ESYS Technologies : Return Of The Prodigal

It was a busy year for eSys India following a global restructuring, wherein
the Indian entity is no longer a subsidiary of Singapore-based eSys
Technologies. With margins getting squeezed the company has made a strategic
decision to focus on its own brands

The national distribution house, eSys India, clocked revenue figure of Rs
1,342 crore in 2007-08 out of which Rs 1,307 crore was harnessed from agency
revenue and Rs 26 crore from eSys' own brand and the rest from others. In the
previous year, eSys had touched a scale of Rs 2,100 crore.

Commenting on the decline in the revenue figures, officials from eSys
clarified that the difference in revenue figure is because the direct revenue of
eSys Singapore in India has not been included this year following a global
restructuring wherein the company is no longer a subsidiary of eSys Technologies
Singapore.

Esys bagged the Best Distribution Partner award from IBM India for its
'System x' range of products. The year also marked the signing up of eSys with
Quick Heal for the national distribution of the company's Guardian AntiVirus
Software.

eSys also bagged the SAP Partner Edge Quarterly Performance award for Q1
2008. The distribution company was recognized for contributing more than 50
percent of net revenue to SAP for Business One, and also won many clients for
the same product line and other products in 2007.

Besides distribution, the company also introduced fully configured sub-Rs
10,000 Fighter PC under its own brand name. Exploring the market of lifestyle
products, eSys also launched two new models of their Wizard Lifestyle PCs.

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Profile
CEO: Akashdeep Sharma Start-up year: 2000 Employees: 350 Collaborations: Xerox, Acer, Intel, Apple, Fujitsu, MSI, Samsung, Hynix Address: 521, Udyog Vihar Phase III, Gurgaon - 122016 Tel: 0124-3010675 Website:www.esysglobal.com SILVER CLUB RANK (2006-07): 3

Having a national spread, 40 percent of the company revenue came from the
western region whereas 30 percent came from North. Southern and eastern regions
contributed 20 and 10 percent respectively to the overall business of the
company.

Intel and Samsung accounted for a major chunk of the company's revenues, but
margins were tightly squeezed and the company operated at around 1.3 percent
margin. This is probably why it started focusing more on its own brand of
products to offset the challenges of the distributing business. It is however
reported that the company will steer clear of contract manufacturing and will
focus more on built to order contracts while targeting certain verticals like
government and education.

In order to pursue good relations with the channel fraternity and stimulate
them to do healthy business, eSys announced several channel schemes including
the Sparkling September offer last year.