Compuage’s strong distribution adds value to its partners: Atul Mehta, Chairman

By Sejuti Das Apr 25th 2017
Compuage’s strong distribution adds value to its partners: Atul Mehta, Chairman

Strong distribution and inventory management system, sales team and channel spread eases Compuage’s business, says Atul Mehta, Chairman and MD.

The secret of success in business is to make a customer and not a sale, believes Atul Mehta. The chairman and managing director of a Mumbai-based IT and mobility distribution company, Mehta has always believed to have a legendary customer service.

With a mission to deliver superior value to customers, vendors, and society at large, Compuage Infocom was incepted in 1987. The company has a nationwide presence, with 41 offices, one central warehouse, and 42 sub-warehouses, three redistribution hubs, 51 service centers, and more than 10,000 resellers in 600 cities and towns. Compuage's subsidary in Singapore that takes care of its SAARC business.

“We have always believed to keep changing ourselves with the need of the hour. We strongly focus on three major aspects, while delivering services to our customers—speed, reliability, and value performance. These factors have been the key differentiators for us,” Mehta says.

According to company's annual reports, the major contributors to the overall revenues for the last fiscal, were IT products (85 percent) and mobility (13 percent). Mehta believes that the revenue from mobility products will increase over the next couple of years due to the faster growth of smartphone market in India.

With strong vendor alliances with the likes of Cisco, HP, Lenovo, Microsoft, Numeric, SAP, Samsung, Toshiba, and also TP-Link, Compuage has come a long way. “We try and understand the expectations of our vendor alliances and define a clear way of executing the same. This is one clear reason of why we continue adding principles year after year,” says Mehta. “Our deep alliances with vendor companies, partners and customers are helping us to penetrate through the country and reach even smaller cities.”

We strongly focus on three major aspects, while delivering services to our customers—speed, reliability, and value performance.

Mehta attributes the company's success to their ability of comprehensively understanding the market. However, the success wasn't achieved overnight. The solution provider went through many roadblocks during its journey. Mehta says, the company’s main challenge was the unorganized IT distribution industry. “Apart from dwindling margins, OEM issues and deliverables, the biggest roadblock has always been surviving in this unorganized industry and gradually migrating towards the other side of the spectrum.” 

But the company managed to deal with this crisis by adopting new approaches. It strengthened its process discipline, stringently analyzed pain points, and implemented the best-in-class processes. The company stands out with its strength of having a workforce aggressively working towards meeting its client requirements.

Additionally, Compuage's mobility segment has also faced headwinds due to the competitive environment. But, the company kept its focus on growing its presence in the mobility space and got attracted by a well-poised telecom market.

“I strongly believe that it is the basics that are supposed to be done right,” says Mehta. “We have created a very simple process internally, which helps our vendor and reseller alliances to work with us.”

For all these efforts, the company was awarded the Best National Distributor by TE Connectivity, Best Cloud Managed Partner by SAP, and was acknowledged as a growth distributor by Cisco, for the year 2015. The company prides itself on being one of the very few specialist distributors to invest in providing genuine value-added services and facilities.

Some of the unique attributes, such as a strong IT-enabled distribution backbone, a solid financial and inventory management system, a dynamic sales team, and a committed channel spread across the country, helps Compuage to add value to its vendors and partners. 

The entire business of the solution provider is driven through the B2B channel space and gives a lot of emphasis on service and customer support. Its e-global alliances help the company to drive successfully in the distribution arena.

Compuage also engages in aggressive market development through a large national reseller network and always maintains the highest level of sales, marketing, operational and technical support for the benefit of customers. The company generates 50 percent of its revenues from tier 2 and tier 3 Indian cities that account for a 40 percent share of India’s IT hardware market.

Recently, the company shifted its inward shipments depot from Nhava Sheva, Maharashtra to Chennai, which resulted in a huge decline in stamp duty costs, labor costs, and warehouse rentals.

Although the overall IT industry has shown a decline of 8.9 percent last year, Compuage claims that its revenues grew 31 percent to Rs.3,107 crore as it entered newer geographies. According to Mehta, the roll-out of GST has further helped them in cutting costs related to logistics and warehouses.

“Our performance is improving continuously on a quarterly basis. This is a clear result of our sustainable growth strategy and cost-cutting from our team and wide customer base in diverse geographical markets. We are sure that in the coming quarters our results would be better than expected,” says Mehta.

Going forward, the organization wishes to expand its portfolio and add more brands. Mehta also wants to focus more on mobility products to cover that aspect fully. “We will continue to foray deeper into the market, especially in terms of smaller cities, and are planning to increase our reseller base to approximately15000 by 2019,” concludes Mehta.

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