COMNET VISION: No Loss, No Growth

20 Sep 2004 00:00 IST

New Update

PK Sharma,
CEO

PRODUCTS: Samsung, Intel, IBM, HP, LG, Seagate, Creative, Vintron, Iomega and D-Link

DEALERS: 1,100

BRANCHES: 4

ADDRESS: B-1, Aggarwal Bhawan, 35-36 Nehru Place, New Delhi 110019

TEL: 011-26285262

STRENGTHS

Good strategy to ensure high margins

Focused approach to expand on retail business

WEAKNESS

Stagnant growth for three fiscal resulted in fewer vendor alliances

Faces increasing competition from other fast-growing distributors

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Delhi-based Comnet Vision has been clocking revenues of Rs 50 crore,
registering no growth, no loss. The only remarkable highlight of last fiscal was
its shift towards retail business, while maintaining its reselling business.

Currently, 70% of Comnet Vision's business comes from reselling, while the
rest comes from retail business. The company is determined to change this
equation in the coming years keeping the bottomline intact.

Actis Technologies appointed Comnet Vision as its regional distributor for
Epson LCD projectors in Delhi and NCR regions. Comnet signed this alliance as
part of its strategy to put high-margin products in the reselling business and
to position low margins products through retail outlets.

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The company has two offices-cum-retail outlets in New Delhi. For the year
2004-05, the company is projecting a similar revenue albeit most of it from
retailing. Comnet is planning to open a couple of more retail outlets in Delhi.
There are also plans to add few more products and brands in this year.

The fierce competition from MNC brands is holding the company back from
growing at a fast pace. The entry of MNC brands is forcing them to stay away
from launching their own brand.