VSM Group has 3 verticals under its umbrella: VSM Agencies Pvt Ltd, VSM Technology Pvt Ltd and VSM Advance Automation Ltd. VSM Group deals in IT products with different verticals carrying out different functions and dealing in different brands & products. The genesis company, VSM, was started in 1987 as a partnership company with R.K. Gupta as one of the partners. In 2001, the company was transformed into full-fledged VSM Agencies Pvt Ltd, with R.K. Gupta as its sole owner, providing PCs, Laptops, photocopiers, etc. Later they added projectors and different office automation products to their portfolio. They also provide OEM cartridges and toners for HP, Samsung, etc printers.
The first vertical, VSM Agencies Pvt Ltd focuses on direct sales to corporates, government organizations, including ministries, PSUs, etc. They have a dedicated sales team of over 20 well-trained professionals, who work hard and aggressively promote the company directly to the abovementioned organizations and segments. There are about 25 dealers who provide secondary and backend support to the direct sales team.
The second vertical, VSM Technologies Pvt Ltd takes care solely of the distribution activities. This vertical is also a channel partner and distributor company for HCL and HP products; and Toshiba and In Focus projectors. For printers, they provide original OEM cartridges—they do not sell compatibles or recycled products since government organizations buy only OEM original consumables. For some other brands, VSM Technologies are retail and dealer partners.
Gupta, clarifies, “In 1987, we started off from scratch and today, the two main verticals, VSM Agencies Pvt Ltd and VSM Technologies Pvt Ltd, together form a Rs 100+ crore revenue segment and is growing at an annual rate of 15%-20%. Our main areas of operation are NCR and Haryana. We are happy with our growth and progress.”
The third vertical, VSM Advance Automation, is solely a distribution company in which R.K. Gupta is a shareholder along with others. This vertical is a distributor for Nikon cameras and also for Dell desktops, laptops and service kits. Areas to which this vertical serves include NCR, Uttaranchal and Himachal Pradesh.
Gupta states, “Right now we are not dealing or selling tablets and smartphones as we want to focus mainly on the IT products which is our main strength and which we have been providing for the last 2 decades. During the last 10 years, IT market has grown rapidly. Today, IT has become a household name. The products which were earlier serving the niche segments have now become household things or consumer products.”
VSM’s main USPs or selling points are providing best after-sales-service, besides providing high quality products and timely deliveries. Gupta adds, “Every company can provide products, but when it comes providing quality service most companies fumble. As a value addition, we provide the best service and prompt deliveries. We show commitment to the individual consumer needs. That is where we score over our competitors.”
The new government at the center has started ambitious initiatives like Digital India program, stirring up new hopes among businessmen and entrepreneurs. In this regard, R.K. Gupta asserts, “The new central government’s initiatives such as Digital India, Smart Cities, etc and the consequent growth in e-commerce are expected to open up a plethora of opportunities to vendors and channel partners in India. And definitely they are going to boost IT industry and change the way the businesses are carried out. We being the players in IT industry, see a great hope in these initiatives. We are waiting and watching how these initiatives are going to work in practice.”
Regarding their promotion strategy, R.K. Gupta briefs, “Right now we are laying a great emphasis on personal contacts with the vendors and customers via our purchase and sales teams. Our experience shows that personal contacts are the most effective means to motivate the customer to buy. We use other methods of promotion as a backend support to the sales staff’s efforts.”
Regarding expanding the business and future plans, R.K. Gupta concludes, “Today, security and surveillance products and solutions are offering attractive opportunities. Hence, we are looking for vendors who would provide us backend support to promote to and reach the end customers. We are already into discussion with a couple of companies in this regard, but we have not yet reached a final agreement. However, we are serious about exploiting this opportunity; which we do not want to ignore or miss. We also want to add more customers to our repertoire and widen the product portfolio in terms of range and variety so that we can offer the customers as many relevant products as possible, under one roof.”