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NEW DELHI: Having garnered a huge pie of the corporate market space, Dell is now eyeing the Indian SMB market.
According to IDC, Dell is the No.1 player in the corporate space in India. The company wants to repeat this success in the SME and the SOHO segment also.
Dell India sales and marketing VP & GM Rajan Anandan said, “We are focusing on getting a larger corporate market share. Going forward, we would also focus on the middle market, which consists of high end SME and SOHO. We have grown by 67 per cent YoY in the SOHO and SME sector in India and would be increasing our resources to focus on growth in the small business segment.”
In India, Dell is focused on the top 20 cities. The company is adding sales force in the top eight cities in India and is also increasing its inside sales capacity. Anandan said, “In top eight Indian cities, we have a significant presence currently, while in the next six cities we have a nominal sales presence. The rest of the target cities are covered through direct phone based approach.”
He added, “Eighty per cent of the addressable market for SMBs is in the top eight cities. We are very strong in ITeS and are looking at all the key verticals in India. In the SME segment, going forward we would focus on the manufacturing sector. We also intend to have a big drive towards government and education.”
Dell’s business in India is pegged at Rs 1,800 crore on an annualized basis and is growing at a rate of 60 per cent. Dell VP for Asia-Pacific and Japan (APJ) Steve Felice said, “This is an exciting time for Dell in India as the growth in the Indian market is more than its expectation. In Q2 ended July 31, 2006, our India operations recorded 63 per cent YoY growth in revenue and 82 per cent YoY growth in units. According to the Q2 IDC report, Dell is No. 1 in notebooks in the large corporate space, which includes companies with more than 1000 employees. In the desktop space, it is number two in large corporate space, while it has also increased its share in the server market by 2.5 base points.”
The APJ region grew 17 per cent last quarter and is the number two fastest growing region in Asia for Dell. APJ contributed 14 per cent of the Q2 revenue of Dell, with India being the fourth largest market for Dell in this region. Felice expects India to move to the third position in terms of business in APJ in the next one – two years.
Felice said, “Our Indian operations are growing with more than 12,000 employees and we also plan to add more resources. The pace at which we are going there is no stopping us from garnering 20 per cent Indian market share in future. To cater to the fast growing domestic business, we are also increasing our sales force. Our India growth story is also fueling growth across the whole APJ region.”
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