OA COMPSERVE: Profitability takes center stage

With the merger of its systems integration focused division to Integrix
India, OA Compserve is going after profitability and is not worried about
maintaining big revenue figures

After having catered to the growing IT needs of the region for over 16 years,
New Delhi-based OA Compserve strategy to keep a focused approach towards adding
value to different applications has helped the company deliver best of breed
solutions to its growing list of end customers in this region.

With an employee strength of around 255, the company generated Rs 75 crore as
revenue for the year 2005-06. This reflects a loss of almost four percent as
compared to Rs 78 crore revenue it generated for the last year.

As part of its aim to bring consolidation in the network integration industry
of the region-Delhi-based Silicon Comnet, a part of OA Compserve Group,
initiated the process to merge its operations with Integrix India in December
2005.

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CEO: RK Malhotra
Highlights With the introduction of its own brands, the company has changed its guard not only in services but also for its distribution business at Renovision Comnet As part of its effort to increase profitability, the company has decided not to work with certain non-profitable customers Too many changes in the administration as well as operations might take a lot of effort for the company to drill down at the ground level While introduction of its own brands is a good move, its success will depend on the quality of these products and its availability

Keeping their focus towards offering services, as a merged entity both these
companies are now set to leverage their different expertise in the network
integration arena and have combined focus on segments like PSUs, defense,
training, manufacturing and enterprise.

Taking the company towards national exposure and flavor, the merged entity is
aiming to garner Rs 100 crore within the next three years time frame. The
management is also planing to take the company into the public domain.

On the other hand, its distribution-focused division - Renovision Comnet
also witnessed a big change in guard. As part of this change, this division has
stopped distribution activity with Canon and Epson and is now in the process of
pushing its own brands - Renotech and Renocolor in the Indian market. In order
to make its presence felt in this segment, the company is planning to have a
network of C&F agents spread across the length and breadth of the country.

Some of the highlights for the company for this year included - successful
completion of three big projects in the government space. The company continues
to maintain healthy and continued relationship with service providers like Hutch
in the services space.

While it has merged its subsidiary Silicon Comnet with Integrix, the parent
company - OA Compserve will continue to concentrate its efforts on storage and
security. However, working in a synergized manner with Integrix, Silicon will
keep on targeting turnkey projects and industry verticals.