Anandrao Balluru, CEO, Par Data Systems talks about the company’s strengths as a distributor and how it is looking to bridge the skill gap in IT-IMS, BMS, and AV domain through its training academy
Bengaluru-based Par Data Systems has been in the business since 1994. Looking at the transition in the networking arena and sensing a huge void/gap in the distribution domain, the company sneaked into distribution business for LAN products in the year 1997.
“With emerging new technologies, from time to time assuring higher bandwidth solutions, increasing fiber connectivity, variety of active LAN/WAN devices, enclosure solutions, data center solutions, PoE, unified communication, FTTX and so on, we leveraged each development that resulted in the growing market and we have seen growth in our business too,” says Balluru.
Growth story
Except during years when the IT Industry faced recession and slow down, the company has witnessed a healthy growth year-on-year, growing by minimum 15%. It has always been careful on healthy bottom lines than the topline/turnover.
The company’s expertise lies in distribution of niche product lines that are widely deployed in IT-IMS (Infrastructure Management solutions), BMS (Building Management Solutions) and AV (Audio-Visual). Its major clients include big MNC OEMs. “But most of our revenues come from all the system integrators, ranging from small to medium to big. With regards to vertical focus, we will soon start hands-on training in the areas of IMS, BMS and AV,” states Balluru.
The company currently operates from Bengaluru, Chennai and Hyderabad. And its OEM partnerships are with CommScope, Panasonic, Fluke Networks, HPE, EtherRacks and a few imports.
“With our leading SIs, we have executed large data centers of Central government, quite a few FTTX solutions, and have been strong in the industry verticals like manufacturing, education, healthcare, and hospitality. Besides, in the IT/ITeS sector, our solutions around CommScope have fueled our growth in last couple of years,” highlights Balluru.
Business practices
For Par Data Systems, this journey of more than 20 years has been very fruitful with the support of both OEMs as well as SIs/VARs.
“While thorough awareness of the market dynamics, product domain knowledge, finance management are integral impediments of any business, what matters most in the distribution is business discipline both with suppliers and customers with emphasis on finance discipline, valuing honest relationships, and ability to embrace right opportunity,” adds Balluru.
He further states, “We cannot please everyone, but being fair to them has been our success mantra. Over a period of time, we developed authority in the product domains that we cater to, learnt the need of assertiveness in the business, and being flexible on commercials to the deserving always helped us move forward confidently.”
Meanwhile cordial business relationships with both channel fraternity and OEMs have earned good status for the company. Also, frequent get-togethers with partners for enhanced bonding, organizing periodical hands on trainings with OEMs have earned more of visibility within the partner fraternity.
Balluru also points out, “There have been a lot of occasions wherein we were instrumental in getting partners into new solutions in the areas of IMS/BMs. It happened mainly with our assurance of support on both technology and logistics front and further backed by commercials. It has been win-win formula for us as well as channels.
However, Balluru feels that growing competition and uncertainties with growth in IT infrastructure as experienced in the last 2 quarters pose a little concern that may restrict exponential growth. The much hyped GST is not a healthy taxation system for distribution business particularly where high volumes and low margin formula drive this business. Huge taxation of 18 percent and 28 percent will force them to invest much more working capital that won’t earn margins or profits.
Future plan
After making thorough assessment that there is a huge dearth of skilled manpower in the areas of IT-IMS, BMS and AV, the company has a ready plan with the infrastructure facility and other logistics to enter into the field of training with the support and guidance of a few OEMs.
