In a candid interaction with IT Voice, Mr. Satish Gupta, Branch Head Rajasthan sheds light on the current state of IT business and also highlights growth potentials post GST.
Nisha Harshwal:-Kindly through light on the current IT hardware business scenario in Rajasthan?
Mr. Satish Gupta:- Rajasthan is the biggest State in India geographically and it is emerging as the preferred investment hub due to several efforts of the State Government. Therefore, there is a huge scope for IT hardware business to grow and flourish in this rapidly developing State. The Government is also giving a lot of thrust on the digitization and e-Governance, where there is a huge requirement for IT infrastructure such as computers, peripherals, networking solutions. This is another major area where IT vendors, as well as distribution channels, can bank on the demand for IT hardware solutions. Therefore, the scope for business is huge but it is important that how vendors and channels leverage ever generating demand and tap the right prospects to achieve sustainable profitability.
Nisha harshwal:-How do you see the surge in PC, Component and Peripheral business post GST in the State?
Mr. Satish Gupta:- GST filing requires PCs and basic computing hardware and as a result, the PC business has bounced back post-GST implementation. The demand for GST compliant PCs is primarily from the small and medium businesses, who are now bound to go online with the new taxation system.
Nisha harshwal:-Apart from traditional IT, what are the booming business segments in the State?
Mr. Satish Gupta:-There is a growing demand for graphics cards and high-end gaming machines. The mobile business is also growing at a fast pace. Apart from that, the CCTV business is booming in the region and many channel partners are keen to explore this space for higher margins and future growth potentials.
Nisha harshwal:-According to you what key challenges partners face in terms of financing and thin margins?
Mr. Satish Gupta:-The profit margins definitely have become thin as the result of changing business dynamics. Therefore, partners are not willing to invest further due to low ROI. Secondly, at present there are no big industries present in the State, hence, the IT business largely depends on the Government procurement. This is also one of the major reasons for the slowdown in the market. However, I do not see any kind of financial crunch in the market. The channel finance is available through various financing options and channel partners should opt for a best-suited option for them in order to scale up their business.
Nisha harshwal:-How can they overcome those challenges?
Mr. Satish Gupta:- First of all, partners need to understand that mere box selling will not help them survive in the roller-coaster market. They have to bundle their selling with value-added services. By this way, they can earn extra margins and also create a loyal customer base.
Nisha harshwal:-How do you see growth prospects from the tier 3 and tier 4 cities? What are the major drivers of IT demand from these emerging markets?
Mr. Satish Gupta:-There is a huge scope of business in Tier 3 and Tier 4 cities. As the government is trying to bring digital angle in every sector, various industry verticals in small town/cities will turn out to be the major buyers of IT in the coming years. Sectors such as Education, Government, Hospitality will be the major drivers of IT demand from these emerging markets.
Nisha harshwal:-How has Rashi Peripherals business grown in Rajasthan in the last 15 years? What challenges do you face as a national distributor?
Mr. Satish Gupta:-Rashi peripherals is the strong distributor in Rajasthan and the company is growing at a consistent 25 percent CAGR since last 15 years in the region. There are a couple of challenges which will remain but I am sure the IT hardware business will bounce back in a big way in the coming months providing growth for every stakeholder.
Nisha harshwal:-What is your roadmap for the next 3 years?
Mr. Satish Gupta:- Rashi Peripherals always thrive to serve better to their customers by providing best in class products and services. We will continue to focus on our value-add support to our vendors and partners. Our vision is to touch each and every untapped city in Rajasthan in the next three years.