ADITYA INFOTECH: Bouncing With Vengeance

2003-04 was rosy for Aditya Infotech once again. It clocked revenue of Rs 120
crore compared to Rs 88 crore in 2002-03, a surge of 37%. To maintain a high
growth ratio this fiscal, the company has become the distributor of Benq and was
responsible for distributing its digital cameras, MP3 players, scanners and CD
ROMs. It is also planning to introduce Typhoon keyboards and mouse in the Indian
market this fiscal.

The company wants to aggressively cater to the lifestyle market, which is why
it we tied up with BenQ. To break the general perception that Aditya is strong
only in the northern region, the company added five more branches last fiscal to
have a total of 23 offices.

The company has also increased its channel partners by 500 partners and today
it has 1,500 partners. This increase in numbers has given a major boost to the
company´s moral.

Last fiscal, Aditya Infotech also had to deal with rumors about the closure
of its Lucknow operations, though the company denied such a move. However, the
rumor did have some of its channel partners in the region worried. The rumor
gained ground due to some claims that the distributor was facing increase in
replacement related problems

Also, partners alleged that the distributor had changed its credit policy in
some regions, and started dealing in cash only. Initially the company used to
give credit to resellers for a period of 15 days. In its bid to address the
issue of default payments, Aditya also initiated legal action against some
resellers.

The company plans to grow by more than 30% this fiscal and has also increased
its employee strength to enhance focus in areas like video channel, broadcasting
and lifestyle segments. The company is confident that it will soon touch the Rs
162 crore mark, which it did in 2000-01.

Aditya also plans to add more vendors this fiscal, which would help the
company garner consistent growth and is in talks with some of MNCs for the same.
Another thrust area this fiscal would be enhancing the PC sales as this market
is gaining huge momentum in the country.