Equity Research: Rashi Peripherals Limited

Rashi Peripherals Limited looks strong with increasing revenue and consistently increasing profit along with growing CAGR.

Rashi Peripherals limited is among the leading national distribution partners for global technology brands in India for information and communications technology (“ICT”) products in terms of revenues and distribution network in Fiscal 2023. They are also one of the fastest growing national distribution partners for global technology brands in India in terms of revenue growth between Fiscal 2021 and Fiscal 2023. Their revenue from operations grew at a CAGR of 26.32% from ₹ 59,250 million in Fiscal 2021 to ₹ 94,543 million in Fiscal 2023 and were ₹ 54,685 million in the six months ended September 30, 2023. They differentiate ourselves by offering end-to-end services such as pre-sale activities, solutions design, technical support, marketing services, credit solutions and warranty management services The company was incorporated in 1989 and have more than 34 years of experience in distribution of ICT products in India. Their Company commenced operations with manufacturing of peripherals.

With the liberalization of the Indian IT sector in 1991, they transitioned to distribution of ICT products of global technology brands in India. They have been instrumental in facilitating the entry of a number of global technology brands and were among the select players that led the formalization of the fragmented and unorganized ICT products distribution in India. Over the years, they have continuaslly expanded their operations and between Fiscal 2002 and the six months ended September 30, 2023, their Company distributed 311.89 million units (including shortages of certain items, and items given free, if any) of ICT products. They have expanded their distribution network across India and as of September 30, 2023, had one of the largest ICT products distribution networks in India.

They primarily operate the following two business verticals:
• Personal Computing, Enterprise and Cloud Solutions (“PES”): Under this vertical they distribute personal computing devices, enterprise solutions, embedded designs/ products and cloud computing.

• Lifestyle and IT essentials (“LIT”): This includes the distribution of products such as components that include graphic cards, central processing units (“CPUs”) and motherboards; storage and memory devices; lifestyle peripherals and accessories that include keyboard, mice, web cameras, monitors, wearables, casting devices, fitness trackers and gaming accessories; power equipment such as UPS and invertors; and networking and mobility devices.

Their pan-India distribution network comprises 40+ branches that operate for sales and as service centers and 60+ warehouses, as of September 30, 2023. Through their branches and warehouses, they are able to cover 650+ locations in India.

Rashi Peripherals Limited is the fourth largest player in distribution business of ICT products and services in India. The company started their operation in 1989. Rashi Peripherals Limited is one of the fastest growing national distribution partners for global technology brands in India in terms of revenue growth between Fiscal 2021 and Fiscal 2023. Their vendor base comprises 52 global technology brands/OEMs as of September 30, 2023. Rashi Peripherals Limited have expanded the distribution network across India and as of September 30, 2023, they had one of the largest ICT products distribution networks in India. As of September 30, 2023, the company had one of the largest ICT products distribution networks in India with 50 branches, 63 warehouses and 50 service centers across 50 cities in 28 States and Union Territories in India covering 680 locations in India (which is expected to reach more than 700 locations by the end of Fiscal 2024), through an ecosystem of 8,402 channel partners for 10,508 SKUs. The company also has the largest market share in the component business (namely CPU, Graphics cards) and storage peripherals (namely keyboard, mice, and other accessories), AMD based laptops and gaming laptops and PCs business in the country. Rashi Peripherals Limited is a national distribution partner of global ICT brands and OEMs in product categories such as personal computing, mobility, enterprise, embedded solutions, components, lifestyles, storage and memory devices, power and accessories.

Rashi Peripherals Limited is one of the leading companies in India with extensive distribution capabilities enabling them to be the preferred national distribution partner of global technology brands/ OEMs. Apart from distribution of IT products, the company also offers services such as consulting and technical support, testing labs, marketplace fulfilment services, financial services, warranty management services, reverse logistics etc.
With the liberalization of the Indian IT sector in 1991, Rashi Peripherals Limited transitioned to distribution of ICT products of global technology brands in India. Rashi Peripherals Limited has business relationships for more than 15 years with several global technology brands/OEMs that they currently service and were the first national distribution partner for a few of such global technology brands. Rashi Peripherals Limited has been instrumental in facilitating the entry of a number of OEMs/ global technology brands and were among the select players that led the formalization of the fragmented and 217 unorganized ICT products distribution in India. Prior to the agreement with such brand, its products were available in the Indian market through unorganized channels leading to limited brand visibility in Indian markets and low acceptance due to high price points. Rashi Peripherals Limited used brand promotion activities to position products in different markets and introduced a range of their products such as wireless mice, keyboards and gaming devices for the first time in India. Currently, Rashi Peripherals Limited is distributor of brands like Intel, Logitech, Eaton, Belkin, Lenovo, Dell, LG, Asus, Intel, Nvidia, Western Digital, Toshiba etc.

The company is a market leader in product categories such as CPU, hard drives, graphics cards, accessories, gaming devices, pen drives, tablets, routers etc. The company has 50 service centres across India which act as end-to-end complementary servicing including guarantee, warranty, repairs and maintenance services and other services such as AMC for their dealers/re-sellers/retailers. Both the global technology brand and Rashi Peripherals Limited have expanded operations and business across India and Rashi Peripherals Limited has acquired a leading position in the market in the peripherals segment.

Rashi Peripherals Limited is among the leading national distribution partners for global technology brands in India for information and communications technology products in terms of revenues and distribution network in Fiscal 2023. Rashi Peripherals Limited is among the select players in India instrumental in leading the formalization of the fragmented and unorganized ICT products distribution in the country. The company has strong distribution network for more than 30 years. The DaaS model offers PCs, smartphones, and other mobile computing devices as a paid service for commercial use. Rashi Peripherals Limited is looking at DaaS as a next big business opportunity for growth of their business and operations in future. OEMs are developing software to track such productive monitoring systems so that organizations can deploy workload-based systems that will further drive efficiencies in their operations. Rashi Peripherals Limited intends to become the fulfilment partner of DaaS to corporates. Rashi Peripherals Limited has leveraged their presence across India to make latest ICT products and solutions available to consumers in India.

In product categories like pen drives, graphic cards, CPU etc. Rashi Peripherals Limited fulfils nearly the half of the total market demands of these categories in India by volume followed by other product categories like routers, hard drives, monitors etc. Rashi Peripherals Limited commands significant market share in India in product categories such as processors (45%), graphics cards (47%), pen drives (42%), hard drives (29%), keyboards and mice (21%), monitors (27%), UPS (13%), laptops (10%), desktops (10%), routers (33%), and switches (10%) in Fiscal 2023. Being a national distribution partner of a leading motherboard and graphic cards brand, Rashi Peripherals Limited has contributed approximately 47% share to the Indian graphic card demand and approximately 25% to the motherboard demand in India by volume in Fiscal 2023.

Shareholding Pattern:

Industry Research:

With increasing penetration of internet connectivity across the geographies of rural and urban India, the number of smart phones, social media users and online shoppers in India is on the rise. Supported by various government initiatives under Digital India Initiative to strengthen the existing digital infrastructure, affordable internet services in which primacy of mobile internet as major feature of digital landscape. Digital landscape in India is evolving which is reflected in broadband internet subscribers (wireline and wireless) at 816.24 million (number of connections) as of September 30, 2022, according to TRAI press release dated November 22, 2022. IT penetration in non-metro cities in India have increased due to penetration of smartphones, Governmentenabled village knowledge centres leading to increased awareness which in turn is driving demand for ICT products for personal consumption. Non-metro cities and other rural geographies are becoming centre of consumptions for ICT products like personal computers, smartphones, internet devices, networking devices and hence there is requirement for ICT distributors and resellers having pan India presence. India is expected to grow continuously across the digital use-case funnel which will be driven by the affordability of Internet, continuous improvement of in telecommunications infrastructure, increased adoption from Tier 2+ cities and rising popularity of social media and growing trust and adoption of online payment platformsIndia has also witnessed growth in internet penetration and mobile connectivity resulting in increased online presence of the Indian population directly resulting in a boom in e-commerce, social commerce, mobile payments etc.

Option of secure payment across various methods whether card, cash, wallets, and e-commerce transactions has led to increasing trust in these payment systems. In e-commerce, mode of payments by various options like credit/debit card, cash, mobile wallets, and transactions security has increased the trust on online transactions which has led to increase in online shoppers. The pandemic eventually accelerated the pace at which digitization was taking place and made companies and consumers alike to adapt to digital ways of buying and selling products and services. The number of internet users in India is set to rise from 822 million as on October 31, 2022 to 900 million connections in Fiscal 2025 growing at CAGR of 3.09% (as per TRAI, telecom subscription report dated December 19, 2022). India has recorded 1.14 billion mobile subscribers as on October 31, 2022, of which 625 million subscribers are from urban regions and 518 million subscribers from rural region (as per TRAI, telecom subscription report dated December 19, 2022). Smartphones now act as a catalyst for digital penetration across Tier-2 and Tier-3 markets in India. Digital penetration is also driving the online retail market which is expected to rise fourfold by Fiscal 2025 majorly driven by under-penetrated categories like grocery, education, and health.

The ICT sector significantly contributes the country’s GDP, ICT sector includes value arising from Information Technology enabled Business Process Outsourcing (ITeBPO), e-commerce, domestic electronics manufacturing, digital payments, digital communication services (including telecom), etc. The role of ICT has been shifted to business model transformation and revenue growth from cost optimization and process automation. From Small and Medium Businesses (SMBs) to global organizations, companies are embracing digital transformation to achieve their business objective. Key themes driving the ICT investments include omnichannel client experience, zero touch operations, digital workplace, and digital product engineering. Hybrid cloud adoption including cloud consulting, deployment, and management services and even more pervasive. Companies are embracing digital technologies to align their cost structures, increase business resilience, personalise experience for their customers and employees which have been accelerated because of pandemic. The ICT products industry witnesses intense price competition, owing to which gross margins are typically low. Globally, the Electronics and ICT products market is expected to grow at a CAGR of 14% between 2020 and 2025 and is projected to cross approximately USD 350 billion in sales by 2025. Growth in demand for storage devices, laptops, accessories, networking devices and artificial intelligence machines are expected to drive the demand for ICT products in India going forward.

India’s IT Spends includes the IT spends on the products (hardware, software) and services. In 2021, all subsegments within IT spends have depicted growth, however devices, enterprise software and IT services have grown fastest in last two years owing to the positive impact of the pandemic on technology industry. IT Spending is projected to reach a value of ₹ 10,870 billion by 2025 growing at a CAGR of 10%.

Metaverse (virtual reality enabling people across the globe to interact with each other in metaverse form) is the new form of interaction opening doors to stronger and more realistic experiences having applications at multi cross-chain possibilities. It has been widely believed that Metaverse could be a USD 8 trillion opportunity according to leading global investment banking firm Goldman Sachs in 2021. The improvement of technology around mobile phone, laptops, and gaming consoles, the chipsets, cloud computing, 5G and fiber-to-home will be a catalyst for the rise of metaverse.

Application of cloud computing by MNCs and SMBs in multiple industries has made information and appliances cheaper and widely available. Cloud computing is a big shift from the traditional way of doing businesses, better planning of IT resources which helps in optimizing the cost, improve productivity, provides security of data and infrastructure and is reliable. Enterprises and businesses have been forced to move from traditional setup to cloud platforms due to remote working and break in the direct interactions between businesses and consumers. This technology transformation helped businesses to stay afloat during the lockdown and helped them with new perspectives

Enterprise networks, infrastructure, architecture, acquisition, and deployment is going to transform through the convergence of infrastructure-less enterprise cloud and 5G. Increasing demand, falling costs, technology maturation and expanding footprints as fly-wheel effect will make cloud and 5G more accessible. Focus is likely to shift from managing hardware elements (such as switches, routers, and servers).

Cybersecurity will be a key trend in the ICT considering increasing cybercrimes and focus on data protection. Ransomware attacks cost an average of ₹ 0.35 billion (approximately USD 4.62 million), more expensive than the average cost of data breach ₹ 0.32 billion (USD 4.35 million) in 2022. These costs include escalation, notification, lost business, and response costs (Cost of Data Breach Report, IBM, 2022). Remote working, hybrid work culture will make the organisations more vulnerable to cybersecurity. With the advancement of digital transformation among the companies, they will need protection for their digital business environments. Comprehensive cybersecurity strategy will also help in avoiding the financial and other losses due to possible data breaches.

The number of online shoppers in India reached 180 million in 2021 (up from 50 million in 2015) with significant rise in shoppers belonging to the non-metro cities. These shoppers buy a variety of products online ranging from mobiles, electronics, fashion, beauty, and personal care and groceries. E-commerce platforms have led to an increase in demand of technology products in the country by allowing ease of browsing, product availability and timely delivery. Size of e-commerce in merchandise retail was ₹ 444 billion in Fiscal 2015 which increased to ₹ 3,375 billion in Fiscal 2021, witnessing a CAGR of 40% between Fiscal 2015 to Fiscal2021. The size of e-commerce in merchandize retail is expected to grow at CAGR of 22% to reach ₹ 11,325 billion in Fiscal 2027.

Indian Government’s Production-linked Incentive (“PLI”) scheme proposes to provide Incentives to boost domestic manufacturing and attract large investments in IT Hardware value chain with target segments including laptops, tablets, all-in-one PCs, and servers and boost the export market for the same. In electronic/technology products and telecom and network products, the approved financial outlay over the five years period is ₹ 122 billion. India has been seen as an attractive destination with low-cost skilled and unskilled labour and a challenging environment. India became the favourable investment destination due to significant rise in global rankings in recent times. Previously, India's electronics sector was not regarded as a top destination by decision makers owing to poor demand. With the recognition of electronics as a key segment for policy focus, this situation has changed. The National Policy on Electronics (“NPE”) emphasised local value addition and created an enabling environment. Several policies related to manufacturing such as Make-in-India, attracted the interest of both global and domestic companies. Few factors favourable to electronic manufacturing are stable government, China plus one strategy, creation of National Manufacturing Zones (“NMZ”), Electronics Manufacturing Clusters (“EMC”) are helping India to become electronics manufacturing hub in global.

Invetsment Rationale:

Leading and fastest growing Indian distribution partner for information and communications technology products.

The company is among the leading technology integrated national distribution partners for global technology brands in India for ICT products in terms of revenues in Fiscal 2023. They are also one of the fastest growing national distribution partners for global technology brands in India in terms of revenue growth between Fiscal 2021 and Fiscal 2023.Their revenue from operations grew at a CAGR of 26.32% from ₹ 59,250 million in Fiscal 2021 to ₹ 94,542million in Fiscal 2023 and were ₹ 54,685 million in the six months ended September 30, 2023.

They distribute a range of ICT products such as personal computing, mobility, enterprise, embedded solutions, components, lifestyle, storage and memory devices, UPS and accessories, manufactured by global technology brands. They also distribute cloud computing solutions. The wide variety of products of global technology brands that they distribute has helped them achieve economies of scale and provide Channel Partners with a single sourcing point. They are a major player catering to the Indian consumer demand in product categories like processors, graphic cards, and internal storage in Fiscal 2023. They command significant market share in India in product categories such as processors (45%), graphics cards (47%), pen drives (42%), hard drives (29%), keyboards and mice (21%), monitors (27%), UPS (13%), laptops (10%), desktops (10%), routers (33%), and switches (10%) in Fiscal 2023. Being a national distribution partner of a leading motherboard and graphic cards brand, they have contributed to approximately 47% share to the graphic cards demand and approximately 25% to the motherboard demand in India by volume in Fiscal 2023.

Their channel mix primarily comprises General Trade, Modern Trade and E- commerce channels. Their multi-channel mix also allows them to serve a diverse customer base. They work primarily with Hybrid Resellers who are Channel Partners that sell to both online market places and retail channels enabling them to serve tier II and tier III cities in India. They are able to leverage their local sales and inventory knowledge and post sales servicing capabilities to offer local connectivity and efficient deliveries. To incentivize Hybrid Resellers, they offer credit financing and competitive pricing solutions thereby enabling them to scale their business with us.

In addition, they also distribute equipment for high performance computing, artificial intelligence, data centers, and enterprise storage, and rendering, cloud computing, networking and point-of-sale solutions to effectively serve the needs of their Enterprise Customers to provide solutions to their end-consumers.

They consider their key value propositions to their customers to be their relationships with their Channel Partners, diverse portfolio, extensive pan- India operations and commitment to quality of service, which have reflected in their increasing customer stickiness over the years. In their experience, by facilitating their customers’ business expansion by offering additional products and services, introduction of new technology, as well as their continuous engagement through sell-through programs such as discount schemes, ageing liquidation schemes, target based incentives and reward programmes, they have been able to retain existing customers.

Long-term relationships with marquee global technology brands supported by committed engagement strategy with customers

They maintain long-term relationships with several marquee global technology brands from whom they procure ICT products that they supply to their customers. As of September 30, 2023, they served 52 global technology brands. Global technology brands undertake continuous research and development and introduce new products from time-to-time. These global technology brands also have extensive supply chain capabilities which ensures availability of their products. In their experience, these factors result in greater brand recall for such global technology brands which facilitates the sale of their products.

They also provide advertisements on behalf of global technology brands in technology and consumer media publications and regularly participate in media events. In Fiscal 2023, they received 483 media mentions. As of September 30, 2023, they had a design, marketing and communications team of 19 employees who drive their pan-India promotional activities.

Diversified and comprehensive product portfolio and solutions

Between Fiscal 2002 and Fiscal 2023, the Company distributed 311.89 million units (including shortages of certain items, and items given free, if any) from global technology brands, enabling them to satisfy customer requirements for seamless product availability and meet end-user demand for multi-vendor and multi-product IT configurations. Over the years, they have continuously added products across sub-segments like lifestyle, components, networking, personal computing, storage and memory, mobility, enterprise and embedded solutions. Their support services are intended to link their customers and global technology brands with them as a one-stop provider of ICT products and related services.

They also provide cost-effective services such as arrangements for financing support and project-based finance through third party financial institutions. In their experience, customer profitability is necessary for steady long-term relationships. To achieve this, they provide sales and technical support such as pre-sale activities, warranty management, post-sales training, marketing, logistics management and other business solutions. Their comprehensive support services also include conducting demos and testing for the products, pre and post-sales technology support. They also have a dedicated pre-sales team and leverage their experience in marketing and branding to drive the sales of the products of the global technology brands they distribute. These measures have helped them forge business relationships at a national level with global technology brands.

Scalable business model supported by advanced technology stack

They strive to create a business model that minimizes vulnerabilities from product, customer or vendor concentration through diversification. They purchase from global technology brands and sell to their customers. Maintaining relationships with their customers enables them to monitor demand to optimize their inventory while preserving customer fill rates and service levels. They manage their inventory through targeted initiatives aimed at minimizing excess and obsolete goods while improving their purchasing processes and product flow. For instance, they implemented SAP, an advanced ERP system nearly two decades ago and manage their finance function and back-end operations, including warehousing, through their ERP system, which allows them to efficiently scale their operations.

They conduct real-time inventory tracking with monthly profitability evaluations to track and assess branch performances to ensure financial returns and minimize costs. They provide incentives and schemes to push sales efficiently. Furthermore, they effectively manage their accounts receivable through timely collections, disciplined credit limits, customer terms and process efficiencies to minimize their working capital requirements. Their business model is driven by their branch heads who lead their branches in their respective regions, across the 50 cities in which they have branches, as of September 30, 2023. Their branch heads have autonomy to manage credit terms with customers and also manage decision making for their regions. Their structure has allowed them to grow their business across several geographic regions simultaneously while minimizing revenue concentration risk for both vendors and customers.

They have since expanded their portfolio to also distribute memory cards, camera cards and external solid-state drives for the global technology brand. As of September 30, 2023, they distributed 10,508 SKUs across 680 locations across India. They facilitate arrangements with banks or non- banking financial companies for their customers to provide access to finance for efficient working capital management which in-turn leads to their growth, along with stability for their revenue sources and higher customer satisfaction. Their business model is complemented by their advance IT infrastructure. Their infrastructure is capable of handling voluminous transaction loads in terms of orders, customers, and products. Their current ERP system offers thermal-time business analytics and insights to streamline and increase the efficiency of their business operations. Their advanced ERP system has resulted in enhanced business efficiency and flexibility to add features at subsequent stages. They can undertake real-time data analytics which drives analysis of business performance specific to brands, branches, product categories, branch heads and branch managers and channel partners.

Increasing wallet share with global technology brands for their existing portfolio

They currently command a certain wallet share of such global technology brands and believe there is potential to grow their wallet share. As part of their strategy, they intend to leverage their existing distribution capabilities, offerings and experience to increase wallet share from existing global technology brands. With their multiple warehouses present across India, they can stock additional inventory and also facilitate faster delivery of the products. Their understanding of the ICT industry and relationships with their vendors will enable them to expand the scope of their current services as well as provide additional services in new areas and segments to such global technology brands.

They intend to increase their geographic penetration of existing global technology brands into different states and in particular focus on tier II and tier III cities. In regions where they intend to grow their share with a particular vendor, they plan to engage in focused marketing activities and introduce additional programmes. They will look to offer their customers a wider range of products of such global technology brands. As part of their efforts, they will continue to offer end-to- end solutions including pre-sales, marketing, supply, technical and post-sales support. They believe such solutions help increase vendor preference towards their services thereby allowing them to growing their wallet share.

Diversifying their product and solutions offerings and focus on emerging digitization trends

Company acquired Sharon pursuant to CIRP under They intend to continue to expand and diversify their existing product offerings. They have targeted brands that focus on product design and have curated their portfolio to include Edge Processors for artificial intelligence, DRAM, flash memory for storage, automotive integrated circuits, and Internet-of-Things modules such as 4G, 5G and GPS. They have also established a dedicated team that comprises business development executives and sales managers who have successfully on boarded several embedded brands. They aim to establish a presence across the entire IT value chain as an end-to-end technology solutions provider in addition to targeting emerging product areas. For instance, they intend to expand further in their embedded segment, and enter into new sub-segments. Further, they intend to add printing and scanning solutions and associated software, and endpoint security.

They also intend to continue to offer bundled schemes more frequently for their channel partners to efficiently drive sales they also plan to target emerging IT product segments in their developmental stages and establish product experience allowing them to keep their broad product line current with emerging trends. Growth in demand for storage devices, laptops, accessories, networking devices and artificial intelligence machines is expected to drive the demand for ICT products in India going forward. They continue to add additional categories of products from existing global technology brands. For example, they currently distribute notebooks and laptops for a particular global technology brand. Going forward they intend to also distribute tablets for the said global technology brand. Their financial resources and existing distribution infrastructure allow global technology brands to evaluate them favorably for additional product distribution. In their experience, these factors have helped vendors successfully consolidate, reduce their operating resources and become more efficient. Apart from the traditional ICT products distribution, they also intend to step into emerging business verticals to project their selves as the holistic technology solutions provider.

They intend to focus on offering Device-asa-Service (“DaaS”) for their customers. The pandemic has caused a shift in the working environment of people with work from home and hybrid models of working becoming the norm. While a hybrid workplace offers ease of work and safety, it also requires security and control, remote device management and deployment capabilities within organization. This has paved the way for DaaS. The DaaS model offers personal computers, smartphones and other mobile computing devices as a paid service for commercial use. It eases IT needs of a company by outsourcing the hardware, software and device management to an external service provider. Software and hardware management services include device backups, asset tracking, security and end-of-life disposal. Products range from extended warranty to device life cycle management to host of productive monitoring systems that does not require any operational expenses to deliver. They expect DaaS to be significant opportunity for the growth of their business and operations in future. Global technology brands are developing software to track such productive monitoring systems so that organizations can deploy workload-based systems that will further drive efficiencies in their operations. They intend to act as the fulfilment partner of DaaS.

Growing portfolio of global technology brands

They served 45 global technology brands, as of March 31, 2021 that grew to 53 global technology brands as of March 31, 2023 and further to 52 global technology brands, as of September 30, 2023. Going forward, they intend to continue to leverage their distribution network, sales and marketing initiatives and their industry standing to establish relationships with new global technology brands and local brands to expand their vendor base, thereby growing the portfolio of products they distribute. They intend to target global technology brands that offer enterprise class networking and storage solutions. They also intend to foray into the software distribution segment. In order to address new product verticals such as enterprise class networking, storage solutions and software, they will look to hire specialized teams with core expertise. For example, in the past they on boarded a team to grow their embedded solutions sub-segment. They also intend to participate in global forums and exhibitions to show case their abilities, gain industry insights on technology trends and engage with additional vendors.

Expanding channel network wuth deep penetration across India

They have a multi-channel pan-India distribution footprint and adopt a committed high-engagement strategy with their General Trade, Modern Trade and E-Commerce channels. Their current business model has allowed them to grow their business across several geographic regions within India simultaneously while minimizing the risk of geographical concentration in revenue generation for both vendors and customers. In existing markets, they intend to undertake additional channel engagement schemes. They will continue to offer training programmes and marketing support to Channel Partners to improve product knowledge and assist with sales. They also intend to expand their feet-on-street to onboard additional Channel Partners. They intend to further enhance their Channel Partner experience through a CRM software they have implemented, which enable sales automation on a unified platform. In addition, they intend to enter new markets where they are able to provide additional value by capitalizing on their robust distribution infrastructure, wide reach, channel connect and global management skills.

They will continue to expand their geographic reach by further penetrating tier I and tier II, including non-metro, cities. These tier I, tier II and non-metro cities and other rural geographies are becoming center of consumptions for IT products such as personal computers, smartphones, internet devices, networking devices and hence, there is requirement for ICT product distributors and resellers to have a pan-India presence. India is expected to grow continuously across the digital use- case funnel which will be driven by the affordability of internet, continuous improvement in telecommunications infrastructure, increase consumption of data, increased adoption from tier II cities, rising popularity of social media and growing trust and adoption of online payment platforms. They intend to capitalize on the trend towards digitization in smaller cities in India and capture a larger wallet share in these relatively untapped markets, by leveraging their existing networks and operational infrastructure to expand their geographical coverage with economies of scale and cost efficiency. They commenced their international operations in Singapore in 2019 to expand their international footprint. While still nascent, they have witnessed steady growth in their international operations. They also intend to grow their international operations to increase their distribution outreach and Channel Partner connectivity, and to serve the more players in the global market.

Management Profile:

Krishna Kumar Choudhary is a Promoter, Chairman and Whole-time Director of our Company. He obtained his bachelor’s degree of commerce from Kashi Hindu University, in 1975. He has 25 years experience in the IT distribution industry. He is also a member of Institute of Chartered Accountants of India He has been associated with our Company since 1997.

Suresh kumar is a Promoter, Vice-Chairman and Whole-time Director of Company. He obtained his bachelor’s degree in commerce from the Rajasthan University in 1975. He is also an associate member of the Institute of Chartered Accountants of India. He has 33 years experience in the technology channel sector. He has been associated with our Company since 1989.

Kapal Suresh is a Promoter and Managing Director of Company. He obtained his bachelor’s degree in commerce from the University of Mumbai in 2004. He has 15 years experience in the technology channel sector. He has been associated with our Company since 2007.

Keshav Krishna Kumar Choudhary is a Promoter and Whole-time Director of Company. He obtained his bachelor’s degree in science with a major in electrical engineering from the University of California in 2018. He has 10 years of experience in the technology sector. He has been associated with our Company since 2012.

Yazdi Piroj Dandiwala is an Independent Director of Company. He obtained his bachelor’s degree in science from University of Bombay in 1967 and has also obtained his bachelor’s degree in laws from the University of Bombay in 1973. He has 49 years experience in the legal sector. Prior to his association with our Company, he has served on the board of directors of The Ravalgon Sugar Farm Limited, Aureos India Trustees Private Limited, Carina Finvest Limited and Petnopolis India Private Limited. He is currently on the board of directors of Century Textiles and Industries Limited, Pilani Investment and Industries Corporation Limited, Hindalco Industries Limited, Hindalco-Almex Aerospace Limited, Duville Estates Private Limited, Bombay Incorporated Law Society and Access Trusteeship Company Private Limited. He has been associated with our Company since 2022.

Anandkumar Radhakrishna Ladsariya is an Independent Director of Company. He obtained his bachelor’s degree of commerce in the field of Accounting and Auditing from R. A. Podar College of Commerce and Economics in 1978, a post graduate diploma in Management from The Indian Institute of Management, Ahmedabad in 1979 and has completed the broker’s programme on Stock Exchange Studies from the Training and Research Institute of the Stock Exchange, Bombay in 1994. He has experience in management. Before his association with our Company, he has been on the board of directors of Sun Aromatics Private Limited, Indigo Flavours Private Limited, Velhari Trading Company Private Limited and Pioneer Flavours Private Limited. He is also currently the managing director of Everest Flavours Limited. He has been associated with our Company since January 18, 2023.

Drushti Rahul Desai is an Independent Director of Company. She obtained her bachelor’s degree in commerce from the University of Bombay in 1994. She is also a member of the Institute of Chartered Accountants of India and a registered valuer in respect of securities or financial assets with the Insolvency and Bankruptcy Board of India. She has experience in the field of valuations and 25 years of experience as a member of the board of directors of several companies including Globallogic India Private Limited, Globallogic Technologies Private Limited, MT Educare Limited, and MPIL Corporation Limited. Additionally, she is currently on the board of directors of Kewal Kiran Clothing Limited, Narmada Gelatines Limited, Chemfab Alkalis Limited, Aegon Life Insurance Company Limited and Kruti Finance and Holdings Private Limited. She has been associated with our Company since 2022.

Mamidanna Prasad is an Independent Director of Company. He obtained his bachelor’s degree in commerce from the Osmania University in 1979 and obtained his master’s degree in business administration from the Howard University in 1982. He has also completed an executive program in International Management from Stanford University and National University of Singapore in 2003. He has 19 years of experience as a member of the board of directors of several companies including Spectra Innovations India Private Limited, V5 Global Services Private Limited, Divyasa Healthcare Private Limited, and Onspec Technology Solutions Private Limited. Currently, he is also on the board of directors of Spectra Innovations Inc., USA. He has been associated with our Company since 2022.

Financials:

Balance Sheet

Profit & Loss

Cash Flow

Valuation & Opinion

Rashi Peripherals Limited is a company that distributes global technology brands in India. They specialize in products related to ICT or Information and Communication Technology. The company's service offerings include value-added services such as pre-sales, technical support, marketing services, credit solutions and warranty management services. Their revenue from operations grew at a CAGR of 26.32% from ₹ 59,250 million in Fiscal 2021 to ₹ 94,543 million in Fiscal 2023 and were ₹ 54,685 million in the six months ended September 30, 2023. They differentiate ourselves by offering end-to-end services such as pre-sale activities, solutions design, technical support, marketing services, credit solutions and warranty management services. They have organically grown their operations and have demonstrated an increase in their revenues and profitability. For instance, their revenue from operations, EBITDA and restated profit after tax have consistently increased between Fiscal 2021 and Fiscal 2023. Their revenue from operations were ₹ 59,250 million, ₹ 93,134 million, ₹ 94,542 million, ₹ 50,239 million and ₹ 54,685 million in Fiscals 2021, 2022 and 2023 and in the six months ended September 30, 2022 and September 30, 2023, and have grown at a CAGR of 26.32% between Fiscal 2021 and Fiscal 2023. At the current price the company looks very attractive for long term perspective.

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