CHENNAI: Moving-up the value chain, Bangalore-based Sogo Computers, a leading sub-distributor in Karnataka, is all set to don the role of a vendor by launching its own PC brand--Sogo. The company is betting to make it a leading brand on the lines of Zenith, HCL and Wipro, over the years. To start with, Sogo wants to establish the brand in Karnataka before taking it to other southern states such as Andhra Pradesh, Kerala and Tamil Nadu.

"Initially, we are pumping in over Rs 1.5 crore to establish the brand and a major part will be spent on retail by opening a chain of stores in Bangalore. The state-of-the-art retail shops will be positioned as a one-stop-shop zone for the buyers, providing everything in IT including the latest gadgets and gizmos, where `Sogo' will be promoted in a big way," elaborated Sogo Computers CEO, G Jayamuni Rao.

The company plans to enter the market with three PC models --CX 100, PX 100, and NX 115 targeting home, institutions and corporate markets, respectively. "The Sogo PCs are positioned as a value-for-money product, where a customer can buy a branded computer for an assembled price. Similarly, resellers can buy peace of mind by selling our PCs, as they would earn good margins and need not worry about warranty issues of individual components. We are also setting up a service network all over the place," claimed Rao.

The PCs will be manufactured at Sogo's new Pondicherry plant, which is an ISO 9001-2000 certified unit. The company has invested close to Rs 35 lakh in the 4,000 square feet facility and initially, 70 to 80 PCs will be rolled out per day. "We see a good potential for our PCs as the market is growing steadily. We are not going to fight in the branded space for market share, but we are targeting assembler market (where over 60 percent of PC sales happen) by giving branded product at an assemblers price," explained Rao.

The company is in the process of appointing 40 authorized dealers across Karnataka covering major cities and towns such as Bangalore, Hubli, Mysore, Belgaum and Mangalore. It plans to sell 1,000 PCs per month through the channel network. "Our major focus would be on educational institutions and government sector, while home and corporate segments are expected to contribute around 40 per cent of revenue.

India is fast growing as a knowledge base and its burgeoning economy will spur growth in the coming days," he confided. "Being in business for 10 years now, it is the right time for us to launch a PC and build the brand," he added.

Within a year, the company wants to take this brand to other southern states. "We want to see our performance in the home ground, before taking it to other markets and outside Karnataka, we will concentrate only on metros like Chennai, Kochi and Hyderabad," said Vinod, Executive (upcountry markets) Sogo Computers.

Sogo CX 100 is a Celeron-based multimedia PC for home segment priced at Rs14,250 (excluding taxes). PX 100 is a P4 2 GHz machine, which is targeted at SOHO, educational institutions and government sectors. It is priced at Rs 19,990 plus local taxes. For corporate segment, the company has a model called NX 115, which is a P4 HT 2.4 GHz system offered for Rs 25,990 (local taxes extra). All the PCs come with one-year warranty.

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