Bangalore: Compuage, one of India’s leading IT distribution companies, is looking for aggressive sales growth over the next one year.
The distributor of smartphones, tablets and other IT products has garnered a revenue of over Rs. 3,000 crore and expects its sales to grow at 40 per cent in Financial Year 2017, the company said in an article in BusinessLine.
At present, the company enjoys a wide presence in 485 cities and plans to increase its presence to 750 cities and aims to cater 11,000 channel partners in FY17. It has already added eight-nine new vendors in the first half of FY17.
Compuage Infocom expects to add four to five vendors every year to enter new markets and grab the fast-moving market share to become a billion dollar company by FY19.
Atul Mehta, Chairman and Managing Director, told the news site that the company’s revenue mix, which is 85 percent and 13 percent respectively for IT and mobility products respectively, will become 60:40 over the next three-four years due to the faster growth of the Indian smartphone market (ahead of comparable countries) and relatively smaller business size for Compuage (started only four years back).
The current minimal margin of 0.6 percent (in first half of FY17), are also expected to improve to 1 per cent in the next three years. The growth is due to better operational efficiency and savings in interest cost on account of shift in revenues towards mobility products which require lesser working capital.
Despite the IT industry showing a decline of 8.9 percent this year, Compuage claimed that its revenues grew 31 percent to Rs.3,107 crore as it entered into newer geographies. The roll-out of goods and services tax scheduled from April 1 will further help in cutting costs related to logistics and warehouses.
The company also reinforced its reseller base, spreading its base domestically. According to the report, the company roped in three new clients and also increased sales of CISCO products in India and SAARC countries via Singapore.