Simmtronics Semiconductors to set up 1,000 retail stores

BANGALORE: Delhi-based Simmtronics Semiconductors, manufacturer of IT products and components, will now directly retail its products. The company, which produces motherboards and low-cost personal computers and laptops, is setting up over 1,000 retail stores to sell the products directly to customers. The company at present distributes its products through third-party vendors.

Simmtronics will open the first 100 stores, both company-owned and through franchises, in the next month and plans to reach the 1,000 mark by the end of this financial year. Indrajit Sabharwal, the technology company’s founder and Managing Director, said they decided to start retail outlets due to the inefficiencies in the distribution chain.

“There are at least two to three sets of middle men between us and the end customers. At each level there is an increase in price by at least five percent,” he said. “We want to pass on the benefit of the low prices to the customer.”

Simmtronics, which started out as a manufacturer of memory modules in 1992, manufactures low-cost notebooks and personal computers which are priced between Rs 9000 and Rs 12,000. They also produce LED monitors, hard drives, graphic cards and memory devices. Simmtronics is also launching affordable tablets by end of this month.