MEGATECH PLEASANT EXPANSION
Megatech is a familiar name when it comes to IT solutions in most of the eastern and western townships. Twelve pleasant years into business, this trading group, which deals with selling and supporting computer systems, stabilisers, UPS, EPABX, telecommunication products, engineering equipments, fire-fighting products and security systems, boasts of 5000 users connected to its installed systems. Amidst a tough competition from similar groups offering similar products and services, Megatech Trade Group, as its Managing Director Suresh Lohani claims, has been adding 100 clients each month to its already bulging patron list from across the country. “We have come a long way,” Lohani says. “Starting from our head office in Biratnagar a decade ago, we have achieved an incredible holding in the eastern cities. The name of our trading group has been synonymous to genuine IT solutions.”
Megatech is not the sole player dealing with this particular business in the east but the measure of expansion it has attained in these years makes it the frontrunner. All this has been a giant leap forward against the backdrop that Megatech was founded with an initial capital of Rs 10,000 with three men leading the group. Now this trading group has 135 employees imparting a range of services. In terms of their annual turnover, Megatech, as Lohani claims again, is probably the third biggest player in IT industry in Nepal . “We have a monthly turnover of Rs. 20-30 million,” he informs. “This has been a consistent figure for some years. We are into expansion phase now.”
It has been three years since Megatech started its operation in Kathmandu as part of their business expansion. Even here, they have been able to earn quite a reputation in such a short span of time. To further expand their consumer base, Lohani plans to open a corporate office here to cater to big corporate clients.
The trading group is the national distributer for reputed international brands like Matrix Telecom, Hitachi , PABX Electronics, Numeric Power Solutions and Canon. And it is also planning to get into software business in collaboration with an Indian software company based in Kerala, according to Lohani. “Through this connection, we plan to launch a range of software products from simple accounting software to hospital management software,” he shares.
Megatech sells and supports its own branded computer HCL Mega PC in technical collaboration with HCL Info Systems India. It has also secured the distinction of successfully completing the project of the second biggest exchange in the eastern region from Nepal Rastra Bank in Biratnagar with 100 Line Digital PABX. It also handles some reputed brands of EPABX produced by Matrix Telecom Pvt. Ltd. ( India ’s No. 1 Award Winning Company). It has also been authorised by Cease Fire India Ltd. to market its full range of fire extinguishers in Nepal .
Lohani credits all this success to his group’s commitment towards effective marketing tactics and customer satisfaction. After two years of impressive business performance for HCL, which is a 4 billion dollar multinational company with more than 34,000 employees working for it the world over, Megatech has recently bagged permission to sell and promote HCL products and services in Sikkim and Bhutan as well. “We have been facing pressure from our competitors but what differentiates us from others is the fact that we have never compromised on quality. I always ask my marketing people to bring a complaint and I will not hesitate to put my entire fortune to compensate it. Such a commitment has been our driving force,” stresses Lohani.
Having set their feet in Kathmandu just a couple of years ago, Megatech has already enlisted such reputed clients as United Nations Development Programme (UNDP), Siddhartha Bank and Machapuchhre Bank. “Our time-tested performance has earned us these clients,” Lohani further adds. “We have never considered cheap products so as to save some bucks. We do realise that selling expensive products can hinder our business in terms of volume but when it comes to quality, we are always willing to compromise on our profits.” That’s why Megatech imports most of its products from reputed Indian companies like Bharatiya Telitech India Ltd. and Bharatiya Airtel India Ltd. Moreover, they also import dependable products from Singapore and Dubai .
Lohani argues that taxation policies have been slowing down the growth of this evolving business in Nepal . “We have to pay 13 percent VAT as import duties while importing IT products whereas the Indians don’t have to pay a penny as duties on imports in this connection. That’s why computer business is flourishing there. This is the biggest limitation for people in IT business like us in Nepal ,” he complains.
Despite discouraging government policies, Lohani and his group have been keen on introducing a small laptop run by DC current. “It will take us one more year to seal the deal. We believe this will help students, both from cities and villages to stay in touch with the rest of the world.” Lohani says he has much more to offer but the situation isn’t conducive enough. “We are waiting and watching,” he concludes.
