ACCEL ICIM: Growth Struggle Continues

Accel ICIM records a hat trick with its revenue remaining almost constant (at
Rs 156 cr) for the last three fiscals. It has strengthened its services revenue
and laid out plans to become more of an IT services company in days to come.

The going for this Chennai-based systems integrator and service provider wasn't
all that smooth in 2003-04. It consciously shifted its focus from pure hardware
business and did a calculated re-orientation of its strategies. While this move
took its toll on the topline, service revenues jumped by 25% to touch Rs 56
crore.

The organization was also re-structured distinctly into four business
divisions: IT infrastructure solutions, enterprise software solutions,
integrated technology services and warranty outsource solutions. This move was
imperative, since the company's profitability had been under severe pressure
for the past few years.

The company won a JD Edwards ERP implementation project worth nearly Rs 11
crore for a HPCL rollout across 300 locations over 18 months. Accel also went
quite strong on its relationship with Sun Microsystems, wherein it established
two Linux competency centers and aggressively promoted the Star Office business.
It bagged a deal for 10,000 licenses from United India Insurance for the same.

It also acquired the banking software division from TVS, and created a
framework for the banking industry in collaboration with Canbank Computer
Services. This enabled the company to offer low-cost branch networking for banks
and won orders from Canara Bank, Syndicate Bank, Catholic Syrian Bank and
Corporation Bank.

In a move to consolidate its business, the company identified its top 1,000
enterprise customers and brought in a renewed focus on its relationship with
these companies (named as 'e-1K' accounts).

In the warranty outsourcing businesswhere the company has traditionally been
strong-it forged two new relationships. One with WorldSpace for installation,
warranty and post-warranty support. The second was with Benq as its authorized
service provider.

However, the  most significant development for the company happened by
way of Singapore-based Frontline Technologies

Corporation (FTC) picking up a 40% stake in it.

FTC's strength in areas of security, data center integration, e-governance
and education is likely to help Accel ICIM (now renamed Accel ICIM Frontline)
post between 10-20% growth this fiscal.