PCS Industries, the hardware company of the Rs 1,200 crore PCS group, is focusing on the IT services segment as margins in the hardware industry are shrinking - Goutam Talukder, Executive Vice-president, IT services, PCS Industries
Tell us about the new orders bagged by PCS Industries.
PCS Industries is the hardware company of the Rs 1,200 crore PCS group. We have an IT services division and we are focussing hard in this segment as we see a lot of opportunities here. We recently bagged 2 orders in this (IT services) segment.
These new orders, from Air India and the Airport Authority of India (AAI), have further strengthened PCS Industries's foothold in the aviation industry.
The Air India order is worth a little less than Rs one crore, for three years. The AAI order is worth around Rs five crore, also for a three-year period.
For AAI, PCS will take over the complete hardware backbone of the airport traffic control systems (ATS) at both Mumbai & Delhi airports.
For Air India PCS Industries will maintain the reservation network called the SABRE network, across 53 locations that would include about 169 travel agents.
Apart from aviation, which are the industries that you are focusing on?
Banking is one of the industries that we are focusing on. Though we do not have any direct banking solutions per se, we are offering solutions of our business partners, which varies from total branch automation to core banking solutions.
We provide the hardware services for implementation and maintenance. Our vast network makes it possible for us to service the banking industry.
What plans do you have in mind to increase your marketshare which is currently around three per cent?
As far as growth is concerned, we are doing reasonably well. Last year only three players in the Indian IT hardware industry could clock positive growth. PCS Industries is one of them.
We recorded a 24.9 per cent growth in PCs last year. Our market share is increasing. Our outlook is bright for this year too.
We have a direct marketing team apart from a dealer channel. While the direct market team concentrates on the corporate segment, our dealers target the SOHO market.
What kind of growth do you envisage in the hardware services segment?
We are very enthusiastic about it. We think that the segment is going to flourish. There is a big growth potential in the segment.
What product innovations are you planning?
That is an ongoing process. We come out with products depending on market requirements. We have recently come out with a series of servers certified by Microsoft and Novell and Sco.
How do you see the future growth for PCS Industries?
Our computer division made profits. We have temporarily suspended operations in our copper clad laminates division and last year's losses were mainly due to that.
The margins are under threat as it is the case for all the other companies. That is another reason why PCS Industries is focusing on the IT services division as we see a bright future there.
But we believe that the market is big enough for everybody. Our price is one of our biggest advantages apart from our network.
In the finance segment PCS Industries is a well accepted name and this is one of the areas where the market is also expanding.
We are well-positioned to take advantage. The services business, which is a high margin business for hardware companies across the world, will remain an area of focus for the company.
