Financial Times

60,000-70,000 used computers imported annually
By Akhry Ameer
A growing demand for hardware based IT solutions is being experienced in Jaffna and the rest of the peninsula. The sale of personal computers (PC), hardware accessories and spare parts has grown 60-70 percent within a single year, according to PC House (Pvt) Ltd, a leading IT solutions company.

Saliya Wimalaratne, General Manager said, "The peace process has given dividends whichever government is responsible for it", elaborating that the sales performance in Jaffna is one of the best among its 23 branches in the island. Retail sales in the north have hit Rs. 3 million to Rs. 4 million a month since the branch was established a year ago. He added this figure actually accumulates to Rs. 10 million with corporate sales as non-governmental institutions, local company branches, and other establishments engaged in ICT projects opt to buy their needs for the north from their branch.

PC House during the week announced the award of the ISO 9001:2000 Quality Management System Standard Certification issued by Det Norske Veritas, Norway in recognition of its high standards and quality of operations. The company in a short seven year span has grown from a single showroom, six-man operation to a staff strength of 285 with 23 branches and sales of Rs. 2.8 billion in 2003.

The company now has targeted to grow its network to 35 branches by year-end. It also plans to manufacture "Panora", its own brand of personal computers currently being outsourced and manufactured in Taiwan.

Speaking on plans for the manufacturing plant S.H.Mohamed Rishan, Managing Director and Chief Executive Officer said the company proposes to begin by manufacturing its own uninterrupted power supply (UPS) systems. A feasibility study is currently underway for this project. He added there would overseas input into the project as the company needs the research and development knowledge.

The motive for a local plant is to provide the market with its Panora brand of computers from a price as low as Rs. 20,000 upwards. Rizan said currently around 60,000 to 70,000 used computers are being imported annually for the low-end retail market. PC House markets an average of 6,000 units of its branded machines monthly to compete in the assembled personal computers segment.

The company is also an authorized reseller for IBM and sells units in excess of 250 units monthly to a branded market where the annual demand is estimated around 30,000 units.

PC House's monthly sales of Rs. 250 million to Rs. 300 million comprises 70 percent of fully, setup units and the rest from spares and accessories. The ISO recognition certifies the quality of process from placing orders to delivery of computers.

Certification officials said they would conduct a surveillance check of the quality system in place every six months, but PC House has requested checks every three months for it to continuously test its systems to provide best value to its customers.

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