Cyberstar Targets 500 Crores Revenue

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With an aggressive 500 crores target by 2010, Cyberstar believes that putting processes in place and building economies of scale will help it get there.

Emerging IT distributor, Cyberstar Infocom, is bullish about the Indian IT market and is actively looking to tap the tremendous potential in the market. The 8-year old company, which has been growing at over 60 percent for the last three to four years, is targeting Rs 200 crores in turnover by the end of the current fiscal.

"We are expecting to grow at 80 percent having put systems in place internally," Raj Rathi, MD, Cyberstar Infocom told itVARnews. The 100-percent channel company wants to move up to the next level and establish its presence in the competitive IT market scenario. "We would like to reach Rs 500 crores in turnover by 2010" says Rathi.

With aggressive targets in place, the company is looking to make sure it gets there. One route is through geographic expansion. "We currently have 28 locations with 22 stocking warehouses and 6 sales offices across the country; we are looking to expand this to a total of 35 locations before March," says Rathi. Some

of the planned areas include Trichy, Kozhikode, Mysore, Faridabad, Kanpur, Vashi and Dehradun.

The company has traditionally been strong in the North and South with 30 and 35 percent of revenues coming from these regions respectively. Even the East, where it recently set up an office in Guwahati, contributes nearly 10 percent of revenues. "If the national market is growing at 25 to 30 percent, the growth from B and C-class cities is significantly higher at 40 percent" highlights Rathi. He attributes the increased growth to lower PC penetration, increased distributor presence and reduced price differential in these cities.

The company is also looking to increase its channel base and activate new partners before March next year. Of the current 3500, over 2500 are resellers, 500 are SIs and the remaining are corporate resellers. According to Rathi, Cyberstar's USP is in its people, "We are a professionally managed company and our strength is in the ability to create win-w