Sogo Computers to launch its own PC brand

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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