EZY moves into mobile phones, tablets : Local chief
Mobile phones and tablets are the next big sector for EZY, a computer brand launched locally, with much hype in 2009, according to Shafraz Hamzadeen, the Chief Executive of the Sri Lanka unit of EZY InfoTech.
Speaking to the Business Times, Mr. Hamzadeen, who is responsible for the company’s branded computers arm EZY, as well as its component distribution unit eSys Technologies, stated that because, in 2010, the dynamics of the IT industry had changed, the company was committed to launching its own brand of mobile phones and tablets in 2014, instead of its initial plan whereby Sri Lanka would be the regional hub for its computer manufacturing operation. This was a consequence of a recent decline in demand for computers.
Explained Mr. Hamzadeen; “One of the biggest things that happened, if you look at the core infrastructure of any of these mobile phones, they use quad core processors, with very good processing speed, as well as RAM speed,
[so] you are able to do a majority of things… Added to this, the app stores changed the way everybody uses technology. This was the reason that large companies like Microsoft and Intel were forced to change the platform”.
He also signaled that, “Like we have successfully done with our computer manufacturing, we are currently speaking to a large ODM (Original Device Manufacturer). This experience from them is important because, unlike in computers, smart devices are all about user experiences so if you fail in your touch or your type, etc., you’re not going to go anywhere. There is a thought about are we too late in this area. But because, at the rate that these things get refreshed, there is always the opportunity for the next five years”.
Commenting on his manufacturing and distribution operations locally, he said; “eSys participates only through the channel where the sales is done through the partner, from very small shops that sell one computer to those that sell 100 computers a day, through our six regional offices covering nine provinces”. He also noted that big players have preferences for multinational computer brands and EZY has been positioned to attract them. “We have been very, very successful, even education institutes like ICBT and ESOFT have migrated into EZY computers seeing this particular value, as well as these were very successfully acquired by our local vendors itself… But in all sectors, unless it is highly service-oriented area, upgrades are not a priority. Telecoms, banking, etc. mostly update the systems that support their core systems rather than their terminal systems. Massive amount of expenditure is going out for the core systems upgrades,” said Mr. Hamzadeen.
Elaborating further, he stated; “We are currently in discussion with large international domestic brands, homegrown brands in countries like Pakistan, Maldives and Bangladesh to manufacture for them. Unfortunately, the benefits from the government for a local brand have not been there. In the recent budget, even imported branded computers were put on a zero duty platform. There is not much recognition that comes from being a local assembler or manufacturer for the money that we spent in investments. Bearing that in mind, we are still trying to revitalise the manufacture base as per our initial plans to position Sri Lanka as a hub for the region. But, the good thing is that, with the Colombo and Hambantota ports classifying themselves as free ports, we are trying to see how we can take advantage of that to take the hub concept forward”.
Mr. Hamzadeen also revealed that a number of changes had occurred in his company, leading to its current positive financial health, with 80 per cent of the company becoming business-to-business oriented in terms of sales. As a result, the company expects to grow in revenue from US$25 million, currently, to $40 million, by 2015. Explaining, he said that, “in 2011, we restructured our organisation into four areas – SEED (Services, Education, Enterprise and Distribution)”.
According to Mr. Hamzadeen, for the next two years, services will be the main category for the company, with a lot of investment planned for this area. Further, he shared some of the proposed services to be introduced soon; “On the corporate services side, the current economy does not allow everybody upgrades when they want because of capital and financing costs”. As such, an infrastructure-as-a-service product will be made available. He said it would be as “simple as getting computers or install the whole system through our partners”. Further, a similar service would also soon be offered on the retail side, for individuals.
At the same time, the company is also recruiting application (app) developers to create retail apps for large retailers in the region to run their business, as well as mobile apps for end users to be offered, exclusively, at the EZY app store. Some of these mobile apps are already being developed in Bangladesh. And, he also revealed that, immediately after the September 7 presidential election in the Maldives, EZY InfoTech would be setting up a subsidiary there, which would report to Sri Lanka, with a very strong partner and offerings in all four SEED verticals.
When asked about EZY Racing, Mr. Hamzadeen, who is the team’s Principal, commented that, in 2014, EZY Racing, which has already seen quite a bit of success on the track will start selling branded merchandise through EZY Racing stores. This will be separate to partners and sponsorships. There was also plan to fund the racing infrastructure by way of private equity, which they are looking for now. He opined that the race calendar is a long 12 months so it costs a lot to maintain a competitive presence. He added that, another thought being entertained is to create an EZY Sports division with the hope that it will be a strong area for the future, with proposed participation in street cricket (EZY Cricket) as well as a new form of rugby not seen before (EZY Rugby).
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