Post-acquisition, Iris plans to triple topline
Following its acquisition by Inflexionpoint Acquisition Corporation in December 2013, Delhi-based IT distributor Iris Computers has charted out a strategy to grow the company from its current topline of ` 2,000 crore to ` 6,000 crore by 2015.
Said Sanjiv Krishen, Chairman, Iris, “We had reached a stage where limited funds were hampering our growth. With foreign investment in the company, we can now go in for large projects and also fund our plans for diversification.”
The company has embarked on a two-pronged strategy of product and geographical expansion. “We expect our commercial business consisting of PCs, servers and storage which contribute 80 percent of our topline—to be flat or to even contract, hence we are diversifying into tablets, smartphones, components and accessories,” Krishen explained.
Iris sees tablets and smartphones as high growth opportunities and is targeting ` 2,000 crore from this business over the next two years. “Consumers are diverting their IT spend from PCs to tablets and smartphones; even commercial customers are moving toward mobility,” he said. “We are seeing increasing demand for mobile devices from verticals such as education, government and PSU.”
Iris recently bagged an order from the Department of Education in Goa to supply 30,000 Acer tablets to schools. It currently distributes Acer tablets in the commercial channel but will now look at the consumer channel as well. “Further, we will partner with Samsung, Lenovo, Dell and HP for tablets and smartphones. We will also introduce our own brand of smartphones by 2014end,” Krishen said.
“We aim to triple our revenues from ` 2,000 crore to ` 6,000 crore by 2015 by diversifying into consumer and component products” SANJIV KRISHEN Chairman Iris Computers
Iris has set a topline target of ` 1,500 crore from the components and accessories business by 2015. While it admits that the assembled PC business is shrinking, it still sees components and accessories as large opportunities. “We are witnessing demand for components from tier-3 and -4 cities where people are cost-sensitive and prefer to buy assembled desktops. SMBs in verticals like couriers, transportation, retail and travel, and governance projects at the panchayat level are also good opportunities,” said Krishen.
Iris will soon announce distribution partnerships with leading accessory vendors for flash drives, DRAMs, SD cards, mice and keyboards. Krishen said, “We currently handle almost 50 percent of WD business in India. In the next few months we will announce several significant partnerships in this space.”
Iris also plans to expand base to tier-3 and -4 cities. “There are areas with low PC penetration. In the next two years we aim to increase our base from 35 locations to about 100,” Krishen said.
In addition, Iris will enlarge its partner base from the current 2,600 to 4,000.