Maxtone Electronics : A Slowdown

Maxtone Electronics' sales to the reseller and dealer community dipped
marginally to 22 percent of its overall revenues in 2007-08 as compared to 23
percent the previous fiscal. Even its trading with systems integrators went down
slightly to 22 percent of the overall turnover in the last fiscal as compared 25
percent in 2006-07.

This is probably why Maxtone's overall growth too stood at 18 percent in
2007-08, as compared to 28 percent the previous year. The company posted a
turnover of Rs 330 crore in FY 2007-08, of which Rs 60 crore came from the sales
of its own HIS brand of products. Out of the total Rs 330 crore revenue, AMJ
quarter contributed only 20 percent while OND was the highest revenue grosser
bringing in 29 percent to the turnover. More than half of the revenue for
Maxtone came from the western region, which contributed to around 56 percent,
while East contributed 19 percent. In the region-wise chart South contributed 16
percent. Surprisingly, it was the only national distributor, which saw better
contribution from East as compared to the North.

Its retail channel increased revenues by 10 percent, while the SOHO segment
contributed only six percent to the overall revenue. The SME/SMB vertical put in
five percent, an increase of two percent compared to 2006-2007.

Maxtone was awarded the best Intel customer support and largest volume
partner award last year. It joined hands with Sony for distributing its laptops
and also signed up Microsoft for distribution of its paper licenses. Last year
marked Maxtone's foray into the telecommunications as it signed up with Tata for
the exclusive distribution of its USB products and also partnered with Virgin
mobiles.

12
Profile
MD: Champak Raj Gurjar Start-up year: 1996 Employees: 215 Collaboration: HP, Sony, Lenovo, ECS, MISI, TATA, Virgin Mobiles, Intel, Seagate, NSI Address: Unit 414, Creative Industrial Estate, NM Joshi Marg, Lower Parel (E), Mumbai - 400011 Tel: 022-23011919, 23091664 Website:www.maxtone.com SILVER CLUB RANK (2006-07): 10