Zenith Computers Ltd (ZCL) is one of the largest manufacturers and sellers of a complete range of PCs, servers, mid-range systems, LANs, WANs and Unix products was Incorporated on 20th May 1980, at Mumbai. Rajkumar Saraf and his associates promoted the Company. In starting, Company's object was to manufacture computers and micro processors based systems and peripherals. Later, company introduced high performance MS-DOS machines under the name of PROFESSIONAL.

Company also introduced for the first time a UNIX operations system based on Motorola - 68000 processor. LAN (Local Area Network) System was also introduced by the Company. Company has a memorandum of understanding (MoU) with Internet service provider (ISP), Bangladesh Online (BOL) to produce computer hardware and software. In FY02, the company has invested Rs eight crore in its manufacturing facility.

The facility has a production capacity of 25,000 units though it currently produces 8000 units every month. In addition to this, Company is also investing on brand awareness activities. Company launched “Zenith One-up” to counter the corporate PC market that is presently dominated by MNC. The software development arm of Company, called, Zenith Infotech Limited, has been merged with Singapore-based Zenith Software. Zenith is also the national distributor of IBM Corp, USA, Hewlett Packard Corp, USA and Compaq Corp. It is in a strategic partnership with Compaq India to increase the market share.

Products & services—

Zenith Computers Ltd is one of the largest manufacturers and sellers of a complete range of PCs, servers, mid-range systems, LANs, WANs and Unix products. It also provides focused services on networking systems integration, which includes consulting solution, design, integration, migration, outsourcing and maintenance services. Company was the first to bring in Novell Netware in India and to launch “Home PC” in year 99. The company has more than 25 branch offices and more than 500 Zenith PC world stores and 800 dealers nationwide. It has an installed base of 1 million computer systems in India.

Zenith Computers has selected Western Digital Corp. As a supplier of hard drives for its PCs. Zenith is integrating Western Digital's WE Protege, WD Caviar and WD Caviar SE- with both serial AA and EIDE interfaces-hard drives into its mainstream desktop PC Systems. Zenith Computers launched, along with chip major Intel, a multimedia PC for students.
SGI India has strategic tie-up with Zenith Computers for sales and Support of the formers IA-32 based workstations and servers throughout the country. - Cymbionic Marketing Ltd. a prominent name in Multi-level marketing has tied up with the company for boosting its marketing and distribution strength. Company has presence in gaming personal computers in association

with Singapore's Creative Technology Ltd in an effort to capture the growing home entertainment and Internet market. It is actively focusing on Internet applications with special emphasis to the application of Internet banking products. It is looking at aggressively marketing Banc724, its Total Banking Automation (TBA) solution aimed at co-operative banks. Company hopes to launch other e-commerce products soon.

Recently, company has launched laptop priced at Rs 14,999 and desktop PC priced at Rs 11,999. This new low cost computers will be under the brand name “EcoStyle”. The computers will be launched by Zenith’s chain of 800 authorized dealers and 350 exclusive showrooms will stock these computers.

Valuation—
At current market price, stock is trading at 11.24 P/E multiple of its FY2011 estimated earnings. We recommend investors to buy “Zenith Computers” for long-term investment horizon.