Chinese lessons for IT's Bhadralok
The 36-year old entrepreneur has surprised many by promising to launch cars with a sub-Rs 1 lakh tag.
By Sutanuka Ghosal, TNN |
In 2001, when Santanu Ghosh left his cushy job at IBM to float Xenitis Infotech, he wasn’t sure about its success. With just about Rs 5 lakh in his pocket, he began by trading hardware components. A graduate in computer engineering from Portland State University, Ghosh’s stint with the personal computer maker had helped him pick the nuances of a thriving hardware component market in India. But to convince the ingenious customer with a new brand wasn’t easy. His old connections paid off, he says.
In the next few years, Ghosh’s business grew in stature and he almost became an icon for emergent Bengali entrepreneurship when he successfully launched dirt-cheap PCs (priced below Rs 10,000) under the ‘Amar PC’ brand. In six years, Xenitis’ revenues have touched Rs 620 crore and he has lost count of how many PCs and laptops he has sold. “I think around 3 lakh. But it could be more.”
In fact, Ghosh made his first million in fiscal 2003 even before he launched Amar PC. He fondly remembers the day: “I shared my achievement with my parents, my wife Sudeshna, and my daughters Sampurna and Samraggi.” The next year, Xenitis was able to establish a dealer network and in 2005, Santanu set up his own computer hardware facility at Chinsurah in West Bengal along with a Chinese firm, Unitek Computer Company. He now plans to offload 30% stake in Xenitis to raise Rs 200 crore for funding upcoming projects. In the pipeline are TFT screen and motherboard manufacturing units at Chinsurah.
Growing too fast has its own problems. So, he has had his share of anxieties too. While he did set the retail end on fire, he didn’t have enough service centres and personnel to provide proper after-sales services. He claims he has addressed this issue now.
In the next few years, Ghosh’s business grew in stature and he almost became an icon for emergent Bengali entrepreneurship when he successfully launched dirt-cheap PCs (priced below Rs 10,000) under the ‘Amar PC’ brand. In six years, Xenitis’ revenues have touched Rs 620 crore and he has lost count of how many PCs and laptops he has sold. “I think around 3 lakh. But it could be more.”
In fact, Ghosh made his first million in fiscal 2003 even before he launched Amar PC. He fondly remembers the day: “I shared my achievement with my parents, my wife Sudeshna, and my daughters Sampurna and Samraggi.” The next year, Xenitis was able to establish a dealer network and in 2005, Santanu set up his own computer hardware facility at Chinsurah in West Bengal along with a Chinese firm, Unitek Computer Company. He now plans to offload 30% stake in Xenitis to raise Rs 200 crore for funding upcoming projects. In the pipeline are TFT screen and motherboard manufacturing units at Chinsurah.
Growing too fast has its own problems. So, he has had his share of anxieties too. While he did set the retail end on fire, he didn’t have enough service centres and personnel to provide proper after-sales services. He claims he has addressed this issue now.
The 36-year old entrepreneur draws his business model from China’s manufacturing sector where they produce in bulk and derive economies of scale. “We are following this model in India,” he says.
He is now trying to replicate this in the automobile sector. Ghosh has surprised many by promising to launch cars with a sub-Rs 1 lakh tag. He has already floated a new company, Global Automobiles, with Guangzhou Motors Company of China for making two and four-wheelers . In April this year, the company rolled out its first mobikes from its Chinsurah plant under the Xpression brandname. “In the first two months, we have been able to sell nearly 10,000 bikes,” Santanu says.
He has also signed an MoU with Longcheer Group for setting up a mobile manufacturing unit in West Bengal. “We will not try to brand these mobiles. We will try to remain an OEM. Already, two leading service providers have evinced interest to look into our mobiles, “ says Santanu.
Santanu’s hands are full now. The next one year is crucial for him. He has to deliver all his projects. “I set my own goals every morning, every month and at the beginning of every financial year. I know I will be able to do it,” he says.
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