Caltron eyes regional distribution

Kolkata

September 12th, 2007

Kolkata-based Caltron announced plans to establish itself as a regional
distributor. So far, the company has been primarily following the sub-disti mode
of transaction, but has decided to make the change in its business model.
Speaking on the issue, PL Suhasaria, Director, Caltron said, "The sub-disti
model is gradually becoming obsolete. In order to sustain our business we have
decided to shift our focus to regional distribution."

The company tied-up with LG to distribute their products, and has also
increased its focus on distribution of Lenovo products. It began working with
Intel since July and is catering to upcountry partners across East. It now plans
to increase its product portfolio in the forthcoming days.

The company has set a target of 40 percent growth in the current fiscal. It
has been making changes internally for the past one year and had recorded a
growth of around 15 percent during FY 06-07.

Caltron's primary focus last year was to consolidate its business module and
the company also upgraded internal infrastructure and strengthened its back-end
systems. "Now we are again ready to accelerate our growth. We have planned
for substantial expansion activities, both in terms of geographical area as well
as product line," said Suhasaria.

As part of its plans, Caltron opened a branch in Guwahati last month.
"We have got a very good response to the branch. We are looking forward to
establishing our business in Guwahati by November, after which we will focus on
other states of Northeast and gradually expand our reach."

Caltron is also planning to open a branch in Siliguri this fiscal. It has
already developed substantial partner network in entire North Bengal and Sikkim
and is accelerating business activities there. "With our own branch we will
be able to further increase our reach in the area and successfully tap the hilly
markets adjacent to Siliguri," he stated.

The company has also increased its business revenue in Bihar and Jharkhand.
It has achieved a growth of over 40 percent so far in Patna branch and 140
percent growth in Jharkhand. "Jharkhand is a very good market and to tap
its full potential we opened a branch at Ranchi about a year back. With the two
branches at Ranchi and Jamshedpur we have been able to grow well in Jharkhand,"
he informed.