The new manufacturing facility is being necessitated by the company plans to enter the higher end of the market. PCS already operates a similar facility at Silvassa. The new project will also cover the warehousing needs of the company. "The product has a very short life cycle due to the nature of technology and hence the need of a centralised warehousing location," said PCS Industries director, Harish Tandon. Talking to The Financial Express, Tandon said that the project assumes importance amid the company's plans to make a foray intothe home segment, which is growing at 90 per cent in India.

PCS is planning to enter the home segment and offer its Orion brand of PCs at par with those in the Indian market such as HCL, Zenith and Wipro. The PC division has contributed around Rs 145 crore last year to the group turnover."We have targeted a turnover of Rs 220 crore this year with a growth of around 50-70 per cent," says Tandon.

He also said that the company had a first quarter growth of 100 per cent compared to the same period last year. PCS has been a traditional supplier of PCs to banks, financial institutions, government agencies and PSUs.

"Roughly 45 per cent of our business comes from banks with the State Bank of India being our exclusive partner. However, competition is very tough in all these areas and margins are under pressure. We would be able to compete through better management of resources and costs if we have our own facility," Tandon said.

PCS sells around 30 per cent of the output to government agencies and 15-20 percent to educational institutions. The company plans to peg the computers for businesses at around Rs 30-32,000 and nodes, typically used by banks and financial institutions, at around Rs 18,000. PCS is an original equipment manufacturer (OEM) partner with Intel Corporation and Microsoft and hopes to cash in on the demand for the systems and software of these companies.