Rashi Peripherals Posts INR 11,000 Crore Revenue; Eyes Double-Digit Growth for FY25 Rashi Peripherals, achieved INR 11,000 crore in revenue for FY24 and continues to target double-digit growth. With a vast network and diversified portfolio, the company is expanding into AI, visual products, and semiconductors to drive future growth.
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From its humble beginnings in 1989 to its current position as one of the country's value-added distributors, Rashi Peripherals Limited (RP Tech) has played a pivotal role in India's information and communications technology (ICT) landscape, making strides in ensuring the availability of the latest technology across India. Rajesh Goenka, chief executive officer of RP Tech, sheds light on the company's journey, its unique positioning in the market and its ambitious roadmap for the future.
"We have 52 branch offices, 65 warehouses, and 50 service centers across India. Our most recent branch in Srinagar was inaugurated in October, reflecting our ongoing efforts to strengthen our distribution network," Rajesh Goenka shared. This network enables Rashi Peripherals to cater to 715 towns across the country, reaching various sales channels like general trade (GT), modern trade (MT), and e-Commerce giants.
In the highly competitive ICT distribution market, Rashi Peripherals distinguishes itself through its local presence and a broad product portfolio. "Most other distributors have sales representatives across the country but lack warehousing and service centers. That's where we differ," Goenka explained. With a physical presence in over 700 cities and towns, Rashi's infrastructure gives it a competitive edge.
"Our product range is incredibly diverse, spanning from a INR 400 pen drive to AI machine-building equipment costing over a crore rupees. In several categories, like CPUs, motherboards, hard drives and memory, we are market leaders," he said. As per a Technopak report, Rashi Peripherals holds substantial market share in many key categories, driven by its ability to bring the latest products to the Indian market.
Empowering MSMEs and Supporting Local Ecosystems
A critical aspect of Rashi Peripherals' strategy is its focus on the MSME sector, working through a network of 10,000+ partners who cater to small and medium-sized businesses across India. "We don't supply directly to MSMEs, but we operate through a partner ecosystem. Our partners are crucial in ensuring that MSMEs get access to the ICT products they need," Goenka clarified.
The company hosts over 100 events annually, training its partners and empowering them to meet the needs of their end clients. "Our Channel Business Forum targets small partners in non-metro cities, where we provide training, motivation and incentive programs. These forums help improve business in smaller towns while making ICT products more accessible," he added. This initiative enables the wider availability of essential technology products to consumers and small businesses in remote areas.
Sustained Growth and Revenue Expansion
Despite challenges in the market, Rashi Peripherals continues to demonstrate robust growth. Last year, the company achieved revenues of INR 11,000 crore, with a compound annual growth rate (CAGR) of around 23 per cent over the last three years. "Our long-term CAGR, over the past 20 years, stands at 22.73 per cent," Goenka said.
Looking ahead, the company is well-positioned for another year of double-digit growth. The company's portfolio, which now includes business verticals such as enterprise solutions, embedded systems and software, has helped Rashi Peripherals reduce dependence on traditional categories like laptops and CPUs. Notably, the company secured a landmark INR 1,510 crore AI data center project with the Hiranandani Group's Yotta Infrastructure, marking a significant milestone in its AI-driven ventures.
"We don't just talk about AI; we implement it. From AI-enabled laptops to UPS systems, we're incorporating AI technologies across our product lines," Goenka noted. This project, in partnership with Asus, involved deploying around 512 servers equipped with NVIDIA GPUs, making it the largest AI data center project of its kind in India.
Navigating Industry Challenges and Into The Future
While the IT distribution sector in India remains relatively stable, one of the challenges Goenka identified is the refresh rate of products, particularly laptops. "In India, people tend to use a single product for five to six years, even as performance declines. This results in longer refresh cycles compared to mobile phones, which are typically replaced every 18 months. We need to raise awareness about the importance of regular upgrades for optimal performance," he emphasized.
Despite these challenges, Goenka remains optimistic about the future, with the Indian government's focus on digitization and the growth of manufacturing and the tremendous potential in the ICT industry. "After 35 years in the industry, we're excited about the opportunities ahead. IT products and mobile phones are now essential parts of everyday life in India, which keeps us enthusiastic about the future," he said.
In the next five to ten years, Rashi Peripherals aims to continue its double-digit growth while expanding into new product verticals. "We're focusing on visual products, like monitors and large-format displays, in partnership with companies like LG and ViewSonic. Additionally, our semiconductor vertical is gaining traction. We source small chips for manufacturing units, including the automotive sector," Goenka elaborated.
The company's proactive approach in entering these growing sectors, coupled with its local presence and partner ecosystem, ensures that Rashi Peripherals will continue to play a vital role in India's ICT distribution landscape for years to come.
