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Zenith Rejigs Business

Posted Thursday, July 02, 2009 By Rajeev Ranjan Jha
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Hope Zenith is second time lucky, as the company decides to shut down its distribution business, and 75 of its exclusive retail stores called Zenith PC World. According to Zenith main man Raj Saraf, this is a decision taken by him and the company in order to put more focus on its PC business rather than dilute its focus with distribution.

As history goes, the company was set up to distribute IT products way back in the 1980's as Zenith Technologies. But by late 80's Zenith quietly exited out of the business to focus on building its PC brand. It's the same story this time too, as Saraf explains, Yes, we have decided to close our distribution business as it was not working. We were suffering losses from past couple of months because of late payments and payment default.This was decided earlier but now the company will not be selling other manufacturers brands.

In fact he revealed that over the last few months since its re entry into the distribution business, Zenith has lost money to the tune of Rs 5 lakh to Rs 7 lakh. Not just that, the brand is consolidating its retail presence as well by closing down 75 of its 400 Zenith PC World outlets across the country. Now it wants to focus on building its retail presence through large format stores, and malls, according to Saraf. The company will also build its regional distribution network to focus on mini metros and popular tier two markets.

With this Saraf looks to finally transform the company totally into a product company with an indegenous brand.
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