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Wednesday, July 9 1997

Small business climbs on to the CD-ROM bandwagon

Santosh Tiwary

New Delhi: Though very few Indians today are computer-maniacs, there is little doubt that the breed will only grow in coming years. The trend is already on track and the expanding market for CD-ROM in India will coin a big opportunity for the progressive entrepreneur. It has all the possibilities of becoming an infallible `money-making mantra'.

The basic advantage of CD-ROM over other storage devices such as video cassettes or floppies is that it has a long life. S K Gulati of Alliance Computers, dealing in CD-ROMs, says, "Whoever purchases computers, goes for CD-ROM also." What type of CDs are in demand? Pankaj of Innoserv Systems says, "Games CDs are more in demand. Though every segment has its own requirements: a professor goes for informative ones, a house-wife goes for her likings, young people go for movies but games are the favourite of all."

The price of a CD-ROM depends on what kind of information is stored because it is a memory procedure. In general, the charges for these CDs range from Rs 200 to Rs 2,500. Some CDs in a pack of ten cost Rs 90 each. "The price of the CD varies depending on the demand and type," says Pankaj.

Large number of small data can be stored in one CD-ROM but pictures take a lot of memory space and not many totally different pictures can be stored in one CD-ROM. But, reproduction of a picture does not consume that much space and repeated use of one picture involves less storage space. "Its same as 10 gm of gold costs more than 30 kg of sugar, " says S K Sethi of SS Graphics.

Almost all the CDs available in India today come from the foreign companies such as Microsoft, GT Interactors, Virgin Interactors, Individual Software and Sairfield Language Technologies.

Magic Software is one of the companies which is holding the Indian flag high. The company is engaged in producing CDs related to the Indian contexts. India Mystica which costs Rs 1,595 gives general information about India. India Festiva gives information about the Indian festivals and Guru teaches Hindi - both cost Rs 1995. Pankaj says, "Because of their specific nature, these CDs are in demand." What about profit? Pankaj says, "If the company gives us a CD for Rs 100, it reaches a customer at Rs 150."

Actually, CD-ROMs containing data of various types can only be mass-produced. It is just like block-printing. CD's surface contain small pores. When the data is stored in it in binary codes (0 and 1). A laser light falling on the surface either gets reflected straight or at an angle giving zero or one. All types of data coded in 0 and 1 are decoded in this manner. And this is how the data is read. How to produce these informative CDs? Says Pankaj, "The production involves a number of processes and is costly. For producing 20,000 CDs of a certain type the cost incurred will work out to be roughly around Rs 90 per CD. And, it is almost the same for any type of CD-ROM."

What about the business prospect of CDs in India? Gulati, who has been dealing in CD-ROMs for the past one year, says, "The demand of CD-ROMs is going up very steeply. There is no problem in selling CDs. The business in CDs has a bright future because the market is growing by the day.

But, S K Sethi of SS Graphics differs. "In India, prospects are poor because nobody will purchase original CDs. I will also not buy an original. Indian people like illegal things. Most of the Indians also don't have enough money to spend in CD-ROMs. Those who can, just don't have the inclination. Indians can spent a lot of time and money in singing and distributing `prasads' in mandirs but they can't spend their time and money to acquire knowledge. One can produce CD-ROM for promotional purposes only. One can only export these CDs."

Though Sethi believes that at the moment the business is not feasible, he agrees that from library point-of-view, its good. At present, there are only a few libraries which provide CD-ROM facility. American Centre is one of those. But in future, due to their utility value, demand for CD-ROMs will grow considerably. As it will be impossible for everyone to purchase CD-ROM, more and more people will opt for libraries which will provide this facility.

Will CD-ROMs make video-cassettes extinct? Notwithstanding Sethi's pessimism, CD-ROM has immense possibilities. Its a matter of time only when more and more Indian players will join the CD-ROM race.

An idea whose time has come

Jaipur: "We synergise education and entertainment" - this slogan tells it all. Welcome to Computer Club - the pay-and-play multimedia CD-ROM club at Jaipur's Prithviraj Road. At a individual annual membership of Rs 3,000 for a 150 hours, thrice a week, at a maximum of one/two hours per session, - the idea behind the club is to give exposure to the richness of interactive CD-ROMs through multimedia PCs without actually owning one."With rising consciousness about computers and what it can do for us as a educational and entertainment tool, Computer Club hopes to fill the need for those who would like to explore these new frontiers but don't have the means to do so," says Director Anita Singh.Encashing on the edutainment wave, the Computer Club at Jaipur, the first of its kind in the city, was launched in December 1996 with an initial investment of Rs 12 lakh.

The club has about ten multimedia Pentium 100s and houses over hundred game and educational CD-ROM titles for members to click and play with. With the Pink City now on the Internet map, members also have the added incentive of surfing the World Wide Web at Rs 100 an hour. Though touted as a family get-away, the members, who number approximately hundred, are in the age group of 5-15. This, feels Singh, has come as a disappointment. "The response has been lukewarm because Jaipur is not computer-conscious. The business will do better in Delhi or Mumbai."

Though optimistic that interest will pick up in future as the computer bug bites more and more people, to keep the cash register ringing for the time being, Singh is thinking of going the conventional way - of starting a computer training centre.Highlighting the difference between a computer club from a cyber cafe which have sprouted in several cities, Singh says, while computer clubs are family-oriented, cybercafes are a more elitist. While several cybercafes have been known to operate without proper licences, the Computer Club at Jaipur uses only legal software, claims Singh.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.

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