Outlook: The downgrade of the US credit rating is definitely a matter of concern, especially knowing that the Indian market catches a cold whenever the US economy sneezes. There have been general slowdown indicators from both North American and Far Eastern vendors. We are an Indian system builder and manufacturer of innovative products, and the fact that several companies are considering the opex model is a concern.
Opportunities: We are facing an inflection point. The PC market is seriously threatened by Internet devices and tablets. We are yet to see real demand for tablets in India, but I am sure it’s a question of time. I do not think tablets will kill the PC market, but they will create some disruption for the moment.
We have identified education and healthcare as the two verticals to target. New generation parents go to any extent to educate their children, and the public is becoming more health-conscious, thus making these two verticals recession-proof. On the product front, we are working on a number of innovative products, primarily in low-energy computing, handhelds and workstations.
Customer strategy: While many customers have moved to buying MNC products, we still feel that there’s a market for products which are manufactured by a local entity. In addition, several verticals are looking at innovative and specialized PC products, something that a smaller manufacturer like us can provide.
Operational efficiencies: This is an ongoing process that gets reviewed periodically. We do not intend to take any specific cost-cutting measures.
HR and finance: We have been a player who values bottomline above topline, and hence do not anticipate any major challenges when it comes to cash rotation even in case a slowdown sets in.
Key message: I know many of our fellow system builder partners are abandoning the business and becoming corporate resellers. We have been in the system building business for well over 19 years, and intend to continue in it. We are at the cusp of a new era in computing, and we are in for some more exciting times.