June 04, 2012 | Business Standard

For a one-stop solution

Nelco, a Tata enterprise, is in the process of transforming its business. From transistors and consumer electronics-the company was earlier known as National Radio and Electronics Ltd — it has moved into the business of offering end-to-end solutions in integrated security and surveillance solutions, VSAT services, managed services, satellite communication projects and meteorology. It also provides turnkey solutions deploying IT and communication infrastructure as well as providing security and surveillance solutions for the government and defence sectors. Along the way, in April 2010, it divested three lines of businesses — traction electronics, supervisory control and data acquisition (SCADA) and industrial drives.

Now that Nelco has regrouped as cohesive teams with aggressive business plans and a sharper market focus, the company wants to “position itself as a trusted partner for implementation and management of customer’s critical infrastructure”. But it has a problem. The company realises that consumers still associated Nelco with what it did many years back. To that end, Nelco has also spruced up its identity. The new identity introduces the concept of unlocking potential and captures the essence of how it operates now. The move will help ward off confusion in the market, and subsequently, widen its customer network, says the company.

“The redefinition of Nelco’s brand identity is not just an external logo change; it is a transformation in the attitude of the organisation in itself,” says PJ Nath, chief executive officer, Nelco. “Nelco is focused on helping its enterprise and government customers unlock their potential.”

To spread awareness and visibility, Nelco has a comprehensive marketing plan that comprises advertising its various products and services in selected trade and business magazines besides its internal communication campaigns. It will spend 2 per cent of its revenue on the advertising and marketing initiatives. “We participate in B2B events to address our target customers in the public sector as well as the corporate sector. We also do direct marketing for the existing customer base and to create awareness via digital marketing initiatives such as advertising on B2B websites, technology journals and uploading case studies online,” Nath says.

The diversified company is looking to grow its turnover to Rs 500 crore over the next two years from the current Rs 110 crore piggy-riding on the demand for security and managed services.

Most of the company’s businesses are in the sunrise sector currently. Take integrated security and surveillance. There is huge growth opportunity in this business due to the increased need for securing critical infrastructure and human lives against external threats. This is true for all segments: government, defence, industry etc.

Nelco started working in the VSAT space in 2003 and now has a 15 per cent share. VSAT services are also witnessing huge growth due to the increasing need for reliable data communication networks, particularly in the remote and rural areas. The huge growth in the banking industry infrastructure, particularly the ATMs, is giving additional momentum to this growth. VSAT is the most viable and highly reliable mode of connectivity for low/medium bandwidth applications in the remotest locations within the country.

Nelco offers managed services encompassing security and critical infrastructure management solutions as well as managed data centre/IT services. The company sees a huge market for these services in the country.