Post-ac­qui­si­tion, Iris plans to triple topline

CRN - - CONTENTS - AMIT SINGH

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.

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