Cubit Laid By His Brand
Don’t be taken aback if you spot a big number of executives on board flights to and from Ahmedabad flaunt their ‘Cubit’ laptops.
By Tapash Talukdar, TNN |
Don’t be taken aback if you spot a big number of executives on board flights to and from Ahmedabad flaunt their ‘Cubit’ laptops. While those who've passed out of the prestigious IIM in the business city may still prefer to carry a Lenovo, Compaq or Vaio, an increasing number of executives from small companies in Gujarat are getting hooked on to Cubit, a local brand of laptops. The lowest priced model costs Rs 19,900, nearly 15% cheaper than competition.
The brand's maker, Ahmedabad-based Cubit Computers, claims to have sold 1 lakh units since 2001. It is now hoping sales will nearly double from Rs 17 crore in 2006-07 to Rs 30 crore in the current fiscal.
To most, Cubit will not ring a bell. It doesn't advertise. And it doesn't boast of a brand ambassador. The company got started in 2000, when Suresh Nair, still in his ‘30s, gave up his 13-year long business of retailing Intel products, to launch his own brand. He sensed a big market for laptops, especially from the youth and smaller companies who couldn't afford a branded, premium product.
Says Nair, “Most people desire an Apple iPod. But if they can't afford it, any ‘value-for-money’ MP3 player will do.“ So, Cubit signed a technical collaboration with a Taiwanese company and set up an assembly unit to manufacture laptops, tablet PCs and Notebook PCs in Himachal Pradesh. He marketed his products aggressively to Gujarat's thrifty small businessmen who were looking for ‘value-for-money’ products to upgrade their business, as well as a growing number of call-centres in the state.
“I relied on a niche market because I didn't have the necessary money-muscle to be able to compete with the biggies. The strategy has clicked and I hope we will become a formidable national brand one day,” he says.
The company has already drawn up plans to expand in Maharashtra, Rajasthan and Madhya Pradesh. There again, it would target small and medium-sized firms and educational institutions.
Cubit is also working on the product front aggressively. The company is now set to launch personal computers with Mobile on Desktop Technology (MoDT) soon. It will thereby become the first local company to launch the technology in India. “MoDT is a new concept in India, and we want to lead from the front,” he says. The low energy consumption advantage combined with its small space requirement is likely to make this technology popular. Worldwide, sales of PCs are growing at nearly 70%, and Cubit could hope for a similar demand-pull in India, as well.
Nair says Cubit's MoDT offerings will be priced around Rs 25,000 apiece. These will be launched initially in Gujarat, with plans to go national soon after.
The expansion will require an investment of Rs 25 crore, which Nair says, will be raised through internal accruals. He’s also considering technical tie-ups with Chinese players to bring in more affordable technology.
The brand's maker, Ahmedabad-based Cubit Computers, claims to have sold 1 lakh units since 2001. It is now hoping sales will nearly double from Rs 17 crore in 2006-07 to Rs 30 crore in the current fiscal.
To most, Cubit will not ring a bell. It doesn't advertise. And it doesn't boast of a brand ambassador. The company got started in 2000, when Suresh Nair, still in his ‘30s, gave up his 13-year long business of retailing Intel products, to launch his own brand. He sensed a big market for laptops, especially from the youth and smaller companies who couldn't afford a branded, premium product.
Says Nair, “Most people desire an Apple iPod. But if they can't afford it, any ‘value-for-money’ MP3 player will do.“ So, Cubit signed a technical collaboration with a Taiwanese company and set up an assembly unit to manufacture laptops, tablet PCs and Notebook PCs in Himachal Pradesh. He marketed his products aggressively to Gujarat's thrifty small businessmen who were looking for ‘value-for-money’ products to upgrade their business, as well as a growing number of call-centres in the state.
“I relied on a niche market because I didn't have the necessary money-muscle to be able to compete with the biggies. The strategy has clicked and I hope we will become a formidable national brand one day,” he says.
The company has already drawn up plans to expand in Maharashtra, Rajasthan and Madhya Pradesh. There again, it would target small and medium-sized firms and educational institutions.
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Cubit is also working on the product front aggressively. The company is now set to launch personal computers with Mobile on Desktop Technology (MoDT) soon. It will thereby become the first local company to launch the technology in India. “MoDT is a new concept in India, and we want to lead from the front,” he says. The low energy consumption advantage combined with its small space requirement is likely to make this technology popular. Worldwide, sales of PCs are growing at nearly 70%, and Cubit could hope for a similar demand-pull in India, as well.
Nair says Cubit's MoDT offerings will be priced around Rs 25,000 apiece. These will be launched initially in Gujarat, with plans to go national soon after.
The expansion will require an investment of Rs 25 crore, which Nair says, will be raised through internal accruals. He’s also considering technical tie-ups with Chinese players to bring in more affordable technology.
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