A New Dawn for Kaustuv Ray and Chirag ComputersGetting the largest ever laptop order from ELCOT will dramatically change the future course of the Chirag Computers, feels its founder Chairman Kaustuv Ray. A single order of 75,000 laptops is exactly the kind of breakthrough the Kolkata based Company needed to burst big time in the laptop space. But getting to this stage didn’t come easy for the current official IT partners of the Kolkata Knightriders in IPL 2012. Read on to know about this exciting journey.

In 1998, when the wheels of technology were beginning to roll across India, West Bengal was not really in the IT map of the country. It is in these times that two young men, Kaustuv Ray and Shibaji Panja, had a vision – a dream to be a part of the technological revolution sweeping the nation by creating an organization from Bengal that would one day carve a niche for itself in the technology space. Coming from a middle income background, they had no legacy businesses or capital to bank upon. Neither did they have the history of a success story in the IT space from the state as inspiration. But they were determined enough to prove a point and make a mark, and that too in the IT hardware space, as they saw that anyone and everyone were eying the IT software space.

They started small, by beginning to trade in computer peripherals and assembled PCs to get a first hand feel of the market and by the turn of the millennium succeeded to establish a thriving trading business with a strong group of loyal clientele. In 2000, assembled computers had a very robust market following. This was due to the price differential vis-à-vis branded PCs. However, within 2003, the margin between assembled and branded computers came down substantially. Says Kustuv Ray “We realized that time has come to go for creating an own brand with add- on of original certified software and service support. Newer challenges therefore came up. Promoting a new home grown brand of computer in India at that time was no easy job for it would mean taking on the already established global MNC and national brands head on and would require substantial upfront expenses on advertisements and for promos in diverse formats. Having done the ground work hands on we (and not just Shibaji and me, by now!) set up RP Infosystems Ltd. (RPIL) and began manufacturing computers from its Howrah factory – and the brand name of ‘Chirag’ was rolled out in 2005.”

To build critical mass, the Company first forayed into Tier II & Tier III cities in eastern and North-Eastern India. It found them as low lying fruits. The roll out was then carefully expanded pan India. RPIL started its business operations in April 2005 and today the “Chirag” brand of PCs has established itself as a leading domestic PC brand in India with two manufacturing facilities and offices in over 20 locations across India, including all major cities. The company has crossed INR 15 billion (US $ 300 million) in sales (FY 2011) and is ranked 44th among the top 50 IT/ITES companies in India (Dataquest July 2011), with Chirag being the 2rd largest domestic computer brand with 6% overall market share within 6 years of its launch.

While its state-of-the-art factories at Parwanoo in Himachal Pradesh and Howrah in West Bengal can churn out more than 1.2 million units per annum, it’s pan-India network covers 600+ Dealers and Value Added Resellers. Add to it a team of highly professional, dynamic and nimble workforce comprising more than 650 IT professionals and 1500+ care points across the nation, and you have a real strong PC player to reckon with.

Adds Ray “We successfully replicated the ‘the low cost airlines success paradigm’ in the PC play. Delivering one of the lowest cost branded PCs in India with original software, assurance of quality and service (our catch lines – “Chirag – Beyond imagination, within reach”) is part of our conscious strategy to go to mass markets – for in them lies the future of India’s PC business and our vision of sustainable business growth. Our PC offerings are working to reduce the digital divide, revolutionize PC habits in the non metro cities and districts and are setting out eddies of socio-economic-cultural change across regions where India’s ‘aam admi’ live and work.”

Widely regarded as the largest player in eastern India and one of the top 35 elite global accounts of Microsoft, RPIL launches new product lines through joint engineering and R&D activities with its partners and have alliances with IT majors like Intel (with which it has a direct relationship through the Intel Inside Partnership Program), Microsoft, Redhat Linux and UL among others. Recently, the Company launched one of the most energy-efficient and pro-environment range of desktops till date - Greenputers™. It has also launched an one of its kind touch pad experience in the form of Chirag Tango™. The Company’s R&D is currently focused on the concepts of ‘Thin Client’ and ‘Cloud Computing’. Notable among these is the RPIL – Novatium - BSNL Solutions venture for thin client computing.

RPIL visualizes a pronounced rise in total spending in the IT convergence space involving a fast play of Communications, E&M and Technology, where innovation is the only constant with newer and livelier devices set to emerge. With this in mind, and to ultimately turn into a true blue convergence player having a full suite of IT/ITES offerings, the Company is constantly expanding its footprints to harness new opportunities in newer verticals and geographies through organic as well as inorganic growth.

In October 2010, the Company acquired 46% shareholding of city-based Ontrack Systems Limited [Bloomberg OTS:IN], a 22 year old ICT company, as a co-promoter. Ontrack is a publicly traded company listed in the Bombay Stock Exchange with over 3000 share holders and has offices in India, UK, UAE, Australia and Holland. Ontrack has been a strong player in the web services, software development, training, BPO and e-governance sectors. RPIL now also owns an ISP License to provide internet services across the country through its acquisition of Descon’s ISP business. These acquisitions will go a long way in cementing RPIL’s strategy of getting a foot-hold in the high margin IT solutions space.

The synergy is bound to happen as Chirag is the only Indian brand from eastern India to be awarded the DGS&D Rate Contract for desktops, laptops and other computer accessories and peripherals including information kiosks. Chirag is also empanelled with major nationalized banks for supply of IT products. Due to this, Chirag is today one of the leading players in the BFSI, Government and Education sectors. Some of its major clients include SBI, Bank of Baroda, Keltron, Central Bank of India, ISRO, BSNL, Educomp, Indian Bank, Panchayat and Rural Development authorities, Indian Railways and Department of IT and Telecom. And added to this list is ELCOT, for which Chirag is supplying 75,000 laptops in the first phase of Honourable CM Jayalalitha’s election pledge of a laptop for every student.

The Company’s future vision runs at two parallel levels - to grow the existing business further in parts where the need for basic and affordable computing still remains and alongside to constantly innovate and stay ahead of competition, expand to newer verticals both in terms of product and IT solutions offerings, and in terms of catching the next wave of computing through convergence of technology, information, communication and entertainment. Kaustuv Ray, the recipient of last year’s Outstanding Entrepreneurship Award from Enterprise Asia signs off by saying “Our next focus will be targeting the retail space in a big way. We plan to open close to 500 exclusive outlets across the country and I welcome all of you to be part of this exciting journey. ”

Kaustuv Ray