Sahara Computers and Electronics to expand in UP

Sahara Computers and Electronics Ltd (SCEL) is set to foray into cities and towns of Uttar Pradesh. The company expects 15-20 per cent from the state in its sales in the coming few years.

"UP is an important market for us. The state government has shown interest in developing the IT and education sectors, which in turn are gross areas for the PC market," said George Van Der Merwe, chief operating officer, Sahara Computers and Electronics Ltd.

SCEL is a subsidiary of Sahara Computers (Pty) Ltd, South Africa (SSA). Sahara Computers entered India about one and a half years ago and in this short span the company has managed to acquire 4.2 per cent of the market share in the personal computer (PC) market. As per the latest IDC report, SCEL has acquired the second position in the local brands segment.

Denying claims that SCEL deals in "low-budget PCs", Merwe said: "We do not use that term; instead, we say that we specialise in 'user specific models'. Elaborating upon it he said these models are limited in features and fulfill the specific demands of the users. "Like for beginners, who need just some operations to work upon, or if someone wants to use only word then it is this feature that we in turn help to provide," he added. Since its entry, Sahara Computers has been associated with low budget PC but now the company is gradually changing its profile by offering their customers high end products.

In an exclusive interview to Business Standard, Merwe said, "Our main emphasis is on B and C grade cities of the country. The metros are nearing saturation and it is in these B, C cities that the opportunities are ample." "Infact we started our operations with these cities. Our first regional office was in Lucknow while we established our first manufacturing plant at Noida" he added.

As for setting up plants in UP in the near future, Merwe said that though the company has no plans as for now but if the need arises then it will be the Lucknow-Kanpur belt that the company looks forward to. The company already has its manufacturing unit of computers, laptops and peripherals, in Noida, Pondicherry and Roorkee.

Sahara has been targeting the entire spectrum of the PC users in India through its various business verticals encompassing retail, channel, corporate and the forthcoming enterprise.

The various segments are being targeted through dedicated teams supported by the required infrastructure.

Similarly, to increase penetration in the smaller cities, SCEL plans to do it through active marketing activities.

The major emphasis is on building a strong dealer network. Wide range demonstrations, physical usage of PCs and distributing sales kit is the vehicle that the company undertakes to make a way into in the B and C cities.