Xenitis ventures into OEM space

Kolkata: Xenitis, the makers of Amar PC has now entered into the OEM component manufacturing space and is entirely focusing on developing the company's IT branch with this.

“Since 2004 we have been in the OEM manufacturing space. However, for the last two years we have been concentrating heavily on this front and would like to increase our business in this field,” said Indrajit Chandra, MD, Xenitis Infotech.

Also, company sources said that Xenitis has now toned down its focus on Amar PC and is targeting to tap into the market of major OEM players in the eastern space.

Citing the reason on focusing on the OEM manufacturing space, Chandra said, “Profits have declined steadily over the years in the PC manufacturing segment. Additionally, with time, we realized that our core strength lies in component manufacturing rather than making PCs. Hence, we decided to center our entire energy and strength into it.”

The company will be manufacturing PC cabinets, SMPS, keyboards, speakers and headphones for OEM supply. However, the company did not name the OEMs officially, citing it to be a breach of trust under the contract.

Talking about the same, Chandra emphasized, “Major vendors in Kolkata are making OEM purchases from our plant. We offer the flexibility of bulk supply and are relieving the OEMs from the burden of stock hoarding in their basements by supplying in small quantities.”

“In the last quarter, about 90 percent of our total revenue came from our OEM business. Although we would like to continue in the PC manufacturing segment, the OEM expansion is our foremost priority,” he added.

The company is now domestically manufacturing components in its plant in Sugandha in West Bengal and has claimed that it is using 70 percent of the plant's potential currently. Also, the company has claimed that it is purchasing domestic raw materials to make the PC components here. It is not importing either raw materials or spares from anywhere.

Commenting on the present market scenario, Chandra said, “In most cases, vendors like to import from China. However, it is time tested that Chinese goods have failed to comply with quality standards whereby we ensure that we deliver products of the highest quality. Moreover, although Chinese imports have a much wider variety to offer, we can offer goods at a lesser price, as there are overseas freights and taxes to pay.”