The Other Face Of Channels

Nitesh Bhandari-Texonic Instruments, Chennai

Texonic Instruments was born in 1960 as an electronic components
trading company in Ritchie Street. “My father-Mahavir Bhandari, was an
inspiration for all of us. He and his brother-Milap Bhandari, built the
business and we are supporting them, driving different strategic business
units (SBUs) under Texonic Group,” said Nitesh Bhandari, Director,
Texonic Instruments.

Over the years, the company grew to become a leading name in the market
and became one of the top three players in Chennai. In 1970, the company
diversified its business by setting up a petrol station on one of the
arterial roads of the city.

In 1994, Texonic Instruments successfully forayed into IT and started
to focus on networking business, providing products and solutions from
D-Link. “It was my pet project, and my interest in IT prompted me to
start this. Today we are a leading name in the networking business, thanks
to D-Link and their unstinted support,” claimed Bhandari.

Naveen Bhandari, brother of Nitesh Bhandari, has concentrated on mobile
solutions and their SMS service 6060 is very popular amongst mobile users
and service providers. SMS 6060 for campaigns, trailers, song downloads
and information on select companies is a popular service. SMS 6060 comes
under TechZone business, which was started in the year 2000. TechZone also
showcases a wide range of innovative gadgets in the city's premier
shopping mall-Spencers' Plaza.

According to Bhandari, both IT and non-IT businesses contribute equally
to Texonic Group's total turnover.

R Kumar-Universal Microsystems, Chennai

Basically a chartered accoun-tant and lawyer by profession, R Kumar got
into IT business in 1992. His strong knack for numbers and quick
understanding of the nitty-gritty of business helped Kumar build Universal
Microsystems as one of the leading sub-distributors in Chennai.

Known for the cordial relationship that he maintains with customers,
suppliers, vendors and fellow resellers, Kumar floated another company
called Universal Traders during the same period (1992), wh-ich imported
electronic co-mponents. The company imports IGBT components from
Mitsubishi and developing kits and programming ICs from Atmal. It supplies
components to several leading UPS manufacturers (including Numeric in
Chennai). Apart from this business, Kumar and his friend Siva are also
managing accounts for few companies in the city. They also provide
consultancy on taxation issues.

Though the non-IT business is contributing only a negligent amount to
the company's total turnover, Kumar says the profitability is good in
these businesses. “We want to expand into many new areas. Hospitality
industry is one such area that we have identified. Next year, we plan to
have our own multi-cuisine restaurant in the city,” said Kumar.

Sujit Narula-Associate Business Computers, New Delhi

Way back in the year 2000, Associate Business Computers diver-sified
into manufacturing of call shop solutions (products for STD/PCO booths)
such as PCO monitors. These are manufactured under the group company
Atlanta Systems.

According to Narula, the reason behind broadening the area of
operations was the shrinking margins in the IT business. Manufacturing
telecom products is like adding another revenue stream to the group.
However, Narula makes it clear that starting a non-IT venture does not in
anyway dilute the focus it has on the IT business.

While Narula is not in a position to ascertain which business he will
concentrate more on in the years to come, he is currently laying 50:50
impetuses on both the businesses. Currently telecom manufacturing is
fetching the group almost 75 percent of the income.

The group has a different set of people managing the two businesses,
which is why the group never faced any major issues in running the two
different ventures simultaneously.

Milon Chakraborty-Syntech Informatics, Kolkata

Syntech has a vision to grow the company with multiple business lines.
“With consolidation and sustenance we want to emerge as one of the top
companies,” said Milon Chakraborty.

Syntech started to diversify its business in 2005. The company's core
business lines are all related to IT. However, the company recently
started its media business and is all set to launch an FM radio station in
Siliguri, shortly. The company has also ventured into the education sector
by starting an engineering college in West Bengal. Few more engineering
colleges are on the anvil.

The group has plans to venture into the health/food and beverages
sector, electronic manufacturing, consumer electronics, industrial
automation and tourism in the years to come. The plan is to expand
operations across the length and width of the country and open a few
overseas bases by the end of 2007.

Infrastructure development is another business opportunity that Syntech
is waiting to explore. “We are hopeful that by 2007 we would be driving
a couple of established business lines and by 2010 we have plans to
consolidate all our ventures,” said Chak­raborty. According to
Chakraborty the investments in varying businesses has been done to reduce
over-dependency on a particular business line and to create avenues for
investments with larger revenues. However, IT will continue to remain a
major business wing in the group. Currently the IT business constitutes
nearly 85 percent of the total revenue. “It is too early to predict the
growth of other businesses. But if all goes well, we would be aiming at
around 45 percent of the total revenue from non-IT sectors by 2010,”
added Chakraborty.

Sunil Narang-Elcom Trading, New Delhi

Ashok Taneja-Softech Computers, New Delhi

Sunil Narang runs a health care clinic in partnership with Ashok Taneja
of Softech Computers. The Apollo Clinic is situated in Janakpuri, New
Delhi. While neither of the partners have a medical background they have
entered into this field purely for business purposes.

The clinic was stared in 2002 and the basic objective behind
instituting it was to diversify into the segment that has seen serious
growth in the past couple of years.

The partners agree that IT would continue to remain their first
priority, whilst health-care business would be run as the additional
revenue-generating stream. According to Narang and Taneja, the non-IT
business basically serves the purpose of ensuring enough cushions for the
main business.

Both agree that entering the non-IT business was an endeavor to play
safe for the future, “since IT business is not as lucrative as it used
to be,” said Narang.

Both partners are open to foraying into other industry verticals as
well if the right opportunity arises. Narang said, “I have an
inclination towards hospitality business and if given a chance I would
surely want to initiate my own hotel or restaurant in the near future.”
Interestingly, Narang had once run a motel in New Jersey, USA for almost
three years but after the 9/11 incident he wound-up the motel's
operations.

Soubhagya Routray-Baftek Infosys, Bhubaneswar

Baftek recently began dabbling in real estate and construction
business. Most of the projects being undertaken are from the government
sector. Presently the company is working on a road construction project.
Apart from this Routray also runs an NGO that works for various social and
human oriented projects in different districts across Orissa. For Baftek,
the driving force behind starting off with the non-IT ventures has been a
will to diversify and expand its business.

Routray firmly believes that in business one should always remain in
search of new options to grow. “Growth is there in IT, but still
diversification is always a positive approach of doing business. It also
lessens over dependency on a single source of income,” he commented.

Routray also attributes the reason for his choosing a different line of
business to dipping margins in IT industry and growing competition.
Despite all the diverse ventures, Routray gives his IT venture first
priority. In fact there are some expansion plans lined up for Baftek also.

DK Mehra-Sona Infotech, Patna

DK Mehra was already in-volved in some non-IT businesses much before
the inception of Sona Infotech. Mehra is also a distributor of medical
goods, has his own X-ray clinic and a pathological clinic. “It's the
need of the society and humanity and I will continue with it. It also
gives good returns,” said Mehra.

Mehra started with the medicine distribution business way back in 1980.
In 1985 he started the X-ray clinic followed by the pathological clinic in
1990. In 1998 Mehra entered the IT sector by opening Patna's first HCL
store. “In those days IT was an emerging industry and I knew it had much
potential. Also the challenge and hardship that were there in those days
in beginning such a new venture attracted me,” said Mehra.

According to Mehra, IT demands a lot more attention and involvement.
“The trade has become very competitive now and as new technologies are
flooding the market, the challenge is different. I enjoy this business. I
have quite a few expansion plans lined up for my IT business,” he added.

Sunil Gupta is involved in pro-moting herbal products. He distributes
more than 200 varieties of herbal products and also runs a consultation
clinic for naturotherapy cures in Kalkaji, New Delhi. He has also secured
an MD in alternate medicines from Kolkata. Gupta started dealing in herbal
products in the year 2000. Initially he took up selling herbal products
and consultation business as a hobby but later when money started pouring
in he made it a mainstream business.

However, the IT business running under the banner of Challenger
Computer continues to be the main focus for Gupta. “We don't consider
our side business as a major revenue generating stream,” he said.

Gupta devotes almost three to four hours daily at his clinic treating
patients with a sense of duty and responsibility towards the society.

As far has IT business is concerned, Gupta has left it to the capable
hands of his brother Manoj and few others to drive..