudi Arabia, Qatar, Netherlands, USA, Canada and Singapore, Kaar technologies is looking forward to opening branches in the Middle East and has plans to start its operations in Kuwait, Abhu Dhabi and Egypt in the next four quarters.

Nagarajan says, “Our growth in the Middle East has been very encouraging right from the beginning.  The market was good in the Middle East even when recession had hit other places in the world. This was the only place which was a bit isolated from the other regions.”

With focus, commitment and ethics in the channel business, coupled with an undying commitment towards SAP, this solution provider has truly come a long way.

The paramount method to work out a company’s growth and development in the market sphere is to trail the graph of its revenue generation. For a company that was established in 2006, it is definitely noteworthy that in 2008 Kaar had bagged a revenue of Rs 10 crore, which saw an uphill swing in the following year by almost doubling itself to Rs 20 crore. Not the one to stop at this, the success rate of this SI seemed awe-inspiring in the last financial year of 2010-2011, as its revenue soared to Rs 30 crore. For the forthcoming year, Kaar expects its revenue to be close to Rs 40 crore.

Kaar Technologies is a focus oriented company having an employee strength of 200 plus. And the torch bearers of this solution provider, apart from Nagarajan are Ratna Kumar as its Chief Marketing Officer, Selva Kumar as the company’s Chief Operating Officer and George Gaurdian as the Chief Technology Officer.  An extremely hard-working and goal-oriented person, Nagarajan  believes it is not about the number of hours one puts into work but the effort one gives, has given this company a niche over the generic solution providers in the IT sphere.

Nagarajan strongly believes that it is essential to create a differentiation for every partner with their customer. One should not only demarcate it on the basis of price but also emphasize on the value proposition quotient for their customer--only then a company will grow in terms of value and customer belief. 

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