Sogo Computers : Back In The Game

A good strategy helped Bangalore-based Sogo Computers to bounce back after
negative growth during FY 2006-07 by posting a turnover of Rs 175 crore, up from
the previous year's Rs 220 crore.

In FY 2007-08, the company was able to shed this sluggish growth by taking
some conscious decisions of closing its non-performing retail outlets and posted
a 75 percent growth over the previous fiscal, finally coming out of the red and
clocked Rs 178 crore in turnover. Sogo moved to a hybrid model with a right mix
of uni-brand and multi-brand stores to stay profitable.

The retail-distribution channel ratio was about 55:45. While continuing with
its existing relationships, the tie-up with Dell Computers boosted the flagging
revenues of Sogo to a great extent. Dell signed a strategic partnership with
Sogo making it Dell's master franchise in Karnataka. Sogo was also appointed as
the regional distributor and direct retail partner. This partnership helped Sogo
rake in Rs 4 crore to Rs 5 crore every month, giving a big impetus to its
business.

Now Sogo is planning to take the Dell products through at least 200 of its
partners in Karnataka, besides planning to open at least 10 exclusive Dell
outlets across the state. Already the company has around 22 uni-brand and
multi-brand retail outlets across the state most of which sell Dell.

With the retail contributing more to the revenue, the contribution obviously
came from end-users and most of this was from sales of laptops. Though Sogo has
a system integration division, it contributed around 15 percent to the overall
revenue. Apart from the Dell product distribution, Sogo managed to bag the
national sub-distribution for Intel range of products, which was the major
highlight of the year for the company.

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Profile
CEO: G Jaymuni Rao Start-up year: 1993 Employees: 120 Collaborations: Intel, Samsung, Epson, HP, Acer, AMD, Proview, Sogo, Dell, Sony, AOC Address: D-1/1, Hayes Court, 11/9, Hayes Road, Bangalore - 560025 Tel: 080-41430300, 41430399 Website:www.sogoindia.com SILVER CLUB RANK (2006-07): 25