Zenith In Plan To Increase Output

Mumbai-based Zenith Computers has decided to increase its production from 50,000 to one lakh.

The company has production facilities in Mumbai and Goa.

According to Zenith's chairman-cum-managing director, Raj Saraf said that there is a large market for personal computers at cheaper prices.

"Our motto is simple: international quality at Indian prices." he added.

Inspite of the price war between the top three companies Wipro, HCL and Zenith, Saraf feels that the margin of profit is still very attractive.

In April, Zenith had triggered a price war by introducing PCs priced at Rs 35,000. However rival companies have chosen not to counter the move.

 

Wipro Infotech which recently launched its Wipro Super Genius brand, has kept the price higher at Rs 40,000.

"Earlier we used to have a profit margin of about 20-25 per cent, but now it has come down to about 10-12 per cent. Still, the market is big enough to survive," Saraf explained.

Zenith Computers on Monday launched an exchange scheme under which the users of 286, 386, 486 and pentiums personal computers can exchange their systems for the latest Intel Pentium II processor.

Under the scheme Zenith will pay back Rs 5,000 for an old 286/386, Rs 10,000 for a 486 and Rs 15,000 for a pentium machine. The exchanged machines in working conditions would be donated to the government municipal and rural schools.

According to Saraf, "Most municipal and rural schools do not have access to a computer and the basic idea of donating computers is to promote computer literacy which is the need of the day."

However, Zenith would not be overhauling the old machines received in the scheme.

Zenith Computers is offering a multimedia personal computer and a corporate personal computer in exchange scheme for a price tag of Rs 49, 900.

Zenith has a turnover of Rs 180 crore in 1997-98 and its offices are backed by a strong network of 310 channel partners spread all over the country.