3Com likely to shut India sales operation?

According to market information, 3Com is on the verge of shutting down its
sales operation in India and their Country Manager-Mohit Rampal has also decided
to quit the company. Market sources have also confirmed that 3Com is in the
process of freezing a joint venture with a Mumbai-based company that would take
control of the operations of the company in India.

As per industry information, 3Com is soon going to rollout strategies for the
Indian market that would bring changes at the business as well as manpower
level.

Rampal could not be contacted to comment on the matter. When enquired with
the employees of 3Com based in Mumbai, they refused to comment on the issue and
clarified that they are not aware of any such information.

However, Peter Chai, VP and GM, 3Com, Asia-Pacific clarified, “For 3Com,
India is an important market and we are coming up with some strategies that will
be announced soon. It is true that 3Com is looking for a partner in India who
could invest in the Indian market and focus on the technical and sales operation
of the market.” This would not be a joint venture but a partnership, he
emphasized.

Mohit Rampal, Country Manager of 3Com

He further said, “We are looking for a partner who can invest in 3Com, look
after the technical training of the team and take care of the logistic and
engineering issues of the market.”

When enquired with Chai about the shutting of sales operation in India, he
said, “Our offices in India, whether in Mumbai or Delhi will be operational and
will not shutdown.”

He further added that depending on the size and nature of the partner,
manpower of 3Com could be collaborated with the new organization and
announcement of the new partnership will be done within a month this year.

Redington, Ingram Micro and Cyberstar are the main distributors of 3Com in
India.

Sources at Ingram Micro clarified that officially they have not been informed
of any such move. A senior member of Cyberstar stated that he is not aware of
such information and the distributors of 3Com have not been informed directly
from the vendor.

Dealers of 3Com based in New Delhi shared that they are aware of the movement
of their country manager from the company but it has not been declared
officially.

However, the distributors and the channel partners of 3Com agreed that the
vendor has not been doing impressive business in India for the last one year and
their sale is declining in the market.

“In the absence of aggressive marketing strategies for India, 3Com has been
losing its hold and they are lagging behind in the competition. They are not a
very strong player due to which they are witnessing low business account in
India,” commented a channel partner of 3Com.

Though the channel has not been intimated about the shutting down 3Com's
sales operation, they agreed that if it happens the move would affect the
dealers for after-sale support.

An ex-Country Manager of 3Com shared that the company's plan to shut the
sales operation in India and finalize a joint venture with another company is
true, however, further details would be available only when the company itself
declares the news.

When enquired with Chai about Rampal's decision to quit the company, he said
that though Rampal has not announced it officially, it was entirely his personal
decision and 3Com would welcome the move.