Supertron to launch self-branded laptops

After a successful stint in selling servers, Supertron is now gearing to
launch notebooks in JFM, 2005. Supertron had tried launching notebooks a year
earlier, but could not work out a viable pricing structure. "We will
introduce notebooks only when we can maintain a price differential of 25% over
the MNC brands available in India," said VK Bhandari, MD, Supertron India.
Supertron will import knocked-down components of the notebooks and assemble them
at its units in New Delhi and Kolkata.

Also, Bhandari added that even if Supertron adds its own range of notebooks,
it will not create a clash of interest with its distribution of Acer notebooks.
"As a disty, we are more or less a stockist for Acer and are not involved
in brand building exercises. So if there is demand for Acer's notebooks, we
will supply it," clarified he.

Supertron India is also talking to several financial companies like Bajaj
Finance and Karnataka Bank, to roll out a financing scheme for its Vintron PCs.
In less than three months, since Supertron took over the Vintron brand, it has
managed to sell 700 PCs monthly and hopes to touch a monthly sales of 1,000
units with the introduction of this finance scheme.

Though several IT brands have opted for the easy-payment structure, financial
institutions themselves are not very forthcoming for these options. "Banks
are skeptical about offering finance schemes as they can't ask for some
security which can be sold off, in case of payment defaults. The value of the
PC, for which the loan is taken, gets depreciated quickly, so it is a risky
proposition for them," said Bhandari. Another reason why this initiative
has not taken off is because of the high rejection rate of applications by
banking institutions.

Supertron is also trying to put the channel in place, which will sell Vintron
PCs and monitors. Supertron will directly distribute the products at 15 cities
where it is present. It will appoint regional distributors in states like Kerala,
Tamil Nadu, Jammu and Kashmir, where it does not have a direct presence.
Supertron has 335 partners nationally and will increase this number to 500 by
the end of 2005.

Although Supercomp has included several peripherals like USB products, data
cable, TV tuner cards, webcams, it is focusing more on the PC business where the
margins are higher. It was recently appointed regional distributor for Acer
India.

VINITA BHATIA

MUMBAI