Megabyte Corporation : Eying Expansion

For FY'09, Bengaluru-based Megabyte Corporation matched its last year's
performance and registered the same revenue of FY'2007-08. The company's
FY'2008-09 revenue remained at Rs 140 crore, as was in FY'08, which was an
improvement compared with 2006-07 revenue of Rs 125 crore.

Of the total revenue, Seagate and Intel brought in 20 percent revenue each,
while Asus contributed 10 percent. Rest of the revenue came from other brands
and products. There was not much focus on its own brand MyMegaPC during FY09.

The company opened a branch in Jaipur during the last fiscal which brought in
about 11 percent of revenue. The company also recently opened a branch in Surat.
Geographically, Ahmedabad branch contributed Rs 30 crore, Jaipur contributed Rs
15 crore, while the remaining revenue came from Bengaluru.

Last fiscal also saw Megabyte shutting down its retail unit in Bengaluru
owing to some issues with the building owner. It plans to open a retail unit in
Bengaluru in the next two to three months.

During the last fiscal, owing to the economic slowdown and to better manage
credit issues, the company increased its credit period to 30 days from 21 days
and reduced its partners' credit amount to Rs 70 lakh. The company said it
received good support for this initiative from its suppliers, and its partners
too welcomed this move.

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SILVER CLUB RANK (2007-08): Newcomer
PROFILE
CEO: Mahendra Baid Start-up year: 1995 Employees: 60 Collaborations: HP, Samsung, LG, Mercury, Intel, Seagate, Sony, Asus, HCL, Viewsonic, AOC, etc Address: 2/1, OTC Road, SP Road Cross, Bengaluru - 560002 Tel: 22998419
HIGHLIGHTS Closed retail showroom in Bengaluru Won Best Sub-Distributor award for Karnataka region from Seagate

The company's total current headcount is 60, and it plans to have six
employees for its Pune branch, which is scheduled to open shortly. During FY'09,
the company won the Best Sub-distributor award from Seagate and tied up with
Viewsonic. In the current fiscal, the company has tied up with AOC and HCL, in
addition to Odyssey to offer wide range of peripherals. During last fiscal, the
company added around 30 partners to its current strength of 450-500 in the
following regions-Mangalore, Hubli, Udipi, Shimoga and Mysore. The company now
has a positive approach to the market and expects 20-25 percent growth in FY'10.