Compage Computers : The Dell Effect

Last year, Secunderabad-based Compage Computers was the only distributor from
Andhra Pradesh to make it to the Silver Club issue of DQ Channels and this year
too it has secured its position in the list. Even during the economic downturn,
it has managed to register a 16 percent growth in the last fiscal.

Compage has seven branches across South India-one in Vizag, Kurnool,
Vijaywada and four in Hyderabad and Secunderabad. The company attributes its
positive growth rate to the new branches in Vizag and Kurnool, revenues
generated from selling notebooks and the Dell distributorship.

Retail has been the primary contributor to the company in the last couple of
years. However, having realized the importance of the channel, it has focused on
increasing revenues from its partners this fiscal.

Compage believes that its relationship with channel partners from the grass
root level in Andhra Pradesh is one of its key strengths. About 50 percent of
its revenue came from the reseller and dealer segments, while SOHO and retail
contributed around 12 percent each during last fiscal.

The company tied-up with Dell in January 2008 and is one of the their biggest
partners for IPC (Image and Printing) business in Andhra Pradesh.

After Dell, the company considers HP as its strength in the retail business
and attributes the success to the relationship they share with channel partners,
in terms of pricing and support.

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SILVER CLUB RANK (2007-08): 19
PROFILE
CEO: G Mahender Start-up year: 1997-98 Employees: 126 Collaborations: TVS-E, Samsung, LG, HP, Intel, Epson, Compaq, Seagate, Microsoft, Wipro, Lenovo, Dell, etc Address: 101, Karan Trade Center, SD Road, Secunderabad - 500003 Tel: 66310796, 66312222, 66382201 Website: www.compagegroup.com
HIGHLIGHTS Opened a branch office each at Vizag and Kurnool Became Dell master franchisee

Owing 50 percent of its growth to Dell business consistently on monthly
basis, the company is planning to open retail outlets in Warangal and Rajmundri,
targeting SOHO customers. Dell has contributed around Rs 54 crore and HP around
Rs 35 crore to the overall revenue of the company. The company's focus is now on
the A and B-class cities in Andhra Pradesh due the huge market potential there.

This fiscal, the company is looking forward to expanding its offering and is
already in discussion with Dell to expand its portfolio. It is targeting to
increase the turnover by 50 percent in FY'10.