Arif Khan, the Director of Simmtronics Semiconductors Ltd FZE was in Kathmandu to attend the official launch of Simmtronics products in Nepal. In an interview with New Business Age, Khan discussed his company’s prospects in the Nepali market. Excerpts:

 

Could you tell us what Simmtronics is all about?

It is a memory manufacturing company that was established in 1992. We have our manufacturing facility based in Singapore and our exports are done out of Singapore. As for Nepal, for logistics purpose, the goods come here via Dubai. We have an impressive range of products and all of them carry three years international warranty. During these 19 years that we have been in operation, we are already established in many countries such as Indonesia, Vietnam, Iran, Iraq, Russia, India and the entire Middle East.

 

How and when did you start distributing your products in Nepal?

We have been supplying to Nepal for the past one year through Explore Asia, our local distributor here. However, I thought of an official launch this time for a number of reasons. Multinational Companies like HCL, Samsung, HP,Dell etc have been showing an interest in the Nepali market for some time now. It generated curiosity in me so I wanted to find out more. Though the IT companies perceived Sri Lanka and Bangladesh as emerging markets, I discovered that they have reached their saturation point. Comparatively, Nepal is a virgin market and there is plenty of scope here. Therefore, we decided to enter the market now and introduce our brand so that we can capitalise on it in due time.

 

What kind of prospect does the Nepali market hold for you?

Nepal is a dynamic market, undoubtedly. I have gone through the sales data and figured that this is an upcoming market. If we place our products at the right price, provide good quality and after sales service, there is no reason why we can’t establish Simmtronics as a leading brand here. We will make best efforts from the company’s side. At the same time, we trust our distributor and the dealers here in Nepal to reciprocate our efforts.

 

How do you distinguish yourself from the competition?

We are vendors as well as we manufacture our own products. 40 per cent of the components required to make a computer are manufactured at facilities owned by us. But a majority of our competitors don’t have their own manufacturing facility, that’s where we score over them. Additionally, we have strong partners like Intel, VIA and IBM who have been with us for about 10 years now. The advantage we have as manufacturers are that we can sell products at very competitive prices.

 

What do you think of your future prospects in Nepal?

I am confident that in about six months’ time, we will command 80 per cent of the market share in Nepal. The figures that I have with me tell that the market here sells about 12-15,000 motherboards, close to 12-15,000 memories, around 6-7,000 personal computers and 2000 laptops every month. This suggests that the market potential is huge. To make the most of this situation, I have a plan that I will execute in partnership with my distributor here. I can promise you that Simmtronics is going to be aggressive. We will participate in IT related events and road shows as well as have our advertising system in place. To create a long standing goodwill, I will ensure that quality is maintained for our products in the Nepali market.

 

What’s the kind of investment you are putting in the market here?

At present, we have planned to invest US$ 50,000 as the initial capital for promoting our products here. We have earmarked this amount only for the purpose of Simmtronics’ advertising and promotions. Apart from that, the investment by way of giving our products to the dealers and getting the money back from the market will be about US$ 1 million, to start with.