CCS receives rate contract from Government

R Sethuraman

Chennai

October 26th, 2007

Chennai based PC and notebook manufacturers, CCS Infotech recently received a
rate contract for computers from the Director General of Supplies and Disposals.
According to H Ratna Kumar, Director of CCS Infotech, "This contract would
be valid for next twelve months, where we would provide computers to central
government and government run offices at any time without any tender or
formalities. The contract was issued for the consistent performance by CCS
Infotech and only a very few manufacturers hold this rate contract."

Informing that CCS also plans to tie-up with few more channels across the
country for the rate contract, Kumar said that it would help in achieving its
targeted 100 crore mark very soon.

Claiming that 75 percent of CCS's business comes from own PC business, Ratna
Kumar said the company did a good business through exports last year and touched
Rs.64 crore mark with 20 crore coming from export business alone. "Last
year was very good for us and we received good revenue through exports. But due
to rupee appreciation we are running on a rough patch now. However we are not
perturbed because every exporter is bound to face this problem," he added.

Meanwhile collaborating with VSNL, CCS Infotech is providing lease line
solutions across the city. "It was one of our major products signed this
year and initially we had few hiccups but started receiving orders later and now
are expecting a good revenue through the project as it has gained
momentum," Kumar said.

Marketing directly and through a very limited channel CCS Infotech is
focusing on retail outlets. CCS proposes to bring 10-12 more outlets across the
city by this year-end and plans to duplicate the same across the country.

"We are going to increase our footprint in different regions, apart from
supplying our own brand computers to countries like Australia and U.K," he
added. CCS would sell its own brand computers there apart from opening retail
segments and according to the response and would also start a manufacturing unit
in South Africa.

On road ahead, Kumar said, "CCS will be opening more retail outlets in
the very near future and plans to have a multi-brand stores by next year. The
government should give subsidies in SSI units apart from encouraging MNC's
because the competition is very high."